BlaBlaCar Business Model – The World’s Largest Ride Sharing Community
Unicornomy’s little sister Sharing Economy is on the rise, people are using shared resources more than ever, be it rental apartments on the trip (AirBnB), shared cabs for short distance travel or sharing the rent over an app or sharing the food bill over an app! What ever it is – it definitely is Big and will hit the Unicorns before they realize what hit them!
About BlaBlaCar, Funders, Founders and Facts
BlaBlaCar is not a StartUp anymore, it is the oldest form of a startup which is catching up with the startup wind up until recently, with massive amounts of money loaded into its bank accounts and BlaBla aggressively ramping up teams and countries to its kitty.
BlaBlaCar Founder: It is one of the rare unicorns to be born out of France, and was founded by Frédéric Mazzella (CEO), Nicolas Brusson (COO), Francis Nappez (CTO)!
BlaBlaCar Funding: So far funded for more than 300 Million USD, last known valuation was 1.6 Billion USD, BenchMark and Accel are the key investors.
It competes with many local competitors but the fiercest of them is carpooling.com! In some parts of the world, BlaBlaCar completes with Uber’s ride sharing portion as well.
You may also want to Read: Business Model of Uber!
BlaBlaCar Business Model
Before we move to the exact revenue generation or monetization strategy of BlaBlaCar, we must first understand that it is just one of the types of Aggregators available in the market today and does not hold inventory, nor does it hold any Radio Taxi permit required to rent cars in many parts of the world.
We must also understand that in majority of the parts of the world including developed and third world countries it is illegal for passenger vehicles (registered under ones own name without any commercial interest in mind) to ferry customers / riders for a fee. They can do it for no fee though! This is to protect the Taxi Unions of that country and to make sure that normal passengers are safe and do not give hitchhikers much of their BlaBla while a Trip.
Thus in most parts of the world, the person going alone in the car may not be directly able to ferry or scout passengers as a Taxi Guy can do.
You may also want to Read: How does Ola Cabs Make Money!
How does BlaBlaCar make Money
BlaBlaCar Business Model is pretty straight forward in terms of understanding, In majority of the countries where BlaBlaCar is present for long, it takes a cut (ranges from 12-15%) of the cost of the ride from point A to point B.
Consider this example:
- A Trip from Mumbai (India) to Pune (India) will cost a self driver, owner of the car atleast, 1200 INR (120 KM * 10 Per KM)
- There are 4 more seats (excluding the driver) in the car i.e. 240 Rs per seat (No Profit, No Loss)
- If the seats fill out and the driver pays for his own share – he has not made any money in the transaction but has reduced his travelling expense (which is an earning though)
- BlaBlaCar calls these people who drive as ambassadors – and books seats on their behalf prior to the trip
- The travellers pay BlaBlaCar for the trip and in turn the company pays the drivers post the trip is complete after deducting a 12% fee on the total collected by BlaBlaCar.
- In this example the driver will never make a profit because that may result in regulations concerning taxi in that particular country and BlaBlaCar does not want to get into that, thus their route prices are mostly fixed and they do not stuff the car with more than 3 passengers
BlaBlaCar Business Model in markets where BlaBlaCar is just penetrating is not to charge any fee to the rider for scouting riders until it gets a critical mass for scale.
Disclaimer: The understanding of the BlaBlaCar Business Model is of the Author’s himself, neither any investor, banker or VC (local or global) or qualified consultants or the company have confirmed or explained the same to the author and the descriptions, stats, facts and figures, if used, are either obtained through secondary web research or interrogation of relevant search professionals or other resources on the web. Please use your own discretion to use this info when required and by continuing to read, you agree to indemnify the author & Unicornomy from the entire liability arising out of using this info on your own.