Businessmodel of BlaBlaCar

Customer Segments

BlaBlaCar’s platform is aimed at users that want to save money on long-distance travel – the average journey distance being 213 miles – avoiding the high costs associated with plane and train travel, as well as at environmentally conscious consumers that wish to reduce their carbon footprint.

The platform has around 25 million registered members in 22 countries, primarily across Europe, but also in Brazil, Mexico and India. It attracts both solo drivers that wish to recoup some travel costs or have some company for the duration of their journey and passengers that have no means of transportation themselves. According to the Company’s own information, around 71% of BlaBlaCar users are passengers, while 54% are male.

Value Propositions

The BlaBlaCar platform allows customers to save money on long-distance travel by sharing costs with one or more other users. The platform’s community functionality makes the process of car travel a safer and more social experience, meaning drivers do not have to make long journeys alone.

The Company’s rating and review system also allows users to view and asses their potential ride-share partners before accepting a journey. As security can be of particular concern to female users of ride-sharing services, BlaBlaCar offers a Ladies Only option, allowing members to create journeys where the driver and all passengers are women.

All BlaBlaCar journeys are insured free of charge, with ride-shares not affecting the existing insurance policies of drivers. Additionally, BlaBlaCar encourages a more environmentally friendly approach to car travel, making use of otherwise empty car seats.

Channels

The BlaBlaCar platform can be accessed through mobile and desktop browsers at its various regional websites, such as www.blablacar.co.uk, www.blablacar.fr, www.blablacar.in and www.blablacar.ro. BlaBlaCar users can also manage their accounts, find rides, and connect with passengers through the Company’s free iOS and Android mobile apps.

Customer Relationships

The BlaBlaCar platform is available on a self-service basis. Users can register and set up an account through the Company’s website, or via its mobile apps, without having to interact directly with BlaBlaCar representatives. Once registration is complete users can access the platform’s full suite of options, searching for rides and passengers, rating other users, and recording payment details.

The Company provides support to its users through FAQs and online contact forms. The Company also keeps its user updated with developments to the platform through its blog, and enables its customers to interact with BlaBlaCar representatives directly through its Facebook, Twitter, Google+ and YouTube accounts.

Key Activities

BlaBlaCar develops, maintains and markets a ride-sharing platform that connects drivers with passengers that are willing to share the cost of long, inter-city car journeys. BlaBlaCar’s platform incorporates social functionality that includes ratings and reviews by other members, social network verification, and rate of response information. This service allows drivers to cover a proportion of their travels costs and allows passengers to avoid high-costs associated with plane and train journeys.

The Company also provides dedicated customer service to its users and manages a network of marketing and affiliate partners.

Key Partners

BlaBlaCar manages a network partners, including marketing affiliates, travel companies and concession operators. All BlaBlaCar rides in France and the UK are covered by ride-sharing insurance underwritten by AXA. The Company offers free Driver and Find a Ride widgets that can be embedded into websites to promote car sharing as an economical and practical transport alternative. These widgets are particularly aimed at organisations and venues that attract high numbers of visitors such as universities, festivals, and tourist sites.

BlaBlaCar has also entered into marketing partnerships with travel operators and marketplaces. It has recently collaborated with IRTCT, a subsidiary of Indian railways, to advertise its ride-sharing services to users looking to book tickets for city-to-city journeys, and with travel marketplace Ixigo.

BlaBlaCar has also established a partnership with European motorway concession operator VINCI Autoroutes, which now offers an automated toll payment that is valid for two long-distance ride-share trips per month reserved on BlaBlaCar and made on the VINCI Autoroutes network.

Key Resources

BlaBlaCar’s key resources are its software platform, its IT infrastructure, and its marketing partners. The platform’s community of drivers and passengers are also a key resource, with their shared activity accounting for the entirety of the Company’s revenue.

Searches of record held by France’s National Institute of Industrial Property identified no patent applications filed in the name of BlaBlaCar or Comuto.

Cost Structure

BlaBlaCar incurs costs in relation to the retention of its 360 employees and the maintenance of its software platform and IT infrastructure. The Company also accrues costs relating to marketing and advertising, including the management of its marketing partnerships, as well as fixed costs in the form of rent and utilities for its network of 22 offices.

Revenue Streams

BlaBlaCar generates revenue by taking a commission on fees paid by passengers to BlaBlaCar drivers. For every payment made by passengers to cover the travel expenses of their driver, BlaBlaCar takes a cut of 12%. Under this transactional business model, drivers set a price per seat onto which BlaBlaCar adds a small amount to cover its 12% fee.

While the Company does not disclose its annual revenue figures, it has claimed that it has 2 million customers who use its services every month and that the average ride charge was around $25. Using these figures Business Insider estimated that the Company could generate as much as $72 million in annual revenue, assuming these regular users take one trip per month.