Businessmodel of Movinga

Customer Segments

Movinga has a mass market business model, with no significant differentiation between customer segments. The company targets its offering at all consumers who want to move to a new location.

Value Proposition

Movinga offers four primary value propositions: convenience, customization, price, and brand/status.

The company offers convenience by making life simpler for customers. Consumers can schedule a move in advance on its website, specifying a suitable timeframe. No in-person home inspection is required prior to the day of the actual transport. Movinga can provide a real-time estimate of the move cost based on information provided (number of rooms in house, location of destination, etc.). There is almost always someone available for a move because the company works with a large network of partners who can fill their spare capacity (time-wise and space-wise) with new customers. Lastly, payments are not due until 24 hours after the move is completed to confirm satisfaction.

The company enables customization by allowing customers to specify the date/time of the move and the exact services they will need as part of the move.

The company offers a price value proposition. It claims that its prices are up to 70% less than those of the average moving company in Europe. It is able to provide this value by increasing efficiencies and reducing costs through its use of partners, who can use their empty time slots for customers. Once a client has provided information and it sets a price, it guarantees it will not apply additional charges.

The company has established a well-known brand due to its success. It claims to be the fastest-growing online provider of moving services in Europe. Also, it estimates that it completes 1,000 moves a month, with a goal of eventually increasing to 4,000.

Channels

Movinga’s main channel is its website. The company promotes its offering through its social media pages.

Customer Relationships

Movinga’s customer relationship is primarily of a self-service, automated nature. Customers utilize the service through the main platform while having limited interaction with employees. The company’s website provides self-help resources such as a moving checklist and answers to frequently asked questions. That said, there is a personal assistance component in the form of phone and e-mail support.

Key Activities

Movinga’s business model entails maintaining a robust online platform and providing relocation services for its customers.

Key Partners

Movinga’s key partners are the network of professional movers it contracts with to supplement its relocation services. They sign up for moves if they have spare time and space in their vehicles. Partnership benefits include the following:

• The moving jobs represent an extra source of income, particularly for smaller operations
• There is no cost to be a moving partner
• Partners are not required to complete a minimum number of moves
• Partners can sign up for any move requested on the company’s website
• Movinga takes care of all administration processes (order acquisition, volume estimation, etc.)
• Movinga provides support for partners through its customer service team
• Partners receive payment directly from the company’s automated services
• Movinga takes on all financial risk associated with payment defaults or additonal expenditures Partners who complete a high number of moves and/or achieve a high customer satisfaction rate can obtain additional benefits. For example, Movinga worked to build a professional website for COS Freight, a partner that was praised by customers for its high-quality service.

Key Resources

Movinga’s main resource is its proprietary software platform, which calculates real-time price quotes and facilitates more than 1,000 moves per month.

It depends on human resources in the form of engineering employees who maintain and update the platform, drivers that complete customer moves, and customer service personnel who provide support.

Lastly, as a new startup it has relied heavily on funding from investors, raising $31.82 million from 15 investors as of August 2016.

Cost Structure

Movinga has an economies of scale cost structure, aiming to reduce costs and lower prices for customers as it expands the number of movers able to conduct relocations. Its biggest cost driver is cost of service, a variable cost. Other major drivers are in the areas of customer support/operations and marketing/sales, both fixed costs.

Revenue Streams

Movinga has one revenue stream: revenues it generates from the fee it charges consumers to relocate their belongings to a new location. The fee includes payment for the actual move as well as any additional services that are provided.