ROLE: Product manager - Free Market

TOOLS: Keynote, street intercepts, financial modeling, business model canvass, one-page business plan, human centered design, service design

Team Members: Gagan Mauli,
Riley Moynes & Sohraab Walia

// link to pdf

Emerging Business Models for Personal Transportation in France

Rawitsch, Mauli, Moynes, and Walia
Business Models and Stakeholders
Spring 2016

Executive Summary

Business models are the most important asset a business uses to deliver value. What businesses sometimes do not know is that business models must evolve to suit the needs of an ever changing market. Renault, an automotive manufacturer based in France and one of Europe’s largest automotive manufacturers is beginning to see a once comfortable market, change. The confluence of the disruptive force of the shared economy and the cost of ownership of cars in urban areas has lead to declining sales of their key product ­ the personal automobile.

To address this problem Renault set up an innovation outpost in Silicon Valley to monitor disruptions within the automotive space ahead of the market. This innovation outpost is known as Renault Innovation. To expand the knowledge base available to the Renault Innovation team, they approached CCA’s DMBA program to acquire a team of students to work on business model innovation. The team consisting of Riley Moynes, Gaganvir Mauli, Nicholas Rawitsch and Sohraab Walia were assigned the task of developing three disruptive business.

Renault began by asking us to figure out how to sell a car for free, but we found that in cities, people don’t want to own cars.

This led us to seek out solutions which would pay drivers to own a car; one model based on the sharing economy, another through advertising, and a third to mobilize seniors. The following document details the current market situation, Renault’s status quo business model, as well as three business model recommendations along with supporting financial/process information.

In the process, we imagined a world where people didn’t buy cars for personal transportation, rather to make money. We imagined a world where anyone can go anywhere in an instant, at a price they decide themselves. In this world we imagine Renault among its peers, including both GM and Ford ­ who are already investing in the sharing economy, advertising supported transportation, and many other services to prepare themselves for the transition to the autonomous car.

Our recommendation for Renault: the consumer automotive market is shrinking. Owning a vehicle is no longer a requirement or a luxury. It's going to be up to car companies to incentivize vehicle ownership in the future. As part of this recommendation, we are offering three business models to help incentivize vehicle ownership.

The Current Situation

Groupe Renault

Renault is a French multinational automobile manufacturer established in 1899. Established for 117 years now, it has produced a vast range of automobiles a wide variety including cars, vans, trucks, tractors, tanks, buses/coaches and auto rail vehicles. Based on 2013 statistics, ​Renault was featured as the eleventh biggest automaker in the world by production volume with 50.5% of sales coming outside of Europe. ​Renault has become an international brand, and it operates nearly 40 manufacturing facilities in more than 15 countries and sells to 118 nations.

Created in 1999, the Renault­Nissan Alliance is a unique partnership between two of the largest automakers in Europe and Japan. Renault has a 43.4% stake in Nissan, and Nissan holds a 15% stake (with no voting rights) in Renault, thereby giving it effective control. Renault has a 50% stake in the joint venture Renault­Nissan b.v., which was established to manage the Renault­Nissan alliance. Although headquartered in Boulogne­ Billancourt, France, our team had an opportunity to work closely with Renault Innovation Office in Silicon Valley (RSV). The RSV facility focuses on research and advanced engineering, in particular, electric vehicles and their supplier and infrastructure ecosystem, onboard services and business development. Paris­-based Renault and Yokohama-­based Nissan maintain separate brands and cultural identities in the RSV but collaborate through joint purchasing, platform sharing, and cross-­shareholding. The strategic advantage of being in the Silicon valley has allowed Renault to capitalize on the region’s world class engineering talent and stay ahead of trends that are reshaping the way people interact with their cars.

Organization Structure at RSV

Currently, RSV is run by nine­ person team with oversight by Serge Passolunghi, the Director. The team consists of three innovation project managers, four researchers, one strategy manager, and a business model innovation manager. The RSV has frequent visits from Renault’s HQ in Boulogne ­Billancourt, France and collaborates closely with a focus on innovation centered projects.

Business Model Canvas

The business model canvas shows Renault’s current business model, which is discussed in detail below.

Value Proposition

Renault sells vehicles that are are affordable, safe and environmentally friendly. They pride themselves on their efforts to create sustainable mobility for all.

Key Partners

Optimization and economy of scale partnerships exist in order to reduce their production costs. Renault formed an alliance with Nissan in 1999, enabling them to further reduce costs and create new business opportunities. Renault has partnered with governments to change city infrastructures to better incorporate electric vehicles and with fleet operators from different car sharing companies. Additional partnerships include dealerships, raw material suppliers, spare part dealers, the Government of France, Samsung, design firms (for some parts), marketing firms, production companies, etc.

Key Activities

Being an automobile giant, Renault’s major activities are R&D and manufacturing.

Key Resources

In order to maintain smooth functioning of its key activities, Renault maintains the company as well as alliance owned factories across Europe as well as Asia.

Customer Segments

Renault prides itself on catering to the needs of the global mass market. However, this was one of the potential opportunity areas where the team realized that by focusing on a target demographic which was driving the consumption pattern, we could capitalize on this strength.

Channels

Only via the dealership network or online. Their cars are also available via the used car market, where spare parts and upgrades can be purchased as well.

Customer Relationships

A pain point for the company ­ Renault has limited customer relationships. They have developed an app called My Renault, which helps customers keep track of their vehicles and firmware upgrades. Besides that, no significant efforts are currently being made to establish a strong relationship with customers.

Cost Structure

They have a cost­driven structure where payment is received at the time of purchase of a vehicle and when a part needs to be replaced through a dealership network. They are looking to minimize cost of development and production to realize a higher profit at the time of sale.

Revenue Stream

Asset sales account for most of their revenue. Subscription to the official Renault maintenance center for servicing vehicles is another contributor. Profit per vehicle is in the range of $400­$600 per vehicle sold, collected at the time of purchase.

Understanding the French Market

Since Renault is a dominant automobile player in France, our client was interested in redesigning their business models specifically for this market. This required understanding the dynamics of the market as well as other existing players. We supplemented our information about the French market by understanding the target demographic that was driving the consumption trend in France.2​Based on the reports, it was evident that it is not millennials who are driving the sales of automobiles rather, the demographic between the ages of 40­50 years old. This led us to investigate what was limiting the sales of new automobiles.

Competitor Analysis

The team conducted an in-­depth analysis of existing traditional competitors for Renault in France.

• Peugeot ­ Established brand in France ­ is known for quality products but tends to be less expensive and more affordable for young people.

• Volkswagen ­ Partnered with BMW and gained a significant market share. They have a higher quality product and tend to cost more than a Renault.

• Ford ­ Started offering tailored products while offering low­cost vehicles.

• Opel ­ The European branch of GM threatens Renault’s existing business model by providing low cost, stylish competition to Renault’s Clio. Example: the Opel Astra.

• Toyota ­ Targets price driven customers.
  
  
  
  

Challenges

Changing Market Dynamics

In order to meet the changing needs of customers, Renault’s traditional competitors like General motors (GM) and Ford have taken steps to prepare for a massive change in the automotive market. In the age of new mobility, we found that GM has begun investing in strategic partnerships with Lyft and advertisers to cater to the new needs of younger consumers. ​At the same time, technology innovations like the Ford Pass keyless entry app are driving Renault to think outside of the box.

Rise of the Shared Economy Model

Based on secondary research, the team realized that Renault was losing a fair amount of market share to new shared economy models. Consumers in France did not seem very interested in owning a car. Many young and urban households in France, with increasing numbers of consumers in urban households, were deciding that they would rather not own a vehicle, opting instead to make periodic use of another person’s vehicle. We spoke with a French DMBA student​5who had lived in Paris, who confirmed our suspicion. There was also a gradual change in the status of the car from being of inviolable extension of one’s self to just another form of utilitarian transportation. Along with Uber, there has been a surge of local companies like Drivy, Autolib, Blabla Car and Buzz Car who have started chipping away at Renault’s bottom line.

Our Understanding of the Client´s Objectives

Renault has bold objectives for the next three years. They have a strong interest in launching and capitalizing on new services apart from their traditional method of profit generation. They are keen to add critical elements to their existing value proposition and most of all, to put in place the systems necessary to support growth and develop new services.

The first objective is to increase gross sales revenues from $41B in year 1 to $50B in year 3 years. Increasing the gross sales revenue is critically important objective that sets the required groundwork for other objectives to be met.

The second objective is to increase product add-ons by $100 per car by 2018. Again, this is a foundational objective that supports the growth of other services and products that the organization could eventually build into.

The third objective is to increase the number of millennials buying cars by 20% by 2018. Finally, the fourth objective is to decrease inventory by $1B by 2019 and attain a utilization rate of 85% for its industrial capacity

See Appendix A for status quo ­One Page Business Plan

Initial Direction by the Client

With an implicit understanding that cost was the biggest barrier to a customer's purchase of a Renault, the client encouraged the team to work on a hypothesis of selling a Renault car at $0 while still turning a profit. Post qualitative and quantitative feedback done across a total of 15 participants through street intercepts, the team realized this was not a non­viable option.

Research participants told us that they were not as concerned with the upfront cost of owning a car as the ongoing costs (parking, maintenance, insurance, gas etc.). They also expressed the well known fact that buying a new vehicle is an extremely poor investment, and that a new vehicle’s valuation drops significantly the minute it is driven out of the showroom. City dwellers were discovered to face additional hardships related to car ownership including parking tickets, theft, damages caused by other drivers, and fewer reliable places to park.

This led the team to think of alternative approach.

What if we change the equation. Instead of lowering price barriers, we change the model to add value. What if we make vehicle ownership profitable?

Our Recommended Approach

Our key insight into Renault’s status quo business model was that they had not paid attention to building customer segments and customer relationships. Being an enormous corporation, operating for more than 100 years, they had failed to adapt to the changing market dynamics. This creates a disconnection between the customer needs and the company deliverables. It is important to create virtuous cycles which are robust and self sustainable. Currently, this is not happening.

Thus, we recommended that Renault create a service that generates revenue for the consumer while using Renault’s vehicles. It relieves the pain of vehicle ownership, builds customer relationships, mobilizes inventory and creates an additional source of revenue for Renault ­ contributing to a virtuous cycle that are self sustaining. This will change them from having an asset driven business model to a service driven business model.

We designed three business models based upon our research and conversations with our client. They cater to varying demographics but their core objectives are in alignment:

• Address the sharing economy and the competition

• Creating a lasting relationship with the consumer

• Additional source of revenue

• New target segments
  
  
  
  

How Our Team Worked With the Client

Our opening interactions took place over the phone and via email. Renault proceeded to invite the team to their offices in Sunnyvale, Sohraab took the wheel and drove the team down to Silicon Valley. Most of the time, Nick tuned in via Zoom since he could not take the time off of work to make the four hour round trip from Berkeley to Sunnyvale on a weekly basis.

RSV´s wanted us to investigate vehicle ownership for $0. Gagan was quick to take the lead on research, referencing McKinsey market research reports that showed millennials have been giving up cars in the face of services such as Uber. Our field research confirmed the trend that even when offered a car for free by their parents, people born after 1995 (Generation Z) are less likely than ever to want the responsibility of owning a car.

Reporting this information to the client, the team entered the the “What If?” phase where we hypothesized that the best way to drive growth for Renault would be to offer users the opportunity to profit from vehicle ownership. From this hypothesis emerged three business models, Renault Free Market, Exposé, and Community.

When executives from Renault HQ came to CCA from France, we elaborated on the progress of our business model development and the process.

Having received the blessing of our stakeholders, the team proceeded to the prototyping stage. The team banded together with Renault’s own business innovation manager, Sebastien Henot to create a video of the responses of CCA students to the Expose concept car. The team conceived an engaging way to present their findings to the peers using the format of popular TV series Shark Tank.

Throughout the process, the team had an incredible learning opportunity and gained valuable insights from the client. They had a trusting and transparent relationship where each side strived to bring out the best in the project.

Timeline and Resources

Deliverables and Benefits

Business Model ­ 1

Renault Free Market
Basic Overview:

A suite of tools for the automotive entrepreneur. To address the problem of a lack of customer relationships, we recommended that Renault adapt the company’s offering to account for the trend away from individual automobile ownership toward the Shared Economy. Renault Free Market makes it easy for car owners to use their car to compete against services like Uber, Lyft, Get Around, and Grub Hub ­ without giving away a percentage of the earnings to a third party. This strategy was very popular in our research, and everyone wanted to get a piece of the action.

See Appendix B for in­ depth overview.

Instead, Free Market offers businesses and travelers the opportunity to post their request (be it a trip to the airport, a pizza delivery, or any other automobile dependent task) at any price they choose ­ which Free Market entrepreneurs then bid to accept. Each Free Market equipped vehicle is sold with keyless entry so that you can connect with people nearby to do the job for you, or even rent it out while you’re waiting for another job. The result is not just that passengers get a lower price, but that owners can make money off of many cars at once.

The nine building blocks for Renault Free Market

Key Partners: ​Restaurants, Shops, and Passengers

Key Activities: ​Transportation of goods and transportation of people

Key Resources:​ Parking, Free Market App, keyless entry technology, tracking devices

Value Propositions: ​Give drivers the opportunity to earn money, give businesses the opportunity to deliver goods, give ride seekers the opportunity to set their own price

Customer Relationships: ​Riders feel they got a great deal, businesses save money on delivery personnel, drivers get a chance to make money

Channels:​ All users access service through Free Market app

Customer Segments: ​Businesses that want to sell more product, people who need rides, drivers who’d like to make money

Cost Structure: ​Free Market business services (Software as a Service: $100/month) and entrepreneurs package (keyless entry and tracking devices: $500 at time of purchase). See Appendix B for in­ depth financial overview.

Revenue Streams: ​Business services pay monthly income to Renault to help employees manage multiple vehicles.

Business Model ­ 2

Renault Exposé
Basic Overview:

Renault Exposé leverages the access that Renault has to vehicle owners. Renault Exposé exists to not only provide innovative advertising and marketing solutions for the companies of the world but to also promote car ownership and to lower the barrier to purchasing a new vehicle.

See Appendix C for in­ depth overview.

It does so by building on to the new OLED technology and using the same as screens in the car windows. The same has a potential to screen high resolution advertisements. Additionally the innovative model gives the car owners a flexibility to choose when they would like the advertisements to be displayed. The drivers get paid on the basis of geo­location of the vehicle and the time they choose to display the advertisement. Considering the legal grey area for running advertisements on mobile vehicles, the suggestion to the client is to explore this opportunity while a car is parked.

See Appendix C for in­ depth overview.

It does so by building on to the new OLED technology and using the same as screens in the car windows. The same has a potential to screen high resolution advertisements. Additionally the innovative model gives the car owners a flexibility to choose when they would like the advertisements to be displayed. The drivers get paid on the basis of geo­location of the vehicle and the time they choose to display the advertisement. Considering the legal grey area for running advertisements on mobile vehicles, the suggestion to the client is to explore this opportunity while a car is parked.

The nine building blocks for Renault Exposé

Key Partners: ​Exposé helps two groups. It helps advertisers gain new clients while offering a new value proposition to old clients. Exposé depends on a large network of new and old Renault customers looking to make extra money by simply owning a vehicle. We’ll call this group “Renault drivers” for lack of a better term. Both parties become key partners to the operations of Exposé.

Key Activities: Renault will become a brokerage for advertising if they choose to launch Renault Exposé. Initial activities performed by the advertising brokerage division will be creating relationships with existing advertising agencies, marketing Exposé’s services, building advertising capacity and creating demographic maps.

Key Resources: ​In addition to the intellectual property being created by developing this business model, a new resource for Renault is created: data. A huge amount of data will be generated by monitoring the movements and habits of Renault drivers as they go about their business. This data helps price the product but there may be additional uses for the data as well.

Value Propositions: ​Renault Exposé creates two new value propositions. One for new/existing customers and one for a new customer segment, advertising agencies. Renault Exposé wants to help new and existing customers reduce the pain of vehicle ownership. In addition, Exposé seeks to bring new, creative advertising opportunities to advertising agencies.

Customer Relationships: By adding the Exposé service, we effectively double the number of interactions that drivers have with Renault. We add an additional set of relationships which are businesses and corporations looking to advertise on Renault Exposé.

Customer Segments: ​Renault Exposé opens up a new customer segment. Those businesses/corporations that aren’t currently in need of a fleet of vehicles will find new interest in Renault through advertising. Additionally, we add an expanded market that allows drivers working with smaller budgets the ability to afford a vehicle.

Cost Structure: ​Modified to add input from advertising revenue and output to drivers from Renault.

See Appendix C for in ­depth financial overview.

Revenue Streams: The goal of Exposé is to add more profit per new car as well as additional revenue from used or non­Renault vehicles. If Renault Exposé is implemented, with a 0.3% market capitalization in private drivers, and between 15­35% market capitalization for Taxis/Ubers/Lyft’s, the profit margins are projected at $13.62MM in the first two years.

Business Model ­ 3

Renault Community
Basic Overview:

With Renault Community, disabled/elderly customers have the option to be driven to events, doctors appointments, grocery stores, etc. by community members freelancing for Renault Community. Renault Community provides experienced, highly­vetted drivers with first aid experience to drive clients from point A to point B. Renault Community drivers provide clients with peace of mind as well as camaraderie not often experienced while riding in a taxi/paratransit/etc. Renault’s “One­Touch Comrade Button” gives disabled or elderly clients the ability to simply and easily request a Renault Community driver with the press of a button.

See Appendix D for in ­depth overview.

When a client orders a driver, the button geolocates the position of the client and requests a driver by sending the location along with a unique button ID to Renault Community servers. When the driver arrives, the client will have the ability to ask the driver for assistance with their outing. There are additional fees for assistance and for pickup as well as a monthly service fee for Renault One­Touch Comrade buttons.

The nine building blocks for Renault Community

Key Partners: ​Renault Community leverages its proximity to new and existing Renault drivers to help seniors get around, fostering a sense of community and camaraderie in the process.

Key Activities: ​To support Renault drivers in assisting our most valued class of citizens, Renault will need to invest in customer service and most importantly, hosting capabilities. Renault Community will use an electronic dispatch service much like Uber rather than paying for people to sit in a call center all day. This is made practical by adding a one­touch dispatch button for seniors who are incapable or unwilling to learn how to use a smartphone.

Key Resources: ​By receiving and parsing information to dispatching drivers, Renault Community will be taking in a lot of information about the travel patterns of seniors in major metropolitan areas. This data is useful for transit officials, business strategy moving forward, etc. and may become a future source of revenue.

Value Propositions: ​Renault Community offers safe rides for seniors at a moment's notice.There is no waiting or planning ahead. Seniors can use the Renault Community One­Touch Comrade button to access safe, reliable drivers without the hassle of making a phone call and waiting. Additional value is derived from the customer/driver relationship. Not only is the driver available for a nice conversation but the driver is available to help customers with needs such as help shopping, help getting up and down stairs, etc.

Customer Relationships: ​Community opens up a new market for Renault ­ seniors and their families. In addition to adding new touch­points for existing Renault customers who have the opportunity to become drivers, Renault is poised to capitalize on creating a close relationship with the families of their elderly patrons passing on the good name of Renault to younger generations and winning over the competition’s patrons.

Channels: ​New channels will be targeted in the process of rolling out Renault Community. Channels include places that seniors and their families frequent: senior citizen homes, nursing homes, shopping malls. Among other things, Renault will target conventional media and focus on great customer service to help word­of­mouth sales.

Customer Segments: ​Elderly customers and their families. Giving Renault the ability to keep the Renault name in the family and at the top of mind in the minds of new generations.

Cost Structure: ​Elderly patrons have accounts with Renault Community, when the Renault One­Touch Comrade button is used, the customers credit card is charged. This may also be the credit card of a family member. In turn, Renault pays the drivers based on a percentage of the total services value.

See Appendix D for in­ depth financial overview.

Revenue Streams: ​Ride sales to elderly customers and their families as well as sales of theOne­Touch Comrade button (monthly fees).

Summary and Next Steps

If you’re wondering how we came up with all of this, business model innovation is a process made much easier by design thinking. When Renault Innovation asked us to find a way to sell a car at a cost of $0, we instinctively questioned their assumption to accomplish the “What is” step of the process.

Qualitative and quantitative research provided us with the knowledge that even if a customer could get a car for free that they wouldn’t take it, at that point we moved into the “What if?” stage. We hypothesized that a consumer might be more willing to buy a car if it could make them money, and asked ourselves how we could realize this goal.

We then cast a broad net into the sea of existing solutions to make money off of cars to gain inspiration for the “What Wows?” phase ­ where the idea to merge Renault’s existing business model with new technology resulted in three new models. During this phase, we used rapid prototyping to create minimum viable products, which we then tested in the field.

Which brings us to the “What Works?” stage, where we explain how these ideas should be implemented and in what order. In each of the one page business plans listed below, we explain from an individual perspective how the models we propose should be rolled out.

For Free Market, Renault should take note of the qualitative research, which reveals the need for a system like Uber that does not charge its drivers a percentage. We believe that the already low cost of app development and remote entry systems, and the high profit margin of software as a service create an ideal climate to test Free Market in a large urban area.

As a group, we recommend that Renault continue to develop its relationship with Samsung to assure the success and delivery of cheap, mass market OLED screens for the Exposé model. The overwhelming success of the idea in our research suggests that Renault could easily profit by offering its customers the opportunity to sell ad space on their vehicles. We also believe this to be a growth area in the age of autonomous cars ­ where concerns about driver distraction has been rendered obsolete.

For Community, we recommend that Renault continue to research the preferences of seniors with regard to transportation. While we were able to confirm our hypothesis that the caretakers of elderly persons think Community is a great idea, Renault is entirely new to the elder care business and could probably learn a lot by working more with the stakeholders.

Appendix

A/ Status Quo One-Page Business Plan

B/ Business Model 1 Free Market

Target market: Drivers who are fed up with sharing their profits with apps like Uber and Lyft, businesses that want same day delivery, passengers who want to set their own price for a ride.

The offering: Renault cars and trucks on demand, to be used for the purpose the market demands ­ not the objectives of a business.

Value proposition: For the driver, to make as much money as possible as an automotive entrepreneur. For the passenger or delivery recipient, the opportunity is to set their own price. And for Renault, an extra $500 up front profit per car from the sale of the entrepreneur’s package nearly doubles their profit margin.

Operation: Customer buys car, parks on the street ­ delivery recipients and passengers buy goods from businesses and request rides through the Free Market app ­ Renault maintains the app and charges an additional $100 / month for business services, including driver vetting, payment, and benefits (which entrepreneurs pay to have access to a network of drivers to make deliveries and move cars).

Potential drivers: People fed up with Uber and traditional car owners who want to defer the costs of ownership.

Link to Qualitative Research ­ ​Free Market Qual Research
Link to detailed Financial sheets ­ ​Free Market Financials*
Link to budget sheet ­ ​Free Market Budget*

C/ Business Model 2 Exposé

Target market: Advertising agencies, corporations, any size business

The offering: An innovative way to advertise, quickly and boldly. This service helps drivers as much as it helps advertisers. Allowing drivers to make additional revenue just by driving and parking in visible locations.

Value proposition: Renault Exposé offers advertisers an expanded advertising zone, accessing a dynamic platform of drivers that bring products/services/experiences to the masses in an incredibly eye­catching, out­of­the­box manner. Advertisers pay based on the amount of time ads play in pre­selected areas of a city. All an advertiser has to do is send the advertisement as visual media (video, still images, animation, graphics) to Renault Exposé, select a target demographic and determine the start/end date. The rest is taken care of by Exposé’s advertising experts and their patented targeting algorithm (linked to a vast swath of demographic data).

Operation: Advertisers send ads in the form of digital media to Renault Exposé indicating a demographic and a start/end date. The algorithm determines the best advertising method, based on recorded driver routines. The driver has to be OK with the company/cause they are advertising for. This “check” process happens via the Renault Exposé app. If the driver is OK with the company/advertisement, the ad is pushed out to the computer in the driver’s car at night via the driver’s home WIFI network. This happens seamlessly without any intervention required by the driver. While operating the vehicle and depending on the city’s advertising regulations, the driver will have the option of displaying ads on the side of their car. If the driver has their “Play ads” option switched to “On”, the driver’s vehicle will display ads. The ads that are displayed have been predetermined by the Renault Exposé algorithm (embedded into the Renault Exposé app). Ads are displayed based on a number of factors including geolocation, parked status, time of day, season, etc. The Renault Exposé app displays a dollar amount collected based on the amount of time the driver has had their “Play ads” option switched to “On” throughout the day. If the driver chooses to not display ads on their vehicle, all they have to do is switch the “Play ads” switch to “Off”. At the end of the month, advertisers are required to pay their advertising bill, while drivers are paid for the ads they have shown on their vehicles. In some situations, drivers will have chosen to put their earnings towards their car payment, in that case drivers will be sent a receipt with their remaining monthly payment balance. Advertisers are required to sign a contract of a predetermined length of time when they initiate a new ad campaign with Renault Exposé. Drivers are required to bring in their used vehicle to have the exterior modified to fit the OLED technology displaying the ads prior to having the ability to display ads. If the driver has purchased a new vehicle, the vehicle will be outfitted with the OLED technology before it leaves the lot.

Link to Qualitative Research ­ ​Expose Qual Research*
Link to detailed financial sheets ­ ​Expose Financials*

D/ Business Model 3 Community

Target market: Seniors, senior caregivers, families with aging parents/grandparents, disabled people, caregivers, families with disabled family members.

The offering: Disabled/elderly have the option to be driven to events, doctors appointments, grocery stores, etc. by community members freelancing for Renault Community.

Value proposition: Renault Community provides experienced, highly­vetted drivers with first aid experience to drive clients from point A to point B. Renault Community drivers provide clients with peace of mind as well as camaraderie not often experienced while riding in a taxi/paratransit/etc. With Renault Community the return ride is guaranteed. For an additional cost, clients have the ability to have the Renault Community driver assist them with their needs whatever they may be. This includes assistance with shopping, doctors appointments, going for a walk, etc. Renault Community takes away the pain of digital applications by providing clients with a simple one­touch pickup button that not only provides easy access to Renault Community drivers, but also a display that notifies a client when their driver is arriving.

Operation: Renault Community’s client base is diverse, as such, we have to consider a wide range of abilities when it comes to digital technology. Renault Community has come up with two different options that we believe will cater to this vast group of clients.

Renault Community on a smartphone: Clients can access Renault Community services the same way you would access Uber’s service—through an app available for iPhone or Android operating systems. The app geolocates the client’s location then proceeds to dispatch a driver. Clear, simple instructions are given in bright, bold, enlarged font (adjustable by the client). When a driver arrives, the client is notified of the arrival and has the opportunity to request assistance leaving the house by pressing a button on the screen. Prior to the trip or while in the vehicle, the client will have the ability to ask the driver for assistance with their outing. If the client requests assistance with their outing, the driver will park the car at the destination and proceed to assist the client with whatever their need is. If the client would prefer to be picked up, they have the ability to request this service prior to the trip or while in the vehicle. There are additional fees for assistance and for pickup. Once the outing is complete and the client is back in the car, the driver takes the client home. The client is sent a survey and receipt.

Renault Community with the “Renault One­Touch Comrade Button”: Similar to the Amazon Dash button, Renault’s “One­Touch Comrade Button” gives disabled or elderly clients the ability to simply and easily request a Renault Community driver with the press of a button. The buttons will be outfitted with braille for accessibility purposes. When a client orders a driver, the button geolocates the position of the client and requests a driver by sending the location along with a unique button ID to Renault Community servers. Once a driver has been identified and notified, the client will hear a notification from the button and the button’s display will light up with a countdown. When the driver has arrived (or is close to arrival), the client will be notified audibly and with a vibration. Clients will have the opportunity to hit an additional button if they require assistance. A third button is for clients wishing to cancel a trip before the driver arrives. When the driver arrives, the client will have the ability to ask the driver for assistance with their outing. If the client requests assistance with their outing, the driver will park the car at the destination and proceed to assist the client with whatever their need is. If the client would prefer to be picked up, they have the ability to request this service prior to the trip or while in the vehicle. When the errands are over, the client simply presses the button and the driver is notified. There are additional fees for assistance and for pickup as well as a monthly service fee for Renault One­Touch Comrade buttons. Once the outing is complete and the client is back in the car, the driver takes the client home. The client is sent a survey and receipt, this receipt may be mailed as well.

Potential drivers: potential Renault Community drivers must pass an in depth vetting process. If a driver doesn’t have first aid certification, Renault will provide them with the contact information for a third party training company. Obviously drivers have to enjoy the company of elderly or disabled individuals to be able to do this job. There are two types of potential drivers. Drivers that have a vehicle and drivers that don’t have a vehicle.

Drivers with a vehicle: Drivers will be required to take their car to a Renault dealership for inspection prior to certification. Once the vehicle has been certified and a driver interview/background check complete, the driver is fit to drive. All they need is the Renault Community app available for iPhone or Android operating systems.

Drivers without a vehicle: Renault gives the ability to work to people without a vehicles by offering its own stock of rental vehicles to potential drivers. Drivers will have to have a clean driving record among additional checks such as an interview/background check to be accepted as a Renault Community driver. In exchange for the vehicle, Renault Community will take additional profit from the drivers earnings to pay for wear and tear/depreciation of the vehicles but the driver will be allowed to use the vehicle for basic needs such as grocery shopping, errands, etc.

Approximate cost: Renault Community charges $35 an hour ($35 minimum) with accompaniment time charged at $25 dollars an hour. Seniors can also request that a driver is simply nearby, which costs $20 an hour. Plus a cost for the Renault One­Touch Comrade button.

Link to Qualitative Research ­ ​Community Qual Research
Link to detailed financial sheets ­ ​Community Financials*

Financials

Attached as Excel.

Additional Research and Citations

Links to additional research:

Renault Clio Research*

Future of Cars Research*

Free Market Research

Expose Research*

Community Research

Citations:

Desvaux, Georges et al. “Meeting the 2030 French Consumer.” ​McKinsey & Co​. N.p., May 2010. Web. 27 Mar. 2016.

Lunden, Ingrid. "Lyft and GM Partner on Express Drive, a Rental Service That Paves the Way for Autonomous cars." ​TechCrunch​. N.p., 15 Mar. 2016. Web. 27 Mar. 2016.

Tee, Alex. “What is the average amount an Uber driver makes in twelve hours in California?” Quora​. Web. 20 April 2016.

https://www.quora.com/What-is-the-average-money-a-Uber-driver-makes-in-California-working-12-hours-a-day

"Some Call Illuminated Ads on Rear Windows a Safety Hazard." ​Minnesota Public Radio News​. N.p., 2010. Web. 27 Apr. 2016.