Analysis of Ingogo's Business Model in the Online Taxi Booking Industry of Australia

This paper analyzes the business model of Ingogo, an online taxi booking organization in Australia. It examines key aspects such as value proposition, customer relationships, channels, and revenue streams. The paper also identifies critical success factors and recommends changes for increased revenue generation.

Running head: MANAGEMENT
Management
Name of the Student
Name of the University
Author Note

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Table of Contents
Business Model:.........................................................................................................................3
Key Partners:..........................................................................................................................3
Key Resources:.......................................................................................................................3
Key activities:.........................................................................................................................4
Customer Segments:...............................................................................................................4
Channels:................................................................................................................................5
Value Proposition:..................................................................................................................5
Customer Relationships:........................................................................................................5
Cost Structure:........................................................................................................................5
Revenue Streams:...................................................................................................................6
Inter-relationships:.....................................................................................................................6
Critical Success Factors:............................................................................................................6
Important Factors:......................................................................................................................7
Changes:.....................................................................................................................................7
References:.................................................................................................................................9
Appendix:.................................................................................................................................11
Business Model:...................................................................................................................11

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The paper analyses the business model of a chosen business organization named as
Ingogo. The mentioned organization operates in the online taxi booking industry of Australia.
With the significant rise in the Australian online taxi industry, the organizations are observed
to conduct a significantly profitable business in the mentioned industry (Witt, Suzor &
Wikström, 2015). The mentioned organization provides the facility of booking cabs through
their website and offers them a safe ride to their destinations. The paper describes the various
aspects of the business model such as value proposition, customers relationships, channels,
key activities, key partners, customer segments, revenue streams, key resources along with
cost structures of the organization. Adding to that, the paper describes the relationship
between the above mentioned blocks along with the effective identification of the factors that
are affecting the success of the organization. In addition to this, the paper recommends some
crucial changes that are much required for the organization in order to generate larger amount
of revenue.
Business Model:
Key Partners:
The founder and chief executive officer of the organization, Hamish Petrie is seen to
collect significant amount of fund from various Australian investors. The Australian Federal
Government is one of the key partner of the organization for granting funds for the mentioned
organization (Australia.gov.au, 2019). In addition to this, MYOB co-founder Brad Shofer
was one of the key investor for the chosen organization (Myob.com, 2019). Apart from this,
the Australian Taxi Industry Association is seen to be regulatory authority for the effective
management of the operations of the organization (Atia.com.au, 2019).

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Key Resources:
The major resources of the chosen organization is the considerable number of taxi that
the company owns and uses for providing quality and uninterrupted services to the customers
of the organization. In addition to this, the required technological infrastructure for booking
the taxi through the company website and for the achievement of the payments is considered
to be important resources for the organization. Apart from that, the considerable number of
skilful employees for the effective management of the booking and the receiving of the
payments along with the drivers for driving the taxis are crucial resources for the success of
the organization.
Key activities:
The chosen organization is seen to serve the customers by providing them a safe and
secure option for transport. In addition to this, the company offers a comparatively low
pricing for their services.
Customer Segments:
With a precise focus on the profitable market of Australia, the targeted segment of the
customers is mentioned below:
Ingogo Customers (Australia)
Age 20-55 Years.
.
Sex Male and Female both.
Income Customers with income level of A$10000 or
more on monthly basis (Ingogo.com.au,
2019)
Other Characteristics Credit and Debit Card Users, Online

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customers.
Channels:
The main medium of the business conduction for the mentioned organization is the
company website of the organization along with the mobile application (Ingogo.com.au,
2019).
Value Proposition:
The company is the first transport agency in the mentioned business market to ignore
the surge pricing (Ingogo.com.au, 2019). The company has the fixed prices for their services.
The company does not charge any additional prices for the natural calamity, heavy rain or
issues like storm.
In addition to this, the company provides transportation for the customers wherever
and whenever they want.
Apart from that, the company follows a business operations which has strong
emphasis on the cashless payment policy.
Customer Relationships:
The chosen organization is seen to provide significant amount of discount to the
customers. Along with the messages regarding the discount, the company is observed to
communicate to the customers regarding their services or packages through the e-mail
subscription. Apart from that, the organization uses their official website for the better and
effective communication regarding their services.

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Cost Structure:
The chosen organization is seen to invest 14% of their revenue in the administration
cost and along with that, the distribution and selling cost of the company is calculated to be
23% of the total revenue of the company (Ingogo.com.au, 2019).
Revenue Streams:
The chosen organization is subjected to an estimated revenue of 1.3 million US
dollars with an increment of 1.7% in quarter on quarter basis (Ingogo.com.au, 2019).
Inter-relationships:
The CEO of the organization, Hamish Petrie is a renowned entrepreneur. The CEO of
the organization planned to provide an easy solution for the people of Australia for their
concern of transportation. With the mentioned idea in mind, the CEO of the organization is
seen collect considerable amount of funds from the various investors such as Brad Shofer and
the Australian Federal Government. The funding enabled the organization to achieve required
resources such as the taxis, website and skilful employees. The achievement of the resources
were significant for the organization in providing the quality services to the customers of the
organization at a significantly competitive pricing. Along with that, the organization is
observed to conduct their business through their website and mobile applications and the
organization is able to create significant amount of value for their business amongst the
people of Australian and that is pretty evident with the growth of revenue of the organization.
Critical Success Factors:
The application of the pricing appropriate policy from the part of the organization for
the services is a crucial factor in the success of the organization. The generation of the
revenue of the organization is seen to be significantly affected with the pricing policy of the
organization (Motala, 2016). Hence the organization is in need to make sure that the

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application of the low pricing policy from the part of the organization has a financial
feasibility as the generation of the revenue is in need of significant boost (Wang, 2015).
Apart from this, the senior level management of the organization is facing the definite
need of making sure that the method of payment is safe and secure. It is pretty evident that
the people of Australia are notably panic-stricken with the increasing cases of the financial
frauds and the impact of the issue is visible with a sudden decline in the consumption of the
services amongst the customers of the mentioned industry (Afp.gov.au, 2019). Hence the
organization is in need to make sure that they be able to provide a safe and secure method for
the payment to the customers of the organization.
Important Factors:
The effective management of the operational costing from the part of the organization
will be of great significance for the mentioned organization. With the increasing pricing of
the fuels, the organization is expected to face notable amount of difficulty in the generation of
the profit (Imf.org, 2019). Along with that, the increasing labour charges is also a significant
menace for the organization (Glöss, McGregor & Brown, 2016). Hence the organization is in
need to make sure that they conduct their business in an appropriate manner which is focused
towards the reduction of the operational costing (Hansen Henten & Maria Windekilde, 2016).
Changes:
The organization is in need to make sure that they be able to restructure their business
operations with precise focus on the pricing of the services. The application of the standard
pricing policy is a significant need of the organization to enable it to cope up with the
increasing charges of the employees and the fuel pricing (Glöss, McGregor & Brown, 2016).
In addition to this, the organization is in need to improve the safety mechanism for the
payments from the customers. The improvement of the safety mechanism can be achieved

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through the creation of a premium card which will substitute the usage of the personal debit
cards of the customers. This will be significant for the organization in the reducing the
concern of the people of the Australia regarding the online frauds (Cross, Richards & Smith,
2016).
In addition to this, the senior level management of the organization is in need to
introduce quality rating for the drivers of the organizations. This will enable the organization
to reward the efficient employees and at the same time, it will be of great significance for the
organization in making sure that they provides the required level of trust to the customers of
the organization (Andreassen et al. 2018).

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References:
Afp.gov.au (2019). Australian Federal Police. Retrieved from https://www.afp.gov.au/
Andreassen, T. W., Lervik-Olsen, L., Snyder, H., Van Riel, A. C., Sweeney, J. C., & Van
Vaerenbergh, Y. (2018). Business model innovation and value-creation: the triadic
way. Journal of Service Management, 29(5), 883-906.
Atia.com.au (2019). Retrieved from http://www.atia.com.au/
Australia.gov.au (2019). Retrieved from https://www.australia.gov.au/
Cross, C., Richards, K., & Smith, R. G. (2016). Improving responses to online fraud victims:
An examination of reporting and support.
Glöss, M., McGregor, M., & Brown, B. (2016, May). Designing for labour: uber and the on-
demand mobile workforce. In Proceedings of the 2016 CHI conference on human
factors in computing systems (pp. 1632-1643). ACM.
Hansen Henten, A., & Maria Windekilde, I. (2016). Transaction costs and the sharing
economy. info, 18(1), 1-15.
Imf.org (2019). IMF -- International Monetary Fund Home Page.. Retrieved from
https://www.imf.org
Ingogo.com.au (2019). ingogo | Taxis done better. For Passengers, Drivers and Businesses.
Retrieved from https://www.ingogo.com.au/
Motala, M. (2016). The ‘Taxi Cab Problem’Revisited: Law and Ubernomics in the Sharing
Economy. Banking & Finance Law Review, 31(3), 467-511.
Myob.com (2019). Business software and solutions by MYOB. Retrieved from
https://www.myob.com/au

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Wang, A. (2015). The Economic Impact of Transportation Network Companies on the Taxi
Industry.
Witt, A., Suzor, N., & Wikström, P. (2015). Regulating ride-sharing in the peer
economy. Communication Research and Practice, 1(2), 174-190.

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Appendix:
Business Model:

Running head: MANAGEMENT
Key Partners
 MYOB co-
founder Brad
Shofer.
 Australian
Federal
Government.
 Australian Taxi
Industry
Association.
Key Activities
Providing safe and
secure option for
transport in form of cab
services.
Value Propositions
o Ignores surge
pricing.
o Uninterrupted
Services.
o Majorly cashless
payment policy.
Customer Relationship
Mail Subscriptions and
official website.
Customer Segment
 20-55 Years.
 Male and
Female both.
 Customers with
income level of
A$10000 or
more on monthly
basis.
 Credit and Debit
Card Users,
Online
customers.
Key Resources
 Considerable
number of taxi.
 Technological
infrastructure for
booking the taxi
through the
company
website and for
the achievement
of the payments.
 Considerable
Channels
Company along with the
mobile application.

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number of
skilful
employees and
experienced
drivers.
Cost Structure
The company experiences 23% of the total revenue as
Distribution and the selling cost.
The company experiences 14% of the total revenue as
Administration cost.
Revenue Stream
Increment of 1.7% in quarter on quarter basis in revenue of the
organization.

Running head: MANAGEMENT