Analysis and Plan for a Sustainable Transportation Business: Cabify

This assignment presents a comprehensive sustainable business plan for Cabify, a transportation service. It begins with a detailed business model canvas, analyzing positive and negative impacts, sustainable partnerships, value creation, customer relations, and resource management. A thorough S...Read More

Running Head: Building A Sustainable Business
BUILDING A SUSTAINABLE BUSINESS

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Building A Sustainable Business
Table of Contents
1) Business model canvas..........................................................................................................3
2) SWOT analysis......................................................................................................................7
3) Answer to questions...............................................................................................................8
References................................................................................................................................11

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Building A Sustainable Business
Transportation business is chosen for this assignment and main service of this business is
corporate and private transportation. Name of the company is Cabify, which provides
transportation service.
1) Business model canvas
Positive impact(Maximize)
2nd order effects:
● Substitution of private transport
● Optimization of energy usage
process
3rd order effects
● Proper decision making (can be
done through agent-based models)
These effects can be maximized by
allocating adequate funds and making
investments at required areas.
Negative impact (minimize)
1st order
● Use of resource
● Energy Emission
2nd order
● Induction of resource consumption
(energy)
3rd order
● Rebound impact can be seen via
additional consumption
These impacts can be minimized through
proper planning and using fuel-efficient
transport vehicles. No harmful waste will be
generated from this service.
Sustainable partners
Possible partners: Local
regulatory authority,
suppliers, corporate and
private clients, employees.
● Sustainable and
Sustainabl
e Value
creation
Provides
cab service
to corporate
Sustainable
value
proposition
Problem of
pollution due
to private
Sustainabl
e customer
relation
Direct
communica
tion with
Responsible
customers
Corporate
company
owners and
private

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Building A Sustainable Business
transparent supply
chain can be made
by providing
information about
sustainability to
partners.
● Cooperation can
be done with car
parts suppliers.
● Partnering with
pollution control
regulation body can
be done.
and private
customers.
App design
can be
improved
with the
help of
experts.
AI
technology
can be used
to record
complaints
of
customers.
transport can
be solved.
Value to
environment
can be given.
Function:
Main
function of
the service is
corporate
transport.
Consumer
problem of
transport can
be solved
sustainably
and
ownership is
not
necessary.
Product life
cycle can be
extended by
extending
contract with
company
owners
who want
Cabify for
their
employees
satisfy
expectation
s of
customers.
Current
relationship
can be
more
sustainable
through
providing
more
values to
specific
demands of
customers
regarding
traveling to
remote
passengers are
present
customers.
Providing best
quality services
to them as per
their
expectation can
help to enable
them to act
sustainably.
Renowned
brands such as
H&M, L'Oreal
and others are
target
customers for
promoting
sustainable
solution of
Cabify.

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Building A Sustainable Business
corporate
house.
locations.
Sustainabl
e tech &
resources
Natural:
petroleum
Technical:
IT, Human
resources.
Sustainabl
e channels
Distribution
channel can
be made
actionable
by using
eco tyres,
engine
shutdown
policies,
and fuel
additive
programs.
Communic
ation can be
done
through
website or
social
media.
End of life
Cars can be
sold at second-
hand price.
Products like
transport
vehicles can be
refurbished and
used later.
Cost structure & Additional costs
Required costs: Purchasing vehicles,
Subsidizatio
n
Revenue & Sustainability
Premium

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Building A Sustainable Business
achieving road permit, recruiting human
resource.
Least sustainable: Purchasing vehicles
Alternatives: No alternatives exist.
Third party
funding
exists for
Cabify. For
example,
Rakuten
invested near
about $92
million in
Cabify.
Revenue sources: Contract
from corporate houses, public.
Premium for sustainability:
Yes, customers are willing to
pay for it.
Unique advantage: Less
environmental pollution can
be obtained through greater
use of public transport.
Incentivize sustainable
customer behavior: Yes,
discount provided to
customers for longer booking.
2) SWOT analysis
Strength Weakness
● Transparency regarding service
charge
● User -friendly control center
● Provide security to passengers
● Limited within 12 countries
● Small number of employees
Opportunities Threats
● Expand business in other ● Increasing competition

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Building A Sustainable Business
marketplaces
● Improve brand image by social
works
● Changes in the legal system of
different countries
Cabify maintains transparency within company and customers. Fare of cabs is shown in the
app before the journey and customers are able to understand their service charges clearly
(Cabify.com, 2019). This company has developed an automated service center that is purely
user-friendly. Efficient management of this company is one of the main strengths and this
firm is providing their best effort for further improvement. This company claims to be
reliable and safe for passengers. Drivers are chosen through a tough selection process as their
aim is to select the best drivers for their cabs. In addition, this company allows users to share
route with their friends for additional security. Weaknesses of this company include limited
business operation area and small workforce. As suggested by Baldassarre et al.(2017), this
company must overcome these weaknesses for maintaining sustainability. Strengths of cabify
can be used to grab opportunities for business expansion. Management of this firm must
focus on social works for improving its brand image. Villalonga (2018) have mentioned that
contributing to social work helps companies to enhance brand recognition. Increasing number
of similar cab service companies and sudden changes in legal guidelines in different countries
are a potential threat to Cabify. As suggested by Bocken, Rana & Short (2015), this company
must keep a record of changes in legal guidelines in the areas of business operation. In
addition, this company must provide best quality cab service at an affordable price to cover
low-income customers for beating their rivals.

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Building A Sustainable Business
3) Answer to questions
● Main stakeholders of this business are employees, corporate and private clients and
suppliers who supply parts of vehicles and necessary fuels (Cabify.com, 2019). A
proper plan is necessary for engaging essential stakeholders for achieving desired
business objectives (Dyllick & Muff, 2016). This plan includes identification of
diverse stakeholder groups. This can help in designing the process of engagement.
The next step involves identifying representatives of each stakeholder group. This
step helps in establishing a proper communication process. For example, corporate
representatives and representatives of employee union. Next step includes creation of
a system that solicits stakeholder feedback. This can help to increase satisfaction
rate of essential stakeholders like employees. After this, incorporation of their
feedback needs to be done that can help them to engage with the process.
Stakeholder engagement can help decision-making process in this business. Effective
decision making can be done by incorporating interests of stakeholders (Kurochkina,
Shuvalova & Novozhilova, 2017). Moreover, trust can be gained if proper planning of
stakeholder engagement can be done. In addition, another benefit of stakeholder
engagement is risk management. Engaging stakeholders can help to identify issues of
this business and help the management to eliminate any risks.
● This company is facing obstacles and blocked due to increasing competition and
changes in the legal system of different companies. These issues are preventing this
firm from being sustainable. As opined by França et al.(2017), provision of best
quality service for meeting customers and setting lower service charge help to
overcome obstacles of competition. This company may offer ride at lower cost for
private passengers for covering low-income customers. This approach may help
them to maximize their customer base. Management of this company must focus on

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Building A Sustainable Business
business expansion in new locations for generating more profit to beat rival
companies. Personal legal advisor can be hired for keeping record of changes in
legal guidelines in different countries by Cabify. As stated by Malasek (2016), legal
advisors may suggest the best way to comply with changes in the legal system of
different countries.
● This business of private and corporate transport can be maintained being sustainable
by following some simple steps. The first step of this process is engaging essential
partners. Different partners like corporate firms, parts, and fuel suppliers,
government bodies are involved in this business of Cabify they need to be involved
and communication regarding sustainability programs must be done regularly. The
next step includes conducting regular assessment. Conducting sustainability
assessment can help management of this firm to compare existing services with other
standard firms (Gong et al. 2018). Hence, a road map for future can be prepared.
Different short term, long term, and medium-term objectives can be set for achieving
sustainability in business further. In addition, another essential step needs to be
followed to maintain sustainability in this business. This involves certification of
business, which can help this form to maintain essential sustainability standards. For
example, regular checkup of vehicles must be done regarding carbon emission
(Nieuwenhuis, Vergragt & Wells, 2017). This can help Cabify to maintain standards
of pollution control. Achieving other certificates regarding using eco-friendly vehicle
parts can help to increase impression of the company. Moreover, the objective of
maintaining sustainability can be fulfilled by achieving standards of employee
benefits.

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Building A Sustainable Business
References
Baldassarre, B., Calabretta, G., Bocken, N. M. P., & Jaskiewicz, T. (2017). Bridging
sustainable business model innovation and user-driven innovation: A process for
sustainable value proposition design. Journal of Cleaner Production, 147, 175-186.
Retrieved from:https://www.researchgate.net/profile/Brian_Baldassarre/publication/
312546229_Bridging_Sustainable_Business_Model_Innovation_and_User-
driven_Innovation_A_Process_for_Sustainable_Value_Proposition_Design/links/
5bd2d77992851c6b278fa0f7/Bridging-Sustainable-Business-Model-Innovation-and-
User-driven-Innovation-A-Process-for-Sustainable-Value-Proposition-Design.pdf
Bocken, N. M. P., Rana, P., & Short, S. W. (2015). Value mapping for sustainable business
thinking. Journal of Industrial and Production Engineering, 32(1), 67-81. Retrieved
on 1st July 2019,
fromhttps://www.tandfonline.com/doi/full/10.1080/21681015.2014.1000399
Cabify.com. (2019). Home. Retrieved on 1st July 2019, fromhttps://cabify.com
Dyllick, T., & Muff, K. (2016). Clarifying the meaning of sustainable business: Introducing a
typology from business-as-usual to true business sustainability. Organization &
Environment, 29(2), 156-174. Retrieved from:https://www.bsl-lausanne.ch/wp-
content/uploads/2015/04/Dyllick-Muff-Clarifying-Publ-Online.full_.pdf
França, C. L., Broman, G., Robèrt, K. H., Basile, G., & Trygg, L. (2017). An approach to
business model innovation and design for strategic sustainable development. Journal
of Cleaner Production, 140, 155-166. Retrieved
from:http://www.diva-portal.org/smash/record.jsf?pid=diva2:1055802
Gong, M., Simpson, A., Koh, L., & Tan, K. H. (2018). Inside out: The interrelationships of
sustainable performance metrics and its effect on business decision making: Theory

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Building A Sustainable Business
and practice. Resources, Conservation and Recycling, 128, 155-166. Retrieved
from:http://eprints.whiterose.ac.uk/109696/10/Manuscript%20%281%29.pdf
Kurochkina, I., Shuvalova, E., & Novozhilova, I. (2017). About Formation of the Integrated
Reporting Performance in the Process of Building a Sustainable Business of Transport
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Nieuwenhuis, P., Vergragt, P., & Wells, P. (2017). The Business of Sustainable Mobility:
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