MGMT20143 - Assessment 2: Ingogo Business Model Development Report

This report focuses on developing a business model for Ingogo, an Australian online taxi service, addressing the increasing issue of online financial fraud. The student's report proposes a new payment method, a "gogo" card, to mitigate customer concerns about debit card usage. The report evaluates the business problem, highlighting the benefits of the idea, which include reducing customer anxiety and increasing service acceptance. It details the business model, including key partners, activities, resources, and revenue streams. The analysis also covers success factors, risk factors, and feasibility, concluding that the idea is financially feasible and can lead to sustainable business practices. The report also includes a Business Model Canvas as an appendix.

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

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Table of Contents
Introduction:...............................................................................................................................3
Evaluation of the business problem:..........................................................................................3
Benefits from the idea:...............................................................................................................3
Business Model or Idea:.............................................................................................................4
Business Model Identification:..................................................................................................0
Success Factors:.........................................................................................................................3
Risk Factors:...............................................................................................................................3
Feasibility:..................................................................................................................................3
Conclusion:................................................................................................................................4
Bibliography:..............................................................................................................................5

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Introduction:
The paper is focused in the elaboration of the business model of one of the significant
and much required business idea for one of the renowned taxi service organization of
Australian online taxi industry, Ingogo. The paper discusses regarding the improvement of
the payment method of the selected organization with a precise focus on the various elements
of the business model. Along with that, the paper analyses the condition of the market to
identify the business problem with the selected organization for providing the best suited
solution in the form of the new business idea.
Evaluation of the business problem:
With a precise focus on the increasing cases of online financial frauds in Australia,
the people in the nation are seen to be significantly panic-stricken. In recent years, there are
considerable number cases reported to the Australian police authorities regarding the online
banking frauds where a significant amount of people have lost their money. From the reports,
it is pretty visible that the customers using the debit cards for the transactions, are the main
target. The impact of these sorts of cases is pretty evident with the increasing level of anxiety
amongst the people. The mentioned issue is having a direct reflection on the business
operations of the organizations operating in the region and that is pretty evident with the
decrease in the purchase intention of the customers and in the formation of a sort of apathy of
using their debit cards or purchasing any sort of products or services. The impact of it is
pretty prominent in the online taxi industry as majority of the organizations prefer to achieve
the payment through the debit cards.

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Benefits from the idea:
As mentioned, the impact of the online financial fraud on the people of the region is
pretty significant, the selected company, operating in the region is expected to introduce an
effective solution for reducing their panic and increasing the effectiveness of their services
and the level of acceptance as well. With the efficient implementation of the idea, the
selected organization has the potential of increasing the preferences towards their
organization amongst the customers. The business idea will enable the customers to avoid the
direct usage of the debit cards for paying the fares or charges for the services of the
organization. This will be of great significance for the selected organization in reducing the
concern of the customers in the region and along with that, it will play a crucial part in
influencing the customers in purchasing the services of the selected organization. Hence it is
pretty evident that the business idea will enable the customers to avoid the cash or debit card
payment concerns.
Business Model or Idea:
With a precise focus on the business problem, the solution will be introduce a
mastercard for the part of the company. The card will be named “gogo” cards considering the
name of the selected organization. The card will be given to each and every registered
customers of the selected organization. The card will be used by the customers for paying
their fares or charges of the services of the taxi company. As the company is able to
understand the apathy of the customers in using their debit cards for the frequent transactions
owing to their concern of unintentional exchange of the card information to the third party
information managers, the company will introduce the gogo cards with the opportunity of
recharging the cards with their debit cards inside the cab itself. As the prime concern of the
customers is the excessive usage of the debit cards for extracting money from the ATMs, the
company will be able to reduce the concern of the customers through the introduction of the

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gogo cards and it will be crucial for the customers in reducing the usage of their debit cards
for withdrawing money to pay the company or the taxi service providers. The company will
attach a recharge device or machine in each of the cabs of it to enable the customers to
recharge the cards from any of the cabs of it.

Running head: MANAGEMENT
Business Model Identification:
Key Partners
Brad Shofer, co-
founder at MYOB.
Australian Federal
Government
Australian Taxi
Industry
Association.
Information
technology firms
such Atlassian,
Xero or Envato.
Key Activities
Introducing the gogo cards
and installing the recharge
machines in each of the
cabs.
Value Propositions
The company
will be able to provide
a significantly efficient
solution to the
customers which has
the potential to manage
the concern of the
customers in an
effective manner.
The company
will be able to eradicate
the apathy of the
customers in using the
services of the
Customer
Relationship
Mobile
Application.
e-mail
communication.
company website.
Customer Segment
 Age group of 16-35
 Average income of
10000 Australian
dollars per annum.
 Male and Female
both.
Key Resources
Skilled employees.
Information Technology
service providers.
The recharge machines.
Channels
Online taxi
services.

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organization owing to
the concern of
excessive usage of the
debit cards.
The
introduction of the
gogo card will be
significant for the
company in influencing
the customers towards
the usage of the
services of the
company without any
sort of concern in mind
regarding the payment
nad the financial

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frauds.
Cost Structure
Administration cost is expected to be 11% of 2018’s revenue.
Maintenance cost will be 7% of 2018’s revenue.
Revenue Stream
Rise of 2.5 % from the sum of revenue
of 2018
From the above mentioned model, it is pretty visible that the company is expected to gather funds from the mentioned
Australian investors and with the help of the skilled employees and information technology service providers is
expected to introduce the gogo cards along with the much required infrastructural development in the form of attaching
the recharge machines in the cabs. The gogo card will be exceptionally helpful in avoiding the excessive usage of the
debit cards for the customers and will be crucial for the organization in targeting the specified section of the customers.
Apart from this, the company is expected to conduct the communication regarding the new service through the e-mails,
advertisement regarding the implementation of the new idea and the usage of it.

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Success Factors:
The success factor for the company in introducing the new process will depend on the company’s ability to
communicate and convince the customers regarding the effectiveness of the new business idea under the current
situation. The company needs to make sure that the customers be able to understand the benefits of the new idea and
shielding it provides for their concern.
Risk Factors:
The risk factors will be the company’s incapability of convincing the customers regarding the effectiveness and
the usage of the new business idea. Along with that, the company’s incapability in the achievement of the required
infrastructural development will be a major risk or concern for the selected organization going forward. In addition to
this, the absence of the appropriate training and developmental activities of the employees of the organization in
managing the new process and the technology has the potential to decrease the effectiveness of the new business idea.
Feasibility:
With a precise focus on the business environment and the market condition, the business idea will be
significantly feasible and is expected to be well accepted amongst the customers as well. Apart from this, the
increased generation of the revenue is forecasted to be more than the investment for the infrastructural development

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and the maintenance cost of the business operations that will be associated with the implementation of the new idea.
Hence the idea is financially feasible.
Conclusion:
On a concluding note, it can be said that the cases of increasing online financial frauds is a crucial reason
responsible in the creation of the apathy amongst the customers regarding the excessive usage of the debit cards.
However, the selected company has the potential of overcoming the concerns of the customers with the introduction of
the gogo cards and that contributes to the sustainable business conduction.

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Bibliography:
Afp.gov.au (2019). Retrieved from https://www.afp.gov.au/what-we-do/crime-types/cyber-crime/online-fraud-and-
scams
ATIA. (2019). Home. Retrieved from https://www.atia.com.au/
Ingogo.com.au | Taxis done better. For Passengers, Drivers and Businesses. Retrieved from
https://www.ingogo.com.au/ (2019). ingogo | Taxis done better. For Passengers, Drivers and Businesses. Retrieved
from https://www.ingogo.com.au/
Police, W. (2019). Online Fraud. [online] Western Australia Police. Available at:
https://www.police.wa.gov.au/Crime/Fraud/Online-fraud