Analysis of O Bike Business Model Canvas and Strategy

This report provides a detailed analysis of the O Bike business model canvas. It begins with a company profile, highlighting O Bike's innovative approach as a station-less smart bike-sharing company. The report then dissects the business model canvas, examining customer segments, value propositions, key activities, partnerships, resources, channels, revenue streams, and cost structure. It explores the relationships between these nine building blocks, emphasizing the mobile application's role in service delivery, the credit scoring system, and the cost structure. The report identifies critical success factors such as technology utilization, global operations, and innovation, and discusses the company's policies to mitigate risks, including safety measures and emergency plans. Finally, it proposes changes to the business model, such as the inclusion of R&D, special customer segments, and partnerships with NGOs, to ensure sustainable success. The report concludes by summarizing the key findings and reiterating O Bike's reliance on technology and innovation to revolutionize transportation.

1O Bike business model canvas
Running head: O Bike BUSINESS MODEL CANVAS
O Bike business model canvas
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Contents
First: O Bike Company profile........................................................................................................3
Second: The business model canvas of O Bike Company..............................................................4
Third: relationships across the nine building blocks.......................................................................5
Forth: The company critical success factors....................................................................................6
Sixths: The changes to be made to the business model if this was my own business.....................7
Conclusions......................................................................................................................................8
References......................................................................................................................................10

3O Bike business model canvas
Introduction
The business model is used by companies as a powerful visualization tool that clarifies all
of the business components and the relationships that exist among them. Canvas is considered
the most complex analytical tool that has the flexibility to be applied in different industries. This
model excludes the company objectives and competitive environment. The blocks of the main
business activities are the main components of the business model (Stefan & Richard, 2014).
This report discusses the business model canvas of O Bike Company, the newly
established Singaporean company that provides an innovative internet-based and
environmentally friendly transportation service. Also, the relationships that exist among its
building blocks, the critical success factors the business has to get right to achieve sustainable
success, the company policies to avoid risk and finally, the changes to be made to the business
model if this was my own business.
First: O Bike Company profile
O Bike is a global internet company, it is the first station-less smart bike-sharing
company and it has been founded in Singapore in 2017. The company depends on technology
and innovation to introduce a new way of transportation in Singapore and change the culture of
the society through providing a conventional travel via bicycles available all over the country.
This innovative transportation service provides an environmentally friendly riding service,
especially in the urban and crowded areas (O Bike, 2017 b). O Bike has started its business in
2017, the company is currently serving communities in more than 60 cities in 17 countries. Its
global operating network is growing every month as it encourages new countries to become a

4O Bike business model canvas
global partner (O Bike, 2018 c). O Bike also operates in Australia as the first homegrown smart
bike sharing services company that utilizes technology (O Bike, 2018 a).
As a bicycle-sharing platform, O Bike offers a convenient alternative means of
transportation available on-demand. This service assists in the reduction of traffic congestion and
CO2 emissions, creating by this an environmentally friendly service and a better place to live in.
The company mission is to provide an efficient service via a sustainable means of transport for
the public in different world countries. Its main aim is to save energy and reduce CO2 emission
globally (O Bike, 2018 b).
Second: The business model canvas of O Bike Company
O Bike the global internet transportation service company
Customer
Segments
RelationshipsValue
Propositions
Key ActivitiesKey Partners
 Offering
healthy
lifestyle and
cycling
 Service
delivery to
customers in
60 cities and
17 countries.
 Customers
 Global partners
 Building
global
network
 Innovation
 Energy
savings
and
reduction
of CO2
emission
globally
 Operations
 Marketing
 Logistics
management.
 Franchising
 O Bike global
business partners
ChannelsKey Resources
 Website
 Mobile app
 Sponsorship of
riding events
 Social media
 Franchise
contracts
 Staff
Revenue StreamsCost Structure
 Revenues of bike rental pricing (Fixed rate,
flexi-rate)
 Marketing for local and global
communities
 Advertising
 Staff
 Taxes and franchising

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Third: relationships across the nine building blocks
The O Bike innovative policy of service delivery depends on its Mobile application, the
customers can rent or return a bike via the application. At the of the ride, the bike could be
parked in the public bike area and locked by using the application (O Bike, 2018 b).
Through its global partner network, O Bike has activated its Credit Scoring system and
encourage the customers to use its services. This strategy could increase the company revenues,
as the customers with positive riding behavior can gain additional credits that could be redeemed
in the future. Customers with less than 60 O Bike credits are required to pay more fees to use the
service. The cost structure of the company reflects the expenses of its marketing activities for
local and global communities, advertising of its services, staff, taxes and franchising. Through its
value proposition, O Bike could fill the gap of the transportation system and provide
environmentally friendly transportation service in its growing network of countries by utilizing
its key activities (O Bike, 2017 c).
By using its communication channels, the company promotes its services to build a
strong cycling community that adapts to the climate change with low carbon emission means of
transportation. According to customer segmentation, O Bike targets people in urban cities and
encourages them to change their transportation behavior. Collaboration and feedback enabled the
company to operate in different countries and to adapt to different cultural norms to serve the
community in the best way (O Bike, 2018 c). The company key resources enable it to operate
efficiently in the local market and expand its network globally. The company has planned to
expand its operations and maintain its relationships in 80 cities by the end of 2017 (O Bike, 2017
d).

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Forth: The company critical success factors
The critical success factors the business has to get right to achieve sustainable success,
are discussed as follows:
 Technology utilization: O Bike rapid growth and global expansion are trustworthy due to
its technological orientation that depends on mobile technology and the internet to
provide its services to people in cities worldwide. Also, it offers global software support
services to the mobile applications and ensures regular updates, for example, bugs
elimination, providing a better user experience, and enhancing operational efficiency
(O Bike, 2018 c).
 Orientation to global operations: The company offers many facilities to its global
partners, including, franchise model, revenue-share either flex-rate or fixed rate,
operational expertise through providing the best models of operation, data analytics
services to manage and enhance the business performance and predict with the market
trends, technical support to the mobile app, differentiated bicycles to match customer
needs, modern and healthy lifestyle of cycling and to be part of the global vision of
improving future mobility and transportation (O Bike, 2018 c). It is planned to expand in
Europe as part of its regional expansion plan (O Bike, 2017 e).
 Innovation: The company has developed the Geofencing technology in Singapore, this
technology requires the bicycles to be parked in the designated parking areas. It is
considered as a virtual boundary that alerts the bicycles entry and exit from the
designated areas. The park locations are indicated in the mobile application (O Bike,
2017 a). Also, the mobile application is supported by the intelligent coordinate system,

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open data (OD)-route and heat maps. Big data analysis includes data about the original
location, destination and the routes to determine the efficiency of the service. Also,
hardware innovation support is introduced through offering a variety of bicycles that has
been differentiated to meet the requirements and customer expectations (O Bike, 2018 c).
Fifth: The company policies to avoid risk
In order to avoid potential risk and ensure the safety of the customers, the company
encourages them to wear helmets while riding O Bike and asks them to look after their own
safety. There are safety cycling programs offered to interested people to ensure their own safety
and the safety of the bicycle as well (O Bike, 2018 b). The traffic congestion needs an informed
planning to solve the transport problems in normal cases and emergencies as well. O Bike is
considered as the first bike-sharing service provider to introduce a contingency plan with tested
response to the natural hazards for example typhoons. In case of emergency, the company keeps
the bicycles in warehouses and its trained team is capable of providing support for people in
need. The preparation of an emergency plan increases the credibility of the company and lessens
the impact of disasters (O Bike, 2017 b).
Sixths: The changes to be made to the business model if this was my own business
O Bike as the first station-less smart bike-sharing company has created a good business
model. The model has to include some factors to sustain the company success and enables it to
make further expansions. The company has to build R&D unit and attract the most talented staff
to study the market trends and people lifestyles in different countries. According to Artz et al.,
(2010), R&D plays a direct role in building the organizational internal knowledge required for

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product innovation and enables it to evaluate the potential outcomes of the organizational
knowledge.
Customer segmentation might include special groups, as women, school and university
students with special focus on each group to encourage them to use the service. The non-
governmental organizations might be considered as partners, especially those that encourage the
green environmental movements and environmental protection from the CO2 emissions. The
green innovation takes a special attention from various entities. The green innovation of
hardware and software that is related to a green products or services and technologies involved in
pollution prevention and energy saving (Schiederig et al., 2012).
Literature of stakeholder theory, suggests that the organization has to deal with multiple
stakeholders to run its business effectively and sustain its long-term survival in the marketplace
(Lauesen, 2016). Accordingly, O Bike has to expand its network and to have more stakeholders.
Conclusions
O Bike company depends on technology and innovation to introduce a new way of
transportation in Singapore and change the culture of the society through providing a
conventional travel via bicycles available all over the country. Its global operating network is
growing every month as it encourages new countries to become a global partner. This service
assists in the reduction of traffic congestion and CO2 emissions, creating by this an
environmentally friendly service and a better place to live in. Through its global partner network,
O Bike has activated its Credit Scoring system and encourage the customers to use its services.
The company offers many facilities to its global partners, including, franchise model,
revenue-share either flex-rate or fixed rate, operational expertise through providing the best

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models of operation and data analytics services to manage and enhance the business performance
and predict with the market trends. The company has developed the Geofencing technology in
Singapore, this technology requires the bicycles to be parked in the designated parking areas. It
is considered as a virtual boundary that alerts the bicycles entry and exit from the designated
areas.

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References
Artz, K., Norman, P., Hatfield, D., & Cardinal, L. (2010). A longitudinal study of the impact of
R&D, patents, and product innovation on firm performance. Product Development &
Management Association, 27, 725–740.
O Bike. (2017 a, October 27). O Bike launches Singapore's first Islandwide geofencing feature.
Retrieved from O Bike: https://www.o.bike/sg/media/obike-launches-singapore-s-first-
islandwide-geofencing-feature/
O Bike. (2017 b, September 28). O Bike harnesses big data to support development of smart city
in Taiwan. Retrieved from O Bike: https://www.o.bike/sg/media/obike-harnesses-big-
data-to-support-development-of-smart-city-in-taiwan/
O Bike. (2017 c, October 3). O Bike gets even more cost-friendly with lower rates, deposits.
Retrieved from O Bike: https://www.o.bike/sg/media/obike-gets-even-more-costfriendly-
with-lower-rates-deposits/
O Bike. (2017 d, September 14). O Bike debuts in Hong Kong, expands footprint in Asia.
Retrieved from O Bike: https://www.o.bike/sg/media/obike-debults-in-hongkong-
expands-footprint-in-asia/
O Bike. (2017 e, November). oBike to roll out its dock-less bike sharing model in 10 more
European countries. Retrieved from O Bike: https://www.o.bike/uk/media/o-bike-to-roll-
out-its-dock-less-bike-sharing-model-in-10-more-european/
O Bike. (2018 a, March 26). About Us. Retrieved from O Bike: https://www.o.bike/au/about/
O Bike. (2018 b, March 26). FAQ. Retrieved from O Bike: https://www.o.bike/au/faqs/

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O Bike. (2018 c, March 26). oBike’s Global Business Partner Program. Retrieved from O Bike:
https://image.o.bike/h5/GBPP+Introduction+Letter+.pdf
Rector, A., Sandefur, B., Ceccagnoli, M., Clendenin, M., & Hallenborg, L. (2016). Introduction
to Legal Means for Protecting Intellectual Property. In Technological Innovation:
Generating Economic Results (pp. 87-130). UK: Emerald Group Publishing Limited.
Schiederig, T., Tietze, F., & Herstatt, C. (2012). Green innovation in technology and innovation
management – an exploratory literature review. R&D Management, 42(2), 180-192.
Stefan, S., & Richard, B. (2014). Analysis of business models. Journal of Competitiveness, 6(4),
pp. 19-40.