Business Model Canvas

Business Name: NoteWood EcoBus

Slogan: Connecting People with Productivity

Team 2.3

Jovias Kelvinsun, James Yap Tze Jian, Jeremiah Wu, Wenqi Cai, Wenyao Li, Jing Qian,

Darian Albuquerque
Business model canvas

Introduction

Environmental sustainability is one of the most crucial challenges of human life. We are

constantly trying to find alternative ways to change in our day-to-day lives in the effort to

reduce pollution on earth. Our team has developed a concept of a public electric bus that

caters to the demand of daily commuters and executes it with a more premium experience

that provides comfort and privacy. Currently, the public transportation industry is worth

around $26.5 billion with buses taking more than 35% of the whole public transportation

industry. The growth of the industry is due to growth in population within the country and an

increase in traffic congestion along with capital investment required for personal vehicles,

causing more people to switch to public transport (Munro-Smith, 2018).

Value proposition

 Comfort, privacy and overall premium experience for long rides

One of our main research results from surveys is that people wouldn’t mind paying more for

a more comfortable, premium experience when travelling to their destination. We will be

providing private pods for individual customers, which is inspired by pod seats provided in

planes for business class users. These pods will also act as an extra layer of privacy with pods

keeping any visual access from outside the pod to a minimum into their space as this is one of

the concerns conducted from our survey. Survey respondents have said that they wanted that

they would feel more comfortable with more privacy among the other people in public,

especially on long rides.

 Convenience

We are constantly trying to make our service as convenient as possible for the users. Our

users can download our app to purchase passes, book a trip, check schedules and destinations.

Users can also use the google maps app to check the schedules and destinations along with

other public transportation available if any are needed to get to their destination and notify

them if their bus is arriving at the stop. It is also able to notify the users when they are close

to their destination 3 stops before their stop, allowing them to pack up their belongings and

having a smooth getting off experience.

  Productive environment, equipped with amenities(charging station, worktable and wi-

fi)

We will be proving a more productive environment for our customers, allowing them to fulfil

any necessary work that is needed. A table that allows them to set their laptops or to write

any documents, as well as providing them with free wi-fi.

Customer Segment

The average travel distance time of Australians is around 16km which is around 1 hour, and

4,5 hours every week to get to their workplace or school. This is around 7.3 million

Australians that are employed or above the age of 15 years old(Abs.gov.au, 2016).

(Abs.gov.au, 2016)
The electric bus pod’s customers are segmented into 4 different categories:

 White Collars: White-collar workers are generally known for earning an above-

average income doing hard-skilled jobs. That said, they are typically occupied with

work throughout the day. Hence, these white-collar workers are people who are

willing to pay for a premium to enjoy privacy and comfort when riding the electric

bus pod.

 Environmentalists: Environmentalists are people who are conscious of the

environment and are always finding ways to mitigate their harm to the environment.

As gasoline-powered cars emit carbon dioxide and trains also emit nitrogen dioxide

and carbon dioxide, environmentalists can find riding the electric bus pod as an

alternative way of transportation without harming the environment at all.

 Advertiser/ Ad Agencies: Advertisers and ad agencies are one of the electric bus

pod’s major customers. Having an advertisement largely displayed on the outside of a

moving bus helps increase exposure and awareness.

 University/College Students: Students from University and City Colleges are also one

of the electric bus pod’s primary customer bases as the electric bus pod aims to be

cheaper than private transport services.

Customer Relationship

There are several activities the electric bus pod performs to maintain a good relationship with

customers. The electric bus pods perform the following:

Personal Assistance: On every electric bus, there will be a customer service representative

available to assist and cater to every customer’s needs and wants in the electric bus.

Automated Service: There will be a push notification sent to customers who have

downloaded the electric bus pod app once they have started their journey, close to reaching

the destination, and reaching the final destination.

Self Service: Customers can head to the electric bus pod’s official website and head to the

FAQs section for general questions and information about the electric bus pod.

Key Partners

We have four key partners in this scenario which are town councils, investors, the bus

company and IT team. We collaborate with town councils and investors. For town councils,

they will get a share of our income for environmental sustainability, and our product will be

advertised by them in return. Investors will also get a share of our income, they need to invest

our business and then we can operate this business successfully. The bus company will be a

joint investment since our business is a completely new business based on the bus, the bus

company is essential for us to work together to develop new technology and help with bus

maintenance. For the IT team, we have an employment relationship, we need to hire an IT

team to help us develop a new mobile application, develop new technology and application

maintenance. If we can get it right with these partners, then I believe we could operate a

successful business.
Key activities:

1. transportation service

Transportation service is the most important activity. The experience which is given to

customers matters a lot. Our service provides premium service such as private space, phone

charges and entertainment.

2. bus charge and maintenance

Our electronic bus needs charging after a day. It makes sure our buses can operate normally

the next day. Also, bus maintenance is very important. The bus will be checked daily to make

sure that there is no problem. Also, we will have cleaners to clean the bus every day to

provide a good environment.

3. App operation

App operation is our connection with the customer. Customers know when the bus will come

from our app and can check their routes. The app should have minimum technical problems

and be user friendly.

4. Social media advertising

Social media advertising attracts its customers. As a new start-up company, very few people

know about our names. So advertising is an important tool to build our reputation and attract

more customers.
Key resources:

1. Buses

We need buses as our main service provider. The buses can come from current bus

companies or we can find new bus manufacturers.

2. Investments

Money is the blood of an organization. Without initial investment, we cannot make a move.

Since public transportation is quite expensive, we need a large amount of money to start up.

3. Human resources

We both need office workers and drivers. Drivers are in charge of running the bus. Office

workers do their job at the back. They provide backup support and deal with complaints.

They also act as a call centre, so if there is any question from our customer, they will be

handling it.

4. Materials used to update the bus

Since we have normal buses, we need to upgrade it as our new electronic bus. To provide

privacy and comfort, we need to have separate areas for each customer. And the material

should be soundproof.

5. Brand recognition

It is important for us as an intangible asset. It is a symbol of our attractiveness to the

customers.
Cost structure

According to the data from the China New Energy Vehicle Industry Chain Industry

Development Report （http://pdf.dfcfw.com/pdf/H3_AP201904111318176636_1.pdf） I

made the following charts for our plan.

The major cost of electric vehicles are the battery, motor, and electronic control "three major"

systems, the cost of power batteries take the largest proportion.

The three major components of pure electric vehicles are batteries, motors and electronic

controls－which together account for about 50% of the total vehicle cost. Among them, the

battery accounts for about 40%.

There has been a decline in the past few years; the maturity of the motor electronic control

system technology has gradually increased, and the price has fallen rapidly in recent years,

accounting for 15% to 7%. Around Yuan. The electrification of new energy vehicles is

relatively high,

Automotive electronics accounted for 20% of the more traditional fuel vehicles.

Other costs include power battery pack components, BMS, electrical connection

Connect and car paint, lighting and other components. Compared with fuel vehicles, the three

major parts are the engine, gearbox and chassis, which together account for 40% of the

manufacturing cost.

Among them, the highest proportion of engines is 20%. The cost of the body, chassis and

interior is the same on both types of cars.

Judging from the above split, the space for a price reduction of new energy passenger car

bodies, chassis and interiors is relatively small, and battery motor electronic control and

automotive electronics will be the key breakthroughs.

New energy vehicle cost structure

Battery 25%
Electric Machine 15%
Electronic Control Unit 12%
Electric drive parts 8%
Other 8%
IGBT 41%
The cooling base plate 10%
large capacity 10%
PCB board 8%
other resources 22%
labour manufacturing cost 9%

The cost structure of Electronic control system for new energy vehicles

Total project forecast cost structure

electricity for bus 10%

technology and app maintenance 20%
bus driver wage 5%
bus maintenance fees 5%
training 5%
facility cost 10%
R&D(research and development) 35%
Service fee 3%
other 7%
Revenue Streams

The philosophy of our company is to provide value to our customers while staying

environmentally friendly. Listed below are the revenue streams that we will establish.

Revenue From Service - Single Trip (Usage Fees)

This will be one of the main sources of revenue for our product. As not every customer will

use the product daily, purchasing monthly/seasonal passes may not be an economic option for

them.

Customers will be charged a flat fee for boarding the bus and a separate fee based on the

kilometres travelled. They can “tap-on and off” with their mobile application with their

unique QR code at the entrance/exits of the bus.

Another alternative would be to pay up-front with cash at the front of the bus at the start of

the journey (however the change will not be given) similar to a traditional bus ride.

Revenue From Service - Travel Passes (Subscription Fees)

For the more regular customers, we will also be offering travel passes. Some examples would

be a Senior’s Pass, Short Term Monthly Pass and an Annual Pass.

This helps our customers save more money in the long term and it rewards them for their

loyalty to our product. These passes would be more affordable than purchasing individual

single trips. These passes will be available as a hard copy (Scan QR Code on the scanner) or

through the mobile application.

Revenue From Leasing - Advertising Space

As our buses will be transporting riders to highly populated areas, it will attract many pairs of

eyes. We can leverage this exposure and monetize it to generate another revenue stream.

We will lease the exterior of our buses to companies to place their advertisements. For a more

targeted option for advertising, we will also offer the interior of the bus, namely on the

overhead storage compartments, handrails and individual pods.

Revenue From Upselling Products/Services

Apart from the basic amenities that we will provide onboard the bus, We will be partnering

with companies that share our same views and values of sustainability and provide ethically

sourced snacks, frozen microwave meal options and also Wi-Fi with faster speed etc.

Customers will be able to purchase these on-board or pre-order them via the application for a

small discount. This is done to establish some sort of predictability of the demand for these

products and will help streamline the supply process.

Channels are a critical element of the business model. They are how a company

communicates with and reaches its customer segments.

This will consist of our channels of marketing or advertising, helping potential clients and

customers in getting to know about our business.

It will broadcast the primary features of the service of the people and then highlight how it

can help in saving time of the consumer.

Official Website:

We will host an official Website for our service, entitled “NoteWood: Bus Pods Service”. It

will display our vision towards Environmental Sustainability, followed by why the consumer
would require the service, Modus Operandi and our business partners (Council

Representatives, IT team, Bus Operators, etc)

Youtube Video Commercial: We would hire a marketing agency to help produce an ad,

portraying an individual (male or female) finding commute every day tedious. he/she after

being exasperated, finds out about our service and wishes to use it. There is also a narrator

describing the entire scenario and info about the service. We would post this as a YouTube

Ad since most of our customer segments view YouTube for recreation, entertainment.

Infomercial: our Website will also have a short infomercial displaying the app interface on a

mobile (iOS and Android) and how you can use the app’s features.

Word of mouth- We’ll also rely on customers who gave us a good/excellent feedback rating

to advertise our service via Word of mouth since that is essential in order to increase

awareness of the business.

Newspaper Ads: With a view to engaging newspaper readers, we will place half-page ads on

the front cover page, as well as put info pamphlets in newspaper tabloids.

Critique

Desirability

Based on our analysis, our business is mainly designed for commuters including students, the

elder, office workers/ white collars, and environmentalists. The  EcoBus provides users with

a comfortable and private place in their trip, it also provides facilities like Wi-Fi and desks

for a premium and productive experience.  

Feasibility
 To achieve feasibility, we need to meet our customers needs and preferences. We need to

collect more customer thoughts of our business, we plan to invite some people to be our first

users and collect their feedback. We also provide online staff service to hear voices from all

users. To reach those things, we need to collaborate with town councils, investors, bus

companies and IT teams to get what we want, which are new technology, materials used to

update the bus, the buses for transportation, investment and office workers.

Viability

A large capital would be required to supply a fleet of busses for different locations and times,

so we would have to start with only 1 city with limited time and destinations. Cost would also

be allocated to maintaining the bus and improving the bus. We will a stable revenue source

from single trip fees and travel pass fees, advertisement space for promotion, and upselling

products such as food and drinks. The service charges should be fixed. And the subscription

fee is fixed as well. Revenue from upselling products is variable because sales differ from

time to time.

References

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（http://pdf.dfcfw.com/pdf/H3_AP201904111318176636_1.pdf）