Updated: Sep 2, 2020
What are the key reasons behind BlaBlaCar's growth?
BlaBlaCar is a two-sided carpooling platform which connects car owners and travelers heading to a common destination. BlaBlaCar offers service to peer providers and peer consumers with no distinction.
Car Pooling - Blablacars
Travel Insurances- Blablasure
Car Rentals - Blablalines
Grocery Sharing- Blahelp
Bike Taxi- Blabike
BLABLA Cars deploys diversified business models and does not depend on one particular source for their revenue.
1) Transaction Model: Fixed fee, variable fee and VAT
2) Booking fees Model: Prepaid fees to avoid unjustified cancellations
3) Cash for rides Model: Direct pay by cash to avoid taxes
4) Premium model: Allows peer providers to charge a higher price for sophistications like smoking, allowance of pets etc.
5) Pay per use: Strategic partnership with insurance companies like AXA and car manufactures like Opel and ALD for leasing cars to its top users.
Architecture: Endorsed Architecture
It is a type of strong brand endorsement by using key linked name “Blabla” and use of the suffix “by blablacar”.
Brand Name: BLABLACAR
It represents never ending talks about the travel experience.
The two B’s of BlaBlaCar have been rendered as speech marks: a universal shorthand for social interaction. The overlap between them reflects the two sides of the passenger-driver experience and the connections made during a journey.
Sky blue - Passenger
Dark blue - Driver
Green - Mutual satisfaction
Brand Identity: What the mind says?
Brand Image: What the heart says?
Convenient travel with comfort
Social interactions and building relationships
Competitive Advantage: Cost Leadership and Differentiation
Competitors: FlixBus, Lyft, Via, Zipcar, Ola and Uber.
Sources of competitive advantage:
1)Corporate culture and leadership: Decentralized leadership with effective communication and freedom to innovate and experiment.
2)Employees: Highly innovate employees from diverse backgrounds but converge on the core principles of the company.
Cost leadership: BlablaCars is the cheapest operating platform in the global market as it charges the consumer only for the fuel expenses.
Differentiation: A brand becomes unique when it shifts its focus from the products/service to the customer experience while using the product/service.
1. They have created a brand portfolio in a related sector by focusing on core strengths as compared to its rivals. Example: Uber into uber eats.
2. They created BlablaLines app was devised to offer vouchers and car rentals at a cheaper rate for its most loyal customers. It also displays social corporate responsibility by encouraging drivers to use cars with less carbon footprint and offers them a huge compensation for using BlaBlaLines to carry travelers during peak hours.
3. There are about 9 languages and several payment methods encrypted at BlablaCars. Moreover, they offer customized choices of music, the permit to smoke, carry pets etc.
4. Unbiased: One can use the platform both as a driver and a passenger.
5. Lively neighborhood in terms of sharing and socializing through BlaBlahelp.
BlaBlaCar forms a strategic fit between the external and internal environment by the display of superior performance, trust and value for money rather than its economical aspect of profitability. With regards to its internal environment, BlaBlaCar possess resources and capabilities which are highly valuable matching the customer’s needs, hard to imitate due to its superior performance, distinctive and linked competence, complexity and corporate culture, rare as a result of sustainability and to a certain extent non-substitutable due to the uniqueness of the service offered. The bases of competitive advantage arise mostly from it tangible and human aspects of resources.