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Why Bipi's Business Model is so successful?

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Bipi’s Company Overview


Bipi is a pioneering car subscription service based in Spain that is revolutionizing the automotive industry. Launched in 2017, Bipi offers an innovative solution for individuals and businesses seeking a flexible, hassle-free alternative to car ownership or leasing. The company provides a wide range of vehicles, from economy to luxury models, which can be subscribed to on a monthly basis. Bipi's unique model eliminates the need for down payments, long-term commitments, or maintenance worries, as all these aspects are covered in the subscription. The company's mission is to make driving a car as easy and convenient as possible, and they are committed to providing exceptional customer service and a seamless digital experience. Business Model: Bipi operates on a subscription-based business model. Customers choose a car and a subscription plan that suits their needs, with plans ranging from one month to several years. The subscription fee covers all aspects of car ownership, including maintenance, insurance, and roadside assistance, allowing customers to enjoy the benefits of a car without the burdens of ownership. Bipi sources its vehicles from a network of partner dealerships and manages the entire customer journey digitally, from car selection to delivery and return. This model allows Bipi to provide a flexible, convenient service that meets the changing needs of modern consumers. Revenue Model: Bipi's revenue model is primarily based on the monthly subscription fees paid by its customers. The fee varies depending on the type of car and the length of the subscription, with luxury cars and longer-term subscriptions commanding higher fees. In addition to the subscription revenue, Bipi also generates income from partnerships with car dealerships and manufacturers. By providing a platform for these companies to reach a new market of consumers, Bipi is able to negotiate favorable terms for sourcing vehicles, which contributes to its revenue. Furthermore, Bipi has the potential to generate additional revenue through ancillary services such as car upgrades or additional insurance coverage.

https://bipicar.com/

Country: Spain

Foundations date: 2017

Type: Private

Sector: Consumer Services

Categories: Mobility


Bipi’s Customer Needs


Social impact:

Life changing: affiliation/belonging

Emotional: design/aesthetics, provides access, attractiveness

Functional: saves time, simplifies, reduces effort, avoids hassles, quality, variety


Bipi’s Related Competitors



Bipi’s Business Operations


Collaborative consumption:

Collaborative Consumption (CC) may be described as a collection of resource circulation systems that allow consumers to both get and supply valued resources or services, either temporarily or permanently, via direct contact with other customers or through the use of a mediator.

Access over ownership:

The accessibility over ownership model is a business concept that allows consumers to utilize a product without owning it. Everything serves a purpose. As a result, consumers all across the Western world are demanding more value from their goods and services, and they are rethinking their relationship with stuff.' Furthermore, with thriving online communities embracing the idea of access above ownership, the internet is developing as a robust platform for sharing models to expand and prosper.

Digital transformation:

Digitalization is the systematic and accelerated transformation of company operations, processes, skills, and models to fully exploit the changes and possibilities brought about by digital technology and its effect on society. Digital transformation is a journey with many interconnected intermediate objectives, with the ultimate aim of continuous enhancement of processes, divisions, and the business ecosystem in a hyperconnected age. Therefore, establishing the appropriate bridges for the trip is critical to success.

On-demand economy:

The on-demand economy is described as economic activity generated by digital marketplaces that meet customer demand for products and services via quick access and accessible supply. The supply chain is managed via a highly efficient, intuitive digital mesh built on top of current infrastructure networks. The on-demand economy is transforming commercial behavior in cities worldwide. The number of businesses, the categories covered, and the industry's growth rate are all increasing. Businesses in this new economy are the culmination of years of technological progress and customer behavior change.

Mobile first behavior:

It is intended to mean that as a company thinks about its website or its other digital means of communications, it should be thinking critically about the mobile experience and how customers and employees will interact with it from their many devices. The term is “mobile first,” and it is intended to mean that as a company thinks about its website or its other digital means of communications, it should be thinking critically about the mobile experience and how customers and employees will interact with it from their many devices.

Transaction facilitator:

The business acts as an acquirer, processing payments on behalf of online merchants, auction sites, and other commercial users for a fee. This encompasses all elements of purchasing, selling, and exchanging currencies at current or predetermined exchange rates. By far the biggest market in the world in terms of trade volume. The largest multinational banks are the leading players in this industry. Around the globe, financial hubs serve as anchors for trade between a diverse range of various kinds of buyers and sellers 24 hours a day, save on weekends.

Rent instead of buy:

Services that do not need the product to be purchased but rather rent it for the economic benefit of requiring less money to access the commodity. When you rent, you assume less obligation since most of the burden is placed on the owner's shoulders. There is no debt; you are just responsible for the monthly rent. When renting, you have more flexibility by signing a six-month or one-year lease. This implies that you will be confined to that location for at least that period. When your lease term expires, you have the option of switching to another product or renewing your lease.

Lease:

The item that's being sold is now available for rent on an hourly/daily/monthly/yearly basis. A lease is a contract that specifies the terms under which one can rent a property. It ensures the lessee, the tenant, access to an asset, and the lessor, the property owner or landlord, receives monthly payments from the lessee for a predetermined period of months or years. Both the lessee and the lessor risk penalties for breaching the contract's conditions.

Online marketplace:

An online marketplace (or online e-commerce marketplace) is a kind of e-commerce website in which product or service information is supplied by various third parties or, in some instances, the brand itself, while the marketplace operator handles transactions. Additionally, this pattern encompasses peer-to-peer (P2P) e-commerce between businesses or people. By and large, since marketplaces aggregate goods from a diverse range of suppliers, the variety and availability are typically greater than in vendor-specific online retail shops. Additionally, pricing might be more competitive.

Transportation as a Service (TaaS):

Transportation as a Service (TaaS), also referred to as Mobility as a Service (MaaS), refers to a trend away from privately owned means of transportation and toward subscription-based mobility solutions. This is accomplished by integrating transportation services from public and private suppliers through a unified gateway that organizes and maintains the journey, which customers may pay for with a single account. Users may either pay per journey or subscribe to a monthly subscription for a certain distance.

Subscription:

Subscription business models are built on the concept of providing a product or service in exchange for recurring subscription income on a monthly or annual basis. As a result, they place a higher premium on client retention than on customer acquisition. Subscription business models, in essence, concentrate on revenue generation in such a manner that a single client makes repeated payments for extended access to a product or service. Cable television, internet providers, software suppliers, websites (e.g., blogs), business solutions providers, and financial services companies utilize this approach, as do conventional newspapers, periodicals, and academic publications.

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