1)
My business idea is a service that eliminates any sort of traffic in a major city by the construction of trams in the key spots of the city. Parking houses would also be created around the city. They would give the option to people who would go to the city to leave their cars safely in the parking houses and take a tram from the to the city without having to worry about available parking spaces or getting any sort of parking ticket. The segment from all my potential customers would be people who live in a town in Luxembourg that is between fifteen and forty-five minutes away from downtown Luxembourg. These specific customers have to go at least between three and seven times a week to the city due to school or any work-related reasons.
I interviewed Patrick, a former classmate of mine who lives in a town called Grevenmacher that is thirty-five minutes away from downtown but has to drive or take the bus to the city every day since his school is located there and his girlfriend lives there as well.
Then, I interviewed Max, he is the younger brother of my best friend, and he goes to the same high school as I went, Lycee Robert-Schuman. Even though it is an extremely good school, it is located in Luxembourg City, which means that Max is five times a week forty minutes on a bus that brings him to his school.
Lastly, I interviewed my friend Sen-Cheng. He lives with his family in Arlon which is about forty minutes away from Luxembourg City and he works every day at his parent's restaurant which is in Luxembourg City. He works six days a week and has to drive every day to the City.
3)
All of my interviewers have in common that they get stuck in the morning or in the afternoon in traffic and they get stressed or pissed because they literally loose so much time every single day. It is at that moment that they realize that they have a need which is to avoid traffic jams which they fulfill by waking up earlier and go to their destinations at an earlier or later stage of the day. Sometimes they just get off at an earlier stage of their destination and take an expensive taxi with the hope that the taxi driver takes alternative and sometimes illegal routes that brings them faster to their destination. The fact of waking up earlier or later or rearranging their schedule in order to avoid traffic can be extremely annoying since they end up spending more time at their destination that they actually have to. Max, for example, stays every day two hours longer at his school in order to avoid traffic. he goes then to the gym or catches upon some homework which is all positive facts, but when I interviewed him, he clearly stated that he only does this because he has to, he would obviously prefer going straight home after a long day in school. When my interviewers decide to take the regular bus and go off at an earlier stage of their route to take a taxi, they split they split the fare since Luxembourg has not introduced UBER nor Lyft which means that the taxi fares are still extremely expensive. But, since they sometimes can not leave it to chance if they arrive on time or not, they are willing to pay the fare no matter how high the prices get.
4)
Taxis are all around the city or people can always call them. Taxi drivers even have their own business card which gives them certain discounts to loyal customers, but they are still extremely expensive.
5)
As far as I am concerned, I would say that my interviewers do not care about the amount they spend on money for taxis as long as they arrive at their destination on time. They regret that spending money on taxi's can become extremely expensive if they do it multiple times in a week, but they describe it as a necessary purchase.
6)
Patrick and Max were the ones who spend money on taxis if they could tell that they would not arrive on time with their bus. Sen-Sheng often goes to his restaurant an hour earlier and leaves it an hour later, since, at the time when he gets off, most of the people working in offices in downtown get off and the rush hour is horrible.
7)
I believe that the people in this segment do not have a lot of options. The ones who can afford taxis take them but the ones who do not have that extra money, just leave it to fate if they arrive on time or not, which can be extremely stressful. If anyone could arrive at the time they want taking using my business idea which would be the tram, everyone would be happy and it would be a win-win solution.
Alexandro,
ReplyDeleteIt seems like it is a very cornered market in the sense that taxis or owning a car are pretty much the only way to transport around the city. I am curious if Uber is not popular in Luxembourg or did you consider for it to be under the taxi segment. However, it does seem like the need for a public transport system like a Tram would alleviate a lot of people's time and definitely solve some major traffic problems. It has an ability to change the layout of the city.
It is true that the only real way around a city is to Uber or have your own car. Public transportation can take a long time that you might even need to leave over an hour before wherever you need to be. I find it to be annoying that there is always such a long wait and too much traffic. If there was another option less people would use their cars which will cause less traffic.
ReplyDeleteAlexandro,
ReplyDeleteI think it is very interesting to read your posts. In a place such as Luxembourg, where governmental regulations have stopped uber and lyft from entering, I think that the transportation issue that you have outlined definitely exists. My biggest question now is "can this idea become profitable for the entrepreneur?" I do not think that is a question you need to outright answer, but it would be something interesting for you to look into.