KINTO: Revolutionizing Mobility Ecosystem for Corporate Clients
The evolving mobility landscape is paving the way for services like KINTO that offer a range of mobility solutions for corporate clients. With a focus on service coordination, subscription models, and innovative car-sharing options, KINTO aims to lead the mobility market while facing competition from established auto majors and emerging mobility players. The key takeaway is the importance of being multi-brand for long-term success in both private and corporate mobility sectors.
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KINTO: Becoming the mobility ecosystem Presented to:Miguel Fonseca, CEO of KINTO Europe, SVP for Connected Technologies & Mobility at Toyota Motor Europe Lund Consulting Group: Dominykas Vid i nas, Lum Rexha, Jakob Palerius, Sebastian van Dijkman
Divide and conquer. Julius Caesar
Agenda Situation Analysis Alternatives Recommendation Implementation Finance Contingencies Conclusion
Situation: The world is slowly moving towards using mobility as a service Climate change Urbanization Shifting demographics Carbon emissions Great setup for your business Increasing regulations On-demand Micro- mobility Situation Analysis Alternatives Recommendation Implementation Finance Contingencies Conclusion
Situation: KINTO offers six different services that each have different demand levels Service coordination Subscription Go Flex Corporate car- pooling Join One Leasing KINTO Car sharing Share Ride Ride hailing Situation Analysis Alternatives Recommendation Implementation Finance Contingencies Conclusion
Situation: Kintos aim to become the lead mobility provider puts the firm in the position of fighting a war on multiple fronts BMW + Daimler Volvo VW Moia Auto majors Free2move Leasys LeasePlan KINTO / Mobility Full-service leasing ALD New mobility players Uber Hailo BlaBlaCar Bolt Situation Analysis Alternatives Recommendation Implementation Finance Contingencies Conclusion
Situation: Corporate clients are the future, but they are also the most demanding New car registrations in 2021 Top executives Mercedes, Bentley Middle management Lexus, Audi 37% Skoda, Renault, VW Service 63% Main takeaway: Being multi-brand is key in the long-run Private Corporate Situation Analysis Alternatives Recommendation Implementation Finance Contingencies Conclusion
Situation: KINTO finds itself in a classic chicken & egg problem Step 1: a service is created Buyers Service Sellers Step 2: the service gets one side on board Buyers Service Sellers Step 3: the service invites the other side to join and establishes itself as a multisided platform Buyers Platform Sellers Situation Analysis Alternatives Recommendation Implementation Finance Contingencies Conclusion
Situation: our recommendation is based on three main building blocks Improve the UI on the platform by including logistics simplification and maintenance status to bought and leased cars Launch offensive strategy to increase customer base and miles driven Leverage the platform to become the #1 mobility ecosystem Situation Analysis Alternatives Recommendation Implementation Finance Contingencies Conclusion
Our recommendation Building the go-to platform for MaaS (movement as a service) and leveraging it to expand into the wider market Main challenge Setting KINTO up as the lead mobility provider in the transforming transport industry Situation Analysis Alternatives Recommendation Implementation Finance Contingencies Conclusion
Analysis: Data is key to capturing the, so far, limited demand and to grow the market segment Location Meeting the demand - today and in the future Data Price point Type of car Situation Analysis Alternatives Recommendation Implementation Finance Contingencies Conclusion
Analysis: To become a main player of the MaaS market, market size is key The mobility as a service (MaaS) industry will be based on one primary platform. Interesting solutions, market size and pain removers are key to becoming that platform. Key success factors Leveraging the platform to include other businesses Building a strong platform Ecosystem driver Situation Analysis Alternatives Recommendation Implementation Finance Contingencies Conclusion
Analysis: In the long run, KINTOs digital business model should be to become the Amazon of the mobility market High Ecosystem driver E.g Amazon Multi-channel E.g. H&M KINTO: the marketplace of mobility Customer insight Seller E.g. PG Modular E.g. Paypal Competition and dealers: The seller on the platform Low Broad Focused Business model Situation Analysis Alternatives Recommendation Implementation Finance Contingencies Conclusion
Alternatives(1/3): Aggressive strategy on 6 fronts What it means Focusing on launching the full KINTO experience with all 6 services Showcasing all product offerings Wider customer reach Advantages Lower demand within specific services Lacking the platform to launch on Huge competition Drawbacks Situation Analysis Alternatives Recommendation Implementation Finance Contingencies Conclusion
Alternatives(2/3): Primary focus on attracting a multi brand fleet What it means Focusing on the seller part of the platform first to get a multi-brand fleet fast Better set to meet corporate client expectations, which will become a very profitable market segment in the future Low investment costs Advantages Maintenance of other brands Diluting brand or low adaption Lower revenue as it has to be shared Drawbacks Situation Analysis Alternatives Recommendation Implementation Finance Contingencies Conclusion
Alternatives (3/3): Our recommendation What it means Focusing on current key strengths to improve platform and leveraging it to become and ecosystem driver Positions KINTO to become an ecosystem driver Captures the current market and sets up for the future Advantages The risks with our recommendation are addressed in the contingency section Drawbacks Situation Analysis Alternatives Recommendation Implementation Finance Contingencies Conclusion
Alternatives: summarizing comparison of the different alternatives moving forward Our 6 front strategy Seller focus recommendation Adjusted to current market Ecosystem driver Investment required Situation Analysis Alternatives Recommendation Implementation Finance Contingencies Conclusion
Recommendation Improve the UI on the platform by including logistics simplification and maintenance status to bought and leased cars Leverage the platform to become the #1 mobility ecosystem Launch offensive growth strategy to increase customer base and miles driven Building the go to platform for MaaS and leveraging it to expand into the wider market Situation Analysis Alternatives Recommendation Implementation Finance Contingencies Conclusion
Implementation (1/3): Increasing B2C market size Launch offensive growth strategy to increase customer base and miles driven Purpose Action People Cost Accelerate scale-up Balancing (in)organic growth Increase data = miles driven Hook broad customer base to the platform Increase network effects Marketing campaign + Referral program + Loyalty program + Subsidizing service Acquire strategic full-service leasing company Internal merging and integration process Collect available data Review ethical framework Marketing team Data-scientists Finance department HR department Top management team Marketing costs IT development costs Acquisition cost Total: $690M Situation Analysis Alternatives Recommendation Implementation Finance Contingencies Conclusion
Implementation (2/3): Increasing B2B and furthering B2C market size Improve the UI on the platform by including logistics simplification and maintenance status to bought and leased cars Purpose Action People Cost Make platform relevant for everyone Offer customers value with new solutions Capture larger market share Ensure top customer satisfaction Collect customer insights Expand the IT and R&D departments Launch project group who continuously improve the platform Improve CRM-systems Marketing, HR, IT and R&D departments Project group Customer relations Customer insights Platform development group New recruitments Situation Analysis Alternatives Recommendation Implementation Finance Contingencies Conclusion
Implementation (3/3): Becoming an ecosystem Leverage the platform to become the #1 mobility ecosystem Purpose Action People Cost Partner with other services Launch KINTO GO In existing markets Expand concept to new key markets in Europe Become the ecosystem driver of the mobility market Increase profitability Continue growth journey Sales department Top management Business developers Marketing team IT department IDK? Situation Analysis Alternatives Recommendation Implementation Finance Contingencies Conclusion
Implementation: Through our recommendation, KINTO applies the optimal strategy for platform growth Step 1: a service is created Buyers Service Sellers Step 2: the service gets one side on board Buyers Service Sellers Step 3: the service invites the other side to join and establishes itself as a multisided platform Buyers Platform Sellers Situation Analysis Alternatives Recommendation Implementation Finance Contingencies Conclusion
Implementation: GANTT Timeline 2022-2024 2022 2023 2024 People Costs Growth strategy $690M Marketing campaign Marketing team Acquisition Search process Acquisition HR/Finance/Top management Data collection system Development Launch Continue --> Data scientists Improve platform $130M Collect customer insights Marketing team Platform project group Recruitment Development/Launch HR Improve CRM-systems Development Launch Customer relations/R&D Mobility ecosystem $333M Partner with other services Search Sales/IT department Top management Launch KINTO GO In existing markets Business developers Top management Expand concept to new key markets in Europe Evaluate markets Top management Marketing team Situation Analysis Alternatives Recommendation Implementation Finance Contingencies Conclusion
Finance: Illustrating future potential in the full-service leasing and car sharing sector for Europe Cars managed by full-service leasing companies ($ million) Car sharing users in Europe ($ million) 16 50 15.5 40 15 14.5 30 14 13.5 20 13 12.5 10 12 11.5 0 2020 2021 2022 2023 2024 2025 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Forecasted compound annual growth rate 23,11% Forecasted compound annual growth rate 28,23% KINTO ONE KINTO SHARE Situation Analysis Alternatives Recommendation Implementation Finance Contingencies Conclusion
Finance: Revenue development according GANTT implementation steps Revenue Development Forecast ($ billion) 8 7 2022 - 2023 - Subsidization - Lower price - Customers increase 6 5 4 3 2023-2024 - Revenue through becoming ecosystem - Increase B2B and B2C through new platform 2 0% 23% 31% 32% 34% 1 0 2021 2022 2023 2024 2025 2026 Situation Analysis Alternatives Recommendation Implementation Finance Contingencies Conclusion
Finance: Cost breakdown for each implementation step presented Additional Costs Calculation ($ million) Implementation step Cost allocation 2022 2023 2024 Cost Allocation 2022-2024 ($ million) Enlarge data - Acquisition 100 800 - Data analysts 30 40 50 700 Increase customer base and miles driven 600 Utilize data 500 - IT development 15 5 5 400 - Marketing Extend cars under management Platform developers 20 25 30 300 100 120 150 200 25 Improve the UI on the platform 100 Business relations 30 35 40 0 Marketing 40 50 60 Increase customer base and miles driven IT development 5 6 7 Improve the UI on the platform Leveraging the platform Data analysts 10 15 20 Leveraging the platform Business realtions 35 40 45 Situation Analysis Alternatives Recommendation Implementation Finance Contingencies Conclusion
Contingencies: Risks & mitigation strategies for each step of the recommendation Risk Mitigation 1. Unable to increase userbase meant for gathering data Pursue acquisitions of fleet service companies that have relevant data in different markets Launch offensive growth strategy to increase customer base and miles driven Invest heavily into market analysis and explore other alternatives for pain relievers 2. Unable to meet customer needs on the platform 1 Improve the UI on the platform by including logistics simplification and maintenance status to bought and leased cars Severity 2 3 With the increasingly growing user base, they will be forced to either join pursue higher growth and seek to trigger the domino effect 3. External competitors do not want to be on the platform Leverage the platform to become the #1 mobility ecosystem Likelihood Situation Analysis Alternatives Recommendation Implementation Finance Contingencies Conclusion
Divide and conquer. Julius Caesar
Conclusion: KINTO offers six different services that each have different demand levels Service coordination Subscription Go Flex Corporate car- pooling Join One Leasing KINTO Car sharing Share Ride Ride hailing Situation Situation Analysis Analysis Alternatives Alternatives Recommendation Recommendation Implementation Implementation Finance Finance Contingencies Contingencies Conclusion Conclusion
Conclusion: Through its varied offerings, KINTO is put in a position where it is fighting on multiple fronts BMW + Daimler Volvo VW Moia Auto majors Free2move Leasys LeasePlan KINTO / Mobility Full-service leasing ALD New mobility players Uber Hailo BlaBlaCar Bolt Situation Situation Analysis Analysis Alternatives Alternatives Recommendation Recommendation Implementation Implementation Finance Finance Contingencies Contingencies Conclusion Conclusion
Conclusion: In order to become an effective ecosystem, KINTO must capture one side first, and then capture the other Step 1: a service is created Buyers Service Sellers Step 2: the service gets one side on board Buyers Service Sellers Step 3: the service invites the other side to join and establishes itself as a multisided platform Buyers Platform Sellers Situation Situation Analysis Analysis Alternatives Alternatives Recommendation Recommendation Implementation Implementation Finance Finance Contingencies Contingencies Conclusion Conclusion
Conclusion: our recommendation is built on three main building blocks Improve the UI on the platform by including logistics simplification and maintenance status to bought and leased cars Launch offensive strategy to increase customer base and miles driven Leverage the platform to become the #1 mobility ecosystem Building the go to platform for MaaS and leveraging it to expand into the wider market Situation Situation Analysis Analysis Alternatives Alternatives Recommendation Recommendation Implementation Implementation Finance Finance Contingencies Contingencies Conclusion Conclusion
Appendix I: Data source & calculation formula for forecast in fully-service leasing companies & car sharing users Number of car sharing users in Europe ($ million) 2016 5,75 Number of cars managed by full-service leasing companies in Europe ($ million) 2017 7,244546 Compound annual growth rate formula: 2018 9,127556 2020 13 2019 11,5 2021 13,39 ? ? 2020 14,48909 ?????? ?????? 2022 13,7917 ???? = ? 2021 18,25511 2023 14,20545 2022 23 2024 14,63161 2023 28,97818 2025 15,3632 2024 36,51022 2025 46
