Baikky offers one of the trendiest products in the urban mobility world - the electric bike - and relocates it to the bike sharing format for the tourism sector. A convenient and incentive method, tha
Baikky is currently in the revenue generation stage. Both the e-bikes and the Baikky app, have been well received by the market. Baikky’s team is committing all his effort to satisfy the intense, growing demand for our distinctive service. At the moment we have more than 100 satisfied customers.
Our main partners are facilities like hotels and campsites, located in the most beautiful and touristically important location in Italy. Becoming part of Baikky’s network, they embrace the project and “adopt” our Baikkies. While we are already present in several hotels and campsites, at this moment we are starting to collaborate with important institutions like FAI (Fondo Per l’Ambiente Italiano), large companies like Edison, Italian municipalities, and natural reserves. These partners make the Baikkies available to their guests and visitors, the actual customers, which via app can autonomously rent and ride the bikes.
Problem or Opportunity
Driven by the wind of the transition to less polluting transport systems, the global demand for alternative means of transport to fossil fuel cars is continuously increasing. In Italy this market, despite a demand that exceeds the supply, remains underdeveloped and therefore full of opportunities. Baikky intercepts the tourist's attention towards the environmental topic and offers him the safest, least polluting, trendiest mean of the moment: the electric bike. And it does it in a hyper-accessible and most convenient way.
Solution (product or service)
Baikky’s e-bike has been developed with a clear objective: make it as suitable as possible for Sharing purposes (strong frame, full tires, adjustable handlebar and saddle) while achieving a high standard of design and performance. To ensure the standard, we carry out important phases of the production process here in Italy.
While there are companies that offers on-demand bike/scooter/e-bike service in Italy, right now, there are no Italian companies that offer the same exact service to the tourist sector (loan for use e-bikes with in-app payment). However, some European companies are starting to tackle the Italian market. In particular, the Swedish company BICELO is starting to work with some Italian Hotel Groups, but requesting a monthly fee to the hotels, and with a low level of assistance so far.
Advantages or differentiators
Our strength lies in the relationship with the Host Partners. We do not ask any investment from them, no fees or obligations, only an appropriate location to position the e-bikes and the negligible cost of electricity for recharges. Instead, we share a part of the profit from the rentals, in addition to providing the service. Taking good care of the rentals (via app) and of the maintenance (via local SME), we create a solid, mutually beneficial partnership with the host, the latter will be incentivized to offer our e-bikes to its guests.
The main costs for Baikky are linked to the production of the e-bikes and to their distribution in the Italian territory. Other costs are directly dependent on the usages and are paid with a percentage of the use revenues. The maintenance is handled by the Support Partners, local mechanics that do the maintenance and repairs on the e-bikes and are entitled to 10% of profits. While the recharge costs are the (only) cost covered by the Host Partners, largely offset by the 20% share of use profit attributed to them.
Our business model is based on in-app renting of e-bikes. It works through a loan for use between us and the Host that house our Baikkies. In addition to the service provided, we share a part of the profit with all our partners. This year we have offered the bikes to our clients at an amazing fee, only 3 euros per hour. In the next 5 years the business is expected to grow up to 6.5 million of revenue with an EBITDA of 4.2 million, supplying around 500 Host Partners with 3000 units distributed all around Italy, for a total of approximately 900.000 hours of rental.
Money will be spent on
The money will be spent mostly to increase the production volume of the bikes and grow the team.
The biggest risk comes from another global emergency like Covid-19, that could immobilize the tourism sector yet again. Another important risk comes from competition. While at this moment there are only a few players in Europe with the same business model, some of them could rapidly expand and capture the Italian market, or new Italian companies could arise.