Summary
The Fly and Drive App is a potentially interesting and innovative concept that could disrupt the traditional car rental industry. By leveraging technology such as mobile device unlocking and blockchain, the app could make it easier and more convenient for people to rent cars at airports, while also promoting the use of green vehicles. There are certainly challenges to be addressed in implementing such an app, including the need for substantial investment in development and marketing, and the need to ensure user identity and insurance coverage. It would be important to carefully consider the potential risks and benefits of this concept and conduct thorough market research to determine its feasibility and potential success. If the app were to be implemented, it would be important to carefully plan and execute a pilot project to test its functionality and gather feedback from users to inform any necessary adjustments or improvements.
The Fly and Drive App
This is to the best of our knowledge a novel idea. However, as we believe such an app will make our world a better place, we welcome anyone to steal and implement this idea.
At any given point in time there is a large number of parked cars in airports all over the world. At the same time people who fly into these airports are often in need for a rental vehicle. Hence, there is obviously a potential marketplace where the need to rent a car can be exchanged for the need to park a car. The advent of new technology allows us to build an app where users can lend out or rent parked cars in an easy and safe manner. At core of this digital transformation is the possibility for cars to be unlocked by mobile devices, such that there is no need for a central entity to hold car keys. In order to align with the green vision many countries and companies see as crucial for our species to actually survive, this service should be limited to green vehicles (e.g., electric cars, hydrogen cars, and hybrid cars). As there is a growing attention around climate change, we believe that having this awareness at the core of the project makes for a clear and strong vision that both employees and customer can identify with. As cars often represent substantial values, there is a need for ensuring user identity when registering and using the Fly and Drive App. There is no one better to build such an app than some existing car rental provider, as they have essential expertise in this field as well as an active customer database. However, this will largely transform this car rental company into a platform-based service where most employees will have different roles than previously. Further, the project demands a sufficient investment at onset, as both the development of the app and the initial marketing will be the two major keys to success in this IoT implementation. This investment is both in terms of money, but also ensuring that the best developers are employed, and that they are simultaneously instructed to teach the organization how to use the app. Such a joint venture will ensure that the app is optimized for user experience. The app should be built as a blockchain-based platform with a native token enabling the monetization of reputation, such that experienced users will benefit from a lower price than new users. The most substantial cost for the users of the app will be paying for insurance. A blockchain-based solution will also enable smart contracts, such that some of the insurance matters can be solved automatically. A blockchain-based platform will also ensure that user identity can easily be verified at all stages after the initial registration at the platform, which will require that users use some kind of verified service in their country to prove who they are, e.g., BankID. In other places this would imply physically going to an office and providing a passport. As soon as the app is built, the first stage of the project should be running a pilot in a suited area.
Illustrations: The "Fly and Drive App" will be at the center of this digital transformation of the car rental industry.
Current state
The current situation in the rental car industry is that one needs to go to some kind of office to pick up your booked vehicle. This is primarily due to the need to transfer the key to the car, and the need of the vendor to verify the identity of the lender. It is also crucial for these companies that delivered cars are checked for eventual damages. This implies that car rental companies depend on owning or renting a physical place to park their cars, run their office, and employ staff to execute customer service.
The car rental market is primarily driven by rising tourism industry, and car rental for airport transport is the leading end-user segment in car rental market. Healthy economic growth in developing countries are expected to propel the market growth in the future. Further, the increasing awareness about pollution is expected to change the car rental market over the forecast period. The use of green vehicles is likely to open up new opportunities due to an evolving consumer preference and public demand, and several actors in this market now offer its customers a carbon calculator to allow potential renters to determine their carbon footprint for various car models.
The car rental industry will likely be subject for radical transformation, and employees will need to learn new skills in order to be able to be competitive in the future market.
Proposed initiative
At any given point there is a lot of parked cars in airports, where they are typically parked for a substantial fee by their owners. These cars could potentially be rented out to people arriving at the same airport, allowing for mutual benefits.
Observing the green trend in this market, and the fact that car rental for airport transport accounted for the largest market share in 2016, we see a situation where IoT technology could allow information processing and decision-making to change, and also segments of this industry that could be disrupted. In terms of changing the organization, humans would be largely substituted in terms of doing routine work at rental offices, but this would open a new kind of market. Humans will be freed up to do higher-order work in terms of programming and marketing, as decision-making can happen further away from each rented vehicle due to sensors, GPS and the introduction of an internet-based platform (app) for car rentals.
Depending on the funding available in the beginning of this project, a car rental service could ensure secure transfer of keys at the airport, and maintain trust through providing insurance for the vehicle, such that the owner would not need to fear for his car. Over time, such a project could evolve such that this would be done automatically (a gradual development of the Fly and Drive App). However, the ideal solution is that the platform is built first.
Cars should be accessed via electronic keys on mobile apps. Identity secured via the same app, and renters would receive ratings based on previous rentals (by the owner of the vehicle). These ratings would affect the price, such that a car owner would be offered a higher price from someone new to the service. The app would also secure payment and access the vehicles current position and state.
The major security risk involved in manifesting this car rental platform is identity fraud, and the app/platform will need an extended Know Your Customer (KYC) routine in order to allow new users to access cars. The KYC process should include providing passport and proof of address, such as a recent bank statement. To ensure the validity of these document, the user should also submit a photo where s/he hold a written note with the name of the app and date. New users will be charged a higher price, and user with a good reputation will be able to upvote other users, and also be part of verifying others’ identity. The photo taken will also be compared to the passport using face-recognition (AI).
In the desired future state of the organization, humans will be freed up to do higher-order work in terms of programming, marketing, and customer support on the platform. This means that the organization needs to train employees to perform different roles, and also to integrate seamlessly with the the Fly and Drive App. The current skillset in these organizations is typically at a different level than what the future will demand, something that will necessitate hiring new talent. However, it is also crucial that loyal and motivated people in the organization is educated and retrained for operating the platform and maintaining its functionality. Some levels of the organizations, such as those providing customer support will move almost entirely into a digital reality, something they need to be trained to master sufficiently. This should be facilitated by sending out information about the platform, and also making videos demonstrating different customer support functions in the platform. This should be done in parallel with the development of the platform, such that alignment between the technology/platform strategy and employees skillsets can be optimized. The overall strategy is allowing and providing as much communication and information between the platform developers and the current organizations as possible, from the very beginning.
Plan of action and criteria for success
Actors in the car rental industry need to investigate how IoT could optimize or innovate business practices in order not to be outpaced by others. The proposal for integrating IoT in this industry focuses on establishing a digital platform which will allow those parking at airports to rent out their cars to visitor would ensure that a lot of our core processes are automated. Building such an app will transform the organization into a business model based on digital technologies. This proposal will potentially disrupt this industry. The fact that the current digital state is low in this industry, means that moving in the direction of including IoT will demand a strong leadership that can change the culture to welcome this vision.
In our case, where we want to radically transform the car rental industry by including the most recent technology, it seems a good idea to make the implementation process as available and understandable to all employees as possible. The first step here, is to ensure that IT and business leaders work together as partners, which in our case is making sure that they agree that current technology will disrupt this industry, and that unless we disrupt ourselves, someone else will. Hence, the vision is using IoT to enable parked cars in airports to be rented out by those arriving in a way that benefits both lender and borrower in a secure way. It would be impossible for all co-workers in this industry to climb the career ladder created by this transformation, so the inclusion of co-workers in the conversation around digital transformation will need to focus on what their role will be in the future. In this exchange, they will be able to influence the interface of the internet-based customer service they will provide in the future. One crucial part for success in being able to communicate the narrative that this transformation is part of battling climate changes, an identity it seems customers value more and more.
It is necessary that the senior executives have a transformative vision of the digital future, and that the programmers include them in the process of building the Fly and Drive App. This will to a large extent allow for the company to promote, and invest in the necessary digital skills. Another positive is that there will likely be simple to ensure that digital initiatives are coordinated across silos. However, currently the IT unit’s performance typically doesn’t meet the needs of the future platform-based company. As this is the most necessary building block at the onset, it is crucial to attract skilled technical co-workers, who can help build the core platform (the Fly and Drive App), which will be the backbone of this transformation. Roles and responsibilities for governing this system will need to be on defined by different levels of access to editing the platform itself. Access to the front-end of the app will be the norm for most. This digital initiative should be assessed through its ability to create satisfied and loyal users/customers. The entire company should cooperate in terms of identifying which would be the best key performance indicators to measure in the close future.
The real worth of collaborations between IT and business appears when IT can start improving the business. Hence, until the charts show results, stakeholders should be informed about the potential benefits, the environmental identity, and economic potential, but also encouraged to be patient, and be informed about the importance of the optimization of the app. This project is challenging, as the major investment comes as the very first step, and profits may take some time to manifest. The platform is the fundamental change to this industry, and must be developed with cutting-edge technology. Consequently, it is crucial that IT is able to communicate and engage the organization in the narrative that this transformation is not about becoming a fast caterpillar but rather about transforming this business into a butterfly. Along the way, reports from the pilots and surveys will be an important way to communicate how IT will create value in this system. Onboarding world-class developers can bring credibility to the project and assure investors and business that the implementation is on the right track. It is also important that the business part of the organization understands the network effect, and the need for advertisement at the beginning of the project. After the initial period of broad advertisement, such interventions can be very targeted through social platforms. Hence, it is crucial that stakeholders are informed that as soon as a critical mass of people are aware of the app, and users begin having some experiences, the network effect should be set in motion.
Quiz
-
What is the primary goal of the Fly and Drive App?
A) To reduce air pollution
B) To improve the tourism industry
C) To offer a more convenient car rental experience
D) To promote the use of hydrogen cars -
Which technology is at the core of the Fly and Drive App's functionality?
A) Mobile device unlocking
B) Blockchain
C) GPS tracking
D) Augmented reality -
How does the Fly and Drive App plan to monetize its platform?
A) By charging a subscription fee
B) By offering advertising space
C) By using a native token to reward experienced users
D) By charging a higher price for green vehicles -
How does the Fly and Drive App plan to verify user identity?
A) By requiring users to provide a passport or other government-issued ID
B) By using verified services like BankID
C) By requiring users to provide a credit card or other financial information
D) By requiring users to take a selfie with their face and a piece of government-issued ID -
What is the first step in implementing the Fly and Drive App?
A) Building the app
B) Conducting market research
C) Running a pilot project
D) Investing in marketing
Correct answers
- C) To offer a more convenient car rental experience
- A) Mobile device unlocking
- C) By using a native token to reward experienced users
- B) By using verified services like BankID
- C) Running a pilot project
