Yulu Business Model – The new way to ride
Hailing a cab and burning a hole through your pocket, or standing in an over-crowded bus that takes forever to move and get in with the small but tiring journey to your destination doesn’t sound like an appealing way to be traveling, especially if you are in a hurry to get to someplace important. And that is why Yulu working model stands for your help.
Yulu Business Model:
The working model of Yulu states “dockless” rental business for bikes and bicycles. It means that you can pick up a Yulu bike or cycle from one stand and leave it at another stand (Yulu Pickup & Drop Zone). The convenience of leaving the vehicle to the nearest stand makes this startup business model so popular. They generally have their pickup & drop zone near to metro, railways and bus stations.
Yulu Offering and Ride Charges
- Right off the bat, the most notable thing this startup is doing is bringing a green, efficient alternative for transportation into our lives and that too, at such an affordable price! Having an option to rent a bicycle or bike for as cheap as 5 rupees is the best possible way to travel a short distance.
- In terms of transportation, Yulu offers us bicycles for a cheap rate of 10 INR for the first 30 minutes and they add an extra amount of 5 for every subsequent 30 minutes (Yulu Pause). The security deposit for these is 100 INR.
- They offer Yulu Miracle (E-Bikes) for longer routes and faster medium. They come at a price of 10 INR for the first 10 minutes and they add an extra amount of 5 for every subsequent 10 minutes (Yulu Pause). The security deposit for these is 250 INR.
B. Why Yulu Business Model is emerging so fast?
Yulu working operation has been sailing a smooth sale in the market for many understandable reasons, even though the journey to its creation might have been a rocky road to tread.
- E-bikes & Bicycles with Govt initiative plays a major role in the working of this startup.
- The bikes and cycles being available very conveniently for people who travel a lot from work or home or connecting to other public transportation help this business.
- It is the most affordable method of traveling as of yet for the smaller distances to be traveled.
- All the payment is done by e-money on its platform, be it wallet or debit or credit cards. This makes it easy for people as they do not have to run around for change or to pay by cash, which can be a hassle if you are in a hurry.
- The use of the app makes it easy for everyone to use and navigate for the available Yulu bike/bicycle.
- They base the working model of this business on IoT. The live condition of bike i.e. charging, physical presence, count everything can be easily monitored from one place.
Yulu Backend Working Operation:
As easy as the interface is to use and book a Yulu, it is as difficult behind the screen. The working team is always busting information about the mapping of the bikes and cycles across the area of coverage. Mapping algorithms are used to generate a traffic network for an easy ride availability based on the heavy traffic in some area henceforth a place that might need more bookings for cycles or bikes.
Besides this, Yulu has put into use an amazing strategy to keep their miracle bikes running for people. They have a tie-up with multiple small scale stores that can be found in every corner of sectors. They host miracle bike batteries and the bikes send a signal to the server every few minutes about the status of the battery life. In case it is less, to begin with, the bike isn’t booked and they send a company engineer for the replacement, who can pick up the battery from the nearest store that has a tie-up with Yulu.
Yulu Working Model Explained:
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How to book ride using Yulu?
Much like every other application that is used to book a service, the Yulu app functions the same way. Let’s follow the steps to book a Yulu ride:
- Visit the app.
- Create your profile.
- Make sure to add your payment details for easy payment later on.
- Locate the nearest Yulu which is up for renting.
- Move to the Yulu and scan the QR code available on the bike/bicycle.
- Enjoy the ride to your destination.
- Upon reaching your destination, pay the required amount.
E. How do they earn a profit | Yulu Revenue Model-
Every rental service seeks revenue in the same format and Yulu is not any different. They function at a total of 8 to 9 billion USD globally and plan on scaling up to a billion USD in India by 2022. Those are some big numbers that aren’t achieved overnight, however, Yulu has been hustling. Yulu’s revenue collection is done in 4 basic ways however, the success mostly stands as for the perfect working and business model of the startup.
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The bikes and bicycles can hold small hoardings which can hold ads in it for revenue. This can work for a fixed time as per the contract for the ad.
The most basic method of getting money from Yulu’s business model is fair for the rides that are rented. Although cheap, they are being used in enough amount to create significant revenue.
The security deposit, different for miracle bikes and for the bicycles is used to collect some revenue which adds significant value to the Yulu revenue model.
Yulu pause is a fairly new feature added to the whole working of the system which contributes to Yulu earning model. Upon hailing any form of the ride from Yulu, one can book it for stops at a time, that is, pauses can be taken in between the rides and the money for that particular amount of waiting time is collected accordingly. This is often used for people who need to frequently stop during their commute for small chores and do not have a Yulu point around.
The vision of the founding team of Yulu — Amit Gupta, CEO and Naveen Dachuri, CTO paints a beautiful picture, not only for the company but for this country in general. They built this company from scratch to create a cleaner and greener India which commutes efficient and “smart” ways. They wanted to bring destinations closer, as fast and in the most eco-friendly method as possible and it can be very confidently said, they are succeeding.
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