Meet the Entrepreneurs
SmartBike November 2013
Mobile Innovation
CONTACT INFORMATION
smartbike
Providing affordable and energy-efficient solutions to secure motorcycles in Southeast Asia Quan Dinh, CEO, Vietnam
CHALLENGE In Southeast Asia, the motorcycle is the most important means of transportation. There are approximately 35 million motorbike riders in the region and an average of 1.1 million additional users join each year. Unfortunately, motorcycle theft has been increasing rapidly and the market has not provided a reliable solution to help owners secure their vehicles. Presently, the available security technology is produced in China or Taiwan, and it consumes a large amount of power from the motorcycle’s battery (which ultimately reduces battery life). Motorbike owners throughout the region would greatly benefit from a user-friendly, affordable, and energy-efficient solution to this problem.
“ON AVERAGE, ONE MOTORBIKE IS STOLEN EVERY SECOND IN SOUTHEAST ASIA.”
IDEA SmartBike’s CEO Quan Dinh, a software specialist, decided to develop a holistic approach to IT and security solutions for motorized vehicles. After initially developing iTracking, a vehicle tracking system for cars that ultimately didn’t have a sufficient market in the area, Quan and his team turned their attention to the largest transportation segment: motorcycles. More precisely, they decided to focus their attention on security technology for motorbike riders and decided to launch SmartBike in the first quarter of 2014.
Ho Chi Minh, Vietnam +84 862907088
quandinh@digi-gps.vn
www.smartbike.vn /smartbike/info
BUSINESS MODEL SmartBike is a technology-based security service that provides an electronic lock and a tracking device for motorcycle riders. The locking device works through a low energy Bluetooth signal emitted from the user’s smartphone that automatically locks or unlocks the security device inside the motorcycle, depending on the proximity of the user. The tracking system will provide customers with an electronic signal that will help locate their vehicle if stolen, or for companies to locate their delivery person. SmartBike’s revenue model is based on three different service packages that charge on a monthly basis. The first is the locking function that will be provided for free; the second service package combines the locking and tracking function and is priced at USD2.00 per month; the third package offers a tracking-only function for multiple bikes at USD4.00 per month. This is aimed at companies with delivery services. SmartBike plans to use mass production to lower costs for its hardware. To raise the required upfront capital, SmartBike is currently seeking venture capital and negotiating bulk deals with large-scale customers (such as automotive companies and delivery services).
“OUR BUSINESS IS ABOUT LONG-TERM RELATIONSHIPS WITH OUR USERS.”
“IF WE MAKE A LOCK, WE HAVE NOT MADE ANYTHING NEW; OUR PRODUCT MUST BE DISTINCT.”
www.infodev.org
twitter: @infoDev
ENTREPRENEUR’S INSIGHTS
NEXT STEPS
WORKING WITH mLab EAST ASIA
Launch SmartBike service to the public • BE CONSISTENT WITH YOUR STRENGTHS: Focus on what you do best.
Secure local and international venture capital
• FIND THE RIGHT INVESTOR: Investors are important and they should support you in your idea.
Mass-produce SmartBike products to achieve accessible prices through economies of scale
• THINK OF HOLISTIC SOLUTIONS: Be competitive and do not limit your work to app development; it is important to think about the hardware as well.
Research on further market opportunities
KEY OUTCOMES VALUE FOR USERS Stronger sense of security: Users can stop worrying about their motorbikes. Local solutions for local problems: This serves as a signal to peers in the IT business that local entrepreneurs can compete with international firms in providing technological solutions to local problems.
BUSINESS FACTS POTENTIAL REVENUE GENERATED
POTENTIAL Nº OF USERS
CONTRACTS SECURED
USD1,500,000 (to be planned for the first year after the product launch)
175,000 motorbike users in Vietnam
1 contract secured with a motorbike delivery company for 2014 1 contract planned with an insurance company 1 more contract planned with a motorbike delivery company
Supported by:
www.infodev.org
twitter: @infoDev
• ACCESS TO POTENTIAL INVESTORS connecting SmartBike to key stakeholders in the industry. • THE mLab HAS BEEN CRUCIAL in connecting SmartBike to the business world. For example, mLab East Asia suggested they participate in the Demo ASEAN 2013 contest, where they won the first prize, which was the turning point for the company.