Delivered: 7th of march 2014
Crossing the Chasm Insight Report TEAM9, E-Concept Development, Semester 1, Project 2, Group 3
Christina Pearl Heldt Hamø
Is Danish and a trained fashion designer. She started her own webshop with danish designed interior in 2013. Finished MMD in January 2014. christina.hamoe@gmail.com phone: 51 91 26 20
Sinthujan Rajakulasingra
He loves being in the creative part of the project. He is a great contact creator. He’s doing a lot of freelance work in photography, graphic design development. sean@koalition.com phone: 31 38 38 32
Susanne Birch Munk Hindberg Multimediadesigner. I work in DanChurchAid’s webgroup. My hobby is creating origami lampshades. susanne.hindberg@gmail.dk phone: 42 25 24 44
Mads Donkin
Has experience with ideation management, concept- and front-end development. Finished MMD at KEA in 2012. Loves music and photography. mads@ideernation.dk phone: 27 89 57 01
Teodor Christian Voicila
Computer Science graduate, looking forward to develop my creative skills. I like blogging and watching good movies. teocris92@gmail.com phone: 71 60 52 49
r G
3 p u o
Rasmus Faber
Multimediadesigner and concept developer at Playground Media. rasfaber@gmail.com phone: 23 70 76 09
Ulla Risager
Graphic Designer and Co-Owner of Mydestination.com/Seoul - an online travel guide in South Korea. I’m into online media, fitness and travelling. ulla5595@stud.kea.dk phone: 42 18 82 61
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Table of Contents 1. Problem Area..................................................................................................................2 2. Client Goal ......................................................................................................................2 3. Problem Formulation .....................................................................................................2 3.1 Sub-formulation: ...................................................................................................2 4. Constraints .....................................................................................................................3 5. Methodology ..................................................................................................................3 6. Analysis ..........................................................................................................................3 6.1 Market Definition and Delimitation ........................................................................3 6.2 Sharing Economy and Trends ..............................................................................3 6.3 Macro Environment Analysis ...............................................................................4 6.4 The Competitive Intensity in MBDB’s Market .......................................................5 6.5 MBDB’s Internal and External Situation and Strategic Planning ..........................7 7. Targeting .........................................................................................................................8 7.1 Segmentation .......................................................................................................8 7.2 Target Group .........................................................................................................8 8. Positioning .....................................................................................................................9 8.1 Direct Competitor Research .................................................................................9 8.2 Product/Service ....................................................................................................9 8.3 Price .....................................................................................................................9 8.4 Promotional Mix ....................................................................................................9 8.5 Place.....................................................................................................................9 10. Conclusion ...................................................................................................................10 Appendix ............................................................................................................................11 SWOT Analysis ...........................................................................................................11 User Research............................................................................................................12 Literature: ...........................................................................................................................16
1. Problem Area
2. Client Goal
Since launching in August 2013, MinbilDinbil.dk (referred to as; MBDB) has had an increased growth and is continuing to attract more users, however the numbers are not as high as wished for1. The growth has mainly been based on PR benefits of being a ‘startup’ and launching an entirely ‘new’ product on the Danish market. Now, the ‘newsworthiness’ of MBDB has dropped and thus PR does not qualify as their main customer acquisition strategy.
We reformulated the original client goal to make it more SMART .5
The client’s problem area is based on a need for having a solid acquisition strategy knowing how to attract users, make them sign up and retain them by actually making them use the services offered. MBDB uses a term referred to as; ‘super-users’ - to clarify, these are users who are active on the site on a regular basis (4-5 times a week), they are made up by 50-100 cars and 300 renters.2 The super-users equal approximately 10% of the client’s total users (3500). The expenses covering and running MBDB is partially Founders A/S, who is a company formed and equally owned by ‘Kirkbi Invest’, ‘William Demant Invest’ and ‘Bestseller’.3 MBDB currently has 700 car owners registered, which make up for the early-adopters - a term known from the ‘Roger’s Innovation Curve’. The challenge is to use the influence from this specific group; early-adopters or ‘trendsetters’ and attract the non-users, referred to as the early-majority.4 The advantage here is the knowledge MBDB already has from observing the early-adopters and thus, the challenge is to use this knowledge to cross the chasm between the early-adopters and the early-majority segments.
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Develop an effective solution for MinbilDinbil.dk (MBDB) in order to reach out to more people in Denmark and motivate them to become active, quality users who engage with MBDB on a regular basis.
3. Problem Formulation How can MBDB attract more users and ensure that new and current users stay active on a regular basis? What are the needs of potential car owners and renters and how can MBDB adjust their services to meet these needs?
3.1 Sub-formulation: ‣
What are the current market trends for sharing economy in Denmark?
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Identify and explain the target group, their habits and views on sharing economy?
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Identity the biggest rivals of the market in which MBDB operates?
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What are MBDB’s main problems of attracting and retaining users?
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1
MBDB Client Brief Handout See Appendix: Client Interview 3 MBDB Client Brief Presentation 31th of March @ Kea E-concept development 4 See Appendix: Rogers Innovation curve 5 Day 2 of introweek - QISH - http://sean.koalition.com/qish-model/model.pdf 2
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4. Constraints
6. Analysis
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A possible solution must be experienced on something valuable and also based on quality measures
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Solution must be scalable with minimal effort
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The solution has to be able to be tested in a small scale before being implemented6
6.1 Market Definition and Delimitation In order to carry out a realistic analysis we will delimit ourselves from analysing anything but the car renting/sharing market, this is in order to perform the analysis within the given timeframe of the project. Therefore, any analysis of substitutional transportation products like bikes, public transportation, buying a car, etc. is not included. We will define the market as the car renting/sharing industry, with reference to companies such as; GoMore, Avis, Hertz, Budget and “Lej et Lig” (Rent A Wreck).
5. Methodology We are going to use PEST, Porter Five Forces, SWOT/TOWS and the 4 P’s. These theoretic frameworks will outline the methods of our research strategy undertaking this project. 7
The car sharing/renting market analysis will be based on a PEST. This is in order to get an overview of the macro environment and describe the factors of the environmental scanning of the market. To analyse the competitive intensity of this market and to get a better understanding of the micro environment, external competitors and internal threats of the market, we will utilize Porter’s Five Forces (P5) analysis framework.8 In the next step of our analysis, we will make use of a SWOT.9 This will help define the internal strengths and weaknesses as well as the external opportunities and threats of the environment in which MBDB operates. After covering these aspects we will apply a TOWS matrix to set the strategic planning of MBDB. To analyse MBDB’s market position, we will apply the 4 P’s framework10 as a key strategy involving the choice of market and creation of a differential advantage.
6.2 Sharing Economy and Trends In the U.S., sharing economy is a familiar term. Here you can rent everything from dogs to dj’s. There are even examples of borrowing other people's money if you do not feel the bank will return your money with interests. Briefly said, sharing economy is where services are fairly close to one's personal life.
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Denmark is also beginning to accept this sharing and collaborative economy - with a cultural and cooperative tradition favouring the development of a new economy, it is the transition of a new economy. In Denmark sharing economy is especially known through ‘Airbnb’, where ordinary people rent their apartments out to other ordinary people.11 With the increase of the internet, people are getting less reluctant to hire and rent out personal objects and services. Actually, Danes love sharing - they are already doing it, by e.g. ‘volunteering’ at the local football clubs. They take turns driving the kids to different sports events - It is this sharing/volunteering mentality that is interesting because, in a sense, it is already here, it has not just been developed into a specific sharing economy where it is possible to make money from sharing services. It is all about giving something back to the community and sharing what is yours -
MBDB Client Brief Presentation 31th of March @ Kea E-concept development Foundations of Marketing (Fourth edition) by John Fahy & David Jobber, Chapter 2, page 32, “The Macro Environment” 8 Porter, M.E. (March/April 1979). "How Competitive Forces Shape Strategy". 9 Humphrey, Albert (December 2005). "SWOT Analysis for Management Consulting". SRI Alumni Newsletter 10 Foundations of Marketing (Fourth edition) by John Fahy & David Jobber, Chapter 1, page 18, “Planning marketing activity” 11 http://www.dr.dk/Nyheder/Indland/2013/10/21/190031.htm 6 7
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not owning, but sharing! This is one of the current market trends12 in Denmark at the moment, creating big potential and setting the foundation for a new type of business model, allowing companies to compete with big chains/brands. Thus, sharing economy provides us with endless possibilities.
6.3 Macro Environment Analysis Political factors Denmark is acknowledged as one of the front-runners in green-tech and CO2 emission13 reduction. It has one of the highest income tax rates in Europe14 and any extra income from renting out a car is subject to taxation, no matter the size of the car. You are however allowed to deduct the cars depreciation from your taxes.15 The Danish taxation on vehicles is also one of the highest in the world16 and the reason for this is to discourage Danes from owning cars.17 In fact, the EU is encouraging the idea of sharing cars and reducing car usage.18 ‑
Economic factors Denmark has had a really slow GNP recovery after the debt crisis in 200819, compared to its Nordic neighbors. Denmark is still struggling with growing unemployment rates rising from 1,70% in May 2008 to 4,20% in February 2014.20
Sociocultural factors According to the debate on tax fraud and beneficial fraud, one might get the impression that Danes have a hard time trusting each other.21 However, Denmark has the highest trust rate in the world and the numbers are growing year by year, although trusting strangers with your valued personal belongings is still a challenge for the Danish society.22 The idea of sharing and saving resources however, is not new, according to Trond Poulsen (CoFounder of MBDB) there are plenty of similar services abroad.23 In other areas of Denmark there are also services and websites where you can share housing, swop clothes and other items therefore Trond also believes in the success of MBDB.
Technological factors The Internet’s prevalence continues to grow in Denmark and people engaging by use of computers, tablets, smartphones and TV’s increase, therefore the economy of the Internet sprouts in the form of advertising and e-commerce. The Internet continues to take shares from the physical market and the consumption made through mobile devices is also rising with incredible speed. Facebook expands their massive market share and the use of social media is ever increasing. According to the Danish Statistics, within the Danish population, the share of 16-74 year olds with internet access in the household, increased to 92% in 2011 and 78% of these people are using the internet on a daily basis. Thus, we can conclude that most Danes have access to the
http://trendsonline.dk/2014/01/30/danskerne-er-bedre-til-at-dele/ http://ec.europa.eu/environment/europeangreencapital/winning-cities/2014-copenhagen/ 14 http://euobserver.com/economic/119980 15 http://www.mx.dk/penge_erhverv/nyheder/story/11540567 16 http://www.skat.dk/SKAT.aspx?oId=1817284 17 http://en.wikipedia.org/wiki/Economy_of_Denmark 18 http://www.dr.dk/Nyheder/Indland/2012/01/13/114800.htm 19 http://www.theodora.com/wfbcurrent/denmark/denmark_economy.html & http://www.ibtimes.com/denmarks-economic-outlook-slow-recovery-2008-housing-bubble-1469534 20 http://www.tradingeconomics.com/denmark/unemployment-rate 21 http://www.dr.dk/Nyheder/Penge/2013/09/10/0910224545.htm 22 http://politiken.dk/debat/debatindlaeg/ECE1893230/danskerne-er-verdensmestre-i-tillid/ 23 http://dinby.dk/frederiksberg-bladet/skal-din-bil-vaere-min-bil-i-dag 12 13
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internet.24 Based on Google statistics the smartphone penetration in Denmark has risen from 30% in 2011 to a staggering 59% in 2013.25 ‑
6.4 The Competitive Intensity in MBDB’s Market Before defining the bargain power of the suppliers and buyers, it is essential to figure out whom or what these two ‘groups’ are. MBDB main customers are the car owners and car renters26. The car owners provide a car, a product – the supply, which the car renter then ‘buys’, in this case rents – the buyer.
Bargaining Power of MBDB’s Suppliers MBDB’s suppliers consist of car owners, insurance companies and the host/server providers. As defined above, the MBDB suppliers in focus are the car owners. Within MBDB there are approximately 700 cars available, all of them supplied by the suppliers27. Suppliers have the option to set the price28 for their product, as well as the ability to choose when they will put their product on the market.29 The supplier also has the power to pick the buyer. Whether or not they feel like engaging the buyer is completely their decision. MBDB does not have the power to decide how the product is shaped the supplier does.
The steps for signing up as a car owner is simple. If the supplier does not feel comfortable or has trouble finding a buyer on MBDB’s platform, they can easily switch to a competitor’s website (e.g. GoMore30). The user behaviour and needs of the suppliers are crucial for the MBDB service to work. The suppliers bargain power is high and thus MBDB has to fulfill the supplier’s needs by creating a solution where the supplier’s feel like they are not wasting their time, getting something in return for the time and effort of choosing MBDB.
Bargaining Power of MBDB’s Buyer Focusing on the buyers, they are defined as the car renters. MBDB provides 700 cars and in total have 3500 users and between 50-100 new users per week. Considering the rising peer-to-peer sharing trend and that many potential users are just waiting to engage with the service, it is crucial that MBDB aims at providing the best possible user experience for their customers. Buyers can freely pick and choose between the provided cars based on their needs, such as; location, price, or availability. If MBDB cannot match the needs, users can easily change to another service alike. When using the service users can judge both the car owner as well as MBDB’s service, through a rating- and review system and through Trustpilot. Therefore the bargaining power of the buyer is high, yet lower than the power of the supplier.
http://www.fdim.dk/sites/default/files/mediearkiv/rapporter/danskernes_brug_af_internettet_2012_rapport.pdf http://think.withgoogle.com/mobileplanet/en/graph/?country=dk&category=DETAILS&topic=Q00&stat=Q00_1&wave=2011&wave=2012&wave=2013&age=all&gender=all&chart_type=bar&active=wave 26 https://mbdb.s3.amazonaws.com/d/press/Berlingske-14-10-2013.435efbaaa390.pdf 27 Stated in the oral client Brief monday 31th of march 28 http://www.mx.dk/penge_erhverv/nyheder/story/11540567 29 https://minbildinbil.dk/hvordan-virker-det/ 30 https://gomore.dk/users/sign_up 24 25
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Threats of New Entrants It does not require large investments to enter the car sharing/renting market nor is the market fed at this point.31 However, it does take a lot of considerations in terms of the complex logistics of putting forth a solid concept. Legal matters and restrictions should also be thoroughly considered before entering. MBDB is already on the market and therefore has the advantage of having logistics, insurance and legal matters in place. But they need to differentiate themselves before other competitors discover the large potential of the market. They must keep a close eye on GoMore who, at this point, is the only company facilitating the same type of service in Denmark. The current threat of new entrants is in the low end.
An unexplored market brings benefits in terms of MBDB managing their product capabilities to the buyer. As stated, the bargain power for both supplier and buyer is high. MBDB provides cheap solutions for renting cars, the possibility to choose a car in good condition and helps remove unused cars from the streets.35 MBDB must position themselves by differentiating their services to make them attractive to both suppliers as well as buyers. By looking at competitors an unexplored market and a potential positioning and differentiation of MBDB’s service, the rivalry is high. It is an easy accessible market where others, like GoMore, facilitate the same type of service - which potentially gives the supplier and buyer a possibility to be picky and ‘shop’ elsewhere.
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Threats of Substitution Being on the car sharing and car rental market, substitutes are represented by alternative means of transportation such as bikes, public transport, people buying or using their own car, borrowing a car from family and the not yet introduced service Tuxi, renting out shared cars using “Rejsekortet”.32 As this is yet an unexplored market with a huge potential, new entrants can come to represent new substitutes as well.33 Currently, the users can easily change from one transportation service to another. Signing up to MBDB is free and only takes a few minutes - as is “Rejsekortet”. Only buying a car makes the transition difficult due to the large financial investments. The many alternatives and easy accessibility of substitutes show a high threat of substitutes.
Rivalry The competitive intensity, rivalry in MBDB’s industry is defined by the competitors. GoMore is the only company facilitating the same service in Denmark and with the increasing growth in the industry it is arguable that the unexplored market34 reduces possible competition on the market. Other competitors are car sharing/renting companies.
31
http://www.dr.dk/Nyheder/Indland/2012/01/13/114800.htm http://tuxi.dk 33 http://www.dr.dk/Nyheder/Indland/2012/01/13/114800.htm , PDF: Sharing - Journal of consumer research, feb. 2010.pdf page 1 and http://www.dr.dk/Nyheder/Indland/2013/10/21/190031.htm 34 http://www.dr.dk/Nyheder/Indland/2012/01/13/114800.htm , PDF: Sharing - Journal of consumer research, feb. 2010.pdf page 1 and http://www.dr.dk/Nyheder/Indland/2013/10/21/190031.htm 35 Stated in the oral Brief with Milad monday 31. march 32
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6.5 MBDB’s Internal and External Situation and Strategic Planning Figure 1 SWOT & TOWS Matrix shows extracts from a complete SWOT and TOWS matrix, found in: Appendix SWOT and Appendix TOWS matrix.
Threats
T1 New market T2 1st time experience for user T3 Dependent on buyer & supplier T5 Carpooling T6 User mindset T7 Newsworthiness is low
Weaknesses W1 Limited experience
W2 Employees not specialized
W3 Missing personalized “About” W4 Dominant investors
Strengths
S1 Customer oriented relations S2 Environmentally oriented S3 Easy adaptable and agile S5 Strong investors
S7 First movers in Denmark
Opportunities
O1 Willingness to share O2 Market is not fed / new market O4 Crowdsourcing O5 Carpooling
Mini-Mini - Crucial with user experience - Limit investors to promote user mindset
Mini-Maxi - Be flexible and agile - Differentiate for user needs
Maxi-Mini - Closer Customer Relations - Benefit from being agile - Contribute to Change - Create Stronger Customer Relations
Maxi-Maxi - Create awareness on environmental issues -Optimize Crowdsourcing -Turn MBDB into a profitable service
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Figure 1- SWOT & TOWS Matrix
Mini-mini Crucial with user experience (W1 & T1,T2,T3) - Being dependant on users in this new market, it is crucial for MBDB that users have a good first time experience. Limit investors to promote user mindset (W4 & T1, T3, T5, T6) - As MBDB is highly dependent on suppliers and buyers, time consuming tests and dominant investors should be limited so a change of mindset can be initiated as fast as possible.
Mini-Maxi Be flexible and agile (W4 & O1,O2) - Being on a market that is not yet fed, time-consuming tests and dominant investors can slow down opportunities to ‘move’ on new trends. Differentiate for user needs (W1 & W3, O1) - MBDB is a startup with little experience in the market. Personalizing their website and brand to stay in close contact with users can be done by creating a more personalized “About“ page - making MBDB a part of the ‘crowd’. Thereby encourage users to share and trust their service.
Maxi-Mini Closer Customer Relations (S1 & T3 ) - MBDB is dependent on suppliers and buyers and social media can be used to create a closer relation between user and MBDB. Benefit from being agile (T1 & S3,S4,S5) - To penetrate the market, MBDB can benefit from being easily adaptable, having strong investors to help users earn a little extra renting out their car. Contribute to Change (T6 & S7)- As first movers on the market, MBDB must contribute to change the mindset of users and encourage more sharing. Create Stronger Customer Relations (T7 & S1) - Creating stronger customer relations with users MBDB can limit the post-effects of the low ‘newsworthiness’.
Maxi-Maxi Create awareness on environmental issues (O5 & S2,S3) - MBDB can use the flexibility to create even more awareness of environmental issues and encourage e.g. carpooling. Optimize Crowdsourcing (S1 & O4) - Facebook and other social medias can be used to optimize crowdsourcing. Turn MBDB into a profitable service (S7 & O2) - MBDB is a first mover on the market and only has one direct competing company, with a market not yet fed. Striving to be market leaders and experts can turn MBDB into a profitable service. The TOWS analysis show us that many different initiatives can be done to strengthen MBDB’s position on the market. Strong customer relations and MBDB’s fine agile working ability can help create a differentiated and competitive strategy.
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7. Targeting Based on the client brief we know that the target group is car owners and car renters in Denmark. This is a very wide target group, therefore by means of a segmentation and user research analysis, it’s possible to define a more specific target group for MBDB.
7.1 Segmentation In order to analyse the client’s target group, it’s essential to carry out a segmentation of people living in Denmark. The client wants to reach as many people as possible, therefore the segmentation is focused on all areas of Denmark. However, a representative study conducted by The Consumer Agency (Forbrugerstyrelsen), studying specific segments interested in renting/sharing cars, shows that people in the capital region have a greater interest in and need for sharing than people living in more rural areas of Denmark.36 Therefore it is arguable to target people living in the most populated areas of Denmark. MBDB’s services target both men and women. Due to the insurance policy terms, the minimum age limit is 18 years for the car owners and 21 for renters. Overall, the focus is; Danes between 18-59 year olds. This age group is selected based on two different segments and their characteristics. These segments include a wide range of people from students to families with children and therefore also a wide range of different needs of transportation. Segmentation parameters are lifestyle choices and habits, focusing on people with interest in sharing - people who would be interested in MBDB’s services. By using ‘Gallup Kompas’ it’s possible to further analyse the two segments and divide them into specific groups with commonalities relevant to the MBDB’s target groups. “The Community Oriented segment” characteristics are caring for the individual and their every-day lifestyle, debate concerning consumers, the environment and labor- and housing policy. “The Modern community-oriented segment” has a strong focus on responsibility, compassion and tolerance. People in this segments have a strong community involvement and interest in pollution and environmental issues”.37
7.2 Target Group When researching the mentality of people interested in and in need of sharing, qualitative expert interviews were conducted and MBDB’s target group appears.38 One of the target groups are the car owners. These people consider environmental, financial and social benefits.39 The risks they would have to take, when renting out their cars are there being no renters, getting a large or small damage to their cars and competition. Further, too many interested renters, not getting fast replies, will lead to a bad rating. These risks are found through the expert interviews, where the main worries were the security of their goods and insurance issues. Another target group is people wanting to rent a car. They have similar considerations towards the environmental benefits, saving money, creating relations as well as easy and fast access to cars40. The risks for these people are if there is no cars available, being too time consuming to get to the wanted cars and if the responses are to slow. Both groups see several benefits and risks of entering the car sharing market. The mentality of the segments is found by looking at the already existing users of companies similar to MBDB. When approaching the target groups it is highly important to focus on making these people feel safe - through the insurance policy and through personal relationships, which builds trust. Trust is an important factor which needs to be present in the relationship between MBDB and their target groups - and most importantly, trust must be present between the car owners and the car renters to minimise the risks. As stated in the client brief most of the users heard about the online private sharing service from other friends. So by building trust, MBDB will take advantage of the ‘word of mouth’ spreading behaviour in a positive way.
36
http://www.forbrug.dk/Artikler/Test-og-raad/biler/delebiler/forbrugerpanel?tc=8CF56B916DBA45A492DEFBB9A1FB3ACB http://www.tns-gallup.dk/services/gallup-kompas 38 Interviews with answers in the Appendix. 39 http://www.zipcar.com/is-it & http://www.tns-gallup.dk/services/gallup-kompas 40 http://www.zipcar.com/is-it 37
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8. Positioning 8.1 Direct Competitor Research GoMore.dk is MBDB’s direct competitor on the Danish market. GoMore offers more services than MBDB and has better ratings and plenty more reviews on ‘TrustPilot’41 than MBDB. GoMore also has a clear, transparent way of communicating, by providing adequate, personal information on their website about the company and the people who work there. An important similarity between the two Danish services is that both do not allow users to drive rented cars outside of Denmark. However, people using GoMore can take lifts outside of Denmark. The number of cars available for rent is pretty similar (GoMore: more than 500 cars, MinbilDinbil: around 700 cars).42
8.2 Product/Service Through an internet platform, MBDB facilitates private car sharing. Private car owners can sign up and rent their car out to other private people needing a car. The car is paid for on a daily basis. Insurance is provided by MBDB and all communication is done through the two private parties. MBDB simply connects the car owner and the renter.
8.4 Promotional Mix MBDB uses different online viral marketing tools such as Facebook campaigns and YouTube videos.44 MBDB provides fast customer service and has good customer relations.45 They adjust their campaigns according to Holidays and different seasons and also promote special offers online.46
8.5 Place MBDB’s services are only available online through their website - and not optimized for mobile use - it will be in the nearest future though.47 Their direct competitor’s services are also only found through websites.48
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MBDB’s services focus on usability and safety through insurance and communication. They need to be as transparent and personal as possible, to get a stronger position than their competitor, which now has very similar services. Therefore, maintenance of Facebook interaction with users is of high importance. When developing into a larger scale, MBDB might need to have some ‘standard’ examples of prices for the car owners to maintain a useful and realistic site.
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8.3 Price There are no fixed prices – it’s based on supply and demand – due to the fact that every car owner sets their own prices according to how much they want to earn from renting it out. The car renter has the freedom to choose a car within different price ranges. And signing up as a user is free for both car owners and car renters.43
http://www.trustpilot.dk/review/www.gomore.dk More info on the competitors in “Competitors” section of the Appendix 43 https://minbildinbil.dk/hvordan-virker-det/#Ejer 44 https://www.youtube.com/user/MinbilDinbil 45 https://www.facebook.com/MinbilDinbil 46 https://www.facebook.com/MinbilDinbil (a post from 21. Marts) 47 MBDB Client Brief Presentation 31th of March @ Kea E-concept development 48 See Appendix: Competitor Table 41
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10. Conclusion Denmark is an ambitious country favoring the development of a new economy. It is this ambition of developing a new economy that clearly sparks the opportunity for a sharing economy in Denmark. Based on our market research, we can conclude that some of the current trends for sharing economy in Denmark are; “sharing what is yours” and “not necessarily owning”. So there is an entire mentality of sharing and volunteering already rooted in Danes. With the rise of the internet it is possible to connect with people in a completely new and different way than people are used to. This shows us that Denmark is already moving towards a sharing economy based society, where individuals no longer own, but share.
To attract more users and ensure that the users stay active on a regular basis, MBDB needs to adjust their services to meet the needs of their specific target group. They also need to differentiate themselves from their main rival; GoMore. This could be ensured by being more personal and transparent - maintaining good customer care, interact on social media and consider price scales for car owners. Encourage more sharing by creating strong customer relations and using MBDB’s agile working ability to create a differentiated and competitive strategy.
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Looking at these individuals - the people, we can conclude that MBDB’s specific target group are people who, not only own cars/have a need for renting cars, but also care about the environment and are involved in the local communities. They are modern consumers whose habits of saving money, creating relations as well as gaining easy and fast access to cars when needed, are important factors when thinking about a solution. This specific target group have similar views on sharing economy where building trust is the most important factor. These individuals base their knowledge and trust mainly on word-ofmouth, what they hear from their friends and acquaintances. MBDB provides cheap solutions for renting cars and helps remove unused cars from the streets, it connects suppliers and buyers, but they are not the only ones offering these services. One of the biggest rivals of the market in which MBDB operates is GoMore. This is because GoMore facilitate the same services as MBDB - even offering carpooling as well. Identifying the main rival is important in order to come up with a future solution strategy. Based on the analysis we can conclude that MBDB’s main problems of attracting users are due to people still not being comfortable with sharing their personal belongings with ‘strangers’. People are reluctant to sign up because they do not fully trust people they do not know. Main concerns are regarding car insurance and mutual trust between the car owners and renters. The main problems of retaining users lies in the fact that MBDB’s service is free and with no obligations, therefore it is easy for users to switch to another service and there are no actual consequences of being inactive on the site, so to speak. 10/17
Appendix SWOT Analysis STRENGTHS ■ ■ ■ ■ ■ ■ ■
S1 Customer oriented relations
■ ■ ■ ■
■
S2 Environmentally oriented S3 Easy adaptable and agile
S4 Easy to access money as supplier S5 Strong investors S6 Easy earned PR
■ ■
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■
W1 Limited experience
W2 Employees not specialized
W3 Missing personalized “About” W4 Dominant investors
S7 First movers in Denmark
OPPORTUNITIES ■
WEAKNESSES
O1 Willingness to share
O2 Market is not fed/ new market
O3 Dependent on buyer and supplier O4 Crowdsourcing O5 Carpooling
THREATS ■ ■ ■ ■ ■ ■ ■
T1 New market
T2 1st time experience for user
T3 Dependent on buyer & supplier - critical mass T4 Crowdsourcing T5 Carpooling
T6 User mindset
T7 Newsworthiness is low
S1. Customer oriented relations49 - By taking a closer look on MBDB’s Facebook page it’s easy to see that the customer relations are constantly maintained and feedback is present. S2. Environmentally oriented50 - Stated in the client brief an important value for MBDB is to remove cars from the street making an environmental benefit. S3. Easy adaptable and agile51- With 6 employees not yet specialized, whose job tasks overlaps each others make them aware of what happens throughout the company. This makes some easy adaptable to changes. S4. Easy to access money as supplier52- Earning money on something you already own with an access to 1500DKK a month for the active user. S5. Strong Investors53 - Strong investors gives MBDB the possibility to be flexible and have less financial worries. S6. Easy earned PR54 - Being a startup company helped MBDB increase their PR without too much effort. S7. First movers in Denmark55 - MBDB is the first ‘neighbor-to-neighbor’ car rental in Denmark. W1. Limited experience56 - Regarding MBDB as a newly formed company on a newly found market gives limited experiences. W2. Employees not specialized57 - MBDB's size and the fact of being newly formed, the employees covers more tasks than what they are specialized to do. W3. Missing personalized ‘about’58 - With their customer relations they are missing the transparency and ‘know your employee’. Who do you as a user talk to, when you chat with MBDB. W4. Dominant investors59 - With investors comes responsibility. Everything needs to be quality tested before implemented - which makes it time consuming and slow moving. The investors need to see results.
https://www.facebook.com/MinbilDinbil Stated in the client biref with Milad monday 31th of march and http://www.tv2lorry.dk/artikel/183323 51 Stated in the client brief with Milad monday 31th of march 52 http://www.mx.dk/nyheder/danmark/story/31579505 and https://mbdb.s3.amazonaws.com/d/press/Politiken-29-06-2013.9eb0c67e91a9.pdf 53 http://www.mx.dk/penge_erhverv/nyheder/story/11540567 54 https://minbildinbil.dk/presse/ 55 https://minbildinbil.dk/om-os/ 56 https://mbdb.s3.amazonaws.com/d/press/Politiken-29-06-2013.9eb0c67e91a9.pdf 57 Stated in the client brief with Milad monday 31th of march 58 https://minbildinbil.dk/om-os and Stated in the client brief with Milad monday 31th of march 59 http://www.mx.dk/penge_erhverv/nyheder/story/11540567 49
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O1. Willingness to share60 - There is a rising peer-to-peer sharing effect - a willingness to share. O2. New market61 - The peer to peer sharing market is a newly formed market in which the market is not yet fed. O3. Dependent on buyer and supplier62 - The service which MBDB provides is dependent on the usage from car owner, the supplier and car renter, the buyer. O4. Crowdsourcing63 - MBDB believes that the essential marketing solution is where the supplier virally sells their service to the buyer - meaning the supplier can form the outcome themselves. O5. Carpooling64 - Learned through expert interview, the user was drawn towards GoMore over MBDB, because they offered carpooling in addition to car rental. Through carpooling, the users was convinced themselves to try car sharing. T1. New market65 - A new market provides an unexplored market, new target groups and choosing the right marketing mix - The company is inexperienced regarding this market. T2. 1st time experience user66 - As a 1st time experience user it is common to question the service for its trustworthiness along side the boundaries of trying something that has not been recognized as mainstream yet. T3. Dependent on buyer and supplier67 - MBDB services are highly dependent on return of the investment used on buyer and supplier - the so called critical mass. T4. Crowdsourcing68 - As well as being an opportunity, Crowdsourcing can be considered a threat if you rely on your users method of providing a high amount of marketing through engaging other potential users. T5. Carpooling69 - The risk of users signing up with competitors such as GoMore is greater, as they offer the carpooling service in addition to car rental. T6. User mindset70 - With an unexplored market you have to convince the user to appreciate and trust your service.
T7. Newsworthiness is low71 - Looking at MBDB’s press section, the last known article regarding them, was posted november 29th 2013.
User Research Expert interview no.1: Gender: Female Age: 28 Months using car renting: 1 1. Where did you find information about the opportunity to rent out your private car? From friends, online, commercials etc. On facebook via a commercial. 2. What is the main reason(s) for you to rent out your car? So that is does not just sit around without being used. Also making a little extra when not using the car herself. 3. What was the main reason(s) for your choice of company? Insurance, security, easy etc. Did not know of MBDB until after a month after subscribing to GoMore. 4. Did you have any benefits in mind that the company had to fulfil before starting to rent out your car? Insurance, security, easy etc. Did not know MBDB. happy with GoMore because insurance primarily. Considered private renting out the car, but GoMore offered the insurance when renting it out. 5. Would you be interested in renting out your car and also offering rides? Also sign up for carpooling/lift. Makes 100kr offering lifts to falster or from Falster to Copenhagen.
60
PDF: Sharing - Journal of consumer research, feb. 2010.pdf page 1 and http://www.dr.dk/Nyheder/Indland/2013/10/21/190031.htm PDF: Sharing - Journal of consumer research, feb. 2010.pdf and PDF: Stranger, You Can Drive My Car - Bloomberg Businessweek 62 https://minbildinbil.dk/om-os/ Stated in the client brief with Milad monday 31th of march and PDF: Stranger, You Can Drive My Car - Bloomberg Businessweek 61
63
Expert interview model X in Appendix http://www.pinemountain.com/seven_marketing_mistakes.pdf 66 PDF: Sharing - Journal of consumer research, feb. 2010.pdf and PDF: Social effects in consumer behaviour.pdf 67 https://minbildinbil.dk/om-os/ 68 Book: The New Rules of Marketing and PR 2nd Edition page 93-94 69 Expert interview in Appendix 70 PDF: Sharing - Journal of consumer research, feb. 2010.pdf and Social effects in consumer behaviour.pdf 71 https://minbildinbil.dk/presse/ 64 65
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6. How of ten do you use your car? Every other weekend. 7. When renting out your car, how much time in advance do you make the arrangements? Ok with day to day renting out. First time wrote her in the morning and wanted to use it at 11...a couple of hours.
Expert interview no.2: Age: 21 Gender: Male Profession: Student
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1. Do you ever need to rent a car? Yes . 2. Why and how of ten? To go visit places outside copenhagen or the town I’m in and have fun with my friends. 3. When deciding where (which company) to rent a car, what’s your main decision based on? Price? Pick-up location? Type of cars available? Other? Generally price including the extra tax for being under 25. 4. Would you rent a car from a private person? Why? Why not? Yes, as long as I would have an insurance on that car is case something happens . 5. What is most important for you when renting a car? Time efficiency, price or other? Price, see answer at point 3 . 6. How much are you willing to spend on renting a car a day? Max 800 dkk. 7. What are your main concerns when renting from private people? Why? The main concern would be insurance on the car. 8. When renting a car where do you search for it online? Momondo. 9. Would you prefer paying online or in person when you get the car from the private owner? I am equally ok with both
Expert interview no.3: Age: 31 Gender: Female Profession: Pharmacist
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1. Have you ever thought of renting out your car? Yes, why? Because it’s just standing there and because I would like to make extra money. Is currently on maternity leave so is not using the car at all. 2. What do you think about sharing your goods to strangers? Concerned whether they will take good care of it, no scratches, bumps, keep it clean 3. If you rented out your car, would it be for the sake of environment, money or sharing? Sharing. 4. Have you heard about the private sharing car services from the internet? Only through GoMore, thought about signing up there, but never gotten around to doing it. 5. Do you care about the environment? Yes 6. How of ten do you use your car? Normally, uses the car every day from 8am-4pm, can rent it out in the evenings or on weekends. 7.Would you offer rides to strangers via a professional service in order to earn some money? Yes, have already done that 8. Have you heard about MinbilDinbil? No 9. Are you afraid of strangers damaging your car? Yes 10. Have any of your friends used this kind of service? If yes, were they satisfied with it? No
Expert interview no.4: Age: 28 Gender: Male Profession: Financial Analyst Handelsbanken
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1. Do you ever need to rent a car? Yes 2. Why and how of ten? For trips to Jutland, usually weekend trips every 3rd to 6 months. 3. When deciding where (which company) to rent a car, what’s your main decision based on? Price? Pick-up location? Type of cars available? Other? Price and pick-up location is most important and also it has to be an international brand name, checks trustpilot to see if it’s a good and trustworthy company. Want’s an international brand because the cars are new, which means they driver longer pr. liter = cheaper in gasoline. 4. Would you rent a car from a private person? Why? Why not? NO
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5. What is most important for you when renting a car? Time efficiency, price or other? Price and pick-up location and also international brand. 6. How much are you willing to spend on renting a car a day? 300-400 kr (when renting for more than one day, usually a weekend) One day price is around 600 kr for the smallest car and you only get 100 km included. 7. What are your main concerns when renting from private people? Why? 8. When renting a car where do you search for it online? Online, budget is the cheapest when he knows a good car hire service, he just uses the same company next time without doing new research. 9. Would you prefer paying online or in person when you get the car from the private owner? Prefer to pay when picked up, but with Budget, when you pay beforehand online, you save 100kr, so he pays online.
Expert interview no.5: Gender: Male
Age: 24 Month using Air BnB: 12 1. What is your main reason(s) for using Air BnB? - Renting out my apartment / house For the people renting out their apartment: 2. Where did you hear about Air BnB, and in general the opportunity to rent out your private apartment? I first heard about the website trough my cousin, who made some extra money by renting out his place. From there I just did some research, and decided to do it as well. 3. What is the main reason(s) for you to rent out your apartment? Financial reasons only. 4. How of ten do you rent out your apartment? Occasionally, mostly when im out of town myself. However I have rented out my place a couple of times, without being out of town, just to get some quick cash.
Age: 24
Expert interview no.7:
Months using Air BnB: 5 months.
Gender: Female
!
1. What is your main reason(s) for using Air BnB? - Renting out my apartment / house. For the people renting out their apartment: 2. Where did you hear about Air BnB, and in general the opportunity to rent out your private apartment? Through a friend. 3. What is the main reason(s) for you to rent out your apartment? Financial reasons, social reasons etc. Financial reason. Free cash-flow while not being at home. 4. How of ten do you rent out your apartment? Ive rented it out 3 times. I dont do it on a frequent basis, but whenever im not home for a longer period of time. (e.g a week or similar).
Expert interview no.6: Gender: Male
Age: 26
!
Month using Air BnB: 9 (started in august last year) 1. What is your main reason(s) for using Air BnB? - Renting an apartment / house For the people renting out their apartment: 2. Where did you hear about Air BnB, and in general the opportunity to rent out your private apartment? Heard about it through friends. But made a great deal out of finding out whether it is leagl or not (considering taxes), and at that time I found articles that showed it should be alright. But I’m still doubtful about and would like the rules to be more clear to the consumer in general in purposes like this. 3. What is the main reason(s) for you to rent out your apartment? Only financial. We can make a months rent in a week. We are of course kind to our guests, but we do not really have interest in getting to know them. 4. How of ten do you rent out your apartment? Most people want to rent for three days, we do that approximately 2 times a month right now to save up for summer holidays.
Competitors Direct Danish competitors
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GoMore.dk
Private rental/direct competitor
More than 500 cars
MinbilDinbill.dk
Private rental/ direct competitor
700 cars and 3500 users. Renters and car owners
also carpooling and “kollegakørsel”
Danish competitors Hertz in Denmark (American)
Professional Rental
Avis in Denmark (American)
Professional Rental
Europcar
Professional Rental
Lej et lig
Professional Rental
Sixt biludlejning (DE franchise)
Professional Rental and leasing
Danskautorent.com
Professional Rental
Dyt-dyt.dk
Professional Rental
Budget.dk
Professional Rental
Byensbilleje.dk
Professional Rental
Let’sGo.dk
Professional Rental
Rents primarily to non Danish residents
Foreign Competitors Thehubway.com
American
Only bikes!
Zipcar.com
American/Uk
Professional rental
Buzzcar.com
French
Private rental
Getaround.com
American
Private rental
Relayrides.com
American
Private rental
Connect by hertz
American
Professional rental
monthly fee
Whipcar has closed down their business + average 1000 British pound A year http://www.thegreencarwebsite.co.uk/blog/index.php/2013/03/12/whipcar-closes-peer-to-peer-car-rental-service/
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Literature:
‣ euobserver.com. 2013. Denmark and Sweden have highest taxes. [ONLINE] Available at:http://euobserver.com/economic/119980. [Accessed 04 April 14].
‣ MBDB Client Brief Presentation 31th of March @ Kea E-concept development
‣ Metroxpress. 2013. Smart fidus: Tjen 60.000 kroner på at udleje din bil. [ONLINE] Available at:http://www.mx.dk/penge_erhverv/nyheder/story/11540567. [Accessed 04 April 14].
‣ valuebasedmanagement.net. 2013. Innovation adoption curve. [ONLINE] Available at:http://www.valuebasedmanagement.net/methods_rogers_innovation_adoption_curve.html. [Accessed 05 April 14]. ‣ forbrug.dk. 2014. Hvad mener forbrugerne om delebiler?. [ONLINE] Available at:http://www.forbrug.dk/Artikler/Test-og-raad/biler/delebiler/forbrugerpanel? tc=8CF56B916DBA45A492DEFBB9A1FB3ACB. [Accessed 04 April 14]. ‣ Gallup Kompas. 2014. Et segmenteringsværktøj. [ONLINE] Available at: http:// www.tns-gallup.dk/services/gallup-kompas. [Accessed 04 April 14]. ‣ Day 2 of introweek @ Kea E-concept development - QISH - http://sean.koalition.com/ qish-model/model.pdf ‣ Humphrey, Albert (December 2005). "SWOT Analysis for Management Consulting". SRI Alumni Newsletter [Accessed 04 April 14]. ‣ Zipcar.com. 2014. who exactly is the car-sharing type?. [ONLINE] Available at: http:// www.zipcar.com/is-it. [Accessed 04 April 14]. ‣ John Fahy & David Jobber, 2012. The Macro Environment. Foundations of Marketing, 9780077137014, Chapter 2, page 32. ‣ Porter, M.E. (March/April 1979). "How Competitive Forces Shape Strategy". ‣ Foundations of Marketing (Fourth edition) by John Fahy & David Jobber, Chapter 1, page 18, “Planning marketing activity”
‣ dr.dk. 2012. Hedegaard: Delebiler er vejen frem. [ONLINE] Available at:http://www.dr.dk/ Nyheder/Indland/2012/01/13/114800.htm. [Accessed 04 April 14]. ‣ ec.europa.eu. 2011. 2014 – Copenhagen. [ONLINE] Available at:http://ec.europa.eu/environment/europeangreencapital/winning-cities/2014-copenhagen/. [Accessed 04 April 14]. ‣ Skat.dk. 2014. Registreringsafgift. [ONLINE] Available at: http://www.skat.dk/SKAT.aspx? oId=1817284. [Accessed 04 April 14]. ‣ en.wikipedia.org. 2014. Economy of Denmark. [ONLINE] Available at:http://en.wikipedia.org/wiki/Economy_of_Denmark. [Accessed 04 April 14]. ‣ theodora.com. 2014. Economy - overview:. [ONLINE] Available at:http://www.theodora.com/wfbcurrent/denmark/denmark_economy.html. [Accessed 04 April 14]. ‣ ibtimes.com. 2013. Denmark’s Economic Outlook: A Slow Recovery From 2008 Housing Bubble. [ONLINE] Available at: http://www.ibtimes.com/denmarks-economic-outlook-slowrecovery-2008-housing-bubble-1469534. [Accessed 04 April 14]. ‣ tradingeconomics.com. 2014. denmark unemployment rate. [ONLINE] Available at:http:// www.tradingeconomics.com/denmark/unemployment-rate. [Accessed 05 April 14]. ‣ tradingeconomics.com. 2014. EU vil straffe finansiel kriminalitet hårdere. [ONLINE] Available at:http://www.dr.dk/Nyheder/Penge/2013/09/10/0910224545.htm. [Accessed 05 April 14].
‣ Humphrey, Albert (December 2005). "SWOT Analysis for Management Consulting". SRI Alumni Newsletter
‣ http://politiken.dk/. 2013. Danskerne er verdensmestre i tillid. [ONLINE] Available at:http://politiken.dk/debat/debatindlaeg/ECE1893230/danskerne-er-verdensmestre-i-tillid/. [Accessed 05 April 14].
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‣ dr.dk. 2013. Deleøkonomi breder sig: Lej hund, bil og garderobe hos genboen. [ONLINE] Available at:http://www.dr.dk/Nyheder/Indland/2013/10/21/190031.htm. [Accessed 04 April 14].
‣ fdim.dk. 2012. Danskernes brug af internettet. [ONLINE] Available at:http://www.fdim.dk/ sites/default/files/mediearkiv/rapporter/danskernes_brug_af_internettet_2012_rapport.pdf. [Accessed 05 April 14].
‣ trendsonline.dk. 2014. Danskerne er bedre til at dele. [ONLINE] Available at:http:// trendsonline.dk/2014/01/30/danskerne-er-bedre-til-at-dele/. [Accessed 04 April 14]. 16/17
‣ think.withgoogle. 2013. smartphone penetration. [ONLINE] Available at: http://think.withgoogle.com/. [Accessed 05 April 14].
‣ minbildinbil.dk. 2014. minbildinbil presse. [ONLINE] Available at: https://minbildinbil.dk/ presse/. [Accessed 05 April 14].
‣ mbdb.s3.amazonaws.com. 2014. Forretningsmodeller vi kan leve af. [ONLINE] Available at:https://mbdb.s3.amazonaws.com/d/press/ Berlingske-14-10-2013.435efbaaa390.pdf. [Accessed 05 April 14].
‣ pinemountain.com. [ONLINE] Available at:
‣ mx.dk. 2013. Smart fidus: Tjen 60.000 kroner på at udleje din bil. [ONLINE] Available at:http://www.mx.dk/penge_erhverv/nyheder/story/11540567. [Accessed 05 April 14].
! !
‣ minbildinbil.dk. 2014. Sådan virker det. [ONLINE] Available at: https://minbildinbil.dk/hvordan-virker-det/. [Accessed 05 April 14].
‣ http://www.pinemountain.com/seven_marketing_mistakes.pdf. [Accessed 05 April 14]. ‣ David Meerman Scott, 2011. The New Rules of Marketing and PR. 2nd ed.
‣ GoMore.dk. 2014. GoMore Manifestet. [ONLINE] Available at: https://gomore.dk/manifest. [Accessed 05 April 14]. ‣ http://www.dr.dk/Nyheder/Indland/2012/01/13/114800.htm. 2014. Hedegaard: Delebiler er vejen frem. [ONLINE] Available at: http://www.dr.dk/Nyheder/Indland/ 2012/01/13/114800.htm. [Accessed 05 April 14]. ‣ tuxi.dk. 2014. Tuxi - pay per drive. [ONLINE] Available at: http://tuxi.dk/. [Accessed 05 April 14]. ‣ dr.dk. 2013. Deleøkonomi breder sig: Lej hund, bil og garderobe hos genboen. [ONLINE] Available at:http://www.dr.dk/Nyheder/Indland/2013/10/21/190031.htm. [Accessed 05 April 14]. ‣ forbrug.dk. 2009. forbrugerne om delebiler?. [ONLINE] Available at: http://www.forbrug.dk/Artikler/Test-og-raad/biler/delebiler/forbrugerpanel?tc=8CF56B916DBA45A492DEFBB9A1FB3ACB. [Accessed 05 April 14]. ‣ trustpilot.dk. 2014. GoMore.dk anmeldelser. [ONLINE] Available at:http://www.trustpilot.dk/review/www.gomore.dk. [Accessed 05 April 14]. ‣ facebook. 2014. MinBilDinBil facebook page. [ONLINE] Available at:https://www.facebook.com/MinbilDinbil. [Accessed 05 April 14]. ‣ mx.dk. 2013. Bilejere tjener 1.500 kr. om måneden på ny tjeneste. [ONLINE] Available at:http://www.mx.dk/nyheder/danmark/story/31579505. [Accessed 05 April 14]. ‣ politiken.dk. 2013. Del bil på nye måder. [ONLINE] Available at:https://mbdb.s3.amazonaws.com/d/press/Politiken-29-06-2013.9eb0c67e91a9.pdf. [Accessed 05 April 14].
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