Business model components to consider for ridesharing schemes in rural areas – results from four Swedish pilot projects

Abstract

In this paper, business model components of rural ridesharing schemes are studied. Business models encompass generic components that need to be accounted for in a viable business case: customer value/interaction, usage of resources and the cost/income structure. The perceived values of ridesharing identified in previous studies – environmental and economic gains, increased flexibility, the benefits of not having to own a vehicle and the possibility to socialise – are confirmed in this study; however, the customer segment is not identified. The need of a digital platform to enable ridesharing is also identified and confirms previous studies. However, when turning to the key resource, vehicles, the literature does not provide information on agreements needed between platform providers and vehicle owners; it appears as though there is a belief that when there is demand, the supply will be generated automatically. This assumption introduces a risk that a demanded ride cannot be supplied, a risk that can increase when population density is reduced. To design efficient ridesharing schemes, business model components should not be overlooked. In order to achieve success in new mobility services, we stress the importance of (i) identifying the customer segment and (ii) securing the resources necessary to meet the demand.