How BlaBlaCar works: Business Model and Revenue Streams

Mar 13, 2019, 5:27:08 PM

BlaBlaCar

How much does it cost to build a carpooling app like BlaBlCar? What are the must-have features and functionalities in an on-demand ride-sharing app? Which technology is best suited for developing a carpool app like BlaBlaCar?

Recognized for the expertise in building on-demand apps for travel industry like MatchRider (on-demand ridesharing app), WaPanda (on-demand taxi booking app), we often come across aforesaid interrogations from our prospects.

BlaBlaCar is Europe’s leading travel network. It’s a carpooling platform that connects car drivers (with empty seats) to passengers (who are looking for a ride) over average distances of 300km. The services are expanded in 22 countries and serves to over 18 million travelers every quarter.

  • Number of people use BlaBlaCar: 65 million

  • Reported amount that BlaBlaCar raised till date: $400 million

  • BlaBlaCar’s reported evaluation: $1.6 billion

How does BlaBlaCar manage to hold all the aces, despite facing the functional and economic disbalance? Let’s dissect this on-demand ridesharing service for its business model and revenue streams to know how it works.

BlaBlaCar: Success Timeline

Founded: September 16, 2006

Founder (s): Frederic Mazzella, Nicolas Brusson, Francis Nappez

Revenue: $85 million (2018)

Competitors: RideScout, Uber, Lyft, Hitch

Availability: Mobile (Android, iOS)

BlaBlaCar Timeline

What Makes BlaBlaCar Sell?

By 2025, over 45 million vehicles are projected to be in the global carpooling program (source: Statista). The stats bespeaks the popularity and demand for carpool services and thus, the platforms like BlaBlaCar.

Some of the prominent reasons triggering the growth of on-demand ride-sharing system include:

  • Changing Customer Preferences: In a survey conducted by Sharepost’s second annual ridesharing survey, it is revealed that there is an increase in the adoption of ridesharing services. Market penetration to demographics like city dwellers, millennials, and individuals who don’t own a car prefer sharing rides.

  • Technology Advancement: Mobile apps, constant network connectivity, GPS navigation devices, constant network connectivity, e-transactions for payment are some of the technology advances that ensure seamless matching of car owners with passengers in real-time.

  • Regulation: When it comes to sharing a ride, one of the biggest challenges is to travel with strangers. Since mobile apps are backed with technological services such as GPS tracking, tracking the driver, his vehicle details, and the real-time location is a possibility. Such regulations while traveling make traveling secure and convenient for co-travelers.

The BlaBlaCar app is facilitated with technological advances, ensures a regulated ride for car owner and passengers, and at the same time resolves the problem of convenient and cost-effective travelling.

Business Model: How BlaBlaCar Works?

With BlaBlaCar, the car owners have the opportunity to share their long-distance ride with passengers traveling on the same route. Owners do this by specifying the itinerary and price for the ride. Interested co-travelers can coordinate with the car owner through a private messaging system of BlaBlaCar or over the phone. The co-travelers then pay their contribution to the owners directly.

Economic Stability Model: How BlaBlaCar Generates Revenue?

BlaBlaCar generates revenue through transaction fees, which is 10-12% of the total cost of a ride.

  • While the platform connects drivers and riders heading in same direction, it ensures that riders only pay for covering reasonable expenses, like automobile wear and tear, or fuel of the car owner.

  • Price per trip cannot exceed a ceiling set by BlaBlaCar. This is done to ensure that car owners do not make a profit.

  • Payment is made in cash, in the car, generally at the outset of the trip.

Building a Carpool Platform like BlaBlaCar:

If building an app like BlaBlaCar is on your mind, register yourself for our Discover and Frame Workshop that will guide you with right features, technology, revenue sources, development cost etc. to get started with your idea.

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Archna Oberoi

Written by Archna Oberoi

Content strategist by profession and blogger by passion, Archna is avid about updating herself with the freshest dose of technology and sharing them with the readers. Stay tuned here as she brings some trending stories from the tech-territory of mobile and web.