Reflective Report No. 4

During weeks 7, delving into the intricacies of business models has guided me to a realm of innovative strategies. This knowledge found practical application in my digital platform assignment, where I conducted an in-depth analysis of "LOCA," an innovative ride-hailing platform in my home country.

LOCA was established in 2018 by Souliyo Vongdala, a young entrepreneur holding an Electric Engineering degree from the United States. It distinguishes itself from other mobility services by employing an entirely electric fleet for its ride-hailing service. This strategic choice not only addresses environmental concerns but also optimizes operational costs for both drivers and passengers, showcasing LOCA's commitment to sustainable practices.

Source: YouTube

Souliyo's inception of LOCA was driven by his keen observation of passenger pain points, particularly among tourists. These travelers frequently encountered exorbitant transportation fares from local taxis, leading to a negative perception of Laos' tourism industry. Additionally, during the initial stages of launching the ride-hailing service, he recognized a prevalent preference among passengers for card-based payments, while most drivers lacked POS machines, resulting in inconvenience for both parties.

In response to this issue, Souliyo introduced a transformative feature within the LOCA app known as LOCA Pay, an integrated e-wallet solution to alleviate these pain points. LOCA collaborates with local banks, enabling tourists to link their cards to the LOCA app and make payments by scanning Lao QR codes at their preferred merchants. This innovation not only enhances convenience but also fosters a more efficient and transparent payment ecosystem within the local tourism industry.

Souliyo Vongdala, CEO of LOCA
Source: Vientiane Times

By incorporating the knowledge obtained in class, I have discovered that the initial phase of LOCA's innovative business model is outlined as below:

Goals:

• Barrier 1: Cashless Passengers
• Digital Solution: Introduce a digital payment platform

• Barrier 2: Unpredictable Taxi Fares
• Digital Solution: Offer ride-hailing with real-time fare tracking

Job to be done:

• LOCA Ride-hailing: Addressing the pain points of tourists by offering reliable mobility services with the motto "Get Around Like a local".
• LOCA Pay: Enabling tourists to pay with cards at local merchants with the motto "Pay Like a local, Pay with LOCA Pay", enhancing their travel experience.

Source:  The Laos Australia Institute

The newfound insight I gained from my assignment significantly altered my perspective on business model strategies. I realized that customer pain points serve as wellsprings of innovative solutions, creating new avenues for service development. Moreover, beyond just competitive advantage, providing genuine value to users is paramount. This approach not only helps in achieving critical mass but also ensures the sustainability of the business in the long run.

As I contemplate the benefits of these insights for my future career, I recognize their immense value. They have equipped me with the ability to think critically about business models and customer needs, which will undoubtedly be invaluable in a fast-paced, digitally-driven business world. These insights will guide me in identifying opportunities for innovation, creating solutions that address real problems, and ultimately contributing to the success of businesses in a dynamic and competitive landscape. I am excited to apply these lessons and continue my journey towards a successful and impactful career in the digital era.