This presentation is about a paper called "Why is my car less mine: The emergence of user-led business models and insights from the Italian carpooling market". The work contributes to the existing user-led business model innovation literature providing a theoretical framework of nine key-points a firm should look at while implementing such kind of business model. In order to understand the role of these elements in user-led innovations, we analyse an example considering a new emerging phenomenon, carpooling, focusing on what is happening in the Italian market and how the key players are structuring their business models.

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2. Andrea Paraboschi
Elena Casprini
Alberto Di Minin
Simone Corsi
Ph.D Student
Ph.D Student
Assistant Professor
Post-doc researcher
X Convegno SIM 2013
Why is my car less mine? The emergence of user-led business models and insights from the Italian carpooling market
Andrea Paraboschi, Elena Casprini, Alberto Di Minin, Simone Corsi - Scuola Superiore Sant’Anna - Pisa
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3. The role of users in firms’ BMs
Users
Firms or individual consumers that expect to benefit from using a
product or a service (Von Hippel, 2010)
Users are not all the same...
Final recipient
of products/services
provided by the firm
Offer co-creator
(part of the company BM)
Enablers of innovation
for the company
(active in the BM innovation)
Entrepreneurs
(reinterpreting the BM in
a new owned company)
Some users want something that is not yet available on the market
and are able and willing to pay for its development (von Hippel, 2010)
X Convegno SIM 2013
Why is my car less mine? The emergence of user-led business models and insights from the Italian carpooling market
Andrea Paraboschi, Elena Casprini, Alberto Di Minin, Simone Corsi - Scuola Superiore Sant’Anna - Pisa
3

4. Some examples - 1
Windsurfing
Invented by “the Hawaiians” (7 people) in 1970s
40% of major improvements came from users
(Shah, 2000)
X Convegno SIM 2013
Why is my car less mine? The emergence of user-led business models and insights from the Italian carpooling market
Andrea Paraboschi, Elena Casprini, Alberto Di Minin, Simone Corsi - Scuola Superiore Sant’Anna - Pisa
4

5. Some examples - 2
Rodeo Kayaking
Invented by Walt Blackader in 1970
63% of major improvements and 83% of minor
improvements came from users
(Baldwin et al., 2006)
X Convegno SIM 2013
Why is my car less mine? The emergence of user-led business models and insights from the Italian carpooling market
Andrea Paraboschi, Elena Casprini, Alberto Di Minin, Simone Corsi - Scuola Superiore Sant’Anna - Pisa
5

6. Some examples - 3
Facebook
Developed as an hobby
by Mark Zuckerberg in 2003
X Convegno SIM 2013
Why is my car less mine? The emergence of user-led business models and insights from the Italian carpooling market
Andrea Paraboschi, Elena Casprini, Alberto Di Minin, Simone Corsi - Scuola Superiore Sant’Anna - Pisa
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7. Some examples - 4
Big Mac
Invented by Jim Delligatti, who had a franchise
restaurant in Uniontown, in 1968
The name “Big Mac” was given by Esther
Glickstein Rose, a 21 year-old Advertising
Secretary in Chicago headquarters
(from Wikipedia)
X Convegno SIM 2013
Why is my car less mine? The emergence of user-led business models and insights from the Italian carpooling market
Andrea Paraboschi, Elena Casprini, Alberto Di Minin, Simone Corsi - Scuola Superiore Sant’Anna - Pisa
7

8. The role of users needs to be seriously taken into account
and constantly monitored by firms (Kotler, 1986), especially nowadays...
9
points of interest
a firm should look at
while implementing a
user-led business model
X Convegno SIM 2013
Why is my car less mine? The emergence of user-led business models and insights from the Italian carpooling market
Andrea Paraboschi, Elena Casprini, Alberto Di Minin, Simone Corsi - Scuola Superiore Sant’Anna - Pisa
8

9. The presence of a community of active users
Community of Users
A group of users of a product or service who have a relationship
consisting of trading, sharing and disseminating information and
knowledge about that product or service or other products based on it
(Parmentier and Gandia, 2013)
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X Convegno SIM 2013
Why is my car less mine? The emergence of user-led business models and insights from the Italian carpooling market
Andrea Paraboschi, Elena Casprini, Alberto Di Minin, Simone Corsi - Scuola Superiore Sant’Anna - Pisa
9

10. The presence of a platform
providing guidelines to users
Platform
Technological building blocks (that can be technologies, products or
services) that act as a foundation on top of which an array of firms,
organized in a set of indipendent firms (sometimes call an industry
ecosystem) develop a set of interrelated products, technologies or
services (Gawer, 2009)
Multisided platform
The platform has lost its physical/industrial aspect to
become a mere exchange marketplace, built to make
transactions easier between two or more counterparts
(Rochet and Tirole, 2003)
X Convegno SIM 2013
Why is my car less mine? The emergence of user-led business models and insights from the Italian carpooling market
Andrea Paraboschi, Elena Casprini, Alberto Di Minin, Simone Corsi - Scuola Superiore Sant’Anna - Pisa
2
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11. The presence of a basic
product/service that is customizable by users
Add description
Payment options
Add photos
Schedule the auction
starting time
Promote the
auction
Buy it now!
Product families are product that share common features, but at the same time have
specific functionalities required by different sets of customers (Meyer and Utterback, 1992)
X Convegno SIM 2013
Why is my car less mine? The emergence of user-led business models and insights from the Italian carpooling market
Andrea Paraboschi, Elena Casprini, Alberto Di Minin, Simone Corsi - Scuola Superiore Sant’Anna - Pisa
3
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12. The presence of interfaces,
providing tools to users
Interfaces
Inside each platform’s modular structure, interfaces provide access to
other companies/users for customization and innovation.
(Gawer Cusumano, 2009)
API
Final recipient
of products/services
provided by the firm
Platform’s
core
GUI
Enablers of innovation
for the company
(active in the BM innovation)
4
X Convegno SIM 2013
Why is my car less mine? The emergence of user-led business models and insights from the Italian carpooling market
Andrea Paraboschi, Elena Casprini, Alberto Di Minin, Simone Corsi - Scuola Superiore Sant’Anna - Pisa
12

13. The value co-creation
Depending on the industry context, the belongingness to a user community allow
members to share and exchange experience and knowledge (Haelfiger et al., 2010).
Toolkits help the community to innovate, making at the same time the company
able to intercept this knowledge and to innovate (von Hippel, 2010; Parmentier and
Gandia, 2013).
.
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X Convegno SIM 2013
Why is my car less mine? The emergence of user-led business models and insights from the Italian carpooling market
Andrea Paraboschi, Elena Casprini, Alberto Di Minin, Simone Corsi - Scuola Superiore Sant’Anna - Pisa
13

14. The presence of reward mechanisms
Most of the users do not have economical incentives to participate in a
community, since the main asset is, apart from benefiting from the
product/service, their reputation and fun (Werbach Hunter, 2012).
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X Convegno SIM 2013
Why is my car less mine? The emergence of user-led business models and insights from the Italian carpooling market
Andrea Paraboschi, Elena Casprini, Alberto Di Minin, Simone Corsi - Scuola Superiore Sant’Anna - Pisa
14

15. The focus on user experience
and service usability
User experience is among the most important asset for a usercentered company.
With the progressive use of web technologies, users can now influence
others through WoM.
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X Convegno SIM 2013
Why is my car less mine? The emergence of user-led business models and insights from the Italian carpooling market
Andrea Paraboschi, Elena Casprini, Alberto Di Minin, Simone Corsi - Scuola Superiore Sant’Anna - Pisa
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16. The key-role of lead users
The higher involvement and their higher willingness to collaborate
make them playing a crucial role for companies (von Hippel, 2010; Eisenberg,
2011) that may find the next breakthrough innovation through them.
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X Convegno SIM 2013
Why is my car less mine? The emergence of user-led business models and insights from the Italian carpooling market
Andrea Paraboschi, Elena Casprini, Alberto Di Minin, Simone Corsi - Scuola Superiore Sant’Anna - Pisa
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17. The customization of the product by lead users
Users were the agents of innovation in roughly 80% of scientific
instruments innovations.
In order to foster the participation of lead users in the innovation
process, firms need to proceed by acknowledging them and involving
them in the creative process, letting them free to experiment and
customize the product/service (von Hippel, 1988).
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X Convegno SIM 2013
Why is my car less mine? The emergence of user-led business models and insights from the Italian carpooling market
Andrea Paraboschi, Elena Casprini, Alberto Di Minin, Simone Corsi - Scuola Superiore Sant’Anna - Pisa
17

18. User-led Business Models
in the carpooling market
What is carpooling?
It’s about sharing the car ride, making seats available to other people
going the same place.
•
Passengers pay the driver a
fixed fare
•
Started as a way to save
money for commuters and
people making medium-long
range travels
•
Spreading inside urban
contexts
•
Win-win for drivers and
passengers
X Convegno SIM 2013
Why is my car less mine? The emergence of user-led business models and insights from the Italian carpooling market
Andrea Paraboschi, Elena Casprini, Alberto Di Minin, Simone Corsi - Scuola Superiore Sant’Anna - Pisa
18

19. User-led Business Models
in the carpooling market
Market size (EU)
•
250 million vehicles in Europe (ACEA)
•
˜ 1 million carpooling rides available in 9 countries (0,4% are
carpooling)
•
2 web companies in the market, many more are coming
X Convegno SIM 2013
Why is my car less mine? The emergence of user-led business models and insights from the Italian carpooling market
Andrea Paraboschi, Elena Casprini, Alberto Di Minin, Simone Corsi - Scuola Superiore Sant’Anna - Pisa
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20. Who is driving this market?
•
10 m€ from Daimler
and VC
•
•
Started as a student’s
project
•
Started as a student’s
project
•
5m members, 900.000
trips available
•
3m members, 600.000
trips available
•
70 employees
•
60 employees
7,5m€ from private
investors/VC
•
Small VC investment
•
Started by 3 brothers
•
2 web companies in the
market
•
10.000 rides available
X Convegno SIM 2013
Why is my car less mine? The emergence of user-led business models and insights from the Italian carpooling market
Andrea Paraboschi, Elena Casprini, Alberto Di Minin, Simone Corsi - Scuola Superiore Sant’Anna - Pisa
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21. What BMs are adopted
by carpooling web companies?
•
Advertising based
•
Commercial
partnerships with other
transport companies
(not yet implemented
in Italy)
•
Revenue sharing
model: platform acts
also as a payment tool 11% of revenues are
withhold by the website
(not yet implemented
in Italy)
•
B2B revenue model:
trip certification tool to
certify rides,
commercial
agreements with
partners (events)
X Convegno SIM 2013
Why is my car less mine? The emergence of user-led business models and insights from the Italian carpooling market
Andrea Paraboschi, Elena Casprini, Alberto Di Minin, Simone Corsi - Scuola Superiore Sant’Anna - Pisa
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22. The nine points in the carpooling market
1
Communities of users are present. In each community users can play two
interchangeable roles: drivers and passengers.
2
Multi-sided platforms aggregates users, providing guidelines to them.
3
Users can customize their profiles, providing more information about their car,
traveling preferences, trip details, in order to attract passengers.
4
Interfaces to external social networks are used to certify the driver’s and passenger’s
reputations. External APIs are offered to commercial partners.
5
Value is co-created and shared among all the community participants.
X Convegno SIM 2013
Why is my car less mine? The emergence of user-led business models and insights from the Italian carpooling market
Andrea Paraboschi, Elena Casprini, Alberto Di Minin, Simone Corsi - Scuola Superiore Sant’Anna - Pisa
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23. The nine points in the carpooling market
6
Reward mechanisms are present in terms of feedbacks (that acts on reputation) and
profile completion bars. Social contests are often arranged.
7
User experience is constantly empowered with interface’s upgrades. Mobile apps
extend the platform’s usage on portable devices.
8
Lead users are identified through the database. Special activities are dedicated to
them, they can be considered as “evangelists” and are often invited to special events .
9
Lead users can contribute to the platform’s evolution through customer care channels
or contacting directly managers. Some lead users may start their own company.
X Convegno SIM 2013
Why is my car less mine? The emergence of user-led business models and insights from the Italian carpooling market
Andrea Paraboschi, Elena Casprini, Alberto Di Minin, Simone Corsi - Scuola Superiore Sant’Anna - Pisa
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24. Conclusions
In the paper, we presented a literature review on user-led business
model, identifying nine characteristics that are essential for its
effectiveness.
Furthermore, we have introduced the carpooling example, pinpointing
the key common aspects and the differences in terms of offer and
execution.
Further research may explore the execution implications of this
paradigm change and the nine key points may be tested in further
works approaching different business sectors other than the
carpooling market.
X Convegno SIM 2013
Why is my car less mine? The emergence of user-led business models and insights from the Italian carpooling market
Andrea Paraboschi, Elena Casprini, Alberto Di Minin, Simone Corsi - Scuola Superiore Sant’Anna - Pisa
24

25. in
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THANK YOU
Andrea Paraboschi
a.paraboschi@sssup.it
www.paraboschi.it
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