BMC of Bluebird Group, Indonesia

BMC of Bluebird, a business model analysis using 9 blocks of Business Model Canvas.  Bluebird Group is a prominent transportation company in Indonesia, with its roots tracing back to 1972. It was founded by Mutiara Djokosoetono, who started with just 25 taxis. Over the decades, Bluebird has evolved into a significant player in the transportation sector, boasting a vast fleet that includes taxis, rental cars, buses, and logistics services. Bluebird operates predominantly in Indonesia’s urban centers, including Jakarta, Bali, Surabaya, and other key cities.

In recent years, the company’s revenue has been driven by a mix of passenger fares, business partnerships, and corporate contracts. While the company maintains a dominant position in the Indonesian market, it faces increasing challenges from digital ride-hailing platforms like Grab and Gojek. These competitors have introduced cheaper, more flexible, and technology-driven solutions that appeal to younger, tech-savvy customers. Despite these challenges, Bluebird’s strong brand, rooted in safety and reliability, has helped it remain competitive.

Business Model Canvas of Bluebird Group

1. Customer Segments

Customer segments define the different groups of people or organizations that a business aims to serve. Understanding customer segments allows companies to tailor their value propositions, marketing strategies, and services to fit the specific needs of these groups.

For Bluebird Group, customer segments can be classified as:

• Mass Market: Bluebird targets everyday urban commuters in large cities like Jakarta, who need reliable and convenient transportation. These customers value punctuality, safety, and quality over price.
• Corporate Clients: Bluebird provides tailored transportation solutions for corporations, government agencies, and private institutions that require regular or on-demand transportation services for employees, clients, and VIP guests.
• Tourism and Hospitality Industry: The company serves hotels, travel agencies, and tour operators by providing transportation services for tourists and business travelers. This segment values trust, safety, and a seamless travel experience.

Example: In Jakarta, a significant portion of Bluebird’s customers consists of middle- and upper-class individuals who prefer premium services over cheaper ride-hailing alternatives. The company’s corporate client base includes large companies that offer Bluebird taxis as part of their employee transport solutions.

2. Value Propositions

The value proposition is the collection of products and services that create value for specific customer segments. It differentiates a company from its competitors and provides reasons why customers choose one brand over another.

Bluebird’s value propositions are built on the following pillars:

• Safety and Reliability: Bluebird has long been synonymous with safe, reliable, and high-quality transportation services. Every vehicle is regularly inspected, and drivers undergo rigorous training.
• Premium Service Quality: The company emphasizes professionalism, with clean vehicles, courteous drivers, and a strict adherence to safety regulations. Fares are transparent, ensuring that customers feel secure and comfortable during their rides.
• Accessibility and Convenience: Bluebird makes its services available through multiple channels, including street hailing, call centers, and digital platforms like its My Bluebird app.
• Innovative Technology Integration: Bluebird has responded to competition from ride-hailing platforms by upgrading its digital presence, offering mobile bookings, cashless payments, and ride-tracking features.

Example: Through its My Bluebird app, customers can book a taxi, track the vehicle in real-time, and pay via various digital wallets. This integration of convenience and quality makes Bluebird stand out compared to its competitors.

3. Channels

Channels represent how a company communicates with and reaches its customer segments to deliver its value proposition. Efficient channels are essential for reaching customers and delivering a consistent service experience.

Bluebird operates through the following channels:

• Physical Presence: Bluebird taxis can be hailed directly on the street or at designated taxi stands in key locations, such as airports, shopping centers, and hotels.
• Call Centers: For customers who prefer a more traditional booking method, Bluebird offers 24/7 call centers for arranging rides.
• Digital Platforms: The My Bluebird app is the company’s main digital channel, allowing customers to book, pay, and manage their rides online. Bluebird has also partnered with Gojek, allowing users to book Bluebird taxis directly from the Gojek app.
• Partnerships with Hotels and Airports: Bluebird has exclusive contracts with major hotels and airports, providing convenience for travelers who prioritize quality transport options.

Example: Bluebird’s presence at major airports, such as Soekarno-Hatta International Airport, allows it to serve both domestic and international travelers directly, offering pre-booked taxi services through both its app and call center.

4. Customer Relationships

Customer relationships describe how a company interacts with its customer base. Maintaining a good relationship with customers is key to building loyalty, driving repeat business, and improving customer satisfaction.

Bluebird focuses on building strong customer relationships through:

• Personalized Service: Bluebird drivers are trained to provide professional and courteous services. Personalized interactions between drivers and passengers improve the overall experience, leading to higher customer loyalty.
• Responsive Customer Support: Bluebird maintains a customer service center that handles complaints, lost items, and service-related inquiries, ensuring quick resolution of any issues.
• Loyalty Programs: Bluebird offers loyalty programs, such as the My Bluebird Points system, where frequent users can earn points that are redeemable for free rides, enhancing customer retention.

Example: Through its loyalty programs, Bluebird encourages repeat customers by offering rewards, discounts, and exclusive promotions for frequent riders, fostering stronger customer relationships.

5. Revenue Streams

Revenue streams represent the income generated from each customer segment. These can come from a variety of sources, depending on the nature of the business and the services offered.

Bluebird’s revenue streams are diversified:

• Passenger Fares: The core of Bluebird’s revenue comes from the fares passengers pay for using its taxis, rental cars, and buses. Prices are generally higher than those of ride-hailing competitors due to the premium service quality.
• Corporate Contracts: Bluebird generates revenue through long-term transportation contracts with businesses, hotels, and government entities. These contracts often cover services for employees, VIP clients, and logistics needs.
• Advertising and Promotions: Bluebird also earns revenue by placing advertisements on its fleet of vehicles, allowing businesses to advertise on the sides of its taxis and buses.

Example: Bluebird maintains exclusive contracts with several multinational corporations and government agencies, providing regular transportation for their employees and executives. These contracts provide a stable and predictable source of income for the company.

6. Key Resources

Key resources are the assets, both tangible and intangible, that are critical to a company’s operations.  This is also the ability to deliver its value propositions.

For Bluebird, the key resources include:

• Vehicle Fleet: Bluebird’s extensive and well-maintained fleet of taxis, rental cars, and buses is its most valuable asset, allowing the company to serve a wide customer base.
• Human Resources: Bluebird’s professionally trained drivers are essential for ensuring the company’s service standards are upheld. The drivers are often seen as the face of the company.
• Brand and Reputation: Bluebird’s long-standing reputation for safety, reliability, and quality has helped it build customer trust and loyalty over the years.
• Technology Infrastructure: The company’s My Bluebird app, payment systems, and digital platforms are critical in maintaining its competitiveness, particularly in the face of competition from ride-hailing apps.

Example: Bluebird operates over 20,000 vehicles across Indonesia, and its My Bluebird app has been downloaded millions of times, making it one of the most widely used transportation apps in the country.

7. Key Activities

Key activities are the most important things a company must do to make its business model work.  This is also include production, marketing, customer service, and logistics.

Bluebird’s key activities revolve around:

• Fleet Maintenance: Regular maintenance of its extensive fleet ensures that the vehicles are in top condition, providing safe and reliable rides to passengers.
• Driver Training: Bluebird invests in continuous driver training to maintain high service standards, covering areas such as safety, customer service, and route efficiency.
• Technology Management: Ensuring the seamless operation of the My Bluebird app and digital systems is vital for maintaining Bluebird’s competitive edge in the digital era.
• Marketing and Customer Engagement: Bluebird runs advertising campaigns to enhance brand visibility and frequently engages with customers through loyalty programs and promotions.

Example: Bluebird’s driver training programs ensure that drivers not only navigate efficiently but also uphold the highest standards of customer service.  The training programs reinforcing the company’s reputation for professionalism.

8. Key Partnerships

Key partnerships represent the external organizations and entities that help the business succeed by leveraging their resources and expertise.

Bluebird has formed critical key partnerships to expand its market reach:

• Ride-Hailing Platforms: Bluebird has partnered with Gojek, allowing customers to book Bluebird taxis directly through the Gojek app. This partnership helps Bluebird compete with digital-first ride-hailing companies.
• Vehicle Suppliers: Bluebird collaborates with automotive companies to ensure a steady supply of vehicles and replacement parts.  The collaborations keep the fleet operational and up-to-date.
• Hotels and Airports: Strategic partnerships with hotels, travel agencies, and airport authorities allow Bluebird to provide exclusive services to travelers and tourists.

Example: Bluebird’s collaboration with Gojek allows it to leverage Gojek’s massive user base, integrating traditional taxi services with digital convenience.

9. Cost Structure

The cost structure outlines the major costs incurred to operate the business and deliver the value propositions.

Bluebird’s cost structure includes:

• Fleet Operations and Maintenance: Maintaining a large fleet of vehicles comes with significant costs, including fuel, maintenance, insurance, and replacement of old vehicles.
• Driver Salaries and Training: Bluebird invests heavily in hiring and continuously training drivers to ensure high service quality and safety.
• Technology Development: Maintaining and upgrading the My Bluebird app and other digital systems is crucial to keeping up with technological advancements and customer expectations.
• Marketing and Customer Acquisition: Bluebird invests in marketing campaigns to retain customers and attract new users in a competitive market.

Example: Bluebird’s cost structure includes significant expenses for vehicle maintenance, driver salaries, and continuous investment in its digital platforms.  This is to ensure competitiveness with Grab and Gojek.

Challenges from Digital Platforms (Grab and Gojek)

In recent years, Bluebird has faced intense competition from ride-hailing platforms like Grab and Gojek.  App based services like Gojek have rapidly gained popularity by offering cheaper, more flexible, and digital-first transportation solutions. The ability of these platforms to offer lower fares through a gig-economy model has attracted price-sensitive customers.  In particular, millennials and Gen Z. In contrast, Bluebird’s higher fares, largely driven by its investment in premium service quality, have made it harder to compete on price alone.

Despite this, Bluebird has successfully retained its premium market share due to its focus on safety, reliability, and corporate partnerships. Decision to partner with Gojek and integrate  booking services through the app has allowed it to stay relevant.  This is at the cost of reduced market share in the price-sensitive segments.

Why Bluebird is Successful in Indonesia

Despite the challenges posed by digital disruptors, Bluebird remains a leading player in Indonesia’s transportation sector due to several factors:

• Trusted Brand: Bluebird has built a solid reputation over the years, emphasizing safety and reliability. This trust, particularly among middle- and upper-income customers, has been pivotal in retaining its customer base.
• Corporate Contracts: Bluebird’s long-term contracts with corporate clients and government organizations have provided steady revenue streams.  This arrangement reducing its reliance on individual consumers.
• Adaptation to Digital Trends: Bluebird has embraced technology by launching its own app and partnering with Gojek. This adaptability has helped it retain a portion of the digital-savvy customer base.

Conclusion

Bluebird Group’s BMC reveals a company, while rooted in traditional transportation services is navigating the challenges of digital disruption.  This was achieved by leveraging its core strengths.  By maintaining its focus on quality, safety, and technology integration, Bluebird continues to be a key player in Indonesia’s highly competitive transportation market.

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