Case Study

Pure start-up spirit

Setting up the e-bike sharing platform “smide”

More than 20,000 customers are already using the Swiss e-bike sharing platform smide – and the numbers are still rising. However, the road there, with INNOQ along from the very beginning, was not always smooth. The keys to success: advanced technologies, an agile approach, and a common concept for IoT technology and the business model.

smide is a true success story. And like so many success stories, this success was rather unexpected, and the journey took many twists and turns. After all, reality rarely makes allowances for big plans – that is also the reason that agile approaches pay off in the end, and not only in the development of complex communications systems.

Kickoff with pilot project

It all began with an innovation project of the Swiss insurance company Schweizerische Mobiliar Versicherungen AG. The idea was to use e-bike sharing to come into contact with their own customers – outside the context of damage claims or contract signings. INNOQ was there from the very start: as consultant and coach and also in planning and implementing the IoT platform.

It was not long before the potential of the idea became clear. The pilot project became a separate company: smide was born. Initially, the e-bike rental system was designed to offer a fast, environmentally friendly solution to commuters and leisure travelers in Zurich.

The next step was to create a workable business model. In this process, we played the role of sparring partner: How to earn money? How to increase the degree of automation? Which technological solutions to consider?

Technology and business intertwined

In an IoT-driven company such as an e-bike sharing platform, the technical conception of the platform naturally plays a decisive role. However, the essential factor in the success of smide was the interplay of technology and business model. For example:

  • Strict budget restrictions: That means that the development of the platform would require a lot of “savvy”: not too much, not too big, quickly testable and usable, but still workable for the long term.
  • Future business developments: It had to be possible to adapt the system to unforeseen ideas to ensure continuous expandability.
  • Flexibility: For example, we did not organize the microservices based on technical but on functional criteria. The system is based on the IoT protocol MQTT, which is extremely adaptable.
  • Keyword big data: For the development of the business model, it was decisive that we have access to the complete history of the e-bike use and telemetry data. Therefore, we decided to use Apache Kafka. That makes it possible to detect patterns and use them to generate new ideas for monetization, user integration, and automation.
  • Technical solution in the overall context: For example, it makes no sense to develop a highly sophisticated and expensive solution for a single task, a task that could be solved much more economically by organizational means. In order to find the most efficient solution, ideas must be found that bring organization, business, and IT together.
  • Integration of the customer: for example the creation of incentive systems to induce them to charge the e-bikes or leave them at particular locations.

That provides plenty of opportunities to learn – and not just for start-ups. That’s because digitalization affects not just business processes but also the business model itself. Only when everything is combined intelligently can the result be a profitable business.

Technologies

Start-up spirit against setbacks

Did the development of smide always go smoothly? Of course not. In such a complex project, there are always a few setbacks. But the whole team was so motivated that it was possible to master them. The start-up spirit is simply contagious.

For example, it is irritating for the customer if – for whatever reason – it is not possible to unlock an e-bike using a mobile phone or if the booking fails. Especially when it happens on the weekend in the middle of the night! There were times when one of us had to do some troubleshooting way outside normal business hours, in order to help the customer. Of course, these acid tests made the system increasingly more robust as we gained more experience.

What we can do for start-ups

One thing is clear: Good ideas are one thing, but turning them into a profitable business is a true challenge. Just what do the customers do with e-bikes? How can we serve these specific needs even better? Which new customer groups exist, and which attractive offerings and functions should we offer? Such questions led to ideas, such as a targeted approach to customers who ride an e-bike to go shopping, or the opening of the platform for business customers.

The challenge of turning good ideas into good solutions can be seen, for example, in the topic of incentive systems: In this area, we worked with a technical university, which developed statistical models to answer the question: How many bonus minutes must we offer the users, so that they, for example, park the e-bike a little farther away or connect it to a charging station? Such incentive systems are the only way to reduce overhead costs so that the business model pays off.

smide has now also been launched in Bern as well as Zurich and is thus still on a growth track. We are still part of the team – and we are happy to be part of this innovative and future-oriented project.

3 questions to Christian Stettler, Senior Consultant/Architect, INNOQ Switzerland

In INNOQ Switzerland, we have found an innovative partner, whose expert consulting and professional implementation have made it an important pillar of our business. The employees distinguish themselves through great flexibility and agility. Paired with sound expertise, this enables them to find pragmatic and goal-oriented solutions, even in hectic situations.

Nick MüllerCo-Founder & Partner, smide

Just talk to us!

Are you interested in implementing a business idea or planning an IoT platform? We’d love to discuss it with you!

Christian Koller or André Baumgartner, Tel. +41 58 521 50 21

TAGS