telepass Flashcards
main issue
should they go into their insurance or stay with their telepass
company overview
introduced in. 1990 to streamline traffic during the World Cup in Italy
was a tolling service
owned by the Atlantic group
OBU unit
Italys oldest fintech
telepasspay
broad mobility platform offering wider services: fuel payments, bike sharing, parking, train tickets
you can bundle together these services in one device
gave telepass good info
only existing telepass subscribers could sign up
download the app and sign in with teelpass info
cresting an ecosystem –> 3-15 services, more services= more value
economics*****
emerging mobility services industries
italy is among eu most expensive highway system covid 19 increased electronic payments and decreased usage of mobility services
demographics*****
multi model future and shifting mobility preferences
tech savvy younger population is more inclined to use digital platforms
political and legal
compliance reqyiremmts impacting data use and digital ppayemts
gvt incentives for digital payments
regulations concerning EU
GDPR –> companies have to protect consumers privacy , very costly penalties
gvt was planning to launch a program that would reward consumers who used digital payments methods
know your customer rule
sociocultural
traditional cash transaction culture –> italeins perffered cash
conservative approach to banking
car ownership was seen as a part of adulthood if you lived in Italy but today we want scooters
increase in bike sharing, scooter sharing
technological
adoption of digital platforms and data driven services
rise of mobility as a service
porters
buyers: consumers have some leverage due to the availabiluy of substitute s, less likely to switch once integrated into telepass ecosystem , tele offers very competitive pricing and high convenience which is valued by consumers , merchants and customers
suppliers: depends on cloud service provider like google cloud and mobility tech partners, partnerships arent exclusive but important, also depends on highway operators
new entrants: high capital costs regulatory compliance, robust ecosystem are entry barriers, have to create relationships with governing bodies, new entrants can come in and disrupt
subs: cash, other digital payment, pricing power on telepass which may limit telepass ability to charge premiums for their convenient service offerings
rivarly: many competitors, fragmented market with low switching costs and cultural resistance to change, PayPal , postepay, same offerings
industry size
the industry is the mobility and fintech industry that includes toll oayennets
annual transact volume of 7bn for telepass
digital payments segment in Italy was worth 270 bn in 2019
industry growth
substantial growth potential
telepasspay revenues grew by 76% from 2019-2020
increasing urban mobility, preference for shared services and gvt incentives for digital payments drive grwth
digital payment has grown by 109%
movile payement apps are growing
trends
rise of multimodal trasnpoation, car sharing
slow but growing adoption of digital payments
data driven personalization in services
post covid mobility shifts
regulatory pressures favouring transparency ( there are restrictions imposed on companies facilitating digital payments) and consumer rights
sharing services were emerging
opportunities
expanding into multimodal mobility services
growing insurance
leveraging data analytics for personalized services
emerging tech
sustainability
expanding to europe
uniform merchant service
threats
regulatory risks and compliance costs
intense competition
cultural resistance to digital payments (want to stick with cash instead)
tech avdnacennts
strengths
strong brand recognition and reputation (can hire good people, consumers trust the company and dont even check their bill)
pricing power and cost advantage (Lower than tier companies)
technological leadership
unique and diversified offerings
uniform and convenient platform
not long wait times
first mover advantage
first to use DSRC
status to have telepass
cross selling through the app
good at navigating the regulatory
weaknesses
dependence on tolling revenues
customer perception –> only as an OBU company
technological knowledge gap (they had always worked with IBM so they were having trouble adjusting to data lakes)
high investment rewuirennts for new services
existing assets and capabilities were being underanalyzed, they had a lot of data but never considered how important it is
telepass doesnt share its data with merchants
finance
processed 7 bn in annual transactions
revenues grew by 76%
in 2016, revenues totaled €168 million
Hr
hired cerveillin (15 years of data analytics experience)
diversified employment
investing in people who had skills with this tech (data science )
hired people fro different sectors who were doing
also hired people who had soft skills ( t factor)
their employees had been knowledgeable in the transpiration industry but needed pole who knew data
information systems
relies on DSRC tech and It systems to manage operations
enhances efficiency
used the telepass pay to gain information about customers
data driven processes
google cloud data storage
distribution***
direct dis of OBU devices
partners with toll operators to ensure service availability
across various segments
operations*****
uses OBU devices for high transaction success rate
expanded operations
uses the DRSC tech
supply chain amangeemt
focus on partnerships with toll operators and mobility service providers
collaborates with cloud providers
marketing and slaes
promotes itself as a convenient mobility service that saves customers time and money, also simple
consumers were having a hard Time separating teelpass from the tolling sp have to market well
they were going to store all of their customer data in one place which would help build their marketing
follow up services
high emphasis on customer satisfaction
sources of competitive advantages
data utilization strategy
innovate tech and ecosystem
brand recognition and trust at a large scale (they trust them to act like a bank and customers don even check their bills)
market domince
costkeadership
diversification revenue and growth
uniform merchant agnostic service
challenges
revenue is highly dependent on tolling services
customer brand perception as tolling only provider
financial strain from expansion and acquisitions
current strategy
invest in tech:
- moved to the cloud to store data
- not data driven company
- had t figure put what data to collect
investing in people
- hired and patterned with industry experts, found ne hires who were skilled in data sincere, adjusted hiring practices,
investing in processes
- going more data driven –> everything used to be done manually through excel
invested 200 mm in tech [eople nd processes
business level
cost leadership: come-give pricing, transaction fee is a lot cheaper , only a 0.28% trasnavtio. fee which was a lot lower than the normal 1.1%, wanted to provide customers a simple unfair experience
duffereination: integrated mobility system, easy to use platform, focuses on customer engamenet and retention
started off with cost leadership and then started diversifying with telepass pay
cooperative strategy
grown through m and and partners
moved into new mobility categories
introduced existing services into nee cities
bought new merchants
partner with zig zag an italein company that has scooters
zig zag
allows telepass to broaden its range of mobility services
can offer more diverse and sustainable trasnporatopn options
m and a strategy
acquired a 70% stake in wash out which performs eco friendly car washing and it was an absorption
bought 75% equity stake in infoblu, a mobility tech company which was also preservation
acquired urbi which was a car cycle scooter platform which was also [reservatin
why do the m and a
wash out: allowed telepass to offer more services and keep subscribers nebgaed, increase speed to market
infobluL combined infolbu real time traffic into and data analytics , more expertise
urbi: allowed teelpass to diversify its mobility service portfolio
corporate level
has telepass pay and insurance brokerage
21% revenue was from non tolling services
insurance gets info from teelpass (synergy)
telepass pay
launched in 2017
customers could pay for various mobility services
horizontal integration and multipoint
insurance
existing telepass memebrs used
sperate company
cheaper
hpriztponal and multipont
they want to gp from being a brokerage to an insurance seller so going more downstream to the consumer (downward vertical integration )
opportutnies
its a highly competitive market but could be another industry to tap into
but there were risks with this industry
there are opportunities
SYNERGY: could use the data from telepass to understand customers better
global
how would covid impact telepass
lot of deaths in Italy
was it the right time to invest in new tech
how does telepass work
tolling device that had an OBU attached to the cars windscreen , used DRSC tech to exchange customer and payment info
when telepass fits was launched what was the situation
autostrade per italia was the main Italian highway management maintenance company and owned the service
offered. ausbscription basis
Atlanta group then took a stale and expanded telepass offerings
autostrade vs superstrade
auto: had tolls
super: if you didnt want to pay but increased travel time
why did customers like telepass
liked the status by having it and passing directly through it
why did Benedetto become CEO
lead a digital transformation process that would enable telepass to become more data driven
2) trasnsiton teelpass from a product based company focused on tolling to a platform based company offering many services
why did telepass choose the lift and shift approach
bc the industry is changing fast and teelpass has to move fast
why did telepass use google cloud
they used IBM and had databases but wasn’t good for managing digital services
they chose google cloud even though amazon was dominant bc they wanted to be on the journey with them
horizontal devrsiifcation (tellepass pay)
3-15 services
more sevrices= more value
new mobility ctageroies
introduced exisintg services
new merchants
wanted first mover advantages
in 2019, telepass generated 21% of its total revenues from non tolling services
vertical integration
wanted to go forward intergration by interacting with customers through their app unlike the tolling service
have subscriptions
also wanted to become more forward integrated with the imsiruance
finance
partnerships
entered one with NTT data to oversee the transisition to the cloud
organizational resources
created a new unit dedicated to data management and analytics
short run vs long run
short run: wanted to incorporate the customer data across the telepass ecosystem
long run: wanted to use telepass data to offer customized insurance products to customers who requested products tailored to their needs
