Assignment I: Auto Rickshaw Case Study

Strategic Choices

Submitted To
Mr. Ajay Shrestha, KUSOM

Submitted By:
Sudan Khadgi (18511)

 
 
 
1. What are the resources required to be invested in a social enterprise such as ACE to

ensure its sustainability?

To ensure the sustainability of a social enterprise such as ACE, the most

important resource would be the address the underlying social issue with ​relevant

business model that proposes value to all the stakeholders involved in the ecosystem. In

the case of ACE, the business model circled around the marginalized auto drivers and

was modeled to help them earn a healthy living with their current profession with the

help of technology. T4u developed the ACE platform wherein they made LED

advertising boards integrated with technologies like cloud computing, IoT, GPS etc and

collaborated with the cooperatives to give another source of income to the auto rickshaw

drivers who were victims of the corrupt system and the marginalization they faced due to

their profession.

The business model had been recognized by the stakeholders which in the case of

ACE was the private sectors (corporations that were using the platform for advertising),

public sectors (cooperatives that collaborated with t4u to help the drivers) and the drivers.

Technology was another key resource used in the business plan. The model was build in

such a way that it used the latest technology to ​empower the auto rickshaw community

and add value to others in the ecosystem.

A relevant business model supporting the social initiative, use of technology with

efficient cost, creating a collaborative commerce, empowering the main stakeholders and

training and communicating the model to all the stakeholders are the resources that are

required to be invested in a social enterprise such as ACE.

2. What is the value addition of ACE as a co-operative model and where does it stand

as against other such empowerment models of competitors?

As a cooperative model it augmented the drivers income who were involved the

cooperatives tied up with it even when they had down seasons in the auto rickshaw

commute. That was the major value addition, the extra source of income generated by the

advertisements embedded in the rear of the vehicles. The co-operative model also

provided security to the family members as the income was focused on healthcare and

education of the auto rickshaw driver. ACE was on the verge of forming alliance with

multiple such cooperatives thereby creating a network, which the cooperatives would

definitely benefit.

The social initiative to help the marginalized segment of the ecosystem the ACE

platform has a huge advantage over its competitors. The commute using auto rickshaw

has been there for generations in India, and the numbers of the vehicle in fact plays a

major role in the segment. Talking about the competition in the same rickshaw industry

ACE has the first mover advantage and is already linked with many co-operatives. Others

entering the market will take time to reach the level of ACE unless they innovate

something extraordinary. The core business values of ACE lies in the auto-drivers, hence

same business proposing same value could hamper the business but not if the social

initiative is not forgotten as this would create a positive some competition in the industry.
3. Analyze the viability of the ACE program.

The ACE program is attractive to all its stakeholders. The value it provides

definitely exceeds the cost required to implement it. The auto industry has been there for

generations, therefore only integrating the technology i.e the devices to the auto was

necessary to operate which t4u installed free of cost. Above all the program was created

for a social purpose and it surely has helped ease the burden on the victimized drivers.

The payments were done through banks and therefore the financial sectors were exposed

to different demographics. The advertisement mechanism was intriguing to the

advertisers as the technological integration helped them customize their content based on

multiple choices (location, time to name a few). Apart from that the advertisement was

moving to viewers rather than other way around and they could be monitored realtime.

Therefore gaining customers would not be much of a trouble in the ACE program. The

auto drivers are the ones that would ultimately benefit so they would readily agree to

enter the program. The only objection is the legal aspects which include politicians and

unions which would not matter if the major stakeholders are happy with the value

proposition the program offers. To conclude, the ACE program is viable and the cost to

setup the program could be easily recovered considering the advertisement expenditure in

India.
4. What is the road ahead for ACE?

As technological advancements happen and all businesses need to adapt to the

disruptions that come along with it. Also, the people are now more aware of the

environmental aspects of the business. ACE plans to integrate environmental cause to its

existing social initiative and move from mechanical auto rickshaw to electric rickshaws.

This venture also suits its business model if not makes it better as it also addresses the

environmental aspect of the auto industry. The costs will also decrease for the auto

drivers in e-rickshaws as they run on lithium battery, and same applies for the passenger

that use the vehicle for commuting. The road ahead using this strategy looks promising

for ACE.