“Recharge” The First Indonesia Power Bank Rental App

Gadjah Mada University

Willyandri

Remarkable digital life in Indonesia

We are social in January 2019 reports that Indonesia with 268.2 million population has 56%, 13%
higher compare to 2018, active internet users. We are social also says that there are 355.5 million
mobile devices in Indonesia, 133% from population, or 1.3 device per citizen. www.techinasia.com
writes that global average phone battery life , for normal usage, is 21.7 hours, while Indonesia gets
only 12.8. Most of Indonesian are spent 8 hours 51 minutes, almost 9 hours on their phone. It means
that screen will be on for 9 hours data usage by using shopping, Social media, mail and other app
through cellular or WiFi. This behavior reduces battery life to 6 hours in average. In Facts, Indonesian
charge their phone for at least twice a day. Gadgets plays a significant role in life, so it is normal to
keep it on.

This condition leads many manufacturers to produce power bank. By using power bank, smartphone
charging could be done in anywhere without electricity outlet. Using power bank, requires user to
charge power bank first before they leave home or office for outdoor activities, and it’s weight vary
between 200-500 gr. Even tough power bank keeps smartphone on, it is not a seemless technology.
This opportunity has taken by Recharge by renting power bank as their business.

Recharge Profile

PT Jalan Terus Saja, widely known as Recharge, is the one of Internet of Things (IoT) company in
Indonesia. It was established in Macrh 2018. Recharge’s headquarter is located in Menara BTPN 47th
Floor Jl. Dr. Ide Anak Agung Gde Agung South Jakarta. Their main business is offering power bank
rental via ReCharge Station (KiosK based operation, shown in the last paragraph). Operates in Jakarta
and suburb of Jakarta with 350 ReCharge Station. Like any other IoT startup, ReCharge provide an
application. This app enable user to enjoy their services. All transactions from user registration,
payment until returning power bank. This app also has various payment option from bank transfer,
credit card, digital wallet (OVO, Gopay, LinkAja). This seamless technology gives more convenient to
their customers.

Recharge and Evolution of Marketing Concept

In terms of efficiency, Recharge only need KiosK Station for selling point. If we compare to
conventional store, KiosK gives cheaper rent fee, lower electricity and internet bills and there is no
employee salary and at the end brings lower price to users. Rented power bank are equipped with
unique identification and tracking system, this power bank also can not be recharged unless in KiosK,
less possibility of stolen power bank.

Recharge takes a good position in this business as a pioneer, with no competitor (as June 2019). As
the monopolist Recharge enjoy 100% market share. In this introduction stage (first 3 years, Indonesia
case), start up usually perform a huge increase of demand/sales. First stage is always critical, whether
it will sustain or not. In my opinion, this business concept is a fresh innovation and driven by market
needs

There are several steps that already has been taken by Recharge in maintaining and growing its
business:
 1. Great Accessibility
By providing app and 350 KiosK it can be said that this service is accessible for everyone in
Jakarta anywhere anytime. They places KiosK in almost every well known malls, coffee
shops, salon, minimarkets and also airport.
2. Simplicity
The only thing needed is a smartphone, user is only required to download an app and find
the nearest KiosK and returning power bank can be done in any KiosK with cashless
transaction.
Menus in application come in simple interface, easily understand by most users
3. Transparency
Rental rate is transparent, it is calculated fairly by rental time with relatively with a
affordable price.
4. Compatibility
Power bank are come with various type of connector (lightening, Micro USB and type C USB)
that are compatible with any devices today.
5. Segmentation and sales orientation
Recharge is targeting 20-40 years old market in around Jakarta, their advertising also pushed
in digital channel like social media and internet specialized to this group of people. 20-40
years old, called millennials are want to pay anything to make their life easier. By renting
power bank, they do not need to bring their own power bank.

Challenges

In next 2 years would be more challenging for Recharge, these following issues should be anticipated
before come:

1. Competitor
There is no real monopoly in the world. Competitors are highly probable to join this business
concept, Recharge should retain is customers in various way, in example; give loyalty program,
expand coverage area. To maintain market leader position, gathering information from
customers is a must, understanding and accommodate their needs, observing their preference
are some ways to built long-term relationship with them. Long-term relationship with
customers is a key factor for business sustainability.
2. Innovation
Technology based industry changes rapidly, catching up with the latest innovation like
wireless charging will gives more advantage for the company. In next five years charging will
be done in wireless. Recharge should think about it, and make an investment in wireless
charging. More charging option brings more users.
3. Customer Incentive
Many start up in Indonesia has gone in their third year. The main cause is cutting down
promotion programs. Most customers are price sensitive, if it is no more promotion means
customers price will suddenly escalated. Normalize price should be in a gradual way, and
substitute with other program like loyalty program, this kind of normalization will give less
effect to customers.

Conclusion

Recharge comes with a brand new idea and can be called brilliant. Looking in a very detail
opportunity and helps people’s lives easier. Running a business in a efficient concept by reducing
most conventional costs like salary and rent bills. This concept has bright future since their users is
growing. Affordable fee that offered by Recharge makes people use their service in a simple way
trough mobile application. Tomorrow always bring its challenges, there will be competitors, more
advance technology development and more customers needs. Only by catching latest technology
and customers voice and needs, will ensure this business concept will survive.

References

www.wearesocial.com retrieved on June 20 2019

www.techinasia.com retrieved on June 20 2019
https://recharge.id/about-us/ retrieved on June 20 2019
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