Profit Formula : BlaBla, being an online carpooling company, lets a driver/rider share their

rides with fellow riders. The revenue model or the profit formula of the app varies based on
the stages of its launch in a new market.

1. Initial Stage : During the initial phase of the app launch in a new market, the app
remains free to riders and co-passengers alike. The intent is to build a large and
sustainable customer base who value the benefit of the app. This stage helps the
company expand given that the company spends zero on marketing.

2. Growth Stage : After gaining sizable customer base, the app charges 10% - 15% of
commission fees on the ride charge. The charges vary from 10% depending on the
number of days before which the booking is made. For immediate booking, the
commission is fixed at 15%.

3. Maturity Stage : Under the maturity stage, prime users move to subscription based
model wherein they pay lower commission charges, zero cancellation/ rebooking
charge, with an option to select their seats before riding.