Tuk tuk Business Model Innovation. The lesson from Ram, Jaipur tuk tuk driver!
December 19, 2016
Some of you might have seem it on Instagram or Facebook, but now we'll explain better why Ram, driver from Jaipur is a business model innovator.
First, let's talk about the Tuk Tuk Business in India. If you have been to Asia, you know them very well. They are auto rickshaws or three wheeled motorcycles adapted with a cabin for costumers. They can be from different sizes, but most common is the one for two people on the back (but they can always fit some more people!)
India is in general a litte aggressive place for a tourist, whenever you're at a train station or close to touristic places, you get overwhelmed with people offering you services, bargaining, following you, and at times getting a bit mad at you also... Tuk tuk drivers fall on this category.... you jump out of a train and next second you are surround by them!
All of the ones we met, besides Ram, have similar approaches:
They approach you saying they make very cheap price: "just for you, my friend"
They will follow you for quiet a while
If the guy following you is not someone you what to take the ride... good luck! You'll probably need to be rude at some point to move on.
If that's the guy you chose to go, when you ask how much, they will overcharge you, badly!
You bargain a lotuntil you get up to a just fairly overprice vs. what theycharge to Indians
You get into the rickshaw and they will offer you to drive around the touristic places for very cheap price
They will continue to offer you throughout the entire ride, doesn't matter what you say
After you pay, they will ask one moretime if yoy need them to wait for you.
Plus minus, that's the script.Where was Ram innovative then?First, when we asked how much, he asked us back for how much we wanted to pay! Following the script, I said the price a bit lower than the fair price... he replied imidietely with the fair price... no need to keep bargaining.
During the ride, he also said he was a touristic guide, but instead of starting to convince us to take it, he handled us a book, with testimonials written since 2000 from all the people he had droven around Jaipur with him.
When we finished the ride, he asked us if we would like to have him driving us during the day. We really didn't need, as we were meeting friends after and walking most of the time. He said ok. what?? ok?? just like that??
That's when we asked him for his contact information. See his card:
Even on a very competitive landscape, where everybody does exactly the same thing, for years, one can still stand out with very little innovation on their business model.
Ram changed the approach on the start of the journey, skipping the annoying bargaining phase. He might eventually loose a little money he could have charged more, but how many clients he haven't lost during the bargaining? I bet he does good on this business case.
Secondly, he stabilish his credibility showing referrals, instead of battling against the client the whole time.
At the end, he accepted the refusal making also the end of our journey a lot more pleasant.
This guy understood the client journey and innovated his business to better serve. Simple, smart, good example! And now we are posting about him... referring him!
All the best,
So, please, if you ever go to Jaipur in India, call Ram! :)