ELEC's mission is to create an ecosystem (e-mobility hub) where users, individuals, and businesses, have unique experiences and business opportunities based on ridesharing, renting, and charging. Thus, through the ELEC app, users can rent electric cars, request electric car rides, and find and use fast charging stations across Europe.
€210.300 of €200.000 raised
How did it all begin?
In an ever growing quest for a greener and more sustainable future, our ride sharing company, ELEC, was born with the sole purpose of providing eco-friendly, affordable and comfortable rides to our customers.
•Sustainability Goals: We are actively contributing to a more sustainable urban ecosystem.
•National Brand: We seek to prove that Romanian companies can thrive and go head to head with major global players. We believe that the Romanian entrepreneurship spectrum is still providing the most prolific space for new business to come to life. (TBC)
•Superior Products: Operating a fleet of new cars (2020+) with professional drivers at fair market prices, we’re offering our customers a 100% green and more comfortable option to enjoy rides while remaining environmentally conscious.
•Market Opportunity: We have identified a demand in the Romanian Ride-sharing market for a better quality service as a consequence of the current players focusing more on quantity vs. quality. (i.e. aged car fleet)
•Cost Efficiency: EVs have a low operating cost in terms of fuel and maintenance expenses compared to traditional combustion engines which can, in time, lead to improved profitability and long term sustainability.
•Brand Differentiation: We are the first company in Romania and CEE to fully rely on 100% electric cars to provide ride-sharing services. We strongly believe that the EV market in CEE is in its initial stages and there will be many opportunities to be explored into this space.
Business Mission / Concept
WHAT?: ELEC is a “win for all” company. We generate wealth for our investors, we offer flexibility for our drivers to work their own schedules and benefit from increased sources of revenue, we offer superior service for our customers and last but not least, we are committed to creating cleaner air and a more sustainable environment.
WHY?: With a focus on customer satisfaction and innovative technologies, we aim to redefine the way people travel, inspiring communities to embrace electric mobility and contribute to a cleaner, healthier planet for the generations to come.
Business highlights & achievements
ELEC has established partnerships with key players in the automotive and renewable energy sectors. These collaborations have allowed ELEC to expand its charging network, to grow operations and to offer a better UX for both drivers and customers while increasing the revenues streams.
Product / service
Our business is structured as an electromobility hub, operating 3 main streams:
•Ride-sharing: We are providing 100% green urban transportation services in Bucharest. Fully Operational
•Charge: We are currently providing charging services in Bucharest for the retail market and for our own fleet, thus reducing our operational costs. Fully Operational
•Rent: We aim to provide short term rentals with 100% green cars. Planned for Q1 2024.
1.Ride-sharing: The gross revenue stream from the ride sharing product is divided into two categories:
•Rides: We charge a % fee from each trip.
•Fleet renting: Owning our own fleet we rent our cars to the drivers for a fixed weekly rate.
2.Charge: The gross revenue stream from our charging stations is determined by the difference between our acquisition cost for kW vs. the selling price towards retail and towards our fleet partners.
1.Emerging Market: The ride sharing market in Romania, is still in its early stages, especially for the EVs segment. However, it has been experiencing steady growth in the past 5 years.
2.Customer Profile: With more and more multinational corporations being present in the Romanian business landscape, we are primarily targeting, but not limiting ourselves to young - mid aged environmentally conscious customers from the corporate world.
3.Dynamic Pricing: The ride sharing business in Romania promotes the so-called “dynamic fares” in peak hours, based on driver availability and traffic conditions. ELEC is promoting a FIXED RATE / km according to different time slots, so the customers won’t encounter any unexpected fare adjustments.
4.Quantity vs. quality: Our main competitors have been focusing their efforts on scaling up their business in the Romanian market in terms of volume (increased # of drivers, # of cars and # of partners) overlooking the product improvements in terms of comfort and driver quality. ELEC aims to solve those problems by putting the customer first therefore creating a superior product vs. the competition.
•Uber: US based ride-sharing company, first of its kind, currently dominating the global landscape.
•Bolt: Estonian start-up electromobility company that has risen to be a major player in the EU and Africa.
•Black Cab: Romanian premium “ride on demand” company operating high-end vehicles at above market prices.
•Traditional Taxi Companies: Traditional taxi companies offering a “price / km” transportation service, usually operating out-dated traditional vehicles.
•Customer Acquisition: 10k+ users since going live in Bucharest.
•User engagement: 50% of our registered users have used ELEC more than once.
•Market Share: We are currently have up to 5000 rides per month, with a plan to reach 10% by Q4 2027
Goals & future roadmap
•App-development: In order to provide better UX for our customers as well as better analytics and insights for internal purposes, we plan on revamping our software and to further build new features for charge and rent business lines.
•Marketing: Increased offline and online presence to gain traction in terms of brand awareness
•Customer and Driver Acquisition: Running bonus campaigns in order to increase both our supply and demand acquisition.
Find us on:
Risk no. 1: Operational - Safety concerns
Description: Safety is a major risk for ride-sharing companies. Incidents of accidents, assaults, or other criminal activities involving drivers or passengers can damage the company's reputation and lead to legal liabilities. Ensuring passenger and driver safety is crucial for maintaining customer trust and minimizing risks.
Mitigation: Elec is committed to providing the best possible service to our customers, among which, one important pillar is safety. We run weekly checks for our vehicles and their conditions, we keep a very strict maintenance schedule for our fleet, we interview our partner drivers and provide 24/7 support to our customers in case of emergency
Risk no. 2: Regulatory and legal challenges
Description: Ride-sharing companies often face legal and regulatory hurdles, as they disrupt traditional taxi and transportation industries. These challenges can include licensing requirements, permits, insurance regulations, background checks for drivers, and compliance with local transportation laws. Changes in regulations or unfavorable legal rulings can significantly impact the operations and profitability of ride-sharing companies.
Mitigation: As the ridesharing law has already been implemented in Romania there is not an expected radical change in terms of ridesharing legislation. However, we have proactively prepared for any amendments to the existing law by retaining an excellent legal team and by having a wide network within this space. We do not foresee a major risk for the EV market in terms of regulations, as the public authority currently encourages the use of sustainable and eco-friendly transportation solutions.
Risk no. 3: Commercial - Competition
Description: The ride-sharing industry is highly competitive, with multiple players vying for market share. Competition can result in price wars, reduced profit margins, and increased customer acquisition costs. Established companies may face challenges from new entrants or disruptive technologies that can quickly change market dynamics.
Mitigation: As our main competitors do not own their fleet and their business model does not account for such a model, it is virtually impossible for them to provide a better product in terms of service quality. Also, ELEC has a high customer retention rate, which is a strong indicator that our loyal customers will choose us over competitors, even if the competitors decide to drop their rates below ours.
Risk no. 4: Technological - Dependence on technology
Description: Ride-sharing companies heavily rely on technology platforms to connect passengers with drivers and facilitate transactions. Technical glitches, cybersecurity breaches, or system failures can disrupt operations, impact user experience, and compromise data privacy.
Mitigation: Elec is committed to Investing in robust technology infrastructure and implementing adequate security measures is crucial to mitigate these risks. We hire and develop the best IT and Cyber-security professionals as well as using the safest on market cloud solutions.
Risk no. 5: Commercial - Market and economic factors
Description: Ride-sharing companies' success is closely tied to economic conditions, consumer spending patterns, and market demand. Factors such as changes in fuel prices, interest rates, unemployment rates, or economic downturns can impact the frequency of rides and customer demand. Operating in volatile markets or relying on a single geographic region for revenue can expose companies to significant financial risks.
Mitigation: We keep a very close eye on market conditions and we adapt our strategies to the market sentiment amongst our drivers and customers. Our communication and pricing strategies are tailor made based on demand, seasonality and macroeconomic factors.
Risk no. 6: Operational - Reputation Management
Description: Ride-sharing companies operate in the public eye and can be vulnerable to negative publicity. Negative incidents involving drivers, disputes with passengers, or controversies related to business practices can damage the company's reputation and erode customer trust.
Mitigation: We are committed to strong business ethics and customer oriented business practices. We are committed to address customer complaints and concerns promptly, as our strong believe is that this is essential to managing reputation risks.
1.What are the benefits of using ELEC vs. other market operators?
Commitment to sustainability, Integrated electromobility services, Ease of use and Predictable pricing.
ELEC exclusively uses 100% electric vehicles, significantly reducing carbon emissions and contributing positively towards environmental sustainability. This gives users the opporjtunity to reduce polution and to contribute to the fight against climate change every time they ride.
2.What are the pricing and payment methods available in ELEC?
ELEC does not use dynamic pricing, which means customers won’t face surge pricing during peak times. This transparency leads to a more predictable and stress free experience. All ELEC customers can pay for their rides with card, cash or in app wallet.
3.What is the environmental impact ELEC has?
ELEC has a positive environmental impact in the following ways:
•Reduction in carbon emissions
•Decrease in air polution
•Support for renewable energy
•Noise pollution reduction
•Encouraging sustainable practices
4.How many cars do you own and how many do you operate via 3rd party partners?
ELEC owns 60 EV s and is operating 200+ 3rd party partners EV s and is growing its fleet every month.
5.What type of vehicles do you operate?
ELEC operates with only 100% electric vehicles from small EVs to all kind of Tesla models
6.What are your expansion plans?
ELEC is planning to operate in five more cities from Romania soon and starting to look for East European markets.
7.What are the risks associated with the competitors?
Competitors in the ride-hailing and electromobility market pose several risks to ELEC, including Market Saturation, Rapid Technological advancements, Price competition, Regulatory risks and Brand recognition. Despite these risks, ELEC’s commitment to provide an integrated electromobility service with a focus on sustainability and the use of 100% electric vehicles, differentiates it from competitors. ELEC’s transparent and predictable pricing, as well as its emphasis on supporting the local economy, also provide it with a competitive advantage.