<aside> <img src="/icons/stars_lightgray.svg" alt="/icons/stars_lightgray.svg" width="40px" /> PURPOSE: This document outlines our current and historical strategies using a framework we adapted from “Good Strategy, Bad Strategy by Richard Rumelt”:

  1. Clear diagnosis of our current challenges (most important and also achievable).
  2. Details of a guiding policy to address these challenges.
  3. Specifies the coherent actions we will take to implement this policy effectively.

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<aside> <img src="/icons/bookmark_gray.svg" alt="/icons/bookmark_gray.svg" width="40px" /> ACTIVE STRATEGIES:

Toggle to view 1) The challenge each aims to address, 2) The guiding policy for how we’re tackling it, and 3) The coherent actions we have, are, or will be taking.

Bridging Digital Divide for SME Car Rentals in Emerging Markets

<aside> <img src="/icons/search_gray.svg" alt="/icons/search_gray.svg" width="40px" /> DIAGNOSIS = Problem/Situation

Digital Car Rental marketplaces in emerging markets have struggled to succeed because the majority of businesses who control the supply (Rental Companies) are used to analog, un-organized, and hyper-flexible operational workflows, which makes for an unreliable supply and thus unhappy customers.

<aside> <img src="/icons/book_gray.svg" alt="/icons/book_gray.svg" width="40px" /> GUIDING POLICY = How are we going to deal with it

Invest in addressing the digital transformation gap (i.e. adoption of tech) within SME car rental companies in emerging markets by creating intuitive, mobile-friendly, end-to-end business software for running a vehicle rental business, which integrates directly with a consumer facing car rental marketplace.

<aside> <img src="/icons/checklist_gray.svg" alt="/icons/checklist_gray.svg" width="40px" /> COHERENT ACTIONS = Steps to address diagnosis & guiding policy

  1. Focusing on our first marque emerging market - Nairobi, Kenya - to prove this strategy before expanding to other markets.   ✅ Completed
  2. Build close relationships 1-2 influential SME Rental Companies as early adopters, even if it means offering discounts. ✅ Completed
  3. Investing in thoughtfully solving the technical, UX, personal, and operational challenges of the Car Rental SaaS ✅ Completed
  4. Aligning on the most suitable pricing model for the local market ✅ Completed
  5. Launch SaaS and focus Org wide energy on creating “Raving Fans” in rental companies using our software, before relaunching Marketplace. ✅ Completed
  6. Launching our online car rental marketplace, once the Car Rental SaaS has at least 5-10 hosts and Otto has over 500+ cars accessible for bookings. 🚧 In Progress

Enhancing Trust and Reliability in Emerging Market Car Rentals

<aside> <img src="/icons/search_gray.svg" alt="/icons/search_gray.svg" width="40px" /> DIAGNOSIS = Problem/Situation

In emerging markets, car rental marketplaces often fail to gain traction because of the lack of trust between renters and rental companies.

Safety and reliability are major concerns.

Renters need assurance that the car they book is safe and meets their expectations, while companies need reliable systems to manage their fleets and customer interactions.

<aside> <img src="/icons/book_gray.svg" alt="/icons/book_gray.svg" width="40px" /> GUIDING POLICY = How are we going to deal with it

Otto will implement a strategy focused on enhancing trust through stringent safety protocols and ensuring reliability.

We will do this by providing consistent & high quality booking experiences.

We must recruit reputable hosts and leverage technology to streamline operations and verify customer credentials.

<aside> <img src="/icons/checklist_gray.svg" alt="/icons/checklist_gray.svg" width="40px" /> COHERENT ACTIONS = Steps to address diagnosis & guiding policy

  1. Ensuring there is secure and reliable supply …. Recruiting
    1. Recruit large reputable hosts (i.e. rental companies) ✔️ Ongoing
    2. Ask for introductions to the SME hosts from large hosts ✔️ Ongoing
    3. Recruit & vet SME hosts (that own their fleet) and have deep insight into the availability of their cars (using our SaaS) ✔️ Ongoing
    4. Require SME hots to have 3-6 months to use SaaS for 3-6 months before allowing cars on marketplace (allows us to assess reliability). 🚧 WIP
  2. Ensure there is a safe and large amount of customer leads that convert.
    1. With as little friction as possible, convert people to paying customers that provide the necessary safety documentation (KYC + Driver License).
    2. Ensure we’re attracting a high volume of unique visitors to Otto’s app:
      1. Blogs
        • Benefit
          • Build Otto’s SEO for brand awareness and organic conversion.
      2. Short form Video (Youtube shorts, IG and TikTok)
        • Benefit
          • Build brand awareness and credibility over the long term.
          • Strong retention of current client base from content engagement.
      3. Google Ads
        • Benefit
          • Proven and immediate driver of high intent customers.
          • Travel is known to be one of the most effective categories for Google Ads, given that they target users very far down in the purchasing funnel.
          • Otto has already piloted Google Ad campaigns, using insights from some advisors, to drive a low CPC of ~$0.13.
      4. Relationships with Influencers (Opportunistic)
        • Benefit
          • Organic partnerships with value aligned influencers for additional brand awareness and credibility.
      5. Referral Program
        • Benefit
          • Lower customer acquisition cost and stronger conversion (friends are strongest sources of trust)

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