Daum Jeong, the CEO of LYCLE, became interested in entrepreneurship after reading Daniel Isenberg’s book “Worthless, Impossible, and Stupid: How Contrarian Entrepreneurs Create and Capture Extraordinary Value” that his friend recommended. He changed his major to business, and while he started studying the relevant fields, he participated in business competitions and won several times. The advice his Professor with an entrepreneur background gave him during a meeting for the entrepreneur club was really crucial. Jeong’s aspiration to actually apply the theory he learned in books to entrepreneur came true very soon, by founding LYCLE.
Benchmarking American Bike Sharing Service
Mostly sleeping and eating at school, I researched on Korean and international companies for three months with my co-founder. LYCLE benchmarked the P2P (Peer-to-Peer) business model from the American bike sharing service spinlister. Based on the feedback from competition judges and government entrepreneur support communities, LYCLE improved its service. Considering that sharing economy was not completely established in Korea yet, we changed the business model to B2C model (Business to Consumer).
Did your entrepreneur professor give advice?
Borrowing a bike is seen as a taxing and hard process because of two problems: unstructured management and imbalance in information. We wanted to solve these problems and professor advised us to “do business out on the site” and that “business pays back as much as you put in”. So we called all the bike companies around Korea and got negative responses. Most people thought that it wouldn’t be money-making. We thought that calling was not enough, so we visited them by person and tried to convince them that there was potential in this market telling them the keyword ‘bike rental’ was being searched more than four hundred thousand times annually. When we visited the owner three times, we finally got approval and formed partnership with forty bike companies in Korea. The forte of our business is that we provide store management solutions to our partners and maintain a good working relationship that enables bike stores to also participate in bike rental services.
Please introduce LYCLE
LYCLE is a bike rental O2O (online to offline) service. If you search the name of a bike store on the app, pictures of bikes available nearby appear, and it is easy to pay if you register a credit card. It is trustworthy especially because we take all the pictures directly.
What was the hardships you faced before the launch of the app?
The biggest problem was miscommunication that started due to the absence of internal developers. We first requested the development of the app to another firm, and we faced problems related to app development during an audit of a government entrepreneurship support community and also had to modify the app many times. However, we were able to resolve the problem by recruiting a developer to our crew. We checked the app finishing a Closed Beta Test last November.
What is the future plan and goal?
A bike rental service market does not exist in Korea. We want to pioneer the blue ocean of ‘bike sharing market’ and take part in stimulating the sharing economy in Korea. To reach these goals, we want to analyze cycling courses to enable users to directly use our service whenever they want. In addition, we will incorporate a social network service so people could surf through bike related contents.
Any final remarks?
We want to make LYCLE as the new star of the ‘bike sharing market’ with our passion for this new service. Although our company is only six months old, we prepared thoroughly. We would want to ask users to show interest in our service, whether it be warm advice or realistic criticism. We will always have the attitude of having to learn and improve.
Inspired by http://platum.kr/archives/57097Platum