Do not restrict! Innovate and Monetize!

Market Place tells us about how Indonesians work around the 3 per car rule in certain Jakarta roads. The rule requires 3 people in a car during rush hours in certain roads. Entrepreneurial citizens, called jockeys,  ride with complete strangers for a fee so the latter can use the road without breaking the letter of the law.

for little more than a dollar they (jockeys) will sit with you in your car. That way you comply with the three-in-one rule, a policy requiring three people in a car during rush hour on a few major Jakarta streets

The drivers are circumventing a law that was intended to reduce congestion. So one would think that the Government should go after these drivers and add more regulations about letting strangers ride. But quite the opposite, the Government sees the use of jockeys as an opportunity for monetization.

Who are using the jockeys? The usage cuts across the demographics but the common factor is these are  customers who value the drive more than the price they pay for the jockeys. The fact that some of the drivers are willing to pay to use the “product” presents an opportunity for targeting.

Whenever you use jockey, your money goes to somebody else; it doesn’t go to the government.

Since these customers stepped forward and revealed their willingness to pay the Government wants to implement a toll system to replace the 3-in-1 rule. In many sense this will be a better product to the drivers than the uncertainty of getting someone to ride with them. Which in effect (if priced correctly) will achieve the congestion reduction goal and deliver profit.

What does this mean to you as a marketer?

See a third party App or people providing an add-on to your customers using your API and platform and capturing all that value?  Do not restrict. Innovate! Provide a better integrated offering and capture the value for yourself. Eliminate the reason for the third-party.

 

 

One thought on “Do not restrict! Innovate and Monetize!

  1. For third party development to be viable, the platform ‘owner’ needs to walk a fine line between encouraging development and discouraging it by changing the rules whenever they want to monetize something. I’m getting more concerned that twitter and apple will keep moving the goalposts if incentives for third-parties remain ambiguous or fluid.

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