Publications
Publications
- April 2024
- HBS Case Collection
eBee: Affordable Mobility for Africa
By: Ramon Casadesus-Masanell, Gamze Yucaoglu and Jordan Mitchell
Abstract
The case opens in March 2023, as Sten van der Ham and Jaap Maljers, CEO and co-founder of eBee, an electric bike (e-bike) company in Africa, are contemplating the different avenues for growth and path to profitability for the young and ambitious company. In 2023, the company had been gaining traction in Kenya under three business models and was also getting ready to raise a financing round of €8–10 million round. eBee had the first mover advantage of having introduced e-bikes and van der Ham and Maljers needed to decide which levers to pull for to best grow eBee going forward.
The case chronicles the founding of eBee, provides details on its bike designed for the terrain in Africa, and its unit economics. The case then lays the ground transportation Africa complete with challenges, opportunities, and the competitive outlook. The case then goes into detail about the three go-to-market channels that eBee picked to penetrate into the Kenyan market.
The case goes into detail about the three different business models, business models—vehicle as a service, fulfillment, and direct sales—that eBee is piloting in 2023 as well as providing an understanding of what each operate, their financial prospects, and growth outlooks, as eBee tries to grow its sales. While each business model presented its challenges and were yet to prove profitable at scale, van der Ham and Maljers firmly believed the in the immense opportunity to grow e-bikes in Africa and in eBee’s first mover advantage. The duo was excited about geographical expansion. Others on the team and advisory board held that, obtaining proof of concept in Kenya first would be more helpful, while some suggested to eliminate some of the business models and focus more on others.
What was the best way to grow eBee in Africa? Was the product–market fit good enough to build on? What was the best path to profitability for eBee? As eBee was still testing multiple business models, was it the right time for the company to embark on geographical expansion?
The case chronicles the founding of eBee, provides details on its bike designed for the terrain in Africa, and its unit economics. The case then lays the ground transportation Africa complete with challenges, opportunities, and the competitive outlook. The case then goes into detail about the three go-to-market channels that eBee picked to penetrate into the Kenyan market.
The case goes into detail about the three different business models, business models—vehicle as a service, fulfillment, and direct sales—that eBee is piloting in 2023 as well as providing an understanding of what each operate, their financial prospects, and growth outlooks, as eBee tries to grow its sales. While each business model presented its challenges and were yet to prove profitable at scale, van der Ham and Maljers firmly believed the in the immense opportunity to grow e-bikes in Africa and in eBee’s first mover advantage. The duo was excited about geographical expansion. Others on the team and advisory board held that, obtaining proof of concept in Kenya first would be more helpful, while some suggested to eliminate some of the business models and focus more on others.
What was the best way to grow eBee in Africa? Was the product–market fit good enough to build on? What was the best path to profitability for eBee? As eBee was still testing multiple business models, was it the right time for the company to embark on geographical expansion?
Keywords
Business Model; Value Creation; Competition; Expansion; Logistics; Profit; Resource Allocation; Corporate Strategy; Business Startups; Growth and Development Strategy; Business Strategy; Product Marketing; Entrepreneurial Finance; Bicycle Industry; Africa; Kenya
Citation
Casadesus-Masanell, Ramon, Gamze Yucaoglu, and Jordan Mitchell. "eBee: Affordable Mobility for Africa." Harvard Business School Teaching Note 724-435, April 2024.