A vision of a semi-desire for the perfect taxi service, which started 7 months ago as a result of lengthy discussions about future technology and its transformative power, was finalized with a product that greatly facilitates taxi travel.
In an exclusive interview, Arbër tells us everything about Patoko, your travel friend!
Arbër, how did the idea for Patoko come about?
During intensive idea exchanges, we realized that Albania would be the perfect place to test our hypothesis. Albania presented two challenges that we accepted: an inefficient mobility market and limited technological knowledge by users. Technology in our vision should provide solutions to societal problems, and through the evaluation of the data we had available, we understood that the technology we needed to develop should modernize an important part of Albanian life and create accessibility and usage for all. The hypothesis was that if we offer value between service providers and seekers in real-time, then the technology we offer can solve a complex problem such as mobility in a city like Tirana. The challenge was significant, but my colleague brought deep knowledge of systems as a software architect with experience in cloud technology, and I brought knowledge of the market and local context. The situation was simplified even more when we added two more experienced programmers to the team.
The first phase of our journey was about analyzing the technological landscape in order to identify a technological solution that would deeply benefit society. At that time, we had a different idea about mobility than the product we have on the market today. The initial idea, which is very complex with broad implications for society, we have not abandoned because it is at the foundation of the application, but for now, we have left it hidden and will apply it when the market is more mature. What I can say is that the solutions we are constantly building are based on the need to solve key user life problems. In fact, although there are similar applications in the global market, what makes Patoko unique is that every update is based on the feedback we receive from drivers and regular users. This approach of creating a product that results from the needs of users is what keeps our business creativity alive.
Is it difficult to be a startup in Albania? What are some things you would change about our entrepreneurial ecosystem?
Starting and doing business in Albania is not easy because there is a lack of important basic ingredients. Startups have limited support compared to other countries, and the business system with innovative ideas faces illogical problems where private and government institutions have little flexibility for innovation. This is even more true for a technological enterprise, but where there are challenges there are also unique opportunities. The need for more accessible financing is one of the difficulties that a startup encounters. Since we are in our 40s, we are not the typical startup of 20+ year olds who need finance and guidance, but the startup needs constant support to survive and accelerate its adoption. Regarding the entrepreneurship ecosystem, I would say that important steps are being taken with the creation of various technology and business communities, as illustrated by Business Magazine. However, the lack of a success story where an Albanian startup creates something truly unique that is embraced by the world makes it more difficult to show investors or government actors the power of technology. I believe that without creating a startup that survives in the international market, the ecosystem will suffer.
What is Patoko? What is the novelty it brings? Who does it serve?
Patoko is the name of a technological company and app that we have created, which aims to offer a wide-ranging solution to mobility needs and quality connection for all its users. By using the application, passengers can connect with the nearest driver and request an immediate service, without the need to go to taxi stands as tradition dictates. Additionally, by eliminating phone operators, the system receives the order and distributes it to all drivers, prioritizing the closest vehicles and best drivers.
As a technology, this will serve customers who want the fastest solution to mobility, drivers (company members or private individuals), as well as businesses that do not have detailed information about staff movements. Currently, we are integrating a cashless payment processing and a data processing system to provide better on-demand service. We have a series of unique developments for the market in our roadmap, but we will make them public in Q2 and Q3.
In addition to technology, we are creating a community of collaborators in branding and we thank Pak Studios for being close to us in creating a unique visual that connects with the values and emission of aspects that encourage trust in the brand as well as influencers like Fladia Topi and her mother who have embraced our vision early on. If we manage to create a community with the same mindset as us, transformation is inevitable.
What are the main problems you have encountered in the taxi service sector that pushed you to create Patoko? What is the missing link that you can solve?
Prior to Patoko, the traditional model of taxi service in Albania faced real challenges and was based on a model that was rejected on the global arena 12 years ago. Real-time and scalable communication was a major obstacle between passengers and drivers, with call centers adding unnecessary intermediaries and increasing operational costs for taxi companies. Individual drivers also struggled to advertise their services and reach potential customers, and often travelers had to rely on luck to find a driver or wander around looking for a taxi in situations where demand was high. The situation we want to improve presents three major difficulties:
Taxi companies have high operational costs
Individual taxi drivers struggle to advertise their services to potential customers
Customers either have to call and hope the communication chain does not experience a problem and that a driver will come to find them, or they have to walk around until they find a taxi.
Now, imagine the difficulties that a foreign tourist faces in finding a taxi and communicating with the taxi driver. The app offers lower operating costs for taxi companies, a new space for individual drivers to advertise their services, and the ability for customers to manage their travel, find a driver from the comfort of their phone, and communicate with the driver during the trip, giving them full control over their experience. We are really offering a complete transformation in the mobility experience in Albania!
What do you think will distinguish you from other taxi service companies?
Firstly, we are not a taxi company. We are a platform that makes taxi service more efficient for both passengers and taxis. Patoko differentiates itself from other service companies by offering a more unique and passenger-focused service. Instead of being limited to the drivers of a single company, we welcome any licensed taxi driver to join our platform, which allows us to offer a variety of travel options to meet the needs of different customers. Currently, we offer economical rides for passengers who are budget-conscious, standard rides for those who want a faster driver connection process, and soon, prestigious rides for those who want a luxury experience. We have plans to add even more travel classes in the future to continue expanding our offerings and fulfilling the various needs of Albanian passengers. Overall, our goal is to provide a more flexible, personalized, and reliable transportation experience for our users.
How will Patoko generate revenue? Do you use your own vehicles or are you a middleman between taxi service companies and individuals?
Patoko generates revenue from executed trips. While we strive to make trips more affordable and accessible for all customers, we do not add a service fee to the fare, but rather have a profit-sharing agreement with drivers who offer their cars using Patoko. Our service is based on connecting taxi drivers with passengers, we have no plans to own cars. Our solution is to narrow the gap between drivers and passengers, bringing them together with ease. So, we will always remain a technology company serving the market with technological solutions.
What are your next steps? Where do you want to go?
Our long-term plan is to become the first company in the Balkans to offer mobility as a service in all its dimensions. To achieve this, we will need much more coding and financial and human resources. Therefore, as a short-term step, we aim to optimize this service and then take logical steps that we have clear but the market is not yet ready to absorb. Therefore, our goal is to become reliable in our vision, first for drivers who need to change their mindset and understand the power of technology, and then to energize the market by offering value at every step for passengers. I can reveal that we are in serious discussions with various actors to achieve this, and we hope that once we have the adoption we claim, we will move very quickly with the innovation that is not only limited to Albania or the Balkans in our eyes. Currently, we are in discussions with interested parties in Dubai, South Africa, and the region.
What advice would you give to Albanian startups that are still in their early stages?
The best advice I can give to new startups is to believe in their ideas and carefully select their collaborators. With a solid team that shares the vision, you can achieve a lot, and this is the key ingredient in the difficult undertaking of startups. Funds may be delayed, but if a team has the right mindset with a good product, success will not be delayed. Another piece of advice is to optimize funds at every moment to survive at least 3 years because success does not have a fixed date when it comes.
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