Pivot UvU: Hidden Dangers in the Blue Ocean

Bakhyt Nazirov, founder of the startup UvU, @bakhayellow

About UvU

Our pivot occurred in August 2022 while we were participating in the Google for Startups accelerator. UvU combines both a technology IT company and a company with extensive operational processes. Therefore, product development and operational aspects are closely intertwined.

We noticed many problems with public transportation: it is overcrowded, unsafe, and expensive. We decided to create a new type of transport that would be convenient, affordable, and safe. Our idea is UvU Shuttle special routes, which operate during peak hours and transport people to work or home via subscription. We use minibuses to accommodate more passengers. This became possible thanks to our experience in the transportation sector: we started by transporting children in four-seater cars with female drivers, whom we called "moms behind the wheel."

However, in August 2022, we faced changes that presented challenges. We connected several large schools in Astana and Almaty at the end of July, and we faced the task of transporting over 3,000 new passengers within a month. Considering that each car accommodates an average of three children, we would have needed 1,000 cars. However, not all schools were ready for such a volume of vehicles. We were forced to find a solution and concluded that using larger vehicles—minibuses—would be the most logical step. This decision was driven by several factors. First, the number of new passengers. Second, reduced competition among drivers. Switching to minibuses also allows for easier scaling. Finally, it was important for us to consider the successful experience of other large companies worldwide operating in this market, which confirms the viability of this model.

About the minibus market

Market disruption is exactly what startups dream of and what we all strive for. But it is important to understand that in order to truly change the market, it must exist. New technology companies have two paths: either they can find an existing market and add value to it, or create a new market.

In New York, the taxi market is known for its yellow taxis, whose licenses cost millions. But Uber changed the rules of the game, making these licenses less valuable. Therefore, when entering a new market, be prepared for resistance.

The minibus market we entered is already established. School buses are a familiar sight, and drivers who have been working in this segment for 20-30 years consider any changes unnecessary. The market is stable, with established financial flows, and its volume grows along with the increasing number of schools. It is important to understand that when entering such a "wild" market with ideas of digitalization, we look like aliens.

If the market existed before you and people were already making money there, it has its own rules and players. To enter this market, you need to study it well. This applies not only to understanding people's needs but also to understanding who holds influence in this market.

Respect the market and its participants, study it, and understand how everything works. In markets with money, there are established practices that must be taken into account. We need to understand how to change them. For example, in the school transportation sector, we have parents, passengers, drivers, and schools—all of them are important.

It is important that everyone you interact with sees value in your offer. People do not like changes, especially if they do not understand their purpose. Therefore, you need to ensure that you bring benefits to everyone involved. If each player understands the benefit for them in your offer, your business will be successful.

Lessons and conclusions

In order for your wheel not to fall apart, you also need to have a "Plan B." Imagine that you promised people value, but something went wrong, and they start showing dissatisfaction. In such moments, it is important to have something ready that will convince them to stay with you.

For example, we first launched the minibus application in a school in Astana. Everything was great, but when we adapted it for a school in Almaty, we encountered a problem. It turned out that drivers in different cities are different. In Astana, these are young people accustomed to technology, while in Almaty, they are adult drivers who prefer to rely on their experience rather than on navigators. Even in the same cities, people react differently to changes. It is important to be honest with yourself and accept feedback, even if it seems unpleasant. If you want to succeed, you must be ready to change quickly.

You need to abandon all sprints, scrums, and eco-friendly systems in order to grow long-term in favor of waterfall. It is important to maintain team spirit, especially during product restarts before major changes. We focus on the psychological readiness of our team. We check if they are ready for possible stress. This helps maintain unity even in difficult times. Remember that the journey is conquered by the walker.

If you have chosen a mission for your company—believe in it, continue to look for ways to implement it. Our original mission remains unchanged, even with the transition to shuttles and minibuses.

Recently, together with the "Let's Go!" team, we launched trips to nature. Now we offer people a more convenient alternative for outdoor recreation, without gathering in crowds or traveling by commuter trains or new minibuses. We understand that we will not see the results of this project immediately, not tomorrow, and not next week. We have started a new adventure again, studying a new market, and are ready for mistakes and lessons we will learn along the way.