They will need to find ways of generating more revenue soon or be acquired by someone who is able to generate revenue directly or indirectly from it. When you look at the basic mechanics of any developing business, finding a steady and reliable source of income is at the top of the to-do list. The difference between these apps and Citymapper is that Zoom and TikTok have found regular revenue streams and profitable business models, enabling them to race ahead to attract and retain customers, yet the financial future for Citymapper is still uncertain.Ĭitymapper has made its mark, it has the audience, but it must also be willing to sell its name as being an alternative to tech giants if it is to compete with them. The same is true of TikTok and other social media platforms. Look at Zoom and Teams – we use them for one purpose because they cater best for our needs at that moment. Adding to that may ultimately be diluting its very purpose. So how does an app make more money when their unique selling point is, ultimately, its simplicity?Ĭitymapper does the job it is designed for very well.
The app is expanding, with additional Italian and Spanish cities now available on the platform, and more planned in the months ahead but the best of the app is available for free. Although restrictions across Europe are now easing, the international travel picture remains uncertain, meaning usage is, in the main, restricted to the country the user lives in. The current strategy of pulling in an income from its travel card, Citymapper Pass which is only available in London, and its subscriber “Club” service providing more personalised journey suggestions for £2.99 a month or £19.99 a year, is not enough.Īs the pandemic struck, the numbers of journeys taken across the cities on Citymapper plummeted by up to 95 per cent.
While this may be true compared to heavily resourced and financed services like Google Maps, Citymapper, underdog or not, is a product that needs continuous investment to survive, at least until it finds a sustainable business model.
Recent research has found consumers are more willing to support a crowdfunded product than a VC funded product as they want to champion the underdog, who the consumer feels is disadvantaged in terms of power, influence, or financial means. Even though the scramble for Citymapper shares recently went through the roof, many investors were put off by the lack of financial strategy for the future. At some point it will need to find a viable business model that is sustainable and scalable. Despite its popularity, however, the company loses money, and its route to profitability is not yet obvious.
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