Nowadays, with the help of technology, people can easily get whatever they want with just a single click on their smartphone application. Also, those struggling with their busy life schedules and having no time to cook their food or shop can now easily get food orders, deliveries, and shopping lists at their doorsteps.
In fact, millions of people have started converting their preferences towards online platforms to get all kinds of services served with a tap on their smartphone. Specifically, if we talk about roadside assistance services, then many firms have initiated providing such services online, which helps car owners connect with nearby towing service providers.
So, today, with the help of this thorough blog, we will discuss one of the popular towing service providers called Honk. We will also take a deep dive into the Honk Business Model and explore a few of its additional sources of income.
Honk History Timeline: Stepping Towards the Success
After the pandemic, we observed many changes in every business sector, but pointing out, particularly in the service-proving sector, we observed a constant rise in the trends of online services, which influenced many business owners to transform into an online platform.
Also, if we talk about roadside assistance and towing service providers like Honk, demand will constantly rise; as per the 2024 report, the global vehicle roadside assistance market has already reached $30.20 billion. The report also predicts that this market size will double by the end of 2032, with a growing CAGR of 4.16%.
The commencement of the Honk in the year 2014 was a turning point for the towing and roadside assistance services. The very clear vision of the Honk is to grab the entire traditional market of towing and roadside assistance and give it a new digital look with more advanced features and quick access from anyone to anywhere.
Since its inception, Honk has partnered well with huge brands that offer towing and roadside assistance services. The firm also offers its users various services, including roadside assistance programs, vehicle logistics, transport, etc.
Moreover, Honk ranks among the high-performing service providers, as it has a network of over 108,000 service vehicles nationwide. It is also a member of two popular organizations, the Towing and Recovery Association of America and the Women of the Towing and Recovery Association of America.
Exciting Facts and Figures About Honk Business
As discussed earlier, Honk is a popular roadside assistance and towing service provider. It’s also important for you to have an insight into its facts and figures, given below;
Founded: 2014
Founder: Corey Brundage
Headquarter: Los Angeles
Total Funding: $31.8M
Latest Funding Round: On 26th June, 2018.
Also, let’s have a quick overview on all the 4 funding rounds of Honk;
- On April 10, 2014, Honk invested in Series B— Munchery, valued at $28M.
- Also, as of 26th June 2018, the Honk has a post-money valuation of between $50M and $100M.
- Honk also gets funds from 19 investors, including Hinge Capital and Altpoint Ventures.
- In the last funding round, held on 26th June 2018, the Honk raised the total fund of $31.8M.
Honk Business Model Explained
We know the demand for roadside assistance and towing services is increasing daily. Keeping this in mind, Honk started providing quick online roadside assistance services to its users worldwide. In fact, its unique approach helps the firm earn more profits and grow its market worldwide.
However, the Honk Business Model is versatile, and other similar service providers can easily adopt the model elements to serve their users. Now, to understand the business model better, let’s quickly look at its key elements, one after the other.
Key Activities
- Handling the daily business operations and managing every basic requirement in the business
- Impart all the latest features to the users by updating the app.
- Creating a strong partnership with experienced service providers.
- Arranging a smooth transaction procedure for its users.
Key Resources
- A well-designed digital platform to manage the business
- Experienced team of service providers, sales, and marketing
- Providing better services to its end-users.
Key Partners
- Users, who will select the services from your app
- Providers that use the latest technologies to reach out to their users.
- The technical team works to bring all the latest technological changes to your app.
- Investors help build your brand identity and help you make strong business decisions.
Customer Relationship
- Providing the users with constant customer support via call or chat system
- Impart the user’s feedback systems to share their service experience
- Also, the users can get various discounts and referral benefits.
Value Proposition
Value Proposition for Users
- With the help of the app, the users are easily able to connect with the providers
- Quickly able to book their services
- Acceptance of various payment options
- Affordable price
Value Proposition for the Delivery Provider
- Provider can earn extra income by providing part-time or freelancing services
- There are no working hour restrictions to provide the services
Give your towing service a virtual look with an Honk like app built with all the smart technical features.
What Are the Other Revenue Sources For Honk?
Honk primarily offers roadside assistance and towing services to its users worldwide. Within no time, Honk has successfully expanded its market in various areas, which will help the firm create a good profit ratio.
Now, let’s discuss a few extra revenue sources that help the Honk to make money.
Service Charges
Most firms charge their users smaller service charges, and so does Honk. Here, the service charges are based on the user’s required service. If the service provider needs to load the vehicle, it will cost the user $15, but if any soft services, like fuel delivery, jump start, etc., are required along with the main services, it will cost $25.
Partnerships and Advertisements
Since establishing Honk, it has partnered with various brands to expand its business worldwide. By partnering with popular brands, the firm can provide services under their name to millions of users and generate more income.
Waiting Charges
Many service-providing sectors charge waiting fees after a fixed period is completed. For instance, Honk also has its waiting fees, which apply after the 10-minute wait. The waiting charge rate after 10 minutes is $1 per minute, and the maximum charges will go up to $15.
Understanding the Workflow of Honk
Every business follows a dynamic but simple working pattern to run business smoothly. Now that we have learned about the Honk business model and seen its additional revenue sources, let’s have a quick overview of how it works for its end users.
- So, first of all, the users must register themselves in the app.
- After the sign-up process is over, the customer needs to select their location, the distance, and the type of vehicle.
- Once users know the basic information, they must select nearby service providers.
- After selecting the service providers, the user must also choose the delivery person to provide the services.
- Once the delivery provider is selected, the users and the provider can easily track each other’s location using the integrated map system.
- For a better user experience, the platform also has an in-build call and chat support system, allowing users and providers to communicate without revealing contact details.
- Once users opt for their required services, they will receive an estimated cost of the entire service and be offered various payment options.
- Also, users can share their reviews regarding the services they receive and even tip providers for speedy services.
How Much Does It Cost to Build an App Like Honk?
Nowadays, people are constantly witnessing the rapidly growing trend of the online service market. In fact, by inspiring a unique service provider like Honk, numerous business owners also decided to switch their traditional towing services to modern ones.
However, very few people have an idea of app development costs, and others are still wondering about the cost of developing an app. Hence, the price of developing an app relies on various factors, including the type of app the owner wants to develop, the services, additional features, etc., which are affected by its cost.
You can also contact us to get the exact cost information. Our experienced team of developers will help you create a customized app to fit your business requirements.
Wrapping Up
Based on our discussion above, the demand for all online service providers will increase rapidly. Not only that, but after exploring the Honk Business Model and considering all its elements, many towing service providers are influenced to launch their online towing businesses. Also, as we all know, initiating an online business in today’s digital era is relatively easy; you just need to connect with a technical team who can guide you through further procedures.
At Elluminati, we have a well-experienced team of developers who will help you create a fully customized app like Honk with all the integrated features that your business requires. So, let’s join hands with our development team and get full support to launch and expand your business worldwide.
