Business models built on win-win relationships are more sustainable and less prone to risks. Because, all parties win, they are unlikely to disrupt the model. On the other hand, businesses that built on win-lose relationship would run the risk of the losing party filing lawsuits or the over regulation by the government.

A ready example of win-lose business model would be businesses selling cigarettes. The business itself gets to earn massive profits but the customers are likely to pay for it with their health and therefore you are likely to see lawsuits from the aggrieved party and regulations from the government etc. Valeant Pharma jacked up prices of essential drugs leading to patients and the regulator filing complaints which was one of the reasons for Valeant’s ultimate downfall.

On the other hand, Three Wheels United (3WU), which offers loans to auto rickshaw drivers to help them purchase an electric auto, is an example of a business whose model is based on win-win. Here’s how:

The auto driver. The typical auto driver is usually among the poorest urban resident and nearly 70% of them drive rented autos. By buying an electric auto with the help of funds from 3WU, the auto driver gets to acquire an income generating asset, probably the first in his life. Second, by making regular payments he gets to build a credit history and therefore he can subsequently access the financial mainstream for other loans such as home loans, consumer loans or student loans etc. And mind you, the loans from financial mainstream are way cheaper than from informal channels like money lenders. And thirdly, an electric auto tends to have a lower cost of ownership and therefore over time his costs are likely to decrease and his profits likely to increase.

The environment. More electric autos imply lesser pollution. 

The EV manufacturers. 3WU helps make the electric auto more affordable and acceptable and creates incentives for the manufacturers to produce more autos, cheaper, faster and better.

The shareholders of 3WU. 3WU is a for-profit company and therefore it’s shareholders earn a return while making a positive societal impact. Note: 3WU is an unlisted company.

The regulator/ the government. Think of the Ola/Uber model where the shareholders and customers are happy but their driver partners are not. This unhappiness is likely to manifest in the form of union strikes or business unfriendly rules and regulation by the government. On the other hand, the government/ regulator would want to associate themselves with companies like 3WU where everybody is a winner. (Happy auto drivers => happy voters). Even regulations are likely to be more favorable because it positively impacts all.

So everyone is a winner in the 3WU ecosystem.

To know more about 3WU, you can watch some videos here and here. If you liked this blog you may also want to read about my friend’s business which also has win-win at the heart of it. 

Cheers!

Note: No financial or any interest in 3WU or any of the companies mentioned. This blog is based only on secondary research over internet.

Featured Photo by Pramod Tiwari on Unsplash