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Karshare: Lessons from a Failed Car-Sharing Start-up

   

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London-based entrepreneur Andy Hibbert had a vision to create a car-sharing platform similar to Airbnb. He founded Karshare in 2016, which allowed people to rent out their cars to tourists visiting the UK. The business gained traction and even partnered with Gatwick Airport. However, the double blow of the Covid-19 pandemic and the war in Ukraine caused Karshare to fail. Additionally, the company faced an unexpected problem: criminals abusing the system. They realized they could easily and cheaply rent cars through Karshare for illicit activities. This posed both practical and financial challenges for the business. Despite the setback, Hibbert remains optimistic and is exploring opportunities in sustainable farming technology.

Karshare was inspired by Hibbert’s bad car rental experience in the US and the success of Airbnb. He raised funds from angel investors and secured a partnership with Gatwick Airport. The platform allowed people to rent out their cars when they were not in use, freeing up space in airport parking lots. However, the travel industry came to a halt due to the pandemic, disrupting Karshare’s business model. In response, the company pivoted to allow people to rent their cars from their homes. They also introduced a keyless system to streamline the rental process.

Unfortunately, criminals discovered a loophole in Karshare’s system and began using the platform for illegal activities. They found ways to bypass the online checks and used still photographs to trick the facial recognition system. This not only raised concerns for users but also created financial liabilities for Karshare. If a criminal crashed a car or claimed it was stolen, the insurance company would not cover the damages. Karshare attempted to address this issue by implementing video recognition and random ID checks, but it proved to be a costly and time-consuming process.

Despite the challenges faced by Karshare, Hibbert remains resilient. He acknowledges that failures are common in the startup world and believes in learning from them. He plans to explore opportunities in sustainable farming technology, focusing on using algae as a fertilizer and finding more efficient ways to feed cattle. Hibbert’s experience with Karshare serves as a reminder for sharing economy businesses to anticipate and address potential vulnerabilities.

Original news source: Covid and criminals ruined my Airbnb for cars idea’ (BBC)

Listen

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Group or Classroom Activities

Warm-up Activities:

– Charades
Instructions: Divide the class into two teams. Give each team a set of vocabulary words related to the article. One member from each team will come to the front and act out a word silently, using only gestures, while their team tries to guess the word. The team that guesses correctly gets a point. Continue until all the words have been acted out.

– News Summary
Instructions: In pairs, have students take turns summarizing the main points of the article to their partner. Encourage them to use their own words and focus on the most important information. After each summary, have the partner provide feedback and ask any questions they have.

– Opinion Poll
Instructions: Write a series of statements related to the article on the board, such as “Karshare should have anticipated the potential for criminals to abuse the system” or “The Covid-19 pandemic was the main reason for Karshare’s failure.” Have students move around the room and talk to their classmates, asking for their opinions on each statement. They should record their classmates’ responses and be prepared to share the results with the class.

– Pros and Cons
Instructions: Divide the class into small groups and give each group a large piece of paper or a whiteboard. Have them create a pros and cons list for starting a car-sharing platform like Karshare. Encourage them to think about the potential benefits and drawbacks, considering the challenges faced by Karshare. After they have completed their lists, have each group share their thoughts with the class and facilitate a discussion.

– Future Predictions
Instructions: In pairs, have students take turns making predictions about the future of the sharing economy and car-sharing platforms like Karshare. They should base their predictions on the challenges faced by Karshare and the current trends in the industry. After making their predictions, have students explain their reasoning and discuss their predictions with their partner.

Comprehension Questions:

1. What inspired Andy Hibbert to create Karshare?
2. How did Karshare partner with Gatwick Airport?
3. How did the Covid-19 pandemic affect Karshare’s business model?
4. What did Karshare do to adapt to the pandemic?
5. What loophole did criminals discover in Karshare’s system?
6. How did Karshare attempt to address the issue of criminals using the platform?
7. Why did the insurance company not cover damages caused by criminals using Karshare?
8. What new opportunities is Hibbert exploring in sustainable farming technology?
Go to answers ⇩

Listen and Fill in the Gaps:

London-based entrepreneur Andy Hibbert had a vision to create a car-sharing platform similar to (1)______. He founded Karshare in 2016, which allowed (2)______ to rent out their cars to tourists visiting the UK. The business (3)______ traction and even (4)______ with Gatwick Airport. However, the double blow of the Covid-19 pandemic and the war in Ukraine caused Karshare to fail. Additionally, the company faced an unexpected problem: criminals abusing the system. They realized they could easily and cheaply rent cars through Karshare for illicit activities. This posed both practical and financial challenges for the (5)______. Despite the setback, (6)______ remains optimistic and is exploring opportunities in sustainable farming technology.

Karshare was inspired by Hibbert’s bad car rental experience in the US and the success of Airbnb. He raised funds from angel investors and secured a partnership with Gatwick Airport. The platform allowed people to rent out their cars when they were not in use, freeing up space in airport parking lots. However, the travel (7)______ came to a halt due to the pandemic, (8)______ Karshare’s business model. In response, the company pivoted to allow people to rent their cars from their (9)______. They also introduced a keyless system to streamline the rental process.

Unfortunately, (10)______s discovered a loophole in Karshare’s system and (11)______ using the platform for illegal activities. They found ways to bypass the (12)______ checks and used still photographs to trick the facial recognition system. This not only raised concerns for users but also created financial liabilities for Karshare. If a criminal crashed a car or claimed it was stolen, the insurance company would not cover the damages. Karshare attempted to address this issue by implementing video recognition and random ID checks, but it (13)______ to be a costly and time-consuming process.

Despite the challenges faced by Karshare, Hibbert remains resilient. He (14)______ that failures are common in the startup world and believes in learning from them. He plans to explore opportunities in sustainable farming (15)______, focusing on using algae as a fertilizer and finding more efficient ways to feed cattle. Hibbert’s (16)______ with Karshare serves as a reminder for sharing economy businesses to anticipate and address potential vulnerabilities.
Go to answers ⇩

Discussion Questions:

Students can ask a partner these questions, or discuss them as a group.

1. What do you think about the idea of renting out your car to strangers?
2. Have you ever had a bad experience with a car rental company? If so, can you share what happened?
3. How would you feel if you found out that criminals were using a car-sharing platform for illegal activities?
4. Do you think it’s important for businesses to anticipate and address potential vulnerabilities? Why or why not?
5. Have you ever used a sharing economy platform like Airbnb or Uber? If so, what was your experience like?
6. What do you think are the advantages and disadvantages of using a keyless system for car rentals?
7. How do you think the Covid-19 pandemic has affected the sharing economy?
8. What are some other potential vulnerabilities that sharing economy businesses might face?
9. Do you think it’s possible to completely eliminate the risk of criminals abusing a sharing economy platform? Why or why not?
10. How do you think the travel industry will recover from the impact of the pandemic?
11. Have you ever invested in a startup? If so, what was your experience like?
12. Do you think it’s important for entrepreneurs to remain optimistic in the face of failure? Why or why not?
13. What other industries do you think could benefit from the sharing economy model?
14. How do you think the use of technology can help prevent criminals from abusing sharing economy platforms?
15. Would you consider using a car-sharing platform like Karshare in the future? Why or why not?

Individual Activities

Vocabulary Meanings:

Match each word to its meaning.

Words:
1. Karshare
2. Airbnb
3. criminals
4. pandemic
5. Gatwick Airport
6. car rental
7. facial recognition
8. sustainable farming technology

Meanings:
(a) A successful platform that inspired Karshare
(b) A partner of Karshare that helped the business gain traction
(c) A car-sharing platform similar to Airbnb
(d) The industry that Karshare aimed to disrupt
(e) Individuals who abused the Karshare system for illegal activities
(f) A global health crisis that disrupted Karshare’s business model
(g) A security system that criminals found ways to bypass
(h) A potential future focus for Hibbert after Karshare’s failure
Go to answers ⇩

Multiple Choice Questions:

1. What was the inspiration behind the creation of Karshare?
(a) The Covid-19 pandemic and the war in Ukraine
(b) Hibbert’s bad car rental experience in the US and the success of Airbnb
(c) Criminals abusing the car-sharing system
(d) Opportunities in sustainable farming technology

2. How did Karshare initially partner with Gatwick Airport?
(a) By implementing video recognition and random ID checks
(b) By introducing a keyless system to streamline the rental process
(c) By allowing people to rent out their cars to tourists visiting the UK
(d) By securing funds from angel investors

3. How did the Covid-19 pandemic affect Karshare’s business model?
(a) It led to an increase in car rentals from people’s homes
(b) It caused a decrease in criminal activity on the platform
(c) It made insurance companies more willing to cover damages
(d) It disrupted the travel industry and halted car rentals

4. What loophole did criminals discover in Karshare’s system?
(a) Bypassing online checks and tricking the facial recognition system
(b) Renting cars for illicit activities at Gatwick Airport
(c) Using still photographs to claim cars were stolen
(d) Implementing video recognition and random ID checks

5. What financial challenge did Karshare face due to criminals using the platform?
(a) A decrease in car rentals from people’s homes
(b) Insurance companies refusing to cover damages caused by criminals
(c) A decrease in funds from angel investors
(d) Increased costs and time for implementing video recognition and random ID checks

6. How did Karshare attempt to address the issue of criminals using the platform?
(a) By partnering with Gatwick Airport for additional security measures
(b) By offering discounts for car rentals during the pandemic
(c) By pivoting to focus on sustainable farming technology
(d) By implementing video recognition and random ID checks

7. What does Hibbert plan to explore after the setback with Karshare?
(a) Opportunities in sustainable farming technology
(b) Opportunities in the travel industry
(c) Opportunities in the car rental market
(d) Opportunities in the sharing economy

8. What lesson does Hibbert’s experience with Karshare serve as a reminder for?
(a) The success of Airbnb in the car rental market
(b) The importance of securing funds from angel investors
(c) Anticipating and addressing potential vulnerabilities in sharing economy businesses
(d) The impact of the Covid-19 pandemic on the travel industry

Go to answers ⇩

True or False Questions:

1. Hibbert remains optimistic despite the setbacks faced by Karshare.
2. Criminals were unable to abuse Karshare’s system for illicit activities.
3. The criminals found ways to bypass online checks and trick the facial recognition system.
4. The business lost traction and partnered with Gatwick Airport.
5. The Covid-19 pandemic and the war in Ukraine caused Karshare to fail.
6. Karshare was founded in 2016 by London-based entrepreneur Andy Hibbert.
7. Karshare did not attempt to address the issue by implementing video recognition and random ID checks.
8. Hibbert plans to ignore opportunities in sustainable farming technology.
Go to answers ⇩

Write a Summary:

Write a summary of this news article in two sentences.




Writing Questions:

Answer the following questions. Write as much as you can for each answer.

1. What was the original inspiration behind the creation of Karshare?
2. How did the Covid-19 pandemic impact Karshare’s business model?
3. What unexpected problem did Karshare face that posed challenges for the company?
4. How did criminals abuse the Karshare system for illegal activities?
5. What are Andy Hibbert’s future plans after the failure of Karshare?

Answers

Comprehension Question Answers:

1. What inspired Andy Hibbert to create Karshare?
Andy Hibbert was inspired to create Karshare due to his bad car rental experience in the US and the success of Airbnb.

2. How did Karshare partner with Gatwick Airport?
Karshare secured a partnership with Gatwick Airport, allowing people to rent out their cars when they were not in use and freeing up space in airport parking lots.

3. How did the Covid-19 pandemic affect Karshare’s business model?
The Covid-19 pandemic disrupted Karshare’s business model as the travel industry came to a halt, resulting in a decrease in demand for car rentals.

4. What did Karshare do to adapt to the pandemic?
In response to the pandemic, Karshare pivoted to allow people to rent their cars from their homes and introduced a keyless system to streamline the rental process.

5. What loophole did criminals discover in Karshare’s system?
Criminals discovered a loophole in Karshare’s system that allowed them to bypass online checks and use still photographs to trick the facial recognition system.

6. How did Karshare attempt to address the issue of criminals using the platform?
Karshare attempted to address the issue of criminals using the platform by implementing video recognition and random ID checks.

7. Why did the insurance company not cover damages caused by criminals using Karshare?
The insurance company did not cover damages caused by criminals using Karshare because the company’s insurance policy did not extend coverage to illegal activities.

8. What new opportunities is Hibbert exploring in sustainable farming technology?
Hibbert is exploring opportunities in sustainable farming technology, particularly focusing on using algae as a fertilizer and finding more efficient ways to feed cattle.
Go back to questions ⇧

Listen and Fill in the Gaps Answers:

(1) Airbnb
(2) people
(3) gained
(4) partnered
(5) business
(6) Hibbert
(7) industry
(8) disrupting
(9) homes
(10) criminal
(11) began
(12) online
(13) proved
(14) acknowledges
(15) technology
(16) experience
Go back to questions ⇧

Vocabulary Meanings Answers:

1. Karshare
Answer: (c) A car-sharing platform similar to Airbnb

2. Airbnb
Answer: (a) A successful platform that inspired Karshare

3. criminals
Answer: (e) Individuals who abused the Karshare system for illegal activities

4. pandemic
Answer: (f) A global health crisis that disrupted Karshare’s business model

5. Gatwick Airport
Answer: (b) A partner of Karshare that helped the business gain traction

6. car rental
Answer: (d) The industry that Karshare aimed to disrupt

7. facial recognition
Answer: (g) A security system that criminals found ways to bypass

8. sustainable farming technology
Answer: (h) A potential future focus for Hibbert after Karshare’s failure
Go back to questions ⇧

Multiple Choice Answers:

1. What was the inspiration behind the creation of Karshare?
Answer: (b) Hibbert’s bad car rental experience in the US and the success of Airbnb

2. How did Karshare initially partner with Gatwick Airport?
Answer: (c) By allowing people to rent out their cars to tourists visiting the UK

3. How did the Covid-19 pandemic affect Karshare’s business model?
Answer: (d) It disrupted the travel industry and halted car rentals

4. What loophole did criminals discover in Karshare’s system?
Answer: (a) Bypassing online checks and tricking the facial recognition system

5. What financial challenge did Karshare face due to criminals using the platform?
Answer: (b) Insurance companies refusing to cover damages caused by criminals

6. How did Karshare attempt to address the issue of criminals using the platform?
Answer: (d) By implementing video recognition and random ID checks

7. What does Hibbert plan to explore after the setback with Karshare?
Answer: (a) Opportunities in sustainable farming technology

8. What lesson does Hibbert’s experience with Karshare serve as a reminder for?
Answer: (c) Anticipating and addressing potential vulnerabilities in sharing economy businesses
Go back to questions ⇧

True or False Answers:

1. Hibbert remains optimistic despite the setbacks faced by Karshare. (Answer: True)
2. Criminals were unable to abuse Karshare’s system for illicit activities. (Answer: False)
3. The criminals found ways to bypass online checks and trick the facial recognition system. (Answer: True)
4. The business lost traction and partnered with Gatwick Airport. (Answer: False)
5. The Covid-19 pandemic and the war in Ukraine caused Karshare to fail. (Answer: True)
6. Karshare was founded in 2016 by London-based entrepreneur Andy Hibbert. (Answer: True)
7. Karshare did not attempt to address the issue by implementing video recognition and random ID checks. (Answer: False)
8. Hibbert plans to ignore opportunities in sustainable farming technology. (Answer: False)
Go back to questions ⇧

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