"We have 100 million addressable users"

The mobility start-up Ryd is focusing on cooperation instead of going it alone. CEO Sandra Dax talks about her plans in an interview.

Ryd is the name of the start-up that wants to abolish payment at the petrol station counter. Although abolishing would be wrong: they want to digitize it. Customers should use the start-up's app to pay their fuel bill directly from their car without having to go to the store. Mastercard and BP believe in this idea. This is probably also due to the start-up's unusual strategy.

Ms. Dax, petrol stations make a good part of their margin in the store. You want to prevent people from leaving their cars. Are you making enemies?

No, the opposite is the case. Petrol station owners are our partners and therefore our friends. Yes, we want people to stop going to the filling station just to pay. But we have carried out studies and they clearly show that sales in a petrol station store do not go down just because people use our app. Our petrol station partners confirm this. People who want to buy something still go into the store, but the rest no longer have to queue. Thanks to our data, we can also see when which petrol station is full and recommend a different time to users, for example.

How many users have you been able to convince so far?

We have 100 million addressable users.

That sounds like a huge number. But what does "addressable" mean in this case?

On the one hand, drivers can pay with Ryd via our own Ryd app. On the other hand, Ryd can also be used via third-party providers. By integrating it into other apps, such as navigation devices, or as a means of payment for in-car payment via the car's infotainment system, we reach over 100 million users together with our partners.

In a way, you are competing with yourself. Why did you decide to go down this route?

At the moment, the majority of our users still come via the app and pay there. But that's shifting because we're being integrated into other apps, for example bp and Lidl. There, people use our service directly in their local area and don't need to download an app. We then earn money from every transaction that goes through us.

The margins for payment service providers are extremely low. What is is your margin?

Unfortunately, I can't answer that. The margins are exactly as you describe. It depends on the volume.

You want to grow through integration with other apps. Are you not worried that they will that they will kick you out at a certain point and offer the same service?

No.

We are currently in a partnership with Mercedes-Benz, but that doesn't mean that other car brands can't join us

Sandra Dax, Head of Ryd

Why not?

We have gained a lot of experience over the past few years and I don't think we can catch up so quickly. Our partners appreciate the fact that we offer an open ecosystem and will therefore stick with it.

What do you mean by this open ecosystem?

It means that we are not exclusive to any company. We are currently in a partnership with Mercedes-Benz, but that doesn't mean that other car brands can't join us. The same applies to bp service stations: we have them listed, of course, but also other service stations in seven countries. It is precisely this open character that we want to offer our customers.

They don't just want to score points at the filling station, but also when it comes to washing their cars and, of course, electric cars. There is quite a heated debate about how payment should be made at the charging station of the future. Why do you think Ryd, of all companies, will prevail?

We have the advantage that with bp as a strategic partner, we already have a large provider of filling stations where e-charging stations will also be normal in the future. We will also address this area with our partnership approach. We are currently talking to a major provider, but that is still a secret.

Where do you see the future of payment at filling stations?

Clearly in in-car payment. This means that users don't even need an app, but pay directly via the car. We are currently talking to OEMs, i.e. parts manufacturers, about this. But I'm not allowed to say what is currently being negotiated. But I also believe that the whole market is much bigger. In addition to refueling and charging, there is also washing and parking. We also want to offer added value in these areas through additional services, for example by giving early notification when the tank is empty and a cheap filling station is nearby.

Of course, they collect a lot of data in the process.

We only collect the data we need for this and use it anonymously, of course. The user also has to agree in advance which data they give us for which purposes. We are very transparent in this respect.

Thank you very much for the interview.

About the person: Sandra Dax, 43, has been CEO of Ryd since April 2021. She previously worked in the automotive industry for 20 years, including at BMW. Most recently, she was Global Vice President for SAP in Business Development.