Information overload and the increasingly fast pace of everyday life are changing the way people acquire new knowledge. As people find it harder to maintain their attention for extended periods, traditional learning methods are also becoming less effective, including when preparing for the driving theory test. Latvian company SIA “DMV Practice Test” is addressing this challenge by developing the “Luma” mobile app, which complements traditional theory textbooks with artificial intelligence, gamification elements and an interactive learning experience. Although the product is still being refined, the company has already successfully launched its solution in the United Kingdom and the United States.
SIA “DMV Practice Test” was established specifically to develop “Luma”, and the team has been working on the product for more than two years. The company is built around a relatively small team whose members have many years of experience in mobile app development. Some of its specialists previously worked on other successful international projects, including the once widely known social network “Ask.fm”, which had more than 400 million users at the time it was sold. The team also has experience developing various other mobile applications, including fitness and educational solutions.
According to the company’s CEO, Germans Gedgauds, the idea for “Luma” emerged from analysing the situation in the United Kingdom, where driving theory test pass rates have fallen significantly in recent years. While almost 80% of candidates passed the test in 2007, today the figure is below 50%. The company believes that one of the reasons is the changing way people consume information: young people increasingly prefer short, visual and interactive content to traditional textbooks. “Luma” therefore incorporates various gamification elements, allowing users to earn points, progress through different levels and gradually unlock new topics.
“You cannot fight the fact that the world is changing—you have to adapt to it. We see that young people are increasingly accustomed to short and visual content, so learning methods need to change as well. Our goal is to ensure that people do not simply memorise questions mechanically, but genuinely understand the rules and experience learning as something engaging. We have already introduced gamification elements and an AI chatbot specialising specifically in driving rules, helping users understand more complex topics more quickly. We are also gradually integrating other solutions, including personalised recommendations, error analysis, new exercises and an increasing amount of video content,” says Germans Gedgauds.
“Luma” currently has around 13,000 daily active users in the United Kingdom and the United States. The app operates on a subscription model: users in the United Kingdom pay £5 per month, while in the United States the company has opted for a $5 weekly subscription, reflecting the different habits of each market.
The United Kingdom and the United States were deliberately chosen as the company’s first export markets. According to the company, both countries offer not only a large potential user base and the advantage of English—a language the team knows well—but also consumers who are accustomed to paying for high-quality digital content and mobile applications.
“With mobile apps, it is very important to understand whether people are willing to pay for the product. The United Kingdom and the United States are markets where this culture is already well established. English is also a language we understand well, which is important because you cannot rely entirely on AI translations—all content has to be carefully reviewed and adapted to the requirements of the specific market,” explains Germans Gedgauds.
To accelerate product development, the company is using support from the Investment and Development Agency of Latvia (LIAA) for attracting highly qualified employees. The company acknowledges that in the IT sector, where the cost of skilled professionals is high, this support instrument has been invaluable in developing the app and has enabled the team to focus more effectively on advancing its artificial intelligence solutions.
Although competition in the driving theory learning app market is intense, particularly in the United Kingdom, where approximately 90% of the market is controlled by a few long-established players, the company remains optimistic about its position. “Luma” already receives very high user ratings of 4.8–4.9 stars, which the company sees as evidence of the product’s quality.
At the same time, the team recognises that an established user base and reputation are major competitive advantages. Apps that have been on the market for many years often have hundreds of thousands of reviews, which naturally inspires greater trust among potential users. The company is therefore investing not only in improving the product but also in marketing and building its audience.
For now, the company is focused on strengthening its position in existing markets while continuing to enhance its AI solutions and develop its distinctive approach to driving theory education. The next stage of development will involve expansion into other European countries. France and Germany are among the markets considered particularly promising. However, company representatives emphasise that the immediate priority is to further refine the product and strengthen its competitive advantages.
“There is no point in simply creating another similar product. We want to offer something genuinely different. That is why we are first focusing on completing our unique learning approach and only then moving more actively into new markets,” says Germans Gedgauds.
The programme is financed under Specific Objective 1.2.1, “Strengthening Research and Innovation Capacities and the Uptake of Advanced Technologies by Enterprises,” Measure 1.2.1.4, “Support for Improving the Technology Transfer System,” of the European Union Cohesion Policy Programme 2021–2027.
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