From thick textbooks to interactive learning: Latvian company developing innovative driver’s theory app Luma

The abundance of information and the ever-faster pace of daily life are changing the way people acquire new knowledge. As the ability to sustain attention for long periods of time declines, traditional learning methods—including those used to prepare for the driver’s theory exam—are becoming less and less effective. Latvian company DMV Practice Test is addressing this problem by developing a mobile app called Luma, which complements traditional theory textbooks with AI capabilities, gamification elements, and an interactive learning experience. Although the product is still in the development phase, the company has already successfully launched its solution in the United Kingdom and the United States. 

DMV Practice Test was founded specifically to develop this product—the Luma app—and the team has been working on its development for more than two years. The core of the company consists of a relatively small team whose members boast many years of experience in mobile app development. Some of the specialists have 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 of its sale. The team also has experience developing various other mobile apps, including those in the fitness and educational sectors. 

According to the company’s CEO Germans Gedgauds the idea for Luma arose from an analysis of the situation in the United Kingdom, where the pass rate for the written driver’s license exam has declined significantly in recent years. While nearly 80% of candidates passed the exam in 2007, that figure now stands at less than 50%. The company believes that one of the reasons is a shift in information consumption habits—today’s young people are increasingly less likely to acquire knowledge from traditional textbooks, preferring short, visual, and interactive content. The app incorporates various gamification elements; users earn points, complete different levels, and gradually unlock new topics.  

“You can’t fight the fact that the world is changing—you have to adapt to it. We see that young people are becoming increasingly accustomed to short, visual content, so education must change as well. Our goal is to ensure that people don’t just mechanically memorise questions, but truly understand the rules and view the learning process as an engaging experience. We’ve already introduced gamification elements and an AI chatbot into the app that specialises specifically in driving rules and helps users grasp more complex topics more quickly. We’re also gradually integrating other features—personalised recommendations, error analysis, new exercises, and more and more video content,” Mr Gedgauds says. 

Currently, Luma is being used daily by approximately 13 000 active users in the United Kingdom and the United States. The app operates on a subscription basis—in the United Kingdom, users pay five pounds per month for access, while in the U.S., a five-dollar weekly subscription has been chosen to align with the habits of that specific market. 

The United Kingdom and the United States were deliberately chosen as the first export markets. As the company explains, both markets are characterised not only by a large potential user base and the team’s proficiency in English, but also by the fact that residents of these countries are accustomed to paying for high-quality digital content and mobile apps. 

“In the mobile app space, it’s very important to understand whether people are willing to pay for a product. The UK and the U.S. are markets where this culture has already taken root. Moreover, we have a good command of English, which is essential because we cannot rely solely on machine translations—all content must be carefully reviewed and adapted to the specific market’s requirements,” Mr Gedgauds explains. 

To accelerate product development, the company is utilising support from the Investment and Development Agency of Latvia (LIAA) to attract highly qualified employees. The company acknowledges that in the IT sector, where the cost of specialists is high, this support tool has been invaluable in the app’s development process and has allowed for a more targeted development of artificial intelligence solutions. 

Although competition in the market for driver’s ed apps—particularly in the UK—is fierce, with a few long-established players controlling approximately 90% of the market, the company remains optimistic about its position. Luma has already received very high user ratings—4.8–4.9 stars—which the company believes attests to the product’s quality. At the same time, the team acknowledges that its established user base and reputation are also significant advantages in the market—apps that have been on the market for a long time often have hundreds of thousands of reviews, which automatically inspire greater trust. That is why the company is purposefully investing not only in product development but also in marketing and audience building.  

Currently, the company is focused on strengthening its position in existing markets, while continuing to refine its AI solutions and develop its unique approach to teaching driver’s ed. The next step in its development involves expanding into other European countries. The company cites France and Germany as among the most promising markets; however, as its representatives emphasise, it is first and foremost important to refine the product and strengthen its competitive advantages. “There’s no point in simply creating yet another similar product. We want to offer something truly different. That’s why we’re focusing first on finalising our unique teaching approach and only then will we actively enter new markets,” Mr Gedgauds says. 

Information material prepared with the support of the European Regional Development Fund