Taxi call investor pitch july 2011


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Taxi call investor pitch july 2011

  1. 1. TaxiCallMobile Platform Managing Taxis and CustomersDimitri Popov+7 916 0196100Skype: dimitri.popovdimitri.a.popov@me.comLinkedIn:
  2. 2. Contents1.Vision2.Market/Problem3.Product/Service (benefits)4.Underlying Technology5.Target Customer6.Value Proposition7.Selling Strategy8.Customer Acquisition9.Management Team10.Business Model11.Projections & Milestones12.Funding Plan13.Potential Exits14.Summary & Call for Action2
  3. 3. Vision• Become #1 most i) usable and ii) popular service in managing taxi customeroperations from A to Z• Grow to a large profitable operation (both operationally and overall) in CISwith $10M annual revenue• Penetrate several large national markets (US, Europe, Asia) with dominantshare of mobile/online orders• Exit to a potential buyer or IPO3
  4. 4. Taxi markets are significant and mature• Most markets are growing behind:★ higher incomes★ reduced costs of taxi car ownership★ more need to manage personal commuting inside urban areas★ ample labor supply★ increased costs of a personal car ownershipMarket Population, mlnGDP per capita,US$‘000IndustryRevenue, $MNumber ofoperatorsEmployees, ‘000Revenue perEmployee, $‘000Taxi Spendingper Capita,US$US 313 46.8 9,200 7,000 136 68 29Australia 22 41.7 4,900 5,400 68 72 223UK 63 34.8 4,000 18,000 157 25 64Ukraine 45 6.7 800 1,000 100 8 18Sources: IBIS World, CIA Factbook and other free and paid research available online, dated from 2002 and 2011Sources: IBIS World, CIA Factbook and other free and paid research available online, dated from 2002 and 2011Sources: IBIS World, CIA Factbook and other free and paid research available online, dated from 2002 and 2011Sources: IBIS World, CIA Factbook and other free and paid research available online, dated from 2002 and 2011Sources: IBIS World, CIA Factbook and other free and paid research available online, dated from 2002 and 2011Sources: IBIS World, CIA Factbook and other free and paid research available online, dated from 2002 and 2011Sources: IBIS World, CIA Factbook and other free and paid research available online, dated from 2002 and 2011Sources: IBIS World, CIA Factbook and other free and paid research available online, dated from 2002 and 20114
  5. 5. Problems are typical for mature but low-tech marketTaxi Operator & Taxi Driver Customer1. High call center overhead2. Frequent human errors (operators and taxidrivers): navigation, billing3. Inability to i) manage supply (constant fleet/driver resource) and volatile demand, ii) detecthidden demand4. Suboptimal navigation, route mapping andtraffic jam management5. Unreliable radio/mobile phonecommunications, dangerous while driving6. Lack of complete data to make pricing,ordering and hiring policy decisions1. Time spent on the phone to order a taxi(waiting, conversation)2. Unclear time and cost of the trip3. Lack of taxi-sharing opportunities in busyurban environment to save time/money4. Lack of one-time or monthly billing5. Lack of money-saving “frequent flyer” (loyalty)programs6. Lack (frequent) of bank card paymentopportunity7. Metering is perceived to be unfair5
  6. 6. Product solves ALL these problemsFeature Customer Taxi Driver Taxi OperatorEasy ordering with Start and End address prompt X X* X**Current location prompted X XRoute Planning & Navigation XTime and Cost forecast X XCountdown till trip starts/ends XBilling with trips, length, distance and cost (online or email) X X XBilling based on true distance and actual time spent X X XSupply forecast* based on historical, weather and public data XInstant and reliable taxicab location X XTaxi sharing opportunities***** In case the taxi driver picks up someone in the street** In case customer calls on the phone*** Includes geographical forecast to allocate taxicabs to area where demand is expected to grow**** Especially important during high-demand peaks6
  7. 7. Technology and its components are proven to work• Represents four interfaces• Employs computational abilities outsourced to a cloud• Integrated with APIs of major i) navigation and ii) payment providers• Open issue: payments through Apple application possible?Customer Taxi Driver** Taxi Operator TaxiCallDeviceMobile phone,Smartphone or a PadPad*** Computer ServerInterfaceiPhone, Androidapplication or SMSiPad or AndroidapplicationWeb Browser Web BrowserDevice LocationCustomer’s pocket orhandMounted in front ofthe driver inside thecarManager’s desk Cloud*Connection GPRS, 3G/4G or WiFi GPRS, 3G/4GAny InternetconnectionReliable high-speedInternet connection* Amazon or other cloud service with scalable computing capabilities and reliable connection** With such an infrastructure a taxi driver can lease his high-speed Internet connection to the passenger at extra charge*** The Pad will be alos equipped with a card reader7
  8. 8. Two types of Target Customers & Value Proposition8Taxi Customer1. Start ordering taxis from a convenient user interface, avoiding communicating with operator, which is time-consuming and may contain errors2. Start getting advice on when you need a taxi if you need to be at your destination at a certain time3. Start getting clear and complete weekly/monthly bills for your taxis4. Get individualized pricing/billing based on your LTV with the Taxi OperatorTaxi Operator/Driver1. Increase your sales through realizing latent demand and taxi-sharing2. Reduce overhead by automating order processing at variable cost and a small subscription fee3. Make more money through smarter demand and supply management4. Increase customer satisfaction and loyalty through✓ reduced human errors✓ usable customer interface✓ multiple payment options (including )✓ more transparent and fair billing5. Reduce driver risks and time losses through better navigation and instruction6. Increase driver satisfaction through more transparent billing and better navigation
  9. 9. Selling Strategy & Customer Acquisition9Target ObjectivesCommunication & Business DevelopmentChannels/ToolsCustomer1. Penetrate maximum percentage ofsmartphones and pads with TaxiCallapplication2. Maximize percentage (100%) of taxiorders through mobile application1. Online advertising2. Social media3. Partnerships with Expedia and other travelmanagement servicesTaxi Operator1. Penetrate maximum number of operatorsand their taxi drivers2. Maximize number of orders managedthrough the customer end (via customersmartphones) and taxi driver pads3. Minimize human operator involvementand decision-making1. Industry events2. Pilot trials with selected taxi operators3. Endorsements by taxi operator owners onwhat positive changes TaxiCall made to theirbusiness operational and financialperformance4. Financing (leasing) of hardware (taxi driver’sPad)
  10. 10. Revenue model (Kiev pilot)10• Kiev pilot is proposed to test thetechnology as well as businessdevelopment, along with technologyacceptance by passengers, taxi driversand taxi operators• Assumptions are conservative• Smartphone penetration will beconstantly growing, in line with otherglobal marketsTotal city population, ‘000 3,300Share of those using taxis, % 20%Taxi customer pool, ‘000 660Smartphone penetration among those using taxis, % 20%TaxiCall customer base, ‘000 132Average number of orders per customer per month 1.20Total monthly orders through TaxiCall, ‘000 158Average taxi ride check, US$ $4.40Total taxi monthly revenue, US$‘000 $697TaxiCall comission, % 10%Total monthly commission, US$‘000 (Kiev only) $70TaxiCall Annual Revenue, US$‘000 (Kiev only) $836Ukraine National Annual Revenue, US$‘000 $3,345
  11. 11. Management Team11Dimitri Popov, CEO & Co-FounderShares both corporate and entrepreneurial experience, have several startups launched and progressed, includingYouScan, Restart, Aftar and SuperPhoto, as well as the failed ones (SmashTV and Hippocrates). Prior to entrepreneurialactivities worked for Procter & Gamble, General Motors, Toyota, MTV, Benckiser, 1+1 TV and Volia Cable and othercompanies in marketing.Ognjen Nastic, CTO & Co-FounderIT professional with a wide range of professional experience, both technical and management. Strong background intechnical governance and managing people. Vast experience with Microsoft technology and Linux solutions.Mikhail Golokolosenko (TBD), VP Business DevelopmentBusiness development (sales) professional with experience at Henkel (FMCG distributor relationships) and VolvoFinancial Services (leasing). Mikhail is eager to join a startup with international scope.All team members speak and write fluent English, have international exposure and have their full profiles onLinkedIn
  12. 12. Key Milestones12Month/Year MilestoneOctober-11 Beta developed and tested on 10 taxi drivers and at least 1,000 customersNovember-11 Top 20 taxi operators in Kiev penetrated with TaxiCall technology at least as a pilotDecember-11 Operationally profitable in KievDecember-11 Maps and billing integrated into the product for 5 chosen European marketsJanuary-11 5 pilots in European countries (possibly including Estonia)February-12 Maps and billing integrated into the product for the US market (preferably NY and LA)March-12 Pilot in the US (NY, LA)
  13. 13. Funding Plan13Month/Year Type FundingAmount, US$‘000August-11 Seed Initial seed funding received $250March-12 Round AFunding for growth received based on proved business model,scalable and profitable$2,000January-13 Round BSecondary funding received to accelerate growth in majormarkets, like US, EU and Asia$10,0002014 Exit IPO or sale to a buyer $50,000
  14. 14. Potential Exits1. Expedia, TripIt or other travel management services2. IPO (NASDAQ, LSE)3. Large taxi operators4. Large transport operators14
  15. 15. Next steps1. Agree to invest $250K as seed at a 20% equity stake2. Form a company (Cyprus, BVI or the US) to hold shares, patents, trademark registrations3. Develop Beta, make sure it works perfectly4. Start a pilot project in Kiev with hardware financed for a number of selected taxi drivers5. Run a campaign to attract at least 10,000 taxi customers into the pool (preferably frequent taxi riders)6. Prove sustainability of technology and business model7. Apply for Round A funding15
  16. 16. Backup161. Industry Facts2. Revenue Model for Kiev3. Taxi driver P&L (reality from taxi driver’s perspective)
  17. 17. Other industry/market facts• Average annual revenue per employee in the US is $70K. In Ukraine about $8K.• 2/3 of taxi orders are made by phone, and 1/3 is made on the street• Average taxi customer in the UK travels 61 miles per year (all population)• Large cities demonstrate 70% higher spending per household (UK)17
  18. 18. Liberal Business Model Current Business ModelTotal Kiev Population 3,500,0003,500,000Taxi users, % of Total Population 10%10%Customers 350,000350,000SmartPhone Penetration, % 15%15%SmartPhone Users, # 5250052500Usage Frequency, per Week 11Average Check, UAH 3030Usages per Month, # 227500227500Commission, % n/a 10%Commission, UAH 2.00 3.00Revenue, Monthly, UAH‘000 455 683Revenue, Annual, UAH‘000 5,460 8,190Revenue Model: Kiev Market Only18
  19. 19. Ukrainian taxi reality from a perspective of a driverPer week Per monthRevenuesNumber of orders 140 607Revenues Average Check $5 $5RevenuesRevenue, $ $700 $3,033CostsCar rent (min) $100 $433CostsRadio Rent $8 $33Costs Gasoline $84 $364CostsDispatcher Commission, % 10% 0CostsDispatcher Commission, $ $70 $303Netto Driver IncomeNetto Driver Income $439 $1,90019