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Los Angeles Expansion Brainstorm
9th March 2011
By – Jeffrey Morris"
Jeffreymorrisjr@gmail.com
Los Angeles – Taxi Industry Overview 
2
Fare Revenues
LA Taxi franchises are worth an estimated $180 million in annual far...
3
Cab Fare Averages – Los Angeles Ranked no. 6
3
Fares for Typical Trips
Area Costs . . .
City
DC suburbs**
San Diego**
Or...
Los Angeles – Taxi Operators
4
United Independent Taxi Drivers
(United Taxi of San Fernando Valley)
San Gabriel Transit (C...
Los Angeles – Taxi Zones
5
Los Angeles Taxi Passenger Complaints
6
296
2007 – Nos.
and % of Total
3 - 1.0%
22 - 7.4%
26 - 8.8%
80 - 27.0%
8 - 2.7%
34...
Taxi Service – Growth in Los Angeles
7
1,347
1,432
2,143
2,303
1,000
1,200
1,400
1,600
1,800
2,000
2,200
2,400
1990
Jan-92...
8
Los Angeles: Rate Optimization
8
Pricing
Uber pricing must be adjusted to account for the urban sprawl – consider new pr...
Los Angeles Traffic 2010: Worst in the World
9
Travel Time Tax in Los Angeles: 34.7% average
• Time tax is additional cost ...
Uber vs. Taxi – Los Angeles Airport 
10
Destination
Staples Center – Downtown
3rd St.Promenade – Santa Monica
Rodeo Drive ...
Uber vs. Taxi – West Hollywood
11
Destination
Origin
Taxi Fare"
$
 Uber Fare
Uber Cost
Multiple
 Trip Statistics
Staples C...
Largest Private Car Fleets in Los Angeles
12
Company Name
Name of CEO
 City, State
 Total
5
 Music Express
Cheryl Berkman,...
Customer Acquisition Strategy
13
Sub-markets
Corporate
Accounts
Focus on Entertainment, VC, Technology, and Finance. 
 En...
Demographics: Most Expensive Zip Codes in LA
14
City, Zip Code
Median
Home Price"
$
Median
Household
Income"
$
Beverly Hil...
Corporate Accounts – Fortune 1000 Companies in
Southern California
15
60
67
69
98
126
165
168
184
241
298
319
329
376
398
...
Los Angeles Visitors: Bay Area Ranked No. 1
16
LA’s Top 5 Domestic Feeder Markets"
Percent of all domestic overnight visit...
San Francisco and Uber Cities
17
Travel Accounts 
 During initial expansion, San Francisco Uber passengers should be serv...
College Campus Reps
18
New Freshmen
New First-time Freshmen, by Home Location
USC Fall 2010
911
571
1,074
313
Nos.
2,869
3...
Strategic Partnerships
19
REITs
 Apartment and office REITs that house
employees at home and at the workplace.
Become pref...
Los Angeles – Marketing Targets
20
Publications
 Technology (With Offices in LA)
Events
 Venues
21
Uber Ideas for all Locations
21
Free Wifi
Install free wifi in Uber cars. Connectivity remains an issue for travelers on ...
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Uber Los Angeles - My Job Application from March 10, 2011

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I believe that sharing your moments of failure is the most powerful thing in the world — and I am not afraid to share this with you. 

In March 2011, I applied for a job at Uber, and I created a presentation with my application to differentiate myself from every other candidate. 

At that time, Uber had just 10 employees and was renting two desks at Rocketspace, a shared office in San Francisco. 

I was working on my own startup idea at Rocketspace, and I sat next to the Uber team every day.

I remember how much their work ethic impressed me. I knew their team would build one of the most important companies in the world. 

Uber is now an $18 billion company and has 1000+ employees throughout the world. 

I created this presentation when Uber was operating only in San Francisco and I imagined what a potential expansion to Los Angeles might look like. 

I worked on the proposal for two weeks and worked up the courage to email the Uber founders directly. 

I never heard back. 

-------------

A week after failing to secure a position at Uber, I accepted a job at Zaarly, and embarked on the most incredible adventure of my life. 

I met the most amazing people in the world, lived in 10 apartments in 2 years, and traveled the country. 

The company is not yet worth $18 billion dollars, but I loved every single minute — and I would trade that experience for anything in the world. 

-------------

What have you failed at in your life? 

Share those moments with the world and be proud that you are now a better version of yourself. 

Failure is a beautiful thing — and you should never hide from it. 

No regrets. Never ever. 

-Jeff Morris Jr.

-------------
Note: This author is still a loyal Uber customer and is great friends with several members of their team. 

He is also working building his own startup and promises to share his failures along the way. Hopefully he can share a few victories too ☺

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Transcript of "Uber Los Angeles - My Job Application from March 10, 2011 "

  1. 1. Los Angeles Expansion Brainstorm 9th March 2011 By – Jeffrey Morris" Jeffreymorrisjr@gmail.com
  2. 2. Los Angeles – Taxi Industry Overview 2 Fare Revenues LA Taxi franchises are worth an estimated $180 million in annual fare revenue from the 2,303 licensed taxis operating in the City of Los Angeles. The City’s take is about $4.5 million a year in franchise and related fees Taxi Market 9 companies control all of L.A.’s 2,303 cabs largely through a structure of cooperatives and private corporations. Approximately 3,500 drivers make an estimated 7 million taxi trips each year Ownership One-third of the drivers own their cabs; two-thirds lease cab time when the owners aren’t behind the wheel. Each cab owner has a share in the company, which they pay for with an annual fee for permits and access to company dispatchers Wages The average wage for taxi drivers is $11.75 an hour – usually without health benefits – and they spend approximately 61 hours per week fighting L.A.’s notoriously congested streets Drivers The median driver is a 47-year-old man who is a legal immigrant and a father of school age children, who sometimes works 18 to 20 hour days Cars The driver’s workplace is typically a used police car worth about $4,000, now painted yellow and equipped with a leased radio and taxi meter
  3. 3. 3 Cab Fare Averages – Los Angeles Ranked no. 6 3 Fares for Typical Trips Area Costs . . . City DC suburbs** San Diego** Orlando Denver New Orleans Cleveland Phoenix Honolulu** Miami* San Francisco** Boston** Los Angeles** Seattle* Las Vegas St. Louis Philadelphia* Atlanta Minneapolis New York** Houston Chicago** Dalllas Detroit Baltimore Avg. US Trip ($) $12.08 $16.17 $13.38 $13.23 $11.80 $10.78 $12.87 $19.75 $16.10 $15.90 $15.45 $15.00 $14.80 $14.75 $14.30 $14.17 $14.00 $13.37 $13.10 $12.85 $12.70 $12.55 $11.65 $11.60 Short Trip ($) $8.35 $10.59 $8.89 $8.74 $8.21 $7.21 $8.83 $13.04 $10.73 $10.85 $10.08 $10.07 $10.29 $10.27 $9.81 $9.47 $9.52 $9.11 $8.65 $8.81 $8.66 $8.52 $8.07 $7.99 Long Trip ($) $23.70 $33.67 $27.38 $27.23 $23.00 $21.98 $27.10 $40.75 $32.90 $31.65 $32.25 $30.40 $28.80 $28.75 $28.30 $28.87 $28.00 $26.67 $27.10 $25.45 $25.30 $25.15 $22.85 $22.80 Initial Charge 2.25 2.00 1.60 2.50 1.80 2.50 3.00 2.50 2.85 1.75 2.20 2.50 3.20 2.50 2.30 2.50 2.50 2.50 2.50 2.25 2.25 2.50 1.80 Initial Distance 1/10 1/4 1/8 1/8 1/6 1/6 1/4 1/6 1/5 1/8 1/11 1/10 1/8 1/10 1/7 1/8 1/5 1/5 1/6 1/9 1/9 1/8 1/8 Mileage Charge 0.25 0.25 0.25 0.20 0.40 0.30 0.75 0.40 0.45 0.30 0.20 0.20 0.25 0.20 0.30 0.25 0.38 0.40 0.30 0.20 0.20 0.20 0.20 Mileage Distance 1/10 1/8 1/8 1/8 1/4 1/6 1/4 1/6 1/5 1/8 1/11 1/10 1/8 1/10 1/7 1/8 1/5 1/5 1/6 1/9 1/9 1/8 1/8 Wait Time Per Hour 20.00 22.50 22.50 18.00 15.00 20.00 30.00 24.00 27.00 24.00 24.00 30.00 22.00 24.00 20.00 21.00 21.00 12.00 20.00 20.00 18.00 16.00 24.00 Last Change Nov-05 Oct-05 Sep-03 Sep-02 Nov-05 Apr-05 Apr-05 Jul-03 Jul-05 Oct-05 Sep-05 May-04 Aug-05 May-05 Nov-05 Aug-01 Jul-05 Components of the Fare   Boston and NYC also prime markets
  4. 4. Los Angeles – Taxi Operators 4 United Independent Taxi Drivers (United Taxi of San Fernando Valley) San Gabriel Transit (City Cab) LA Taxi Co-operative (Yellow Cab Company and Fiesta Taxi) Beverly Hills Transit Cooperative (Beverly Hills Cab Company) Independent Taxi Owners’ Association (Independent Taxi) United Independent Taxi Drivers (United Independent Taxi) Los Angeles Checker Cab Company (Checker Cab) Bell Cab Company (Bell Cab) South Bay Co-operative (United Checker Cab Company) Company Zone A – San Fernando Valley Zone A – San Fernando Valley Zone C – Central and Eastern Zone B – Western Zone C – Central and Eastern Zone D – South Central Zone B – Western Zone C – Central and Eastern Zone B – Western Zone C – Central and Eastern Zone D – South Central Zone B – Western Zone C – Central and Eastern Zone D – South Central Zone B – Western Zone C – Central and Eastern Zone D – South Central Zone B – Western Zone C – Central and Eastern Zone D – South Central Zone E – Southern Service Area 100 96 70 160 370 209 93 70 72 110 64 88 130 71 67 134 68 70 126 65 70 No. of Taxis 100 166 739 163 246 289 269 261 70 Total Taxis
  5. 5. Los Angeles – Taxi Zones 5
  6. 6. Los Angeles Taxi Passenger Complaints 6 296 2007 – Nos. and % of Total 3 - 1.0% 22 - 7.4% 26 - 8.8% 80 - 27.0% 8 - 2.7% 34 - 11.5% 61 - 20.6% 43 - 14.5% 12 - 4.1% 1 - 0.3% 0 - 0.0% 6 - 2.0% Total Company Type 1.  Company Service Refusal 2.  Driver Service Refusal 3.  Service Time Response 4.  Driver Discourtesy 5.  Driver Service 6.  Driver Safety and Ability 7.  Overcharge 8.  Payment Acceptance (CC) 9.  Vehicle Condition 10. Dispatch Service 11. Insurance 12. Other Operator Problems 235 2008 – Nos. and % of Total 1 - 0.4% 17 - 7.2% 12 - 5.1% 63 - 26.8% 19 - 8.1% 23 - 9.8% 58 - 24.7% 34 - 14.4% 4 - 1.7% 1 - 0.4% 0 - 0.0% 3 - 1.3% 214 0 - 0.0% 25 - 11.7% 11 - 5.1% 32 - 15.0% 24 - 11.2% 27 - 12.6% 33 - 15.4% 27 - 12.6% 9 - 4.2% 0 - 0.0% 1 - 0.5% 4 - 1.9% 2009 – Nos. and % of Total  The total number of complaints received for overcharges (sub-item 7) has decreased, but it remains the no. 1 ranked complaint, followed by driver discourtesy, driver safety and ability, and payment acceptance.
  7. 7. Taxi Service – Growth in Los Angeles 7 1,347 1,432 2,143 2,303 1,000 1,200 1,400 1,600 1,800 2,000 2,200 2,400 1990 Jan-92 Jan-93 Jan-94 Jan-95 Jan-96 Jan-97 Jan-98 Jan-99 Jan-00 Dec-00 Jul-01 Jul-02 Jul-03 Jul-04 Jul-05 Jul-06 Jul-07 Jul-08 Jul-09 Chart 2A Taxicab Vehicle History – City of Los Angeles Vehicle Authority and PC&N History Since 1990" Number of taxicabs authorized and actual numbers decaled Vehicles authorized Vehicles decaled (operating)
  8. 8. 8 Los Angeles: Rate Optimization 8 Pricing Uber pricing must be adjusted to account for the urban sprawl – consider new prices for distance and idle time. Los Angeles has 6,499.5 miles of public streets in an area of approximately 470 square miles. Flat Rates Event Pricing Offer “Event” pricing for all major sports teams, events, and venues. Examples include: • Beverly Hills  Staples Center for Lakers/Clippers/Concerts. • Westwood  Pasadena for UCLA football games. Time of Day “Time of day” pricing should be a consideration due to traffic (see slide #10). • In Los Angeles: On Thursday at 5:30 p.m., the average trip takes 71 percent longer than normal. • In San Francisco: On Thursday at 5:30 p.m., the average trip takes 63 percent longer than normal. Flat Rates should be offered for many destinations, in addition to major airports. The City has limited pedestrian traffic and citizens rarely “hail” cabs on the streets.
  9. 9. Los Angeles Traffic 2010: Worst in the World 9 Travel Time Tax in Los Angeles: 34.7% average • Time tax is additional cost of travel above the uncongested conditions
  10. 10. Uber vs. Taxi – Los Angeles Airport 10 Destination Staples Center – Downtown 3rd St.Promenade – Santa Monica Rodeo Drive – Beverly Hills Sunset Plaza – Hollywood Origin Los Angeles Airport Los Angeles Airport Los Angeles Airport Los Angeles Airport Uber Fare $106.00 $92.14 $83.05 $108.24 Uber Cost Multiple 1.62x 1.64x 1.62x 1.64x Trip Statistics  16.94 miles  26 minutes total  12 minutes idle  14.11 miles  25 minutes total  12 minutes idle  13.02 miles  27 minutes total  9 minutes idle  17.65 miles  32 minutes total  11 minutes idle  All fares estimated for 6:00 pm trips  Taxi fares include 15% tip  Uber fares = $8.00 base + $4.90 per mile + $1.25/idle minute (no tip) $65.19 $56.24 $51.13 $65.81 Taxi Fare" $
  11. 11. Uber vs. Taxi – West Hollywood 11 Destination Origin Taxi Fare" $ Uber Fare Uber Cost Multiple Trip Statistics Staples Center West Hollywood (Fairfax Ave/Santa Monica Blvd.) $38.78 $67.69 1.75x  9.63 miles  22 minutes total  10 minutes idle Los Angeles Airport West Hollywood (Fairfax Ave/Santa Monica Blvd.) $51.01 $89.28 1.75x  12.25 miles  37 minutes total  17 minutes idle Dodgers Stadium West Hollywood (Fairfax Ave/Santa Monica Blvd.) $36.54 $64.40 1.76x  8.96 miles  21 minutes total  10 minutes idle Malibu Country Mart West Hollywood (Fairfax Ave/Santa Monica Blvd.) $88.41 $152.34 1.72x  24.1 miles  44 minutes total  21 minutes idle  All fares estimated for 6:00 pm trips  Taxi fares include 15% tip  Uber fares = $8.00 base + $4.90 per mile + $1.25/idle minute (no tip)
  12. 12. Largest Private Car Fleets in Los Angeles 12 Company Name Name of CEO City, State Total 5 Music Express Cheryl Berkman, CEO Los Angeles 30 197 44 24 0 11 0 0 306 6 Diva Limousine BijanZoughi, CEO Los Angeles 45 109 52 16 0 4 0 0 226 35 VIP Limousines & Coaches Inc. Roger Webb, CEO Santa Ana 5 32 4 2 1 16 4 5 69 54 Best Chauffeured Worldwide Robert Vaughan,CEO Huntington Beach 3 22 5 6 1 14 0 0 51 Limo Sedan SUV Van Limobus Shuttle Motor- Coach Other USA Ranking  Action – identify highest-rated private fleets in Los Angeles submarkets. Account for revenue, employee size, fleet size, car models, location, and price.
  13. 13. Customer Acquisition Strategy 13 Sub-markets Corporate Accounts Focus on Entertainment, VC, Technology, and Finance.  Entertainment – Century City, Beverly Hills, Studio City, Santa Monica  Venture Capital – Santa Monica, Sherman Oaks, Downtown, Westwood  Technology – Santa Monica  Finance – Century City, Downtown  Prioritize locations based on demographics and revenue potential. Acquire Uber customers who evangelize the product
  14. 14. Demographics: Most Expensive Zip Codes in LA 14 City, Zip Code Median Home Price" $ Median Household Income" $ Beverly Hills, 90210 6 $3,684,150 $112,572 Malibu, 90265 24 $2,730,577 $100,857 Beverly Hills, 90077 33 $2,347,030 $141,527 Santa Monica, 90402 35 $2,338,049 $118,553 Pacific Palisades, 90272 46 $2,133,148 $122,877 Manhattan Beach, 90266 87 $1,641,666 $100,761 Santa Monica, 90401 104 $1,491,117 $48,317 West Hollywood, 90069 130 $1,368,998 $51,215 Hermosa Beach, 90254 138 $1,333,731 $81,352 Century City, 90067 155 $1,237,576 $74,830 Venice, 90291 157 $1,229,241 $45,769 Beverly Hills, 90212 161 $1,224,020 $61,039 Los Feliz, 90027 223 $1,006,491 $31,820 Hollywood, 90068 232 $993,523 $52,890 Brentwood, 90049 75 $1,693,033 $84,342 Beverly Hills, 90211 164 $1,209,132 $57,746 Pasadena, 91105 219 $1,018,709 $83,737 National Rank  Action – perform detailed analysis of every listed zip code (age, gender, education, public/private transportation, social habits, profession) and prioritize locations for launch.
  15. 15. Corporate Accounts – Fortune 1000 Companies in Southern California 15 60 67 69 98 126 165 168 184 241 298 319 329 376 398 415 433 458 464 495 517 524 545 551 580 673 675 682 705 745 769 800 878 902 927 932 986 993 Rank Walt Disney Ingram Micro Northrop Grumman Occidental Petroleum Direc TV Group Health Net Amgen Edison International Jacobs Engineering Group Reliance Steel & Aluminum Western Digital Dole Food Avery Dennsion First American Corp. Mattel DaVita AECOM Technology CB Richard Ellis Group Broadcom Allergan Live Nation Unified Grocers Pacific Life Stater Bros. Holdings Molina Healthcare Beckman Coulter KB Home Activision Blizzard Quiksilver Watson Pharmaceuticals Mercury General Guess Ryland Group Teledyne Technologies Sun Healthcare Group Public Storage Fleetwood Enterprises Name $37,843.0 $34,362.2 $33,940.0 $24,480.0 $19,693.0 $15,366.6 $15,003.0 $14,112.0 $11,252.2 $8,718.8 $8,074.0 $7,732.4 $6,710.4 $6,213.8 $5,918.0 $5,660.2 $5,216.2 $5,130.1 $4,658.1 $4,403.4 $4,327.1 $4,104.8 $4,023.0 $3,741.3 $3,112.4 $3,098.9 $3,033.9 $2,898.1 $2,638.8 $2,535.5 $2,414.2 $2,093.4 $1,976.1 $1,893.0 $1,883.7 $1,745.6 $1,736.6 Revenues" $ millions Burbank Santa Ana Los Angeles Los Angeles El Segundo Woodland Hills Thousand Oaks Rosemead Pasadena Los Angeles Lake Forest Westlake Village Pasadena Santa Ana El Segundo El Segundo Los Angeles Los Angeles Irvine Irvine Beverly Hills Commerce Newport Beach San Bernadino Long Beach Fullerton Los Angeles Santa Monica Huntington Beach Corona Los Angeles Los Angeles Calabasas Thousand Oaks Irvine Glendale Riverside Location
  16. 16. Los Angeles Visitors: Bay Area Ranked No. 1 16 LA’s Top 5 Domestic Feeder Markets" Percent of all domestic overnight visitors to LA Seattle-Tacoma New York Phoenix Sacramento-Stockton-Modesto San Diego San Francisco-Oakland-San Jose Santa Barbara-Santa Maria-SLO Philadelphia Fresno-Visalia Las Vegas
  17. 17. San Francisco and Uber Cities 17 Travel Accounts  During initial expansion, San Francisco Uber passengers should be served in their most traveled destinations. “On the road” support from early adopters will be critical. San Francisco Departures  Los Angeles ranks no. 4 among cities that San Francisco travelers are looking to visit 1.  New York 2.  Washington, DC 3.  Boston, MA 4.  Los Angeles, CA 5.  Chicago, IL 6.  Seattle, WA 7.  Dallas, TX 8.  Newark, NJ 9.  San Diego, CA 10. London, United Kingdom Substitute for Car Rentals  Allow travelers to book Uber rides in advance – important for airport rides at LAX.
  18. 18. College Campus Reps 18 New Freshmen New First-time Freshmen, by Home Location USC Fall 2010 911 571 1,074 313 Nos. 2,869 31.8% 19.9% 37.4% 10.9% % 100.0% UCLA Fall 2010 2,078 2,123 176 45 Nos. 4,422 47% 48% 4% 1% % 100.0% Other California Out of State, but in US Outside US Total Los Angeles/Orange County At a Glance – Student Characteristics  31.4% of USC students are from Los Angeles/Orange County  47% of UCLA students are from Los Angeles/Orange County  Uber will target the local college student demographic, as they are likely to promote the service to friends and family in the area  Los Angeles college students are more mobile than Stanford or Berkeley and leave campus frequently  Action: Hire campus representatives and interns to promote Uber
  19. 19. Strategic Partnerships 19 REITs  Apartment and office REITs that house employees at home and at the workplace. Become preferred provider and create revenue share agreement with groups that have millions of productive employees underneath their rooftops Hotels  Joie de vivre (recently partnered with Virgin), W Hotels, Kimpton Hotels, SLS," Hyatt, Marriot, Ritz Carlton Sports Teams Entertainment Industry
  20. 20. Los Angeles – Marketing Targets 20 Publications Technology (With Offices in LA) Events Venues
  21. 21. 21 Uber Ideas for all Locations 21 Free Wifi Install free wifi in Uber cars. Connectivity remains an issue for travelers on the move. In Tokyo, 820 black sedans operated by DoCoMo will offer free wifi in March 2011. Establish partnerships to subsidize wifi costs – like Google on Virgin America flights. iPhone Chargers Every Uber vehicle will be equipped with a complimentary iPhone charger for passenger use. Uber riders should never run out of battery! Sponsored Rides On weekend nights: “sponsored rides” awarded to limited number of customers. Partner with brands and local businesses to pay for sponsorship opportunity. Ex: In SF, Tipsy Pig offers bar patrons with $200 bar tab a free local ride after 1:45am. Uber Safe Partner with colleges/safe ride programs to promote Uber Safe. Offer discounted fares to students at college bars. Allow advertisers to pay for student “Uber Safe” trips at night. Allow students to pay with pre-loaded accounts like University ID (ex. Bruincard at UCLA). Uber Social Connect with 3rd party APIs for linking passengers to information they care about on sites like Twitter, Facebook and Foursquare. Passengers can be alerted when friends are close by and determine the best way to meet up. Uber Nascar Buy a Nascar team. Hire Danica Patrick to drive. Just kidding… don’t do that 
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