Yaygo final 2013 berkeley

COMFORTABLE COMMUTES

Final
Presentation
April 10, 2013

11 Interviews of 124 total

1
Michael Vladimer | Ignacio Garcia | Mariana Torres | Brian Murphy

2

The LLP Team
Michael Vladimer Ignacio Garcia
 Haas School of Business, MBA „13  Haas School of Business, MBA „13

Mariana Torres Brian Murphy
 City & Regional Planning, MCP „13  School of Information, MIMS ‟14

3

The idea
 Affordable, reliable rides using shared
shuttles with on-demand ride request and
dynamic routing.

5

We Eliminated 5 of 7 Potential
Customer Segments Quickly
Segment Interviews Result

Partiers 7 FAIL “I‟d totally use this once a month!”

“It‟s been pretty easy to get
Tourists 6 FAIL around…”
Event “I like Uber – cost isn’t really an
5 FAIL
Goers issue for events like this.”

Students 5 FAIL “I usually just walk around school.”

“We already work with lots of
Hotels 4 FAIL
transportation companies…”

6

But With
Commuters, We
Found PAIN!
“Like being a sardine!”

“It sucks. A lot.”

7

50 Interviews, Two Archetypes

MARK PETER
Marketing Mgr Product Manager

Usage Fee Yield Management
(Monthly) (Daily)

GAIN: GAIN:
alternative to long, occasional solution
complex Muni when he needs to
commute commute

8

As We Tested Channels,
Another Customer Emerged

OLGA
Office Manager

Monthly subsidy
per employee

GAIN:
New employee
perk for recruiting

9

Canvas Evolution:
Customer Segment
Week 1 Week 4 Week 12

Customer Segment Customer Segment Customer Segment
Hotels Hotels *Shuttle Cos.
Companies *Employers *Tech Employer
Commuters *SF Commuters Perk Managers

Event-Goers Event-Goers *Tech Co.
Employees
Partiers Partiers
Students Students
Tourists Tourists

11

We Tested Subscription Interest
Reached out
to 200+ Firms

12

Reached out 12
to 200+ Firms Responded

13

Reached out 12 8
to 200+ Firms Responded Signed Up

14

Getting Interested Employees
To Ride Was a Challenge
GOOD: Enthusiasm BAD: Conversion

“I'm just tired of 63 Riders
having to stand on Interested
the bus every day. I
want a seat!”
18 Sign Ups
“Muni continues to
get worse &
driving is too 5 Riders
expensive” (Free April 1 Test)

15

Needed Lower Upfront Costs

PRICE/HR REASON

Week 1 $100 Rack Rate

Week 6 $95 Intrigued

Week 10 $50 Rev Share!

16

Our Economics Clarified $ in

$ out

OLGA MARK PETER
$50/hr +
Office Manager Marketing Mgr Product Manager 20% REV
(for Mark) (monthly) (daily)

$200/mo $50/mo $90/mo
(20 rides) (25 rides: 20 co. (6 rides)
rides + 5 out of
pocket rides)

Pricing per Ride: Monthly subscription: $10; Daily: $15

17

Canvas Evolution:
Revenue Streams

Revenue Streams Customer Segment Customer Segment
Per-Ride Fee Per-Ride Fee Per-Ride Fee
Hub Sales *Hub Sales Subscriptions
*Subscriptions *Company subsidy
for employees

18

Canvas Evolution:
Cost Structure

Cost Structure Cost Structure Cost Structure
Shuttle rental Shuttle rental *Shuttle rental
(high, upfront) (high, upfront) (low, upfront)
Fixed costs *Shuttle rental *Revenue share
(medium, upfront) with supplier (low,
Fixed costs post-service)
Fixed costs

20

Many Regulatory
Concerns

 On-demand
Rideshare

 Multiple, Paid
“Yaygo is not
Pick-ups viable. You
should pivot.”
 Stops/Zoning - Cliff, Weeks 1-4

 Union, Industry
and Gov
Resistance

21

But Regulations Are In Flux
We Interviewed: They Told Us:
CA & SF Public Re-writing policy due to
Utilities Commission consumer outcry

Open to rideshare solutions,
with caveats

Encouraging rideshare and
transit innovation

Approved to operate…for
now

22

We Found Allies & Momentum
“Position yourself as
getting people out of
cars – that’s a big
deal.” “We’ve spoken to the
- Ratna Amin, SPUR CA PUC to make sure
what Ridepal is doing is
legal, and so far it is.”
- Nathalie Criou, Ridepal CEO

“Potrero Hill is asking
for a Shuttle.”
- Carly Paine, SF MTA

23

Canvas Evolution:
Key Partners

Key Partners Key Partners Key Partners
Shuttle Companies *Shuttle Providers Shuttle Providers
Advocacy Groups Advocacy Groups Advocacy Groups
Bars, Clubs, Rest. Bars, Clubs, Rest. Employers
Employers Employers Transit Agencies
Stadiums, Conv. Stadiums, Conv. *Government
Universities,Schools Universities,Schools Agencies

Hotels, Museums Hotels, Museums
*Transit Agencies

April 1st Free Trial
8:00 – 9:00 am 9:00 – 10:00 am

April 1 Test Results
 People want to ride Yaygo

 No legality issues during test

5 riders  Validated $10/ride; $250/month

 Google Maps work for Beta Trials

1 subscriber
 Happy riders!

28

Will Yaygo Go On?

 Maybe.

 Commuters have real pain

 But…economics and regulation make
transportation tricky

 So for now…

29

The Testing Continues…
YAY! GO!

32

Week 2
LaunchPad Cent ral
KEY PARTNERS KEY ACTI VI TI ES VALUE PROPOSI TI ONS CUSTOM RELATI ONSHI PS
ER CUSTOM SEG ENTS
ER M

Sh u t t le co mp a n ie s » Dyn a mic sh u t t le  GAIN : Efficie n t , Se lf-cu st o mize d rid e r Pa rt ie rs »
ro u t in g » e n jo y a b le co m m u t e p ro file »
 Sh u t t le IGNORE Co mmu t e rs
»
Pro vid e r s »  D y n a m ic p r icin g  Rid e ch e ck -in (p la ce h o ld e r u n t il we
»  GAIN : Re lia b le t h r o u g h Fa ce b o o k re -a sso cia t e wit h n e w
 N GO s /Ad vo ca cy
p ick u p t im e » » co mmu t e r se g me n t s)
g ro u p s s u p p o r t in g  Qu a lit y co n t r o l
»
m o b ilit y s o lu t io n s » s h u t t le s /d r ive r s /r id e r s GAIN: Sa fe
» t ra n sp o rt a t io n » Eve n t -g o e rs »
 Ba rs , clu b s a n d
KEY RESOURCES CHANNELS
re st a ura nt s »  D e le t e »  Te e n a g e r s »

 Em p lo y e r s »  GAIN : Tr a ve l in To u rist s »
 PH YSICAL: Ba y We b sit e , co mmu n it y
groups > 4 »
 St a d iu m s , Ar e a Sh u t t le s , g ro u p s & b lo g s »
co n ve n t io n ce n t e r s St o p p in g Z o n e s »  Ga in :
» Cu s t o m iz e d , fu n
 O u r s e r vice is
r id e (m u s ic, e t c. ) »
 U n ive r s it ie s , n o t cle a r ly ille g a l »
s ch o o ls »  M VP: p u b cr a w l »
Clo u d /se rve r »
 H o t e ls ,  Fe a t u r e s : Ap p &
COST STRUCTURE REVENUE STREAMS

Va ria b le co st : sh u t t le re n t a l » Pe r-rid e fe e »

 Fixe d co s t : In s u r a n ce , IT, le g a l, co r p o r a t e »  H u b s a le s »

 Su b s cr ip t io n s »

33

Week 3
LaunchPad Cent ral
ER CUSTOM SEG ENTS
ER M

Sh u t t le co mp a n ie s » Dyn a mic sh u t t le GAIN: Efficie n t , Se lf-cu st o mize d rid e r Pa rt ie rs »
ro u t in g » e n jo ya b le co mmu t e » p ro file »
Sh u t t le Pro vid e rs » IGNORE Co mmu t e rs
Dyn a mic p ricin g » GAIN: Re lia b le p icku p Rid e ch e ck-in t h ro u g h (p la ce h o ld e r u n t il we
NGOs/Ad vo ca cy
t ime » Fa ce b o o k » re -a sso cia t e wit h n e w
g ro u p s su p p o rt in g Qu a lit y co n t ro l
co mmu t e r se g me n t s)
mo b ilit y so lu t io n s » sh u t t le s/d rive rs/rid e rs GAIN: Sa fe  GET: Lo ca l
»
» t ra n sp o rt a t io n » O r g a n iz a t io n s , B2 B
Ba rs, clu b s a n d r e fe r r a ls » Eve n t -g o e rs »
re st a u ra n t s »  Pa y b y p h o n e via
cr e d it ca r d » Te e n a g e rs »
Emp lo ye rs »
De le t e » To u rist s »
St a d iu ms, co n ve n t io n PHYSICAL: Ba y Are a We b sit e , co mmu n it y
ce n t e rs » Sh u t t le s, St o p p in g GAIN: Tra ve l in g ro u p s g ro u p s & b lo g s »
Zones » >4 »
Un ive rsit ie s, sch o o ls »
Ou r se rvice is n o t Ga in : Cu st o mize d , fu n
Ho t e ls, mu se u ms a n d cle a rly ille g a l » rid e (mu sic, e t c.) »
p o in t s o f in t e re st »
Clo u d /se rve r » MVP: p u b cra wl »



Fixe d co st : In su ra n ce , IT, le g a l, co rp o ra t e » Hu b sa le s »

Su b scrip t io n s »

34

Week 4
LaunchPad Cent ral
ER CUSTOM SEG ENTS
ER M

Sh u t t le co mp a n ie s » Dyn a mic sh u t t le GAIN: Efficie n t , Se lf-cu st o mize d rid e r Pa rt ie rs »
Sh u t t le Pro vid e rs » IGNORE Co mmu t e rs
Dyn a mic p ricin g » GAIN: Re lia b le p icku p Rid e ch e ck-in t h ro u g h (p la ce h o ld e r u n t il we
NGOs/Ad vo ca cy
t ime » Fa ce b o o k » re -a sso cia t e wit h n e w
co mmu t e r se g me n t s)
mo b ilit y so lu t io n s » sh u t t le s/d rive rs/rid e rs GAIN: Sa fe GET: Lo ca l
»
» t ra n sp o rt a t io n » Org a n iza t io n s, B2 B
Ba rs, clu b s a n d re fe rra ls » Eve n t -g o e rs »
re st a u ra n t s » Pa y b y p h o n e via
cre d it ca rd » Te e n a g e rs »
Emp lo ye rs »
De le t e »  Sh u t t le
St a d iu ms, co n ve n t io n PHYSICAL: Ba y Are a We b sit e , co mmu n it y
Pr o vid e r s »
ce n t e rs » Sh u t t le s, St o p p in g GAIN: Tra ve l in g ro u p s g ro u p s & b lo g s »
Zones » >4 »  Te ch co m p a n y
Un ive rsit ie s, sch o o ls »  M o b ile Ap p »
e m p lo y e e s (SF-o n ly
Ou r se rvice is n o t Ga in : Cu st o mize d , fu n co m m u t e ) »
Ho t e ls, mu se u ms a n d cle a rly ille g a l » rid e (mu sic, e t c.) »
p o in t s o f in t e re st »  In t r a cit y SF
Clo u d /se rve r » MVP: p u b cra wl » Co m m u t e r s : Re t a il





35

Week 5
LaunchPad Cent ral
ER CUSTOM SEG ENTS
ER M

Sh u t t le co mp a n ie s » Dyn a mic sh u t t le GAIN: Efficie n t , Se lf-cu st o mize d rid e r Sh u t t le Pro vid e rs »
Sh u t t le Pro vid e rs » Te ch co mp a n y
Dyn a mic p ricin g » GAIN: Re lia b le p icku p GET: Lo ca l e mp lo ye e s (SF-o n ly
NGOs/Ad vo ca cy
t ime » Org a n iza t io n s, B2 B co mmu t e ) »
re fe rra ls »
mo b ilit y so lu t io n s » sh u t t le s/d rive rs/rid e rs GAIN: Sa fe In t ra cit y SF
» t ra n sp o rt a t io n » KEEP: Lo ya lt y Co mmu t e rs: Re t a il
Ba rs, clu b s a n d Pro g ra m, Lo n g -t e rm Wo rke rs »
re st a u ra n t s » GAIN: Tra ve l in g ro u p s
>4 »  B2 B: Te ch
Emp lo ye rs » co m p a n ie s »
PAIN: Pe a k in t ra cit y
St a d iu ms, co n ve n t io n PHYSICAL: Ba y Are a  O ffice m a n a g e r s
co mmu t e s a re  Te ch co m p a n y
ce n t e rs » Sh u t t le s, St o p p in g (p e r k g a t e
o ve rcro wd e d , e m p lo y e e s
Zones » ke e p e rs) »
u n p le a sa n t » (Fir s t /La s t M ile in
Un ive rsit ie s, sch o o ls »
Ou r se rvice is n o t Mo b ile Ap p » SF) »
GAIN: Qu ick a n d e a sy
Ho t e ls, mu se u ms a n d cle a rly ille g a l »
t o b o o k a rid e »
p o in t s o f in t e re st »
GAIN: Imp ro ve d
 Tr a n s it Ag e n cie s





36

Week 6
LaunchPad Cent ral
ER CUSTOM SEG ENTS
ER M

Sh u t t le Pro vid e rs » Dyn a mic sh u t t le GAIN: Efficie n t , GET: Lo ca l Sh u t t le Pro vid e rs »
ro u t in g » e n jo ya b le co mmu t e » Org a n iza t io n s, B2 B
NGOs/Ad vo ca cy Te ch co mp a n y
re fe rra ls »
g ro u p s su p p o rt in g Dyn a mic p ricin g » GAIN: Re lia b le p icku p e mp lo ye e s (SF-o n ly
mo b ilit y so lu t io n s » t ime » KEEP: Lo ya lt y co mmu t e ) »
Qu a lit y co n t ro l
Pro g ra m, Lo n g -t e rm
Emp lo ye rs » sh u t t le s/d rive rs/rid e rs GAIN: Sa fe B2 B: Te ch co mp a n ie s
Co n t ra ct s »
» t ra n sp o rt a t io n » »
Tra n sit Ag e n cie s » GROW: Re fe rra l
PAIN: Pe a k in t ra cit y Te ch co mp a n y
co mmu t e s a re e mp lo ye e s (First /La st
o ve rcro wd e d , Mile in SF) »

PHYSICAL: Ba y Are a u n p le a sa n t » Office ma n a g e rs (p e rk
Sh u t t le s, St o p p in g g a t e ke e p e rs) »
Zones »
t o b o o k a rid e » Mo b ile Ap p »
Ou r se rvice is n o t
GAIN: Imp ro ve d  W e b s it e »
cle a rly ille g a l »
sh u t t le u t iliza t io n a n d

Clo u d /se rve r » re cu rrin g d e ma n d »



Fixe d co st : In su ra n ce , IT, le g a l, co rp o ra t e » Su b scrip t io n s »

Hu b sa le s »

 Co m p a n y s u b s id y fo r e m p lo y e e s (fla t -r a t e p e r m o n t h ,
ch a r g e p e r -r id e ) »

Li c e n se d fr o m b u si n e ssm o d e lg e n e r a t i o n .c o m u n d e r a Cr e a t i ve Co m m o n s At t r i b u t i o n -S h a r e Al i ke 3.0 Un p o r t e d Li c e n se

37

Week 7
LaunchPad Cent ral
ER CUSTOM SEG ENTS
ER M

re fe rra ls »
Co n t ra ct s »

Zones »
GAIN: Imp ro ve d We b sit e »
re cu rrin g d e ma n d »  D ir e ct Sa le s »




Co mp a n y su b sid y fo r e mp lo ye e s (fla t -ra t e p e r mo n t h , ch a rg e p e r-
rid e ) »

38

Week 8
LaunchPad Cent ral
ER CUSTOM SEG ENTS
ER M

re fe rra ls »
Co n t ra ct s »

Zones »
re cu rrin g d e ma n d » Dire ct Sa le s »




rid e ) »

39

Week 9
LaunchPad Cent ral
KEY PARTN ERS KEY ACTIVITIES VALU E PRO PO SITIO N S CUSTO M ER CU STO M ER SEGM EN TS
RELATIO N SH IPS

re fe rra ls »
Co n t ra ct s »
KEY RESO U RCES CHAN N ELS

Zones »
FINANCIAL: Se e d
ca p it a l, g ra n t s, re v-
sh a re wit h sh u t t le s »

HUMAN:

CO ST STRU CTU RE REVEN U E STREAM S



rid e ) »

40

Week 10
LaunchPad Cent ral
KEY PARTN ERS KEY ACTIVITIES VALU E PRO PO SITIO N S CUSTO M ER CU STO M ER SEGM EN TS
RELATIO N SH IPS

re fe rra ls »
Co n t ra ct s »
KEY RESO U RCES CHAN N ELS

Zones »
FINANCIAL: Se e d

HUMAN:

CO ST STRU CTU RE REVEN U E STREAM S



rid e ) »

41

Week 12
LaunchPad Cent ral
ER CUSTOM SEG ENTS
ER M

re fe rra ls »
Co n t ra ct s »
 Go ve r n m e n t KEY RESOURCES CHANNELS
Ag e n cie s » o ve rcro wd e d , Mile in SF) »

Zones »
FINANCIAL: Se e d

HUMAN:


Fixe d co st : In su ra n ce , IT, le g a l, co rp o ra t e » Pe r-rid e fe e »

 Sh u t t le Re n t a l (lo w , u p fr o n t co s t ) » Su b scrip t io n s »

 Re v-s h a r e w it h Sh u t t le Su p p lie r (lo w , p o s t -s e rvice co s t ) Co mp a n y su b sid y fo r e mp lo ye e s (fla t -ra t e p e r mo n t h , ch a rg e p e r-
» rid e ) »

Size of the Opportunity
SF-SF Commuters:
≈334,000 (2011)

Smartphone
Yaygo Enabled: ≈ 120,000 Yaygo
captures 5%: captures 20%:

3 12
million trips / yr. million trips / yr.
@ $3/ trip: $36 million /
@ $3/ trip: $9 million / yr. yr.
@ $8 / trip: $24 million / @ $8 / trip: $96 million
yr. / yr.

Yaygo final 2013 berkeley

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