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SAEV MobilityTIC Case Competition – November 18, 2017
TEAM
Mike
4
Zack
Shah
Meghan
Agenda
1. Executive Summary
Situation
Solution
2. Target Market
3. Strategy
4. Financials
5. Next Steps
Risks
Implementati...
$300 BillionAnnual Commuting loss
77% of emissions are commuting
Source: Inrix Research Reports, Environmental Protection ...
$50-250M per mile
US Public Transit Infrastructure Costs*
*Buses $13.5M
Source: Environmental Protection Agency
$500B Parking$73B Wasted looking for parking
Source: Inrix Research, Victoria Transport Policy Institute
$212B AnnuallyAmount Road Crashes cost US
Autonomous Vehicles could reduce by
90%
Source: McKinsey
Our Solution
Summary Target Market Strategy Financials Next Steps
Shared
Autonomous
Electric Vehicles“SAEV Mobility”
Target Customer Market12
Summary Target Market Strategy Financials Next Steps
Annual Income
greater than
$100,000
Professi...
Target Market
13
Summary Target Market Strategy Financials Next Steps
1
6
2
9
3
4
5
7
8
10 City
Peak Hours in
Congestion
C...
Willingness to Pay14
Summary Target Market Strategy Financials Next Steps
▹$520 – Vehicle Use
▹$290 – Time Value [1]
▹$190...
Pricing
Tier 1 - Base - $1,000
● Daily pickup and drop-off between
home and work
Tier 2 - Plus- $ 1,350
● All Base Service...
Entry Market – Los Angeles
16
Summary Target Market Strategy Financials Next Steps
Neighborhood
Rush Hour Commute
(Minutes...
Entry Market – Manhattan Beach
17
Summary Target Market Strategy Financials Next Steps
60% of
households
w/income >
$100,0...
Marketing Strategy
Partnerships
Starbucks
Fitbit
Digital Marketing
Creating Memorable Experience
18
Summary Target Market ...
Marketing Strategy - Partnerships
Starbucks Customer Profile
Educated, 42 years old
Average Income $90,000
19
Summary Targ...
Marketing Strategy - Implementation
Starbucks Partnership
- In store advertisement
- Starbucks coffee in SAEV
- Promotiona...
Differentiators
Productivity
Community
Personalization
21
Summary Target Market Strategy Financials Next Steps
Productivity$3300 added value monthly
SAEV CommunityNetwork with like-minded professionals
PersonalizationFacial recognition and customized interactions
Financial Model – Key Assumptions25
Summary Target Market Strategy Financials Next Steps
Criteria Background
SAEV price $1...
Financial Model – 5 Year Net Present Value and Revenue26
Summary Target Market Strategy Financials Next Steps
$16M NPV
$70...
Key Performance Metrics
Marketing Metrics
● Cost of Customer Acquisition (CAC)
● Customer Lifetime Value (LTV)
● Organic G...
Key Performance Metrics28
Summary Target Market Strategy Financials Next Steps
Criteria Measurement
CAC
LTV CAC = 1/3 LTV ...
External Implementation29
Summary Target Market Strategy Financials Next Steps
Year 1 Year 2 Year 3 Year 4 Year 5
Manhatta...
Internal Implementation30
Summary Target Market Strategy Financials Next Steps
Year 1 Year 2 Year 3 Year 4 Year 5
Direct
M...
Risks31
Summary Target Market Strategy Financials Next Steps
Supplier
Relationships
Phenomenal
Design
Regulatory
Landscape...
Solution32
Summary Target Market Strategy Financials Next Steps
“SAEV Mobility: Putting WeWork
in an Uber for your daily
c...
Questions
34
APPENDICES
35
TABLES: Financial Assumptions and Revenue Growth36
TABLES: Financial Cost of Goods Sold37
Cities Surrounding LA:38
Marketing Metrics:39
Marketing
Metrics
Measurement Method Criteria Future Incorporation
Cost of Customer
Acquisition (CAC)...
Service Metrics:40
Service Metrics Measurement Method Criteria Future Incorporation
Wait Time and number
of cancelled trip...
Performance Metrics:41
Performance
Metrics
Measurement Method Criteria Future Incorporation
Percentage of seats
filled
Dat...
Simon Turbochargers - Carnegie Mellon Tech Innovation Challenge 2017
Simon Turbochargers - Carnegie Mellon Tech Innovation Challenge 2017
Simon Turbochargers - Carnegie Mellon Tech Innovation Challenge 2017
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Simon Turbochargers - Carnegie Mellon Tech Innovation Challenge 2017

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Simon Turbochargers - Carnegie Mellon Tech Innovation Challenge 2017

  1. 1. SAEV MobilityTIC Case Competition – November 18, 2017
  2. 2. TEAM Mike 4 Zack Shah Meghan
  3. 3. Agenda 1. Executive Summary Situation Solution 2. Target Market 3. Strategy 4. Financials 5. Next Steps Risks Implementation 5 Summary Target Market Strategy Financials Next Steps
  4. 4. $300 BillionAnnual Commuting loss 77% of emissions are commuting Source: Inrix Research Reports, Environmental Protection Agency
  5. 5. $50-250M per mile US Public Transit Infrastructure Costs* *Buses $13.5M Source: Environmental Protection Agency
  6. 6. $500B Parking$73B Wasted looking for parking Source: Inrix Research, Victoria Transport Policy Institute
  7. 7. $212B AnnuallyAmount Road Crashes cost US Autonomous Vehicles could reduce by 90% Source: McKinsey
  8. 8. Our Solution Summary Target Market Strategy Financials Next Steps
  9. 9. Shared Autonomous Electric Vehicles“SAEV Mobility”
  10. 10. Target Customer Market12 Summary Target Market Strategy Financials Next Steps Annual Income greater than $100,000 Professional working adult between the ages of 25-54 Lives in suburb of major city with long commute
  11. 11. Target Market 13 Summary Target Market Strategy Financials Next Steps 1 6 2 9 3 4 5 7 8 10 City Peak Hours in Congestion Cost of Traffic Los Angeles, CA 104 $9.7 billion New York, NY 89 $16.9 billion San Francisco, CA 83 $2.5 billion Atlanta, GA 71 $3.1 billion Miami, FL 65 $3.6 billion Washington, DC 61 $3.0 billion Dallas, TX 59 $2.9 billion Boston, MA 58 $2.9 billion Chicago, IL 57 $5.2 billion Seattle, WA 55 $2.0 billion Source: Inrix Research
  12. 12. Willingness to Pay14 Summary Target Market Strategy Financials Next Steps ▹$520 – Vehicle Use ▹$290 – Time Value [1] ▹$190 – Wear and Tear [2] ▹$200 – Parking ▹$150 – Gas $1,350 Source: Journal of Public Economics, AAA
  13. 13. Pricing Tier 1 - Base - $1,000 ● Daily pickup and drop-off between home and work Tier 2 - Plus- $ 1,350 ● All Base Services ● 10 custom changes ● Enhanced Privacy ● Customized desk locations 15 Summary Target Market Strategy Financials Next Steps
  14. 14. Entry Market – Los Angeles 16 Summary Target Market Strategy Financials Next Steps Neighborhood Rush Hour Commute (Minutes) Bel-Air 62 Hidden Hills 80 Rolling Hills 60 Beverly Crest 72 Pacific Palisades 61 Palos Verdes Estates 72 San Marino 40 La Canada Flintridge 31 Malibu 75 La Habra Heights 75 Manhattan Beach 71 Rancho Palos Verdes 78 Westlake Village 94 Calabasas 86Source: Google Map Data
  15. 15. Entry Market – Manhattan Beach 17 Summary Target Market Strategy Financials Next Steps 60% of households w/income > $100,000 51% between the ages of 25-54 71minute rush-hour commute 28% commute downtown to LA for work Total (MB) Market Size = $35 million Source: Movoto
  16. 16. Marketing Strategy Partnerships Starbucks Fitbit Digital Marketing Creating Memorable Experience 18 Summary Target Market Strategy Financials Next Steps
  17. 17. Marketing Strategy - Partnerships Starbucks Customer Profile Educated, 42 years old Average Income $90,000 19 Summary Target Market Strategy Financials Next Steps Similar Targeted Customer Segment Source: The Advertising Research Foundation US Wearable Customer Profile 36% are 35-54 years old 41% average income $100,000+
  18. 18. Marketing Strategy - Implementation Starbucks Partnership - In store advertisement - Starbucks coffee in SAEV - Promotional offers 20 Summary Target Market Strategy Financials Next Steps Fitbit Partnership - Push notifications - Community health events - Rewards on steps
  19. 19. Differentiators Productivity Community Personalization 21 Summary Target Market Strategy Financials Next Steps
  20. 20. Productivity$3300 added value monthly
  21. 21. SAEV CommunityNetwork with like-minded professionals
  22. 22. PersonalizationFacial recognition and customized interactions
  23. 23. Financial Model – Key Assumptions25 Summary Target Market Strategy Financials Next Steps Criteria Background SAEV price $100k Parity reached with electric and gasoline Average 25’ Bus cost: $60k Seats per SAEV 14 25’ Bus, 3x4.5 area Weighted Average Price, Tier 1 and Tier 2 $1,210 Monthly Price, Assumed 40% Tier 1, 60% Tier 2 WACC 6.9% Similar to Tesla See Appendix for Financial Model Source: Tesla, Starcraft Buses
  24. 24. Financial Model – 5 Year Net Present Value and Revenue26 Summary Target Market Strategy Financials Next Steps $16M NPV $700k Revenue – Year 1 15% Operating Margin – Year 1 $140M Revenue – Year 5 30% Operating Margin – Year 5 5, $138,280,098 $- $20,000,000 $40,000,000 $60,000,000 $80,000,000 $100,000,000 $120,000,000 $140,000,000 $160,000,000 $180,000,000 $200,000,000 0 1 2 3 4 5 6 Year Revenue Growth
  25. 25. Key Performance Metrics Marketing Metrics ● Cost of Customer Acquisition (CAC) ● Customer Lifetime Value (LTV) ● Organic Growth Service Metrics ● Wait Time and Cancelled Trips ● Customer Rating ● Customer Travel Time 27 Summary Target Market Strategy Financials Next Steps Performance Metrics ● Percentage of Seats Filled ● Vehicle Miles Travelled ● Number of App downloads
  26. 26. Key Performance Metrics28 Summary Target Market Strategy Financials Next Steps Criteria Measurement CAC LTV CAC = 1/3 LTV Tracked on backend Wait Time Cancelled Trips <10 min Collected via app Customer Rating 4.5+ Collected via app Percentage of Seats Filled 80% Collected via SAEV Source: Lyft, CAC from Starbucks
  27. 27. External Implementation29 Summary Target Market Strategy Financials Next Steps Year 1 Year 2 Year 3 Year 4 Year 5 Manhattan Beach 100 SAEVs 350 SAEVs All of Los Angeles Washington, D.C. Boston and Chicago Full scale 25 SAEVs Fleet 200 SAEVs 500 SAEVs
  28. 28. Internal Implementation30 Summary Target Market Strategy Financials Next Steps Year 1 Year 2 Year 3 Year 4 Year 5 Direct Marketing 30 employees 40 employees Partnerships - Starbucks & Fitbit Grow SAEV community Exit IPO, M&A 10 employees 35 employees 45 employees
  29. 29. Risks31 Summary Target Market Strategy Financials Next Steps Supplier Relationships Phenomenal Design Regulatory Landscape Source: McKinsey
  30. 30. Solution32 Summary Target Market Strategy Financials Next Steps “SAEV Mobility: Putting WeWork in an Uber for your daily commute.” -SAEV Mobility Co-Founders
  31. 31. Questions 34
  32. 32. APPENDICES 35
  33. 33. TABLES: Financial Assumptions and Revenue Growth36
  34. 34. TABLES: Financial Cost of Goods Sold37
  35. 35. Cities Surrounding LA:38
  36. 36. Marketing Metrics:39 Marketing Metrics Measurement Method Criteria Future Incorporation Cost of Customer Acquisition (CAC) CAC = Total cost of sales & marketing/# of new customers Track CAC through different marketing channels CAC<LTV Focus on marketing channels with higher CAC Boost referral system Constant innovation using pareto principle Customer Lifetime Value (LTV) The life span of customer Customer retention rate Profit margin per customer The rate of discount LTV>CAC Going forward, CAC=LTV/3 Choose customer segment to invest in to increase future profitability Increase LTC increasing customer satisfaction rating Organic Growth Subscriptions Trips per month 10% market share in first 3 months Boost marketing efforts and increase CAC in attractive segments
  37. 37. Service Metrics:40 Service Metrics Measurement Method Criteria Future Incorporation Wait Time and number of cancelled trips Track the time people need to wait for vehicles to arrive Cancellation rate after viewing wait time Less than 10 minutes for the 1 st six months Roll out more SAEVs Improve platform algorithm Decrease wait time to 5 minutes after six months Customer Rating Customer rating after every trip Greater than 4.5 Take actions based on customer recommendations Build transparency and strong support system Customer travel time Compare each trip with regular travel time for A to B Within 10% of average travel time Improve customer pick-up and drop-off process
  38. 38. Performance Metrics:41 Performance Metrics Measurement Method Criteria Future Incorporation Percentage of seats filled Data from SAEV 80% seats filled for every trip Increase customer base in specific locations Vehicle Miles Travelled Milage data from SAEV Optimize through every trip (avoid unnecessary travel paths Utilize this data for future efficiency Number of App Downloads Track the growth and usage Organic plus referral growth Increase sales funnel

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