Strategic acquisition plan of three ride-hailing companies in a post-close M&A deal

1. BUSINESS
CONSULTANTS
DEEP
TECHNOLOGISTS
Ridez Acquisition Solutions
Diehl | Pannapara | Shadrick | Tracewell

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◆ Acquisition Goals
◆ Brand Strategy
◆ Product Strategy
◆ Operational Strategy
◆ Headcount Savings
◆ Profit Goal
◆ Q&A
◆ Appendix
Agenda
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Diehl | Pannapara | Shadrick | Tracewell

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Goal of Acquisition
Do No Harm To Customers
Implement Strong Brand Strategy Improving Customer Experience
Consolidate Headcount Across Three Legacy Brands
Strategic Headcount Cuts to Maximize Efficiency
Consolidate Customer-Facing Technologies and Back-Office Operations
Develop New User-Interface Experience and Continue Research & Development
Establish Market Dominance Across All Regions of the U.S.
Establish Target Location for Increased Driver Revenue Throughout Country

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Diehl | Pannapara | Shadrick | Tracewell
Brand Strategy
◆ Maintain Ridez Brand Name
◆ Top brand loyalty and recognition
◆ New Ridez App
◆ Simplified interface through Pick-Ups’R’Us technology
◆ Continuation of Ridez superior customer service
◆ Rider Retention and Conversion
◆ Conversion of Pick-Ups’R’Us and Nëwber customers to
Ridez brand
◆ Increased custom features attracting more customers
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Diehl | Pannapara | Shadrick | Tracewell
Product Strategy
◆ Email and Social Media Outreach
◆ Utilizing all digital platforms to inform change
◆ Previous apps will sync to app store for update
◆ Advanced Pricing Options
◆ Options include pool, economy, business, and first class
◆ Pick-Ups’R’Us Customer Conversion
◆ RidezBusiness model
◆ Nëwber Customer Conversion
◆ Semiautonomous option only on East Coast
◆ Fully autonomous business model in 5 years

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Diehl | Pannapara | Shadrick | Tracewell
Operational Strategy
◆ Chicago HQ
◆ Customer support and shared services
◆ Majority of staff comprised from Ridez
◆ New York Offices
◆ One office closed, one remains open
◆ Retain essential staff from both Nëwber and Pick-Ups’R’Us
◆ All development outsourced to India
◆ Columbus & Seattle Offices
◆ Maintain Midwest prominence
◆ Establish West Coast presence through driver acquisitions
◆ Leverage Existing Technology
◆ New app interface and software development tools
◆ Customer support and issue tracking services
◆ Autonomous R&D initiative

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Diehl | Pannapara | Shadrick | Tracewell
Headcount Savings of 50M
◆ Immediate Cuts
◆ Shared Services ~70% Retention
◆ Customer Support ~ 70% Retention
◆ Developers Outsource ~ 100% Retention
◆ 5 Year Sales Transition
◆ Autonomous Technology Timeline
◆ Increase Cars, Decrease Sales Staff ~ 50%
◆ Sales for Autonomous Purchasing

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Key Leadership
◆ Chief Executive Office
◆ Ryder Johnson -- Maintain Leadership
◆ Chief Financial Officer
◆ Tina Fast -- Strong Accounting System and Complement CEO
◆ Vice President R&D
◆ Marissa Motors -- Lead Autonomous Technology Development
◆ Chief Technology Officer
◆ Mary Lane -- Utilize App Interface and Software Management Tools
◆ Vice President HR
◆ Ronald Speed -- Ability to Hire Staff from Coast to Coast
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Total Profits between the three companies is $61.5 million
Lift profits by 20% ($12.3 million) by obtaining new drivers
2,050 new drivers needed
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Profit Goal
Ridez Pick-Ups’R’Us Nëwber
Share of drivers 62.5% 25% 12.5%
Revenue per driver $10,000 $12,000 $6,000
Cost to obtain driver $5,000 $4,000 $8,000

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New Driver Profit Segmentation
◆ Driver locations are strategically increase profits and further marketspace
◆ Maintain base in Midwest
◆ Increase East Coast drivers and other underrepresented regions
◆ Expand West Coast operations
West Coast
7%
Midwest
70%
East Coast
15%
South
8%
PROFIT SEGMENTATION
Profit Segmentation
West Coast 7.50%
Midwest 70.00%
East Coast 15.00%
South 7.50%
Total 100.00%

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Goals Recap
◆ Do No Harm To Customers
◆ New app interface
◆ More ride options for consumers
◆ Consolidate Headcount Across Three Legacy Brands
◆ Utilized top talent to maximize efficiency during headcount cuts
◆ Implemented 5 year transition to autonomous driving fleet
◆ Consolidate Customer-Facing Technologies and Back-Office Operation Technologies
◆ Maintained key leadership functions for best back office operations
◆ Upgraded consumer options for ride share potential
◆ Establish Market Dominance In All Regions of U.S.
◆ Maintained Midwestern dominance
◆ Increased western market share

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Questions?

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Appendix

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Diehl | Pannapara | Shadrick | Tracewell
Ridez Strengths and Weaknesses
◆ Strengths
◆ Loyal client base
◆ Great customer service
◆ Top brand recognition
◆ Appeals to millennia's
◆ Good issue tracking software
◆ Strong Midwestern market presence
◆ Most drivers and resources
◆ Weaknesses
◆ Lack of East Coast market presence
◆ Lack of West Coast market presence
◆ Limited target market
◆ Worst EBIDTA margins

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◆ Strengths
◆ Best app and user interface
◆ East and West Coast market presence
◆ International corporate office
◆ Strong software development tools
◆ Least cost per driver acquired
◆ Most revenue per driver acquired
◆ Highest growth in drivers last year
◆ Weaknesses
◆ Lower brand loyalty
◆ Lack of Midwestern market presence
◆ Non-loyal client base
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Pick-Ups’R’Us Strengths and Weaknesses

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◆ Strengths
◆ Semiautonomous car usage
◆ Fully autonomous car technology development
◆ Strong Research and Development Program
◆ Good Margins
◆ Weaknesses
◆ Lowest Brand Recognition
◆ Poor Customer Service
◆ Limited Accounting and Finance Capabilities
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Nëwber Strengths and Weaknesses

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Data and Calculations
Ridez Pick-Ups'R'Us Newber Total
Revenues $250,000,000 $120,000,000 $30,000,000 $400,000,000
EBITDA $35,000,000 $20,000,000 $6,500,000 $61,500,000
Registered Drivers/Contractors 25,000 10,000 5,000 40,000
Total spent on acquiring new drivers last year (Marketing,
promotions, etc.) $15,000,000 $6,000,000 $4,000,000 $25,000,000
Number of new drivers last year 3,000 1,500 500 5,000
Cost per new driver $5,000 $4,000 $8,000
Revenue per driver $10,000 $12,000 $6,000
Profit per driver $1,400 $2,000 $1,300
Profit Margin 14.00% 16.67% 21.67%
% growth in drivers 13.64% 17.65% 11.11%

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Profit Goal Breakdown
◆ Total Profits Between Three Companies is $61.5 Million
◆ Objective to increase profits by 20% (12.3 Million) through driver acquisition
◆ Weighted average per driver ($10,000)
◆ Average cost per driver using Pick-Ups’R’Us method ($4,000)
◆ $10,000 - $4000 = $6,000 profits per driver
◆ $12,300,000 / $6,000 = 2050 New Drivers Needed