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Cab Collective Final
- 2. CabCollective is aone stop taxi sharing service which connects people travelling in the same direction More profitable routes for taxi companies with reduced risk of fare evasion Cheaper fares and safety in numbers Hail, share and pay in a few easy steps So the question remains, would you rather take your chances on the night bus or share the fare?
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- 9. 1.8 million Londoners choose taxijourneys each week £2.6 billion per annum
- 10. Strengths Weaknesses • Environment friendlyway of travelling / Green • Establishing the model as a trusted alternative means of transport to consumers • Safety concerns – sharing with unknown passengers • Integration of the technology and passenger geographical locations • Payment methods • Cost of set up travel / CO2 reduction • Disruptive technology and forward thinking • Socially engaging – community oriented • Low set up / management costs once established • Consumer value and savings over traditional modes of transport • Competitive advantage over traditional mini cab transport Opportunities Threats • The UK is a world leader in mobile adoption and mobile advertising. • Market Opportunity - Mobile Apps & Cab booking systems are a tested model worldwide. Our model is based upon sharing • Each day in London alone almost 400k cabs/taxi rides are taken carrying almost 600k passengers • Geographical scalability • New partnerships with mini cab companies • Employment laws, licensing, regulations, taxes and pricing • Fuel levies / increases • IT developments • Competitor reaction • Seasonal trends • App integration with mini cab companies
- 11. Build Network -a two pronged approach – – Network of reliable licensed drivers to be built - partner with Black Cabs and highly rated minicab companies Network of consumers - to be built through social marketing and WOM strategies focusing on places where we queue Safety – – By opting into the service and being required to provide address and payment details the system is less open to abuse Option for females to select “female only” cab share option Payment: – – – System relies on consumer having adopted their mobile phones as a method of convenient payment. Contactless payment is already in use through the TFL Oyster Card system and Visa Paywave, which allows cardholders to make purchases below a nominal amount (e.g. £15). Mobile app to mimic this ease of use for payment method How to Share the Fare: – There will need to be algorithms that automatically calculate the optimised journey for a particular group of people and send this data to the taxi/consumer in advance of the pick-up. This will ensure the „deal‟ is optimal for all three parties concerned (Both parties sharing and the taxi)
- 12. Filling the gap betweenindividual taxi order services and public car share services
- 13. Taxi Booking Services Enablescheaper cab journeys as the fare is shared Sharing service can be used for any trip not exclusively airport trips like competitors Access to a larger pool of cabbies compared to calling individual firms Car Share Services Similar to car sharing but with the added assurance of using a registered taxi Comparatively safer as we don‟t rely on strangers to drive No pre-planning required as sharing a cab can be done instantaneously or in advance using app.
- 14. Smartphone users… 62% 80%-91% of UKpopulation aged 18-44 years are core target … who live in urban areas and cannot or do not want to rely on public transport Source: Ourmobileplanet.comç
- 15. The taxi-queue system atKings Cross is so ineptly & appallingly designed, I suspect it might have been a task on „The Apprentice‟ I think @HailoLondon is possibly the best thing ever invented. Just skipped a 30 person taxi queue & got picked up in 3 mins The taxi queue outside indiabulls is moblike and fairly scary. Really wish they‟d clear them out.
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- 17. CabCollective Rewards will…. ….offervirtual currency as reward AND access to exclusive offers in order to build customer loyalty
- 18. PRICE • Cheaper door-to-door passengerfares • Higher fare for drivers • Free app • 10% fee taken on all journeys PRODUCT • “One stop taxi shop” • Swift pre-payment through app • Customer rewards • Excellent customer service • No waiting or time wasting Time conscious passengers looking for cheaper, safe & green taxis PLACE • Mobile app • Always available • Real time & pre booked • Places we queue • Airports • Stations • Events PROMOTION • Social media • Event sponsorship • Partnership with taxi firms • Search marketing • Retargeting • Taxi ambassadors
- 19. Social buzz • • • • Facebook Twitter Foursquare Ambassadors Time & place • • • • Heavily populatedlocations Airport, station, shopping centre Events collaboration Available 24/7 Online • • • • Mobile app Search & display targeting (based on interests) eCRM Informational website
- 20. Partnerships Demand Generation Loyalty Building •Businesses in key locations • Promotion in focus areas • Online community • Travel operators • Build micro communities • Taxi firms • Organic social growth • Incentivise happy customers to spread the word • Event sponsorships • Partner offers • Virtual currency rewards e.g. when inviting friends as new customers • eCRM
- 21. Cost Structure Explained £0.40pflat rate each for every journey Download and use of the App remains free to encourage adoption of CabCollective Allows users to Top-Up like Oyster Pay-as-yougo and „Tap in‟ when journey starts App calculates fare (including fee) using geo data COST STRUCTURE EXPLAINED Only 2 people required on each journey to return financial value Each journey back and forth with 2 passengers and a taxi = £2.40 Set-up auto top-up (minimum £10 balance required) CabCollective takes a flat £0.40p fee from every traveller in the journey regardless of final fare Taxi Drivers pay referral fee of £0.40p to CabCollective for each journey Flat fee structure creates transparent costing, is simpler to understand and encourages participation For every 1000 users only 6 Taxis required in Collective A B C D EF G H I J 1 2 £1.20p revenue for 1 journey (x2 travellers+1 Taxi) 1 2 1 2 1 2 1 2 A B C D E F G H IJ Each traveler (A & B) makes x2 journeys (1 & 2), at £0.40p each. In each trip and a Taxi makes x2 journeys too at £0.40p each. Therefore 10 users making x2 journeys each, have collectively made 10 journeys. Only 0.5% monthly growth of App usage required Revenue: £12.00
- 22. Each App UserMakes 2 Journeys Per Week Each Taxi Makes 25 Journeys Per Day Based On Only 2 App Users Sharing Each Journeys 18 Month Projected Revenue and Growth M1 M2 M3 M4 M5 M6 M7 M8 M9 M10 M11 M12 M13 M14 M15 M16 M17 M18 1,000 3,500 6,000 8,500 11,000 13,500 16,000 18,500 21,000 23,500 26,000 28,500 31,000 33,500 36,000 38,500 41,000 43,500 6 21 36 51 66 81 96 111 126 141 156 171 186 201 216 231 246 261 2,000 31,500 54,000 76,500 99,000 121,500 144,000 166,500 189,000 211,500 234,000 256,500 279,000 301,500 324,000 346,500 369,000 391,500 750 750 750 750 750 750 750 750 750 750 750 750 750 750 750 750 750 750 Number of Collective Journeys Taken 1,000 15,750 27,000 38,250 49,500 60,750 72,000 83,250 94,500 105,750 117,000 128,250 139,500 150,750 162,000 173,250 184,500 195,750 Revenue from Users £800 £12,600 £21,600 £30,600 £39,600 £48,600 £57,600 £66,600 £75,600 £84,600 £93,600 £102,600 £111,600 £120,600 £129,600 £138,600 £147,600 £156,600 Revenue from Taxis £400 £6,300 £10,800 £15,300 £19,800 £24,300 £28,800 £33,300 £37,800 £42,300 £46,800 £51,300 £55,800 £60,300 £64,800 £69,300 £73,800 £78,300 £1,200 £18,900 £32,400 £45,900 £59,400 £72,900 £86,400 £99,900 £113,400 £126,900 £140,400 £153,900 £167,400 £180,900 £194,400 £207,900 £221,400 £234,900 Number of App Users Number of Taxis in Collective Monthly Number of Journeys By All App Users By Each Taxi Total Revenue NB: *Table shows projected revenue based on 2 people sharing each journey made using CabCollective App. Does not show costs such as App development/Management Wages/Capital Equipment Costs Future Growth from Ad Revenue Targeted Ads (using location data collected during 18-20M period) will be incorporated in App once the number of adopters increases beyond 50K (M21)
- 23. Assumptions Simpler model than payingdifferent fees 2 Person journey is the CabCollective base Flat fee far profitable when scaled to more travellers No matter the total fare CabCollective takes a flat fee. x2 Travellers + 1 Taxi Cab @ £0.40 each Population Size (London) Working Age (20-64) Target Market Size (20-29) Target Market as % of Population Growth of Adoption (Monthly) LONDON 1 & 2 MILES OF CHARRING CROSS # of CabCollective Journeys Individual takes (Monthly) # of Travellers Per Journey Charge per Journey Each Traveller Each Taxi Number of Taxis to 1000 Users 1 MILE 2 MILES 8,000,000 65% 5,160,000 500,000 6% 0.5% 2,500 9 2 £0.40 £0.40 6 Average Taxi Fares (TFL London) Distance 1 mile 2 miles 4 miles 6 miles Heathrow to C.London Journey Time Mon-Fri 6am- Mon-Fri 8pm- Sat-Sun 6am(mins) 8pm 22pm 10pm 9.5 £7.20 £7.20 £7.20 15 £11.20 £11.40 £11.40 23 £18.50 £19.00 £19.00 34 £26.00 £29.50 £29.50 45 £65.00 £65.00 £65.00 Night Rate 10pm-6am £7.90 £12.50 £22.50 £30.50 £65.00 Average Fares £7 £12 £20 £29 £65 Charges Structure (% vs Flat Fee) 2 Customer Journey Distance 1 mile 2 miles 4 miles 6 miles Average Revenue Fee per Customer % Fee Flat Rate Fee 7.0% £0.40 % Cost Per Journey Flat Rate Fee £0.52 £1.20 £0.81 £1.20 £1.38 £1.20 £2.02 £1.20 £1.18 £1.20 Price Difference £0.68 £0.39 -£0.18 -£0.82 £0.02 4 Customer Journey Distance 1 mile 2 miles 4 miles 6 miles Average Revenue Fee per Customer % Fee Flat Rate Fee 7.0% £0.40 % Cost Per Journey Flat Rate Fee £0.52 £2.00 £0.81 £2.00 £1.38 £2.00 £2.02 £2.00 £1.18 £2.00 Price Difference £1.48 £1.19 £0.62 -£0.02 £0.82
- 24. Large market withscope for additional revenue streams Increasing preference for mobile commerce Younger generation shaping consumer trends Established Taxi apps showing substantial uptake and growth as well as attracting big investment It‟s an environmentally friendly solution to an everyday problem Provides both tangible and intangible benefits to the Consumer
Editor's Notes
- #3 Script:It's cold, wet and you've been shopping in town all day. There's not a bus due for 25 minutes and spray from passing cars is soaking you to the bone. Your inner bank manager relents, you decide to treat yourself and raise your hand to try and hail a cab home. One ploughs by without spotting you, the next two already have passengers, then there's nothing.Now imagine those occupied taxis pulling over and picking you up on the way. And that’s where CabCollective comes in.CabCollective is a one stop taxing sharing service which connects people travelling to and from a common location.Aimed at people who are budget conscious but do not always want to rely on cheapest public transport options such as the night bus, the advantage to consumers is increased comfort, greater options for hailing a cab and a cheaper overall fare.Taxi drivers are benefited through increased revenue through being able to charge higher flag-falls for multiple pick up and drops offs, and a better ability to plan their runs to be the most profitable. There is no risk of fare evasion as fares are prepaid via the mobile app.What sets CabCollectiveapart from other taxi sharing services is that it is a one stop shop to hail, share and pay for the fare, greatly reducing effort on behalf of the customer.
- #4 How does CabCollective work?
- #5 Download the CabCollective app
- #6 Update your profile with your home and work locations and add any other journey you’re likely to be making regularly.
- #7 Top up your pre-pay account with credit so you’re ready to go straight away
- #8 There’s two main ways in which we see CanCollective being used by consumersFirstly for pre-planned journeys - we anticipate or early adopter usage to result from groups of unconnected consumers at large scale events such football games or concert using CabCollective to find people travelling in the same direction home and sharing the cost of the journey.
- #9 Once the network has grown, we expect users to be able to take more advantage of the ‘Anytime Anywhere’, scalable nature of the service, posting where they are, a time they want to leave and a destination, with the app pairing them with other appropriate users. In theory, any smartphone user can take advantage of this once we have reached a tipping point of a user base.
- #10 We’re all familiar with the time poor / cash rich phrase of the 1990’s– however we feel that whilst the 2013 consumer may in theory be able to afford the luxury of private vehicle hire (PVH) they’d much rather spend their cash elsewhere. CabCollective provides the speed, convenience and luxury of taking a taxi over public transport at a price which is more in line with public transport services. Currently there is not one taxi, PVH company or app based service which dominates the entire UK market. There are some localised services which we’ll look at later Private vehicle industry is worth £2.6 billion nationwide per annum With an estimated 1.8 million Londoners choosing to travel in minicabs each week there are real opportunities for taxi sharing to reduce number of journeys each day Consumers are increasingly looking all aspects of their daily lives and how they can be completed in a more efficient and environmentally friendly way – this is highlighted by the growth of car sharing across the UK - figures from The CarplusAnuual Survey 2011/2012 show there are now over 150,000 car cub members using almost 3,000 vehicles in more than 40 towns and cities across the UK proving consumers are open to sharing their common journeys.
- #13 The taxi industry is currently a hive of digital transformation, apps such as Hailo, Get Taxi that allow users to hail a taxi and pay at the press of a button are revolutionising the market. Sixty percent of London cabbies are signed up to Hailo a company founded by cabbies three years ago. These could be seen as a form of competition, as could car pooling sites as they assist people with sharing lifts in a similar way to CabCollective. There are several very well established car pooling sites including carpooling.co.uk, lifeshare.com and blabla car. The success of Halio and Get Taxi show that there is a market for taxi related apps, and well established car pooling sites show that there is a large number of people with a desire to access shared lifts. CabCollective however will operate in a less crowded niche. As a taxi sharing service in the UK its direct competitors are far less established and effective. Most such as Taxi To, Share a Cab and Cab Match only operate for journeys to and from airports, the technology is very simple and varies from prospective cab sharers holding up a sign (Taxi To) to little more than noticeboards where people can post planned taxi journeys a few weeks in advance eg. Share a Cab. Other cab share schemes are long established, council run projects which operate like a bus, visiting set destinations at specific times. Taxi for two is probably the closest competitor to CabCollective, and has received extensive press coverage. It is a mobile phone based service that simply puts people in touch with each other without them actually having to share their phone number. The app does not book the taxi for them.
- #14 CabCollective will be very from different car pooling sites, and have several advantages over them, being in a taxi will feel safer than sharing a lift alone with a stranger and taxi drivers are usually safe and experienced drivers. CabCollective will allow more spontaneity as sharing a cab can be done instantaneously using the app. It also differs considerably from taxi booking services; the main focus will be to share the journey so that the cost and environmental impact of the journey is reduced. It also offers a considerable advantage over its closest competitor Taxi for Two; it allows the user to book the cab directly so that the journey can be organised in one go, rather than first booking a taxi and then finding someone to share the lift. Unlike Taxi for Two, Collective Cab allows you to pay via the app preventing awkward conversations over dividing the fare or stopping at cash machines.
- #15 So who are the consumer target for CabCollectiveAt a topline level, smartphone users who have the need or want not to rely on public transport are the key targe. With smartphone ownership currently representing a near two thirds of the UK population and up to 9 in 10 of those aged 18-44 years, this presents a scalable potential core market for the service.
- #16 Market needs Sometimes passengers have a common destination and taxi sharing is of benefit as users will pay lower fares for door-to-door journeys than if travelling alone. If there is a long queue of passengers we can reduce waiting and wasting time by offering the shared option. We can see there is a market need for reducing the waiting times and avoiding service complaints. There is also the opportunity to provide greener travel by sharing cars as there will be less traffic congestion, noise disruption and pollution.Market growth While there are a few successful apps doing a similar job out there, the majority seem to be US-centric leaving a major gap in the market within UK and Europe.Online search interest for taxi, cheap taxis and shared taxis already exists.
- #17 Marketing objectives Generate awareness of the CabCollective service in order to attract new users. Develop a network of users who return as we continue providing a high quality service and simple solution for shared travel. In turn we can expect word of mouth recommendations, especially on social media and strong customer loyalty. As brand awareness builds we expect to increase our market share and believe this service can provide a good disruption to the current taxi market. We will meet these objectives by executing our marketing strategy which consists of…..
- #18 In order to encourage customer loyalty we will offer a points scheme where users can gain virtual currency based on how many journeys they’ve made, how many cab social media check ins they’ve done and if they have made online recommendations. We can then reward these users with a free taxi ride or other exclusive offers such as event tickets. We will be the one stop taxi shop (with payment through our app) for new and returning users to book travel in real time and in advance.
- #19 4Ps ProductOffering a one stop taxi shop with app prepayment Customer reward scheme (see previous slide)Customer service provided through FAQs and click to call option (depending on costs)No waiting or time wasting guarantee – ie we will not hang around more than 5 mins for someone while you are in the car/waiting to be picked up, if passenger is not ready their deposit or payment is still taken. (Payment will be made in advance or by paying a deposit + the remainder at the end of your journey through “oyster card” )PriceDue to more passengers individual fares will be cheaper while driver income will be higherApp will be provided free on Apple, Android and Windows storesDue to prepayment we can avoid fare evasionPlaceUse of mobile app – benefits include: always available, responsive, can be updated, takes location settings from phone/google mapsService can be booked real time (within next 2 hours) or in advanceReach users in usual queuing locations eg airports, stations, eventsPromotionCreate social media campaigns and buzz which in turn build our network and generate awareness (interaction with social media will also form part of the rewards scheme )Sponsorship of / promotion alongside events where we expect large crowds going from one destination to another eg. Fans arriving at Kings Cross to go to WembleyOnline marketing including SEO (mobile optimised site that can be used for customer information and to generate app downloads), PPC (search interest in there however we cannot target mobile devices only so would need to analyse the benefit of appearing on desktops and tablets as we cannot exclude these), display retargeting (target users based on previous searches, settings and interests)Use taxi ambassadors eg Boris Johnson who can help to promote the benefits of the service including greener travel
- #21 Building Collaborations and PartnershipsPartner with businesses in identified key locations to increase awareness and reach. Partnerships with business travel markets operators.Collaboration with local taxi firms to establish drivers networkFocus on areas where there is a density of people looking to take taxi journeys – i.e. train stations, airports, music and sport events/ stadiums, large offices, business parks, industrial areas, campuses, etc.Demand Generation( Create awareness and generate trial) Direct Marketing via print media i.e. leaflets , in-flight magazines at focus areas i.e. train stations, airports, music and sport events/ stadiums, large offices, business parks, industrial areas, campuses, etc.Free trial Promotions (Customers can download apps and use for a period of time before full charges apply. Build micro communities around the key locations (i.e. mentioned above).Invite one, and one in turn invite others for communities to grow organically.Social Badging- Invite customers to review the apps and services online( these will generate more downloads and usage).Event SponsorshipsJoint promotions with services offered by partners i.e. discounts if you fly with easyjetLoyalty Building ( Repeat Purchase and Loyalty)Reward loyalty- Loyalty Points for continual usage.Invite one, and one in turn invite others for communities to grow organically. Discounts for introducing a friend/colleague to join community.Incentivise happy customers to help spread the word via online (use Social Media-Facebook, twitter to drive social word of mouth).eCRM
- #25 Each day onin London alone almost 400k cabs/taxi rides are taken carrying almost 600k passengers, daily.This providesenormous (local) market potential with additional opportunity for multiple revenue streams through advertising on our owned media (website), targeted mobile Ads and physical mini cab company uptakeMobile Commerce, Apps and mobile use have exploded and will continue to evolve as a preferred method of engagement for consumers, payment methods and brands globally The changing demographics of ecommerce will continue to drive business as the younger generation see their smartphones / tablets as their primary access device for the internet – it is now a habit not a noveltyMarket opportunity – With well established existing taxi ‘Apps’ showing substantial uptake and growth globally, our business model is to initially focus on a ‘sharing’ model – using a successful model with a positive twist focused in one area to begin with – Greater London as an exampleEnvironmental considerations, reduction in carbon footprint, potential to be a ‘government backed’ schemeProvides value and financial savings to the consumer whilst encouraging a sense of community, networking and personal opportunity