The document summarizes survey results from 1,000 London taxi users regarding credit card usage and potential acceptance of a smartphone-based taxi hailing app. Key findings include: - Nearly half of all black cab fares would be paid by credit card if payment systems were installed in all cabs. - Potential card usage is concentrated among heavy business and private taxi users, who account for 6% of users but 43% of potential card-paid fares. - Targeting both heavy users and occasional business travelers could capture over half the potential market for card payments in black cabs.

1. London Black Cab And Private Hire Firms Differ But
Share A Common Market
Daily totals Daily totals
300,000 passengers 301,000 passengers
200,000 journeys 210,000 journeys
21,000 vehicles 45,000 vehicles
24,000 drivers 46,000 drivers
Each taxi per Each taxi per
2,300 operators
month month
290 fares 142 fares
£12 average fare £13 average fare
Source: TFL; market research

2. CONFIDENTIAL 1,000 London-based Taxi Users Were Surveyed To Gain
Insights Into Credit Card Usage And Potential For A Hailing
App
Survey Format
• Online survey format with some free text responses
• Responses for 1,000 taxi users, aged 18+, all living in London
– 1,224 people needed to be contacted to reach 1,000 taxi users (frequent and occasional):
18% of the London population never take taxis
• Both black cab and private hire users were included
– Respondents provide a representative sample of 2100 fares per month out of London black
cabs’ 6.1 million monthly fares
• Survey focus on:
– Demographics
– Taxi usage behaviours (personal / business)
– Likelihood to pay by credit card, credit card needs
– Acceptance of a smartphone-based hailing app
The survey combines details on current usage patterns and allows estimation
of potential usage regarding paying by card and hailing via an app
Draft Presentation v2/280911/
2 © Corporate Value Associates 2011. All rights reserved

3. CONFIDENTIAL Respondents Represent A Significant Part Of The
London Black Cab Market But There Are Others To
Consider Too
Market Coverage
Estimated breakdown of black cab
journeys in London
• Survey only includes Londoners, equivalent
14% to 61% of all black cab journeys undertaken
• Visitors to London not included
25% • Other British visitors are equally likely
Foreign Visitors
to pay by card but very unlikely to use
an app because of unfamiliarity
Other British Visitors
• Foreign visitors are very unlikely to use
Londoners an app because of high data charges
61% when abroad (as well as unfamiliarity)
but quite likely to pay by card for
ease/lack of local cash
Draft Presentation v2/280911/
3 © Corporate Value Associates 2011. All rights reserved
Source: TFL; Visit Britain

4. CONFIDENTIAL
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4 © Corporate Value Associates 2011. All rights reserved

5. CONFIDENTIAL
92% of Taxiworld customers think that hailing apps used by private
hire companies are threat to the black cab trade.
82% of Taxiworld customers agree a fleet of 4000 vehicles
would be required to provide a reliable service and compete
with rival private hire companies
90.1% of Taxioworld customers have never used a
hailing app
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5 © Corporate Value Associates 2011. All rights reserved

6. Almost Half Of All Black Cab Fares Would Be Paid By
CONFIDENTIAL
Card If Card Payment Systems Were Fitted In All Cabs
% of taxi users in London
28% 29% 43%
Would never Circumstantial Preference for
use cards use using card
• Potential card users make 3.2m black cab
journeys per month (of the total 6.1m London
black cab journeys)
• Up to 2.7m of those would be paid for by card
• The average fare paid for by card would be £
13.75
Card usage is strongly dependent on the surcharge passed on to the
customer
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6 © Corporate Value Associates 2011. All rights reserved

7. CONFIDENTIAL Potential For Card Usage In Cabs Is Concentrated
Around A Very Small Group Of Heavy Business &
Private Black Cab Users
43% Heavy Taxi Users
Potential for up to 1.4m journeys paid
(business & 6%
by card
private)
Strong
Occasional Up to 508k
preference
12% card
for using Business Users journeys
card
Private Users 25% 386k
29%
Circumstanti Circumstantial 29% 306k
al Users
Draft Presentation v2/280911/
7 © Corporate Value Associates 2011. All rights reserved

8. CONFIDENTIAL By Targeting the Heaviest Users As Well As Occasional
Business Users, The Majority Of The Market For Card
Payments Could Be Captured
These two groups have very similar needs
Heavy Cab Users (business & private) Occasional Business Users
Senior-Level Up to 508k
Job card
Smartphone 12%
journeys
Users
• 25-55 male
In Full-Time • Full-time employment
Employment • Above-average income
• Senior-level job
• Smartphone users
More likely to
High Income
be male
Private Users
University 386k
Degree Aged 18-45
25%
• 35+ female
• Working part-
6% of London taxi users time/homemaker/retired
• Below-average income
Potential for up to 1.4m journeys paid • Basic phone users
by card
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8 © Corporate Value Associates 2011. All rights reserved

9. They Look For Convenience & Simplicity In Card
CONFIDENTIAL
Heavy Cab
Users
Payments
88% want to be able to pay the fare and tip without
requiring any interaction with the driver
85% claimed they would be significantly more likely to
pay by card if fast, contactless technology was
available
? ?
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9 © Corporate Value Associates 2011. All rights reserved

10. As Well As Modern Payment Systems, The Idea Of A
CONFIDENTIAL
Heavy Cab
Users
Hailing App Also Appeals To These Most Frequent Users
If they could 50% of these customers would use a
hailing app for all or most of their black cab journeys
Heavy Taxi Users 6% 38% 33% 22%
(business &
private) No journeys Som e Most All m y journeys
Occasional 13% 53% 24% 10%
Business Users
No journeys Som e Most All m y journeys
36% 38% 15% 11%
Private Users
No journeys Som e Most All m y journeys
42% 45% 11% 3%
Circumstantial
Users No journeys Som e Most All m y journeys
Proportion of black cab journeys for
which an app would be used if it was
10 available© Corporate Value Associates Presentation v2/280911/
Draft
2011. All rights reserved

11. Using A Hailing App Is Seen As Generally Preferable
CONFIDENTIAL
Heavy Cab
Users
And More Convenient Than Hailing On The Street
Under which circumstances would you consider using an app?
Currently use an app 5% General preference –
an app is better than
Would always use if possible 37% hailing on the street
It's too busy - can't find taxi 30% Convenience – when the
normal way of hailing a
Avoid waiting outside 29% black cab fails
Have no cash & can pay via app 10%
(multi-select, total = 40%)
Pre-book 37% Security of a pre-
Agree fare beforehand booked cab
21%
Would never use 2%
All Target group
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11 © Corporate Value Associates 2011. All rights reserved

12. A Number Of Features Have Been Suggested For A
CONFIDENTIAL
Heavy Cab
Users
Potential App
For many, it is just a more convenient way to hail a black
cab…
“it helps me and saves my “Simple, easy to use - from which “Be able to find taxis
time” postcode address to where.” when busy”
“I would like it to be simple and just let
“I would like it to tell me how far away (truthfully) the driver
me know in how long the taxi will be
was and if they were going to be delayed.”
here.”
…but price & payment are top of mind
“Exact price - approx ride time
“making it easy to pay, easy “quote feature…ability to
and payment from phone
to access destinations” pay ahead,”
option”
“The ability to pay via mobile phone and
“Pre-registered card payment system and
to know the costs of my journey
pre-agreed price for journey”
beforehand”
Draft Presentation v2/280911/
12 © Corporate Value Associates 2011. All rights reserved

13. CONFIDENTIAL This Target Customer Group Is Likely To Prefer Black
Cabs, However There Is Growing Competition From The Heavy Cab
Users
Private Hire Industry
The desire to pre-book and to fix the fare beforehand
If you were using a hailing app…
57% All
Price is key – 48% would
41%
48%
Target group only use a black cab hailing
27% app if the fare was the
16%
11% same as for private hire
vehicles
Always Prefer Prefer Black Cab If Prefer PHV
Black Cab It's Same Price as
PHV
Overall, this group already makes as many private hire
journeys as black cab journeys
Need to act to maintain competitiveness with the private hire industry
Draft Presentation v2/280911/
13 © Corporate Value Associates 2011. All rights reserved

14. The General Customer Expectation Is That Card
CONFIDENTIAL
Payment Should Be Free
Nearly three quarters of people say they would use their cards more often in
black cabs if there was less of a surcharge
“Using the card in the cabs should
be the same as using it in shops”
“It's ridiculous to surcharge for such
a common form of monetary
“Why surcharge at all? Make it all
exchange”
one price”
“We are heading towards a more
“I don’t think they should charge –
cashless society. Lets have all costs
up to them to factor it into their
up front.”
fares”
“We live in a technological age
“Black cabs should bear the cost like
where most people use cards and
all other retailers”
black cabs should move with the
times”
“The fare should cover ALL charges”
“I don't understand why there should
be a surcharge. Tesco doesn't
surcharge me”
Card payment is so commonplace nowadays but people rarely have to pay a
surcharge Draft Presentation v2/280911/
14 © Corporate Value Associates 2011. All rights reserved

15. However A Small, Cost-reflective Surcharge Is
CONFIDENTIAL
Considered Acceptable
Customers are happy to pay
for convenience but also want “If it was shown to decrease
to be seen as “smart” buyers their earnings I am happy to
pay a surcharge”
“I don't know why I should pay
ANY surcharge except to The acceptable level is
cover bank fees” “enough to cover any costs to
[the] driver”
The acceptable level is “the
surcharge that the bank “They should only charge the
actually charge for a card amount they [have] been
transaction” charged from the card issuer”
“The surcharge should be no “All businesses charge on
more (and no less) than the average 1 to 3% for card
charge made by the card payment. I don't see why black
company” cabs would be entitled to so
much more”
A number of respondents have also suggested a fixed card processing fee
in the region of £1-£2, equivalent to the surcharge charged some cash
machines
Draft Presentation v2/280911/
Source: Lightspeed Research Ltd.; UK Payment Administration; Which? 15 © Corporate Value Associates 2011. All rights reserved

16. The Customer Is “Showing The Way” In Its Payments
CONFIDENTIAL
Preference
16.4m Contactless
Payment Cards in the
UK
6 issuers
Over 5.6bn Mobile Handsets by 2016
15.3 bill Mobile transactions predicted by 2013
Within 10years Mobile could overtake Credit
card
As the most popular non cash payment
Draft Presentation v2/280911/
16 © Corporate Value Associates 2011. All rights reserved

17. Cab Drivers Want To Remain Competitive And Are Keen
CONFIDENTIAL
to Embrace Anything That Will Help Business
They realise the potential of PHVs increasing their market share if they do
not keep up with the technological advances
• Most cabbies would be interested in joining a hailing “It can only be a
app system despite never having used one before good thing”
• They can see the potential apps have for benefiting “Anything to
PHVs support the black
• Apps may allow cabbies to claim some of the private cab industry is a
hire trade – particularly those accustomed to using good thing”
existing PHV apps
• Reluctance of cabbies to move with the technology
could result in PHVs superseding black cabs as apps
become the default method of hailing/booking a taxi
“Everything these
• Cabbies agree that a large fleet size is necessary to days is a threat to the
have enough drivers/passengers to satisfy both black cab industry”
• Both cabbies and passengers are having teething
problems with existing apps which are already live “We are already the
but only still gradually rolling out second choice”
Cabbies are keen to use any help to maintain or increase their levels of
business. They see that apps are working well for PHVs and do not want to
lose custom to them Draft Presentation v2/280911/
17 © Corporate Value Associates 2011. All rights reserved

18. Card usage is strongly dependent on the surcharge
CONFIDENTIAL
passed onto the customer
How much can reasonably be charged?
4,000,000
<5% 5-10% >10%
3,500,000 Preference Convenience Necessity
3,000,000
Number Of
2,500,000
Journeys Per
Month Paid By All journeys
2,000,000
Card
1,500,000
Journeys
1,000,000 <£15
500,000
0
0% 2% 4% 6% 8% 10% 12% 14%
percentage surcharge level paid by customer
If facilities for contactless payments are installed only, the number of
journeys paid for by card would be reduced significantly to those <£15
Draft Presentation v2/280911/
18 © Corporate Value Associates 2011. All rights reserved

19. Taxiworld’s Value Objective In Designing Its Service
CONFIDENTIAL
Offering Is To Win Over The Most Attractive Customer
Key dimensions of the value objective:
High-value passengers
How can we ensure this?
• Win the customers who we know have higher
fares, pay more by cards and want to use a
hailing app • Convenience
• Simplicity
Loyalty • Availability
• Each passenger acquisition will have an • Peace of mind
associated marketing cost; a loyal base of
• Security
repeat users will be crucial for market
success • Reliability
• Build up and maintain a relationship
with the passengers
Advocacy
• Influence passenger behaviour
• Organic growth from word-of-mouth
recommendation by giving passengers the
best possible experience
These value objectives define the proposition to the passenger
19 © Corporate Value Associates 2011. All rights reserved

20. There Are Certain Features That Passengers Are Clear
CONFIDENTIAL
About Wanting
Some wanted many extra features… …others just wanted it to hail a cab easily
“The app to make a “Time the cab will
sound when the taxi reach you “Simple but
has arrived (so I don't estimated price effective”
have to stand in a estimated journey
rainy street waiting for time ability to “Just the
it)” prepay” basics”
“Waiting “Updates on the latest
times, costs traffic, fare charges,
and alternative public “Easy – i.e. click
surcharges, m transport routes, time & go”
aps/journey until the cab would “User
planner” arrive, journey time, friendly –
payment options” few screens
to go
through”
“Ability to find out “Be able to “Fast and
fare before pay via reliable”
agreeing booking” app”
Many of the suggested features are hygiene but some, if offered, would mark
Taxiworld out in the passengers’ view
20 © Corporate Value Associates 2011. All rights reserved

21. CONFIDENTIAL
Potential Value Propositions To The Passenger
Passenger Value Proposition
• Hail a black cab at the touch of a button Like your
own
Financial
• See how long a journey will take & cost before chauffeur
having to book
Great taxi
• Same costs as hailing on the street service at the
touch of a
button
• Hail a cab from inside
Convenience
Wherever,
Security /
whenever
• Even hail with no phone signal by using Wi-Fi
• Priority for cabs when it’s really busy
Cab in your
pocket
• A black cab will always be just minutes away
• See exactly how long it will take to get one No need for
Convenience
• Don’t miss any nearby cabs cash
• Convenience of a minicab, assurance of a black cab
• Get a nicer, newer, more comfortable cab 3,000 cabs
at your
• Multiple ways to pay Beat the disposal
cab queues!
21 © Corporate Value Associates 2011. All rights reserved

22. In Our Market Research, We Asked What Features
CONFIDENTIAL
People Would Like A Hailing App To Offer
Percentage of
20% respondents
wanting each
18% feature
16%
14%
12%
10%
8%
6%
4%
2%
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There were several other suggestions too, including some who suggested a
reward scheme for repeated use
22 © Corporate Value Associates 2011. All rights reserved

23. Successful customer experience is enabled by the
CONFIDENTIAL
2
size of the driver network
Estimated market for 1.4m black cab journeys / month hailed by app
If each cab takes 100 app bookings per month (of the typical 290 fares
taken), we would require 3,500 cabs  more cabs mean we can serve
more customers, enabling a bigger market share in terms of app hails
Need to balance best availability for customers against cabbies needs
– they will not sign up for the system if not enough work comes through
Virtual Taxi Network Business Plan/211111/
23 © Corporate Value Associates 2011. All rights reserved

24. CONFIDENTIAL
2 A good driver experience is also required
Receive hail
• Hail request comes in showing
Ready for fare start-point (and destination if
known)
• Driving around or waiting on • Limited period of time to
rank respond Meet passenger
• Close enough so ACCEPT
• Given passenger details
• Alert automatically sent to
passenger when cab arrives
• Meter starts
During the journey
• Live traffic updates
Post-Journey Payment • Option to update info for other
drivers
• If cash payment, confirm • Stop meter on arrival
payment on app so receipt • Fare shows up on terminal
emailed automatically
• If card payment, terminal • Passenger adds tip on terminal
confirms payment • Passenger carries out card
automatically payment themselves
• Option to rate passenger • Still has the option to pay by
cash
Virtual Taxi Network Business Plan/211111/
24 © Corporate Value Associates 2011. All rights reserved

25. CONFIDENTIAL
Draft Presentation v2/280911/
25 © Corporate Value Associates 2011. All rights reserved