Taxi call investor pitch july 2011

Taxi call investor pitch july 2011

• 1.
  TaxiCall Mobile Platform ManagingTaxis and Customers Dimitri Popov +7 916 0196100 Skype: dimitri.popov dimitri.a.popov@me.com LinkedIn: http://www.linkedin.com/in/dimitripopov 1
• 2.
  Contents 1.Vision 2.Market/Problem 3.Product/Service (benefits) 4.Underlying Technology 5.TargetCustomer 6.Value Proposition 7.Selling Strategy 8.Customer Acquisition 9.Management Team 10.Business Model 11.Projections & Milestones 12.Funding Plan 13.Potential Exits 14.Summary & Call for Action 2
• 3.
  Vision • Become #1most i) usable and ii) popular service in managing taxi customer operations from A to Z • Grow to a large profitable operation (both operationally and overall) in CIS with $10M annual revenue • Penetrate several large national markets (US, Europe, Asia) with dominant share of mobile/online orders • Exit to a potential buyer or IPO 3
• 4.
  Taxi markets aresignificant and mature • Most markets are growing behind: ★ higher incomes ★ reduced costs of taxi car ownership ★ more need to manage personal commuting inside urban areas ★ ample labor supply ★ increased costs of a personal car ownership Market Population, mln GDP per capita, US$‘000 Industry Revenue, $M Number of operators Employees, ‘000 Revenue per Employee, $‘000 Taxi Spending per Capita, US$ US 313 46.8 9,200 7,000 136 68 29 Australia 22 41.7 4,900 5,400 68 72 223 UK 63 34.8 4,000 18,000 157 25 64 Ukraine 45 6.7 800 1,000 100 8 18 Sources: IBIS World, CIA Factbook and other free and paid research available online, dated from 2002 and 2011Sources: IBIS World, CIA Factbook and other free and paid research available online, dated from 2002 and 2011Sources: IBIS World, CIA Factbook and other free and paid research available online, dated from 2002 and 2011Sources: IBIS World, CIA Factbook and other free and paid research available online, dated from 2002 and 2011Sources: IBIS World, CIA Factbook and other free and paid research available online, dated from 2002 and 2011Sources: IBIS World, CIA Factbook and other free and paid research available online, dated from 2002 and 2011Sources: IBIS World, CIA Factbook and other free and paid research available online, dated from 2002 and 2011Sources: IBIS World, CIA Factbook and other free and paid research available online, dated from 2002 and 2011 4
• 5.
  Problems are typicalfor mature but low-tech market Taxi Operator & Taxi Driver Customer 1. High call center overhead 2. Frequent human errors (operators and taxi drivers): navigation, billing 3. Inability to i) manage supply (constant fleet/ driver resource) and volatile demand, ii) detect hidden demand 4. Suboptimal navigation, route mapping and traffic jam management 5. Unreliable radio/mobile phone communications, dangerous while driving 6. Lack of complete data to make pricing, ordering and hiring policy decisions 1. Time spent on the phone to order a taxi (waiting, conversation) 2. Unclear time and cost of the trip 3. Lack of taxi-sharing opportunities in busy urban environment to save time/money 4. Lack of one-time or monthly billing 5. Lack of money-saving “frequent flyer” (loyalty) programs 6. Lack (frequent) of bank card payment opportunity 7. Metering is perceived to be unfair 5
• 6.
  Product solves ALLthese problems Feature Customer Taxi Driver Taxi Operator Easy ordering with Start and End address prompt X X* X** Current location prompted X X Route Planning & Navigation X Time and Cost forecast X X Countdown till trip starts/ends X Billing with trips, length, distance and cost (online or email) X X X Billing based on true distance and actual time spent X X X Supply forecast* based on historical, weather and public data X Instant and reliable taxicab location X X Taxi sharing opportunities**** * In case the taxi driver picks up someone in the street ** In case customer calls on the phone *** Includes geographical forecast to allocate taxicabs to area where demand is expected to grow **** Especially important during high-demand peaks 6
• 7.
  Technology and itscomponents are proven to work • Represents four interfaces • Employs computational abilities outsourced to a cloud • Integrated with APIs of major i) navigation and ii) payment providers • Open issue: payments through Apple application possible? Customer Taxi Driver** Taxi Operator TaxiCall Device Mobile phone, Smartphone or a Pad Pad*** Computer Server Interface iPhone, Android application or SMS iPad or Android application Web Browser Web Browser Device Location Customer’s pocket or hand Mounted in front of the driver inside the car Manager’s desk Cloud* Connection GPRS, 3G/4G or WiFi GPRS, 3G/4G Any Internet connection Reliable high-speed Internet connection * Amazon or other cloud service with scalable computing capabilities and reliable connection ** With such an infrastructure a taxi driver can lease his high-speed Internet connection to the passenger at extra charge *** The Pad will be alos equipped with a card reader 7
• 8.
  Two types ofTarget Customers & Value Proposition 8 Taxi Customer 1. Start ordering taxis from a convenient user interface, avoiding communicating with operator, which is time- consuming and may contain errors 2. Start getting advice on when you need a taxi if you need to be at your destination at a certain time 3. Start getting clear and complete weekly/monthly bills for your taxis 4. Get individualized pricing/billing based on your LTV with the Taxi Operator Taxi Operator/Driver 1. Increase your sales through realizing latent demand and taxi-sharing 2. Reduce overhead by automating order processing at variable cost and a small subscription fee 3. Make more money through smarter demand and supply management 4. Increase customer satisfaction and loyalty through ✓ reduced human errors ✓ usable customer interface ✓ multiple payment options (including ) ✓ more transparent and fair billing 5. Reduce driver risks and time losses through better navigation and instruction 6. Increase driver satisfaction through more transparent billing and better navigation
• 9.
  Selling Strategy &Customer Acquisition 9 Target Objectives Communication & Business Development Channels/Tools Customer 1. Penetrate maximum percentage of smartphones and pads with TaxiCall application 2. Maximize percentage (100%) of taxi orders through mobile application 1. Online advertising 2. Social media 3. Partnerships with Expedia and other travel management services Taxi Operator 1. Penetrate maximum number of operators and their taxi drivers 2. Maximize number of orders managed through the customer end (via customer smartphones) and taxi driver pads 3. Minimize human operator involvement and decision-making 1. Industry events 2. Pilot trials with selected taxi operators 3. Endorsements by taxi operator owners on what positive changes TaxiCall made to their business operational and financial performance 4. Financing (leasing) of hardware (taxi driver’s Pad)
• 10.
  Revenue model (Kievpilot) 10 • Kiev pilot is proposed to test the technology as well as business development, along with technology acceptance by passengers, taxi drivers and taxi operators • Assumptions are conservative • Smartphone penetration will be constantly growing, in line with other global markets Total city population, ‘000 3,300 Share of those using taxis, % 20% Taxi customer pool, ‘000 660 Smartphone penetration among those using taxis, % 20% TaxiCall customer base, ‘000 132 Average number of orders per customer per month 1.20 Total monthly orders through TaxiCall, ‘000 158 Average taxi ride check, US$ $4.40 Total taxi monthly revenue, US$‘000 $697 TaxiCall comission, % 10% Total monthly commission, US$‘000 (Kiev only) $70 TaxiCall Annual Revenue, US$‘000 (Kiev only) $836 Ukraine National Annual Revenue, US$‘000 $3,345
• 11.
  Management Team 11 Dimitri Popov,CEO & Co-Founder Shares both corporate and entrepreneurial experience, have several startups launched and progressed, including YouScan, Restart, Aftar and SuperPhoto, as well as the failed ones (SmashTV and Hippocrates). Prior to entrepreneurial activities worked for Procter & Gamble, General Motors, Toyota, MTV, Benckiser, 1+1 TV and Volia Cable and other companies in marketing. Ognjen Nastic, CTO & Co-Founder IT professional with a wide range of professional experience, both technical and management. Strong background in technical governance and managing people. Vast experience with Microsoft technology and Linux solutions. Mikhail Golokolosenko (TBD), VP Business Development Business development (sales) professional with experience at Henkel (FMCG distributor relationships) and Volvo Financial Services (leasing). Mikhail is eager to join a startup with international scope. All team members speak and write fluent English, have international exposure and have their full profiles on LinkedIn
• 12.
  Key Milestones 12 Month/Year Milestone October-11Beta developed and tested on 10 taxi drivers and at least 1,000 customers November-11 Top 20 taxi operators in Kiev penetrated with TaxiCall technology at least as a pilot December-11 Operationally profitable in Kiev December-11 Maps and billing integrated into the product for 5 chosen European markets January-11 5 pilots in European countries (possibly including Estonia) February-12 Maps and billing integrated into the product for the US market (preferably NY and LA) March-12 Pilot in the US (NY, LA)
• 13.
  Funding Plan 13 Month/Year TypeFunding Amount, US $‘000 August-11 Seed Initial seed funding received $250 March-12 Round A Funding for growth received based on proved business model, scalable and profitable $2,000 January-13 Round B Secondary funding received to accelerate growth in major markets, like US, EU and Asia $10,000 2014 Exit IPO or sale to a buyer $50,000
• 14.
  Potential Exits 1. Expedia,TripIt or other travel management services 2. IPO (NASDAQ, LSE) 3. Large taxi operators 4. Large transport operators 14
• 15.
  Next steps 1. Agreeto invest $250K as seed at a 20% equity stake 2. Form a company (Cyprus, BVI or the US) to hold shares, patents, trademark registrations 3. Develop Beta, make sure it works perfectly 4. Start a pilot project in Kiev with hardware financed for a number of selected taxi drivers 5. Run a campaign to attract at least 10,000 taxi customers into the pool (preferably frequent taxi riders) 6. Prove sustainability of technology and business model 7. Apply for Round A funding 15
• 16.
  Backup 16 1. Industry Facts 2.Revenue Model for Kiev 3. Taxi driver P&L (reality from taxi driver’s perspective)
• 17.
  Other industry/market facts •Average annual revenue per employee in the US is $70K. In Ukraine about $8K. • 2/3 of taxi orders are made by phone, and 1/3 is made on the street • Average taxi customer in the UK travels 61 miles per year (all population) • Large cities demonstrate 70% higher spending per household (UK) 17
• 18.
  Liberal Business ModelCurrent Business Model Total Kiev Population 3,500,0003,500,000 Taxi users, % of Total Population 10%10% Customers 350,000350,000 SmartPhone Penetration, % 15%15% SmartPhone Users, # 5250052500 Usage Frequency, per Week 11 Average Check, UAH 3030 Usages per Month, # 227500227500 Commission, % n/a 10% Commission, UAH 2.00 3.00 Revenue, Monthly, UAH‘000 455 683 Revenue, Annual, UAH‘000 5,460 8,190 Revenue Model: Kiev Market Only 18
• 19.
  Ukrainian taxi realityfrom a perspective of a driver Per week Per month Revenues Number of orders 140 607 Revenues Average Check $5 $5Revenues Revenue, $ $700 $3,033 Costs Car rent (min) $100 $433 Costs Radio Rent $8 $33 Costs Gasoline $84 $364Costs Dispatcher Commission, % 10% 0 Costs Dispatcher Commission, $ $70 $303 Netto Driver IncomeNetto Driver Income $439 $1,900 19