MODride (202)
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The document presents a business proposal for a one-way car-sharing service focused on urban mobility, highlighting the need for sustainable transportation solutions due to increasing congestion and carbon emissions. It outlines the company's growth plans, including launching a pilot program at MIT, expanding to nearby colleges, and eventually offering services to the general public, while also noting key market opportunities and financial projections. The proposed solution emphasizes fuel-efficient vehicles, flexibility in usage, and support for mass transit, ultimately aiming to reduce urban carbon footprints and improve transportation convenience.
MODride (202)
- 1. Mobility-on-Demand RideYour personalized taxi at a fraction of the costRyan ThurstonAleem MawaniVirot ChiraphadhanakulRyan ChinConfidential / Do Not Distribute | sales@modride.com
- 2. Company SnapshotPotential InvestorsFoundersFinancials$250kSMART Center BostonSeeking for angelMIT PhD and Masters students with operations and transportation expertise$5.3MMSeeking for Series ANon-dilutive grants and subsidies availableFuture offices in San Jose, CAFounded in 2011, Cambridge, MAPrimary Media Lab funderOngoing technical interest and supportThe TeamAdvisorsMarket One-way car sharing
- 3. Rentals by the minute
- 4. Commercial vehiclesRyan ThurstonMIT Sloan School of ManagementTodd WhitelawBrand ManagerSMART Center BostonAleem MawaniHarvard Business SchoolU.S. Carsharing Market Revenue2009 - 2016Kent LarsonDirector Changing Places GroupMIT Media LabVirot ChiraphadhanakulPhD CandidateMIT Operations Research CenterDimitris PapanikolaouPhD Candidate, MIT Media LabSmartCities Group$3.4 B oppty44.4% CAGRRyan ChinResearch Specialist & PhD Candidate, MIT Media LabSmartCities Group
- 5. Problem: Urban mobility is unsustainableClean energy issuesPollution via carbon emissions53% of carbon emissions from fossil vehiclesCity congestionEnergy inefficiencyLifestyle trendsRent vs ownDemand for green vehiclesExisting Solutions FailPrivate automobilesMajor source of CO2 emissions
- 6. Cause massive congestionsPublic TransportationDoes not cover entire city
- 7. First mile - Last mile problem
- 8. Inconvenient and inflexible schedulesBy far, the largest source of C02 emission is fossil fuel consumption via transportation53% Amount of carbon emissions devoted to transportationSource: Frost & Sullivan, EPA
- 9. The future: Clean and sharable vehicle useUrban car sharing expandingZipcar expanding rapidly6000 vehicle network49:1 Member:Vehicle ratio in 2009 and growingAutoLib debuts in ParisFleet of 3,000 carsHalf hour rentalsHertz, Enterprise launch car sharingCombined fleet of 850 cars and growingBike sharing programs exploding200,000# of bicycles rented daily in Paris80# of cities that currently offer bicycle sharingAuto OEMs releasing clean, “urbanized” vehiclesSource: Frost & Sullivan, U.S. Dept of Energy
- 10. Solution: One-way, fuel efficient car sharing networkCommercially available SMART ForTwos, rented by the minute
- 11. Pickup and drop-off anywhere in the urban area
- 12. Maximized service level and fleet utilization through our patent-pending fleet management systemProsChallengesIncreases vehicle utilization Leads to higher revenueReduces congestion Each shared car removes up to 30 vehiclesFlexibility & Convenience Mobility-On-DemandSolves first mile – last mileIncreases ridership of mass transitComplementary to mass transitFleet ManagementVehicle availabilityNo parking Costly redistributionCritical Mass
- 13. Reliance on Local Municipalities to fund parkingOne-way car sharingVSTraditional two-way car sharing modelSource: Frost & Sullivan
- 14. Market Entry PlanCambridge - MITPhase 1Launch small pilot MITOperate on campus (25-50 cars)
- 15. Current partnership with SMART
- 16. Prove use-case and niche
- 18. Rely on word-of-mouth marketingPhase 2Expand to nearby collegesRestrict usage to studentsPhase 3City and general public use2011-2012 Phase 1 ScheduleCandidate cities include:High GDP
- 20. Mixed land-use
- 21. Poor public transit coverage
- 22. Motivation to reduce traffic and energy consumptionIterate and perfect product based on customer feedback
- 23. Appendix: Boston area target marketsMarket Opportunity 122,671 studentsDecision Making Unit (DMU)Percent time spent on managerial responsibilitiesPersona and Description“The Influencer”. Responsible for sizeable budget ,staff, operational and strategic planning. Performance review weighted toward managerial responsibilities75%Transportation Manager“The Driver”. Performance review balanced between managerial and technical achievements50%IT manager25%“The Veto”. Technical leader in one or more domains. Performance review weighted on technical achievementsConsultant technical architectSource: http://www.doe.mass.edu
- 24. Appendix: Benchmarking Top 6 Car share organizationsOne-way, fuel efficient car sharing is an entirely new market opportunityMinute-minute rentals further differentiates our offering** = nonprofitSource: Frost & Sullivan
- 25. Appendix: Detailed FinancialsKey FiguresGross Margins (worst case – will rise after fixed costs removed)58%AssumptionsVehicles leased through OEMsRetrofittingIncludes Android tablet, smartphone apps, GPS, keyless entry, etc.
- 26. Appendix: Car2Go Market SurveysCar2Go userPositive Feedback“Car2Go's silver bullet is that you don't have to return the car to where you started”Tate S. Austin, TX10/6/2010“I was dreading the walk home, but voila! someone had parked a car2go right in front of the restaurant! It really has been a lifesaver on my laziest occasions.”Karen L. Austin, TX12/1/2010“I love the idea of car2go, and the few times it was available to get me to work on time, it was fantastic and I was grateful.”Meg C. Austin, TX12/14/2010Negative Feedback“I got an email confirmation showing the location of the car on a map. I got to the location- no car. I checked around the area. No car.”De C. Austin, TX11/10/2010“I can never find one when I need it. EVER.“Mercedes P. Austin, TX12/14/2010“Someone of course took our car by the time we were gonna leave. We walked around a bit before finding a new one since the website from phone sucks.“B.T. Austin, TX1/1/2011Confidential / Do Not Distribute | sales@modride.comSource: www.yelp.com
- 27. Appendix: One-way Car Sharing Business Model The breakeven point for car ownership and carsharing is approx 4k miles
- 28. Our target market is urban dwellers who drive less than 4k miles per year
- 29. Carsharing is more cost effective vs car ownership
- 30. Carsharingprograms save up to 70% of the total transit costs for its members
- 31. Utilization rate is the key revenue driverConfidential / Do Not Distribute | sales@modride.comSource: Frost & Sullivan
- 32. Appendix: U.S. & Canada Two-way car sharing market (2009)Most car sharing serves one city/market (except ZipCar and U Car Share)
- 33. Rental companies recently joined (e.g. Connect by Hertz, WeCar)
- 34. One-way trips will raise membership and serve urban nicheConfidential / Do Not Distribute | sales@modride.comSource: Frost & Sullivan
- 35. Appendix: Two-way car sharing market (U.S. & Canada ’01-’09)Tremendous growth over the past few years
- 36. Market consolidation grew the avg revenue of carsharing programs
- 37. Startup financing and partnerships will remain key issues for future carsharing programsConfidential / Do Not Distribute | sales@modride.comSource: Frost & Sullivan
- 38. Appendix: Two-way car sharing market (U.S. & Canada ’09-’16)More members and increased vehicle utilization rate after consolidation make total industry revenue grow fastConfidential / Do Not Distribute | sales@modride.comSource: Frost & Sullivan
- 39. Appendix: Future of Transportation in urban environmentsFor the first time in history, there are more people who live in urban vs rural areasSource: UN Population DivisionConfidential / Do Not Distribute | sales@modride.com
- 40. Appendix: Car2Go # of users vs trip time Majority of Car2Go users spend 15-25 minutes using rental.
- 41. Car2Go utilization rates 13-15% per day on averageConfidential / Do Not Distribute | sales@modride.comSource: Frost & Sullivan
- 42. Appendix: Carsharing industry challengesConfidential / Do Not Distribute | sales@modride.comSource: Frost & Sullivan
- 44. 49:1 Member:Vehicle Ratio in 2009
- 45. 63:1 expected in 2016Confidential / Do Not Distribute | sales@modride.comSource: Frost & Sullivan