CabCollective Share the fare

ELEVATOR PITCH

CabCollective is a one 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?

HOW IT WORKS

HOW IT WORKS

HOW IT WORKS

HOW IT WORKS

£££

Pre-Planned Journeys

HOW IT WORKS

Anytime Anywhere

HOW IT WORKS

Pre-Planned Journeys

MARKET OPPORTUNITIES

£2.6 billion per annum 1.8 million

Londoners choose taxi journeys each

week

ECO

CH

OIC

ES

MARKET ANALYIS Strengths

• Environment friendly way of travelling / Green

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

Weaknesses• 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

Threats• Employment laws, licensing, regulations, taxes and

pricing• Fuel levies / increases• IT developments• Competitor reaction• Seasonal trends• App integration with mini cab companies

Opportunities• 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

CRITICAL ISSUES 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)

COMPETITION

Filling the gap between individual taxi order services

and public car share services

COMPARATIVE ADVANTAGE

Similar to car sharing but with the added assurance of using a registered taxiComparatively 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.

Enables cheaper cab journeys as the fare is sharedSharing service can be used for any trip not exclusively airport trips like competitorsAccess to a larger pool of cabbies compared to calling individual firms

Car Share ServicesTaxi Booking Services

TARGET MARKET

Smartphone users…

62% of UK population

80%-91%

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

MARKET NEEDS

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 system at Kings Cross is so ineptly & appallingly

designed, I suspect it might have been a task

on ‘The Apprentice’

The taxi queue outside indiabulls is moblike and fairly scary. Really wish they’d clear them

out.

MARKETING OBJECTIVES

App awareness generation

Network of users

Social & WoM

recomme-ndations

Brand awareness

Increasing market share

….offer virtual currency as reward

AND access to exclusive offers

in order to build customer loyalty

MARKETING STRATEGY

CabCollective Rewards will….

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

PRICE• Cheaper door-to-door passenger fares• 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

MARKETING CHANNELS

Social buzz

• Facebook• Twitter• Foursquare• Ambassadors

Time & place

• Heavily populated locations• Airport, station, shopping centre• Events collaboration• Available 24/7

Online

• Mobile app• Search & display targeting (based on

interests)• eCRM• Informational website

Partnerships• Businesses in key locations

• Travel operators

• Taxi firms

Demand Generation• Promotion in focus areas

• Build micro communities

• Organic social growth

• Event sponsorships

• Partner offers

Loyalty Building• Online community

• Incentivise happy customers

to spread the word

• Virtual currency rewards e.g.

when inviting friends as new

customers

• eCRM

SALES STRATEGY

£0.40p flat rate each for every

journey

Only 2 people required on each journey to return financial value

For every 1000 users only 6 Taxis

required in Collective

Only 0.5% monthly growth of App usage required

COST STRUCTURE EXPLAINED

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.

Revenue: £12.00

Download and use of the App remains free to encourage adoption of CabCollective

Allows users to Top-Up like Oyster Pay-as-you-go and ‘Tap in’ when journey starts

App calculates fare (including fee) using geo data

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

COST STRUCTURE AND USAGECost Structure Explained

£1.20p revenue for 1 journey (x2 travellers+1 Taxi)

Each journey back and forth with 2 passengers and a taxi = £2.40

A B

A B

C D

C D

E F

E F

G H

G H

I J

I J

1 2 1 2 1 2 1 2 1 2

PROJECTED REVENUE AND GROWTH

18 Month Projected Revenue and Growth

M1 M2 M3 M4 M5 M6 M7 M8 M9 M10 M11 M12 M13 M14 M15 M16 M17 M18

Number of App Users 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

Number of Taxis in Collective 6 21 36 51 66 81 96 111 126 141 156 171 186 201 216 231 246 261

Monthly Number of Journeys

By All App Users 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

By Each Taxi 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

Total Revenue £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

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

Each App User Makes 2 Journeys Per Week

Each Taxi Makes 25 Journeys Per Day

Based On Only 2 App Users Sharing Each Journeys

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)

LONDON 1 & 2 MILES OF CHARRING

CROSS

1 MILE

2 MILES

2 Person journey is the CabCollective

base

No matter the total fare CabCollective takes a flat fee. x2

Travellers + 1 Taxi Cab @ £0.40 each

Flat fee far profitable when scaled to more

travellers

Simpler model than paying different fees

CALCULATIONS & ASSUMPTIONSAssumptions

Population Size (London) 8,000,000

Working Age (20-64) 65% 5,160,000

Target Market Size (20-29) 500,000 Target Market as % of Population 6%

Growth of Adoption (Monthly) 0.5% 2,500

# of CabCollective Journeys Individual takes (Monthly) 9# of Travellers Per Journey 2Charge per Journey Each Traveller £0.40 Each Taxi £0.40 Number of Taxis to 1000 Users 6

Average Taxi Fares (TFL London)

DistanceJourney Time

(mins)Mon-Fri 6am-

8pmMon-Fri 8pm-

22pmSat-Sun 6am-

10pmNight Rate 10pm-6am

Average Fares

1 mile 9.5 £7.20 £7.20 £7.20 £7.90 £7 2 miles 15 £11.20 £11.40 £11.40 £12.50 £12 4 miles 23 £18.50 £19.00 £19.00 £22.50 £20 6 miles 34 £26.00 £29.50 £29.50 £30.50 £29

Heathrow to C.London 45 £65.00 £65.00 £65.00 £65.00 £65 Charges Structure (% vs Flat Fee) Fee per Customer Fee per Customer % Fee Flat Rate Fee % Fee Flat Rate Fee

2 Customer Journey 7.0% £0.40 4 Customer Journey 7.0% £0.40 Distance % Cost Per Journey Flat Rate Fee Price Difference Distance % Cost Per Journey Flat Rate Fee Price Difference

1 mile £0.52 £1.20 £0.68 1 mile £0.52 £2.00 £1.48 2 miles £0.81 £1.20 £0.39 2 miles £0.81 £2.00 £1.19 4 miles £1.38 £1.20 -£0.18 4 miles £1.38 £2.00 £0.62 6 miles £2.02 £1.20 -£0.82 6 miles £2.02 £2.00 -£0.02

Average Revenue £1.18 £1.20 £0.02 Average Revenue £1.18 £2.00 £0.82

WHY INVEST IN CabCollective?

Large market with scope 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