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Mobility-on-Demand RideYour personalized taxi at a fraction of the cost
Ryan Thurston
Aleem Mawani
Virot Chiraphadhanakul
Ryan Chin
Confidential / Do Not Distribute | [email protected]
Founders
Company Snapshot
The Team Advisors
MIT PhD and Masters students
with operations and
transportation expertise
Future offices in San Jose, CA
Founded in 2011, Cambridge, MA
Financials
$250k Seeking for angel
$5.3MM Seeking for Series A
Potential Investors
U.S. Carsharing Market Revenue
2009 - 2016
• One-way car sharing
• Rentals by the minute
• Commercial vehicles
Market
Non-dilutive grants and
subsidies available
Aleem Mawani
Harvard Business School
Virot Chiraphadhanakul
PhD Candidate
MIT Operations Research Center
Ryan Chin
Research Specialist & PhD
Candidate, MIT Media Lab
SmartCities Group
Ryan Thurston
MIT Sloan School of Management
Primary Media Lab funder
Ongoing technical interest
and support
$3.4 B oppty
44.4% CAGR
Dimitris Papanikolaou
PhD Candidate, MIT Media Lab
SmartCities Group
Kent Larson
Director Changing Places Group
MIT Media Lab
Todd Whitelaw
Brand Manager
SMART Center Boston
SMART Center Boston
53% Amount of carbon
emissions devoted to
transportation
Source: Frost & Sullivan, EPA
By far, the largest source of C02
emission is fossil fuel consumption
via transportation
Problem: Urban mobility is unsustainable
Clean energy issues
• Pollution via carbon emissions53% of carbon emissions from fossil vehicles
• City congestion
• Energy inefficiency
Lifestyle trends
• Rent vs own
• Demand for green vehicles
Existing Solutions Fail
• Private automobiles• Major source of CO2 emissions
• Cause massive congestions
• Public Transportation• Does not cover entire city
• First mile - Last mile problem
• Inconvenient and inflexible schedules
200,000 # of bicycles rented daily in Paris
80 # of cities that currently offer
bicycle sharing
Manufacturer Vehicle Release Photo
Smart ForTwo 2008
Toyota iQ City Car 2012 est
Ford Focus 2012 est
Honda Fit 2012 est
The future: Clean and sharable vehicle use
Urban car sharing expanding
• Zipcar expanding rapidly6000 vehicle network
49:1 Member:Vehicle ratio in 2009 and growing
• AutoLib debuts in ParisFleet of 3,000 cars
Half hour rentals
• Hertz, Enterprise launch car sharingCombined fleet of 850 cars and growing
Source: Frost & Sullivan, U.S. Dept of Energy
Bike sharing programs exploding
Auto OEMs releasing clean, “urbanized” vehicles
Solution: One-way, fuel efficient car sharing network
One-way
car sharing
VS
Traditional two-way
car sharing model
• Commercially available SMART
ForTwos, rented by the minute
• Pickup and drop-off anywhere in the
urban area
• Maximized service level and fleet
utilization through our patent-
pending fleet management system
Pros Challenges
• Increases vehicle utilization
Leads to higher revenue
• Reduces congestion
Each shared car removes up to 30
vehicles
• Flexibility & Convenience
Mobility-On-Demand
• Solves first mile – last mile
Increases ridership of mass transit
Complementary to mass transit
• Fleet Management
Vehicle availability
No parking
Costly redistribution
• Critical Mass
• Reliance on Local
Municipalities to fund
parking
Source: Frost & Sullivan
Phase 1
Launch small pilot MIT
• Operate on campus (25-50 cars)
• Current partnership with SMART
• Prove use-case and niche
• Learn and optimize
• Rely on word-of-mouth marketing
Phase 2
Expand to nearby colleges
• Restrict usage to students
Phase 3
City and general public use
Candidate cities include:
• High GDP
• Population density
• Mixed land-use
• Poor public transit coverage
• Motivation to reduce traffic and
energy consumptionIterate and perfect product based on customer feedback
2011-2012 Phase 1 Schedule
Cambridge - MITMarket Entry Plan
Decision Making Unit (DMU)
Percent time spent on
managerial responsibilities
Transportation Manager75%50% IT manager
25%Consultant technical
architect
Persona and Description
“The Influencer”. Responsible for sizeable budget ,staff, operational and strategic
planning. Performance review weighted toward managerial responsibilities
Rank University & Neighborhood Location # of students
1 BU/BackBay Boston 32,053
2 U of Mass/South Bay Boston 25,873
3 Harvard/N Cambridge Cambridge 25,690
4 Northeastern/Kenmore Boston 24,434
5 Boston College Chestnut Hill 14,621
“The Driver”. Performance review balanced between managerial and technical
achievements
“The Veto”. Technical leader in one or more domains. Performance review
weighted on technical achievements
Market Opportunity 122,671 students
Appendix: Boston area target markets
Source: http://www.doe.mass.edu
Zipcar CommunautoHertz
Connect
Philly
CarShare*
City
CarShare*Car2Go
# of members 340,000 18,500 7,500 35,000 12,000 10,000
# of vehicles 6,950 830 479 410 324 350
Member : Vehicle 49 22 16 85 37 28
Geographic
Coverage
66 U.S. cities
+ 100 college
campuses
4 cities in
Canada
19 U.S.
cities + 12
colleges
1 U.S. city
(Philly)
4 cities in
the bay
area
1 U.S.
City + 2
Europe
Rental TypeHourly,
two-way
Hourly,
two-way
Hourly,
two-way
Hourly,
two-way
Hourly,
two-way
Minute,
one-way
** = nonprofit
One-way, fuel efficient car sharing is an entirely new market opportunity
Minute-minute rentals further differentiates our offering
Source: Frost & Sullivan
Appendix: Benchmarking Top 6 Car share organizations
58%Gross Margins
(worst case – will rise after fixed costs
removed)
Appendix: Detailed
Financials
Assumptions
• Vehicles leased through
OEMs
• RetrofittingIncludes Android tablet, smartphone apps,
GPS, keyless entry, etc.
Key Figures
Gas proposal (back-of-envelope calcs, bottom up)
number of cars 25
utilization per day 15%
rev per minute per car $0.35
operating revenues
hrs car available per day 24
hrs per day car in use 3.6
rev per hour per car $21.00
rev per day per car $75.60
rev per month per car $2,268.00
rev per month per fleet $56,700.00
rev per year per fleet $680,400.00
variable costs
lease per month per car $120.00
parking per month per car $150.00
insurance per month per car $102.00
fuel per hour $3.75
fuel per day $13.50
fuel per month per car $405.00
maintenance per month per car $50.00
redistribution costs per month
per car $50.00
3G GPS/web services per month
per car $30.00
total costs per month per car $907.00
total costs per month per fleet $22,675.00
fixed costs
retrofitting per car (keyless
entry, android tablet, etc) $500.00
retrofitting per fleet $12,500.00
profits
gross profit first month per car $861.00
gross profit per year per fleet $395,800.00
gross margins per year per fleet 58%
40%
2%
58%
variable costs
one-time fixed
costs
operational
profits
Appendix: Car2Go Market Surveys
Car2Go user Positive Feedback
“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.”
“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, TX
12/1/2010
Meg C. Austin, TX
12/14/2010
De C. Austin, TX
11/10/2010“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.”
“Car2Go's silver bullet is that you don't have to return the car to where
you started”
Tate S. Austin, TX
10/6/2010
Mercedes P. Austin, TX
12/14/2010“I can never find one when I need it. EVER.“
“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, TX
1/1/2011
Confidential / Do Not Distribute | [email protected]: www.yelp.com
Negative Feedback
• The breakeven point for car
ownership and carsharing is
approx 4k miles
• Our target market is urban
dwellers who drive less than 4k
miles per year
• Carsharing is more cost effective
vs car ownership
• Carsharing programs save up to
70% of the total transit costs for
its members
• Utilization rate is the key revenue
driver
Appendix: One-way Car Sharing Business Model
Confidential / Do Not Distribute | [email protected]: Frost & Sullivan
• Most car sharing serves one
city/market (except ZipCar and U Car
Share)
• Rental companies recently joined
(e.g. Connect by Hertz, WeCar)
• One-way trips will raise membership
and serve urban niche
Appendix: U.S. & Canada Two-way car sharing
market (2009)
Confidential / Do Not Distribute | [email protected]: Frost & Sullivan
• Tremendous growth over the past few years
• Market consolidation grew the avg revenue of carsharing programs
• Startup financing and partnerships will remain key issues for future
carsharing programs
Appendix: Two-way car sharing market
(U.S. & Canada ’01-’09)
Confidential / Do Not Distribute | [email protected]: Frost & Sullivan
More members and increased vehicle utilization rate after consolidation make
total industry revenue grow fast
Appendix: Two-way car sharing market
(U.S. & Canada ’09-’16)
Confidential / Do Not Distribute | [email protected]: Frost & Sullivan
For the first time in history, there are more people who live in urban vs rural areas
Appendix: Future of Transportation in urban environments
Source: UN Population Division Confidential / Do Not Distribute | [email protected]
• Majority of Car2Go users spend 15-25 minutes using rental.
• Car2Go utilization rates 13-15% per day on average
0
100
200
300
400
500
600
700
800
900
# o
f u
sers
trip time (minutes)
Car2Go data: # of users vs trip time
Frequency
Appendix: Car2Go # of users vs trip time
Confidential / Do Not Distribute | [email protected]: Frost & Sullivan
Challenge NotesLevel of
Importance
Increased vehicle
utilization rates
Two-way vehicle utilization rates should be 40%, otherwise
carsharing fails to recover costs. High
Change members driving
decisions
Currently, 11-32% of charsharing members give up their
vehicles, and 25-71% avoid buying one. The success of any
carsharing program depends on how to exploit these trends
High
Expand member base A mix of residential, business and government members
lead to complementary usage of vehicles and higher
utilization rates.
High
Financial resources Carsharing businesses initially lose money until they reach
critical mass. Outside funding is critical.High
Awareness & Mindshare Carsharing members only account for 0.2% of registered
North American licensed drivers. Carsharing programs must
increase awareness to expand.
Medium
Partnerships Partnering with transit agencies, parking authorities, shops
and services is imperative for long term growthMedium
Communicate carsharing
benefits
Communicate carsharing benefits to government
municipalities, transportation authorities and future members
to increase membership and government support
Medium
Appendix: Carsharing industry challenges
Confidential / Do Not Distribute | [email protected]: Frost & Sullivan
• ZipCar expanding rapidly
• 49:1 Member:Vehicle Ratio in 2009
• 63:1 expected in 2016
Appendix: Zipcar Member:Vehicle Ratio
Confidential / Do Not Distribute | [email protected]: Frost & Sullivan