mod ride (202)

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)


• 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)


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)


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


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


• ZipCar expanding rapidly

• 49:1 Member:Vehicle Ratio in 2009

• 63:1 expected in 2016

Appendix: Zipcar Member:Vehicle Ratio


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