yaygo final 2013 berkeley

COMFORTABLE COMMUTES

Final

Presentation

April 10, 2013

11 Interviews of 124 total

Michael Vladimer | Ignacio Garcia | Mariana Torres | Brian Murphy 1

The LLP Team

Michael Vladimer Haas School of Business, MBA „13

Ignacio Garcia Haas School of Business, MBA „13

Mariana Torres City & Regional Planning, MCP „13

Brian Murphy School of Information, MIMS ‟14

2

The idea

Affordable, reliable rides using shared

shuttles with on-demand ride request and

dynamic routing.

3

? ? ?

4

We Eliminated 5 of 7 Potential

Customer Segments Quickly

Segment Interviews Result

Partiers 7 FAIL

Tourists 6 FAIL

Event

Goers5 FAIL

Students 5 FAIL

Hotels 4 FAIL

“I‟d totally use this once a month!”

“It‟s been pretty easy to get

around…”

“I like Uber – cost isn’t really an

issue for events like this.”

“I usually just walk around school.”

“We already work with lots of

transportation companies…”

5

But With

Commuters, We

Found PAIN!

“Like being a sardine!”

“It sucks. A lot.”

6

50 Interviews, Two Archetypes

MARK

Marketing Mgr

Usage Fee

(Monthly)

GAIN:alternative to long,

complex Muni

commute

PETER

Product Manager

Yield Management

(Daily)

GAIN:occasional solution when he needs to

commute

7

As We Tested Channels,

Another Customer Emerged

OLGA

Office Manager

Monthly subsidy

per employee

GAIN:New employee

perk for recruiting

8

Canvas Evolution:

Customer Segment

Customer Segment

Hotels

Companies

Commuters

Event-Goers

Partiers

Students

Tourists

Customer Segment

Hotels

*Employers

*SF Commuters

Event-Goers

Partiers

Students

Tourists

Customer Segment

*Shuttle Cos.

*Tech Employer

Perk Managers

*Tech Co.

Employees

Week 12Week 1 Week 4

9

? ?

10

We Tested Subscription Interest

Reached out

to 200+ Firms

11


Reached out

to 200+ Firms

12

Responded

12


Reached out

to 200+ Firms

12

Responded8

Signed Up

13

Getting Interested Employees

To Ride Was a Challenge

“I'm just tired of

having to stand on

the bus every day. I want a seat!”

“Muni continues to

get worse & driving is too

expensive”

63 Riders Interested

18 Sign Ups

5 Riders

(Free April 1 Test)

GOOD: Enthusiasm BAD: Conversion

14

Needed Lower Upfront Costs

Week 1

Week 6

Week 10

PRICE/HR REASON

$100

$95

$50

Rack Rate

Intrigued

Rev Share!

15

Our Economics Clarified

OLGAOffice Manager

(for Mark)

MARKMarketing Mgr

(monthly)

PETERProduct Manager

(daily)

$200/mo(20 rides)

$50/mo(25 rides: 20 co.

rides + 5 out of pocket rides)

$50/hr +

20% REV

Pricing per Ride: Monthly subscription: $10; Daily: $15

$90/mo(6 rides)

16

$ in

$ out

Canvas Evolution:

Revenue Streams

Revenue Streams

Per-Ride Fee

Hub Sales

Customer Segment

Per-Ride Fee

*Hub Sales

*Subscriptions

Customer Segment

Per-Ride Fee

Subscriptions

*Company subsidy

for employees


17

Canvas Evolution:

Cost Structure

Cost Structure

Shuttle rental

(high, upfront)

Fixed costs

Cost Structure

Shuttle rental

(high, upfront)

*Shuttle rental

(medium, upfront)

Fixed costs

Cost Structure

*Shuttle rental

(low, upfront)

*Revenue share

with supplier (low,

post-service)

Fixed costs


18

Many Regulatory Concerns

On-demand Rideshare

Multiple, PaidPick-ups

Stops/Zoning

Union, Industry and GovResistance

“Yaygo is not

viable. You

should pivot.”- Cliff, Weeks 1-4

20

But Regulations Are In Flux

We Interviewed: They Told Us:

Open to rideshare solutions,

with caveats

Encouraging rideshare and

transit innovation

Approved to operate…for

now

Re-writing policy due to

consumer outcryCA & SF Public

Utilities Commission

21

We Found Allies & Momentum

“Position yourself as

getting people out of

cars – that’s a big

deal.”- Ratna Amin, SPUR

“We’ve spoken to the

CA PUC to make sure

what Ridepal is doing is

legal, and so far it is.”- Nathalie Criou, Ridepal CEO

“Potrero Hill is asking for a Shuttle.”

- Carly Paine, SF MTA

22

Key Partners

*Shuttle Providers

Advocacy Groups

Bars, Clubs, Rest.

Employers

Stadiums, Conv.

Universities,Schools

Hotels, Museums

*Transit Agencies

Canvas Evolution:

Key Partners

Key Partners

Shuttle Companies

Advocacy Groups

Bars, Clubs, Rest.

Employers

Stadiums, Conv.

Universities,Schools

Hotels, Museums

Key Partners

Shuttle Providers

Advocacy Groups

Employers

Transit Agencies

*Government

Agencies


23

April 1st Free Trial

8:00 – 9:00 am 9:00 – 10:00 am

April 1 Test Results

1 subscriber

5 riders

People want to ride Yaygo

No legality issues during test

Validated $10/ride; $250/month

Google Maps work for Beta Trials

Happy riders!

Video

27

Will Yaygo Go On?

Maybe.

Commuters have real pain

But…economics and regulation make

transportation tricky

So for now…

28

The Testing Continues…

YAY! GO!

29

Appendix

30

Week 1

31

Week 2

32

LaunchPadCent ral

Lic ensedfrom businessm ode lgenerat ion .c om underaCrea t iveCom m onsAt t r ibut ion-ShareAl ike3.0Unpor t edLic ense

KEYPARTNERS

Shut t lecompanies»

Sh ut t le

Provid e rs»

NGOs/Ad vo ca cy

g rou pssup port in g

mo b ilit yso lu t ions»

Ba rs, clu bsa n d

re st a ura nt s»

Emp loye rs»

St a d iums,

con ve nt ionce n t e rs

»

Unive rsit ie s ,

scho o ls»

Hot e ls,

KEYACTI VI TI ES

Dynamicshut t le

rout ing»

Dyn a micpr icin g

»

Qu a lit yco nt ro l

shu t t le s/d r ive rs/r ide rs

»

VALUEPROPOSI TI ONS

GAIN:Efficie n t ,

e n jo ya b le co mmut e

»

GAIN:Re lia b le

p ickupt ime »

GAIN:Safe

t ransport a t ion»

De le t e »

GAIN:Tra ve lin

groups> 4»

Ga in :

Cust omiz e d ,fu n

rid e (music, e t c. )»

M VP:p ubcra w l»

Fe a t ure s:Ap p&

CUSTOMERRELATI ONSHI PS

Self-customizedrider

pro file»

Ride che ck-in

t h roug hFa ce b ook

»

CUSTOMERSEGMENTS

Part iers»

IGNORECommut ers

(p laceholderunt ilwe

re-associatewithnew

commut ersegments)

»

Event -goers»

Te e n a ge rs»

Tourist s»

KEYRESOURCES

PHYSICAL:Ba y

Are a Shut t le s,

St opp ingZ one s»

O urse rvice is

no t cle a rlyille g a l»

Cloud/server»

CHANNELS

Websit e ,communit y

groups& blogs»

COSTSTRUCTURE

Variab lecost :shut t lerenta l»

Fixe d co st :Insura nce , IT,le ga l,corpora t e »

REVENUESTREAMS

Per-r idefee»

Hu bsa le s»

Sub scrip t ions»

Week 3

33

LaunchPadCent ral


KEYPARTNERS


Shut t leProviders»

NGOs/Advocacy

groupssupport ing

mobilit ysolut ions»

Bars,clubsand

rest aurant s»

Employers»

St adiums,convent ion

cente rs»

Universit ies,schools»

Hote ls,museumsand

point sofinterest»

KEYACTI VI TI ES

Dynamicshut t le

rout ing»

Dynamicpricing»

Qualit ycont ro l

shut t les/drivers/riders

»

VALUEPROPOSI TI ONS

GAIN:Efficien t ,

en joyablecommut e»

GAIN:Reliab lepickup

t ime»

GAIN:Safe


Pa ybyp hon e via

cre d it ca rd»

Delete»

GAIN:Trave lingroups

> 4»

Gain:Customized,fun

ride(music,et c.)»

MVP:pubcrawl»



pro file»

Ridecheck-int hrough

Facebook»

GET:Loca l

Orga n iz a t io ns,B2B

re fe rra ls»

CUSTOMERSEGMENTS

Part iers»

IGNORECommut ers


re-associatewithnew

commut ersegments)

»

Event -goers»

Teenagers»

Tourist s»

KEYRESOURCES

PHYSICAL:BayArea

Shut t les,St opping

Zones»

Ourserviceisnot

clearlyillegal»

Cloud/server»

CHANNELS


groups& blogs»

COSTSTRUCTURE


Fixedcost :Insurance,IT,legal,corporate»

REVENUESTREAMS

Per-r idefee»

Hubsales»

Subscrip t ions»

Week 4

34

LaunchPadCent ral


KEYPARTNERS



NGOs/Advocacy

groupssupport ing


Bars,clubsand

rest aurant s»

Employers»


cente rs»


Hote ls,museumsand

point sofinterest»

KEYACTI VI TI ES

Dynamicshut t le

rout ing»

Dynamicpricing»

Qualit ycont ro l


»

VALUEPROPOSI TI ONS

GAIN:Efficien t ,



t ime»

GAIN:Safe


Paybyphonevia

creditcard»

Delete»


> 4»

Gain:Customized,fun

ride(music,et c.)»

MVP:pubcrawl»



pro file»

Ridecheck-int hrough

Facebook»

GET:Local

Organizat ions,B2B

referra ls»

CUSTOMERSEGMENTS

Part iers»

IGNORECommut ers


re-associatewithnew

commut ersegments)

»

Event -goers»

Teenagers»

Shu t t le

Provide rs»

Te chcomp a ny

e mp loye e s(SF-o n ly

commut e )»

Int ra cit ySF

Co mmut e rs:Re t a il

KEYRESOURCES

PHYSICAL:BayArea


Zones»

Ourserviceisnot

clearlyillegal»

Cloud/server»

CHANNELS


groups& blogs»

M o bile Ap p»

COSTSTRUCTURE



REVENUESTREAMS

Per-r idefee»

Hubsales»

Subscrip t ions»

Week 5

35

LaunchPadCent ral


KEYPARTNERS



NGOs/Advocacy

groupssupport ing


Bars,clubsand

rest aurant s»

Employers»


cente rs»


Hote ls,museumsand

point sofinterest»

Tra nsit Age ncie s

KEYACTI VI TI ES

Dynamicshut t le

rout ing»

Dynamicpricing»

Qualit ycont ro l


»

VALUEPROPOSI TI ONS

GAIN:Efficien t ,



t ime»

GAIN:Safe



> 4»

PAIN:Peakin t racit y

commutesare

overcrowded,

unpleasant »

GAIN:Quickandeasy

tobookaride»

GAIN:Improved



pro file»

GET:Local

Organizat ions,B2B

referra ls»

KEEP:Loyalt y

Program,Long-t erm

CUSTOMERSEGMENTS


Techcompany

employees(SF-only

commut e)»

In t racit ySF

Commuters:Reta il

Workers»

B2B:Te ch

compa nie s»

Te chcomp a ny

e mp loye e s

(First /La st M ile in

SF)»

KEYRESOURCES

PHYSICAL:BayArea


Zones»

Ourserviceisnot

clearlyillegal»

Cloud/server»

CHANNELS

O ffice ma na ge rs

(pe rkga t e

ke e pe rs)»

MobileApp»

COSTSTRUCTURE



REVENUESTREAMS

Per-r idefee»

Hubsales»

Subscrip t ions»

Week 6

36

LaunchPadCent ral


KEYPARTNERS


NGOs/Advocacy

groupssupport ing


Employers»

TransitAgencies»

KEYACTI VI TI ES

Dynamicshut t le

rout ing»

Dynamicpricing»

Qualit ycont ro l


»

VALUEPROPOSI TI ONS

GAIN:Efficien t ,



t ime»

GAIN:Safe



commutesare

overcrowded,

unpleasant »

GAIN:Quickandeasy

tobookaride»

GAIN:Improved

shut t leut ilizat ionand

recurringdemand»


GET:Local

Organizat ions,B2B

referra ls»

KEEP:Loyalt y

Program,Long-t erm

Cont racts»

GROW:Referra l

CUSTOMERSEGMENTS


Techcompany

employees(SF-only

commut e)»

B2B:Techcompanies

»

Techcompany

employees(First /Last

MileinSF)»

KEYRESOURCES

PHYSICAL:BayArea


Zones»

Ourserviceisnot

clearlyillegal»

Cloud/server»

CHANNELS

Officemanagers(perk

gat ekeepers)»

MobileApp»

W e bsit e »

COSTSTRUCTURE



REVENUESTREAMS

Per-r idefee»

Subscrip t ions»

Hubsales»

Comp a nysu bsidyfore mploye e s(fla t -ra t e p e rmo nt h ,

cha rge pe r-r id e )»

Week 7

37

LaunchPadCent ral


KEYPARTNERS


NGOs/Advocacy

groupssupport ing


Employers»

TransitAgencies»

KEYACTI VI TI ES

Dynamicshut t le

rout ing»

Dynamicpricing»

Qualit ycont ro l


»

VALUEPROPOSI TI ONS

GAIN:Efficien t ,



t ime»

GAIN:Safe



commutesare

overcrowded,

unpleasant »

GAIN:Quickandeasy

tobookaride»

GAIN:Improved


recurringdemand»


GET:Local

Organizat ions,B2B

referra ls»

KEEP:Loyalt y

Program,Long-t erm

Cont racts»

GROW:Referra l

CUSTOMERSEGMENTS


Techcompany

employees(SF-only

commut e)»

B2B:Techcompanies

»

Techcompany


MileinSF)»

KEYRESOURCES

PHYSICAL:BayArea


Zones»

Ourserviceisnot

clearlyillegal»

Cloud/server»

CHANNELS

Officemanagers(perk

gat ekeepers)»

MobileApp»

Websit e»

Dire ct Sa le s»

COSTSTRUCTURE



REVENUESTREAMS

Per-r idefee»

Subscrip t ions»

Companysubsidyfo remployees(fla t -ra t epermonth,chargeper-

ride)»

Week 8

38

LaunchPadCent ral


KEYPARTNERS


NGOs/Advocacy

groupssupport ing


Employers»

TransitAgencies»

KEYACTI VI TI ES

Dynamicshut t le

rout ing»

Dynamicpricing»

Qualit ycont ro l


»

VALUEPROPOSI TI ONS

GAIN:Efficien t ,



t ime»

GAIN:Safe



commutesare

overcrowded,

unpleasant »

GAIN:Quickandeasy

tobookaride»

GAIN:Improved


recurringdemand»


GET:Local

Organizat ions,B2B

referra ls»

KEEP:Loyalt y

Program,Long-t erm

Cont racts»

GROW:Referra l

CUSTOMERSEGMENTS


Techcompany

employees(SF-only

commut e)»

B2B:Techcompanies

»

Techcompany


MileinSF)»

KEYRESOURCES

PHYSICAL:BayArea


Zones»

Ourserviceisnot

clearlyillegal»

Cloud/server»

CHANNELS

Officemanagers(perk

gat ekeepers)»

MobileApp»

Websit e»

DirectSales»

COSTSTRUCTURE



REVENUESTREAMS

Per-r idefee»

Subscrip t ions»


ride)»

Week 9

39

LaunchPadCent ral


KEYPARTNERS


NGOs/Advocacy

groupssupport ing


Employers»

TransitAgencies»

KEYACTIVITIES

Dynamicshut t le

rout ing»

Dynamicpricing»

Qualit ycont ro l


»

VALUEPROPO SITIO NS

GAIN:Efficien t ,



t ime»

GAIN:Safe



commutesare

overcrowded,

unpleasant »

GAIN:Quickandeasy

tobookaride»

GAIN:Improved


recurringdemand»

CUSTOM ER

RELATIO NSHIPS

GET:Local

Organizat ions,B2B

referra ls»

KEEP:Loyalt y

Program,Long-t erm

Cont racts»

GROW:Referra l

CUSTOM ERSEGM ENTS


Techcompany

employees(SF-only

commut e)»

B2B:Techcompanies

»

Techcompany


MileinSF)»

KEYRESO URCES

PHYSICAL:BayArea


Zones»

FINANCIAL:Seed

capit a l,grants,rev-

sharewit hshut t les»

HUMAN:

CHANNELS

Officemanagers(perk

gat ekeepers)»

MobileApp»

Websit e»

DirectSales»

COSTSTRUCTURE



REVENUESTREAM S

Per-r idefee»

Subscrip t ions»


ride)»

Week 10

40

LaunchPadCent ral


KEYPARTNERS


NGOs/Advocacy

groupssupport ing


Employers»

TransitAgencies»

KEYACTIVITIES

Dynamicshut t le

rout ing»

Dynamicpricing»

Qualit ycont ro l


»

VALUEPROPO SITIO NS

GAIN:Efficien t ,



t ime»

GAIN:Safe



commutesare

overcrowded,

unpleasant »

GAIN:Quickandeasy

tobookaride»

GAIN:Improved


recurringdemand»

CUSTOM ER

RELATIO NSHIPS

GET:Local

Organizat ions,B2B

referra ls»

KEEP:Loyalt y

Program,Long-t erm

Cont racts»

GROW:Referra l

CUSTOM ERSEGM ENTS


Techcompany

employees(SF-only

commut e)»

B2B:Techcompanies

»

Techcompany


MileinSF)»

KEYRESO URCES

PHYSICAL:BayArea


Zones»

FINANCIAL:Seed



HUMAN:

CHANNELS

Officemanagers(perk

gat ekeepers)»

MobileApp»

Websit e»

DirectSales»

COSTSTRUCTURE



REVENUESTREAM S

Per-r idefee»

Subscrip t ions»


ride)»

Week 12

41

LaunchPadCent ral


KEYPARTNERS


NGOs/Advocacy

groupssupport ing


Employers»

TransitAgencies»

Gove rnme nt

Age n cie s»

KEYACTI VI TI ES

Dynamicshut t le

rout ing»

Dynamicpricing»

Qualit ycont ro l


»

VALUEPROPOSI TI ONS

GAIN:Efficien t ,



t ime»

GAIN:Safe



commutesare

overcrowded,

unpleasant »

GAIN:Quickandeasy

tobookaride»

GAIN:Improved


recurringdemand»


GET:Local

Organizat ions,B2B

referra ls»

KEEP:Loyalt y

Program,Long-t erm

Cont racts»

GROW:Referra l

CUSTOMERSEGMENTS


Techcompany

employees(SF-only

commut e)»

B2B:Techcompanies

»

Techcompany


MileinSF)»

KEYRESOURCES

PHYSICAL:BayArea


Zones»

FINANCIAL:Seed



HUMAN:

CHANNELS

Officemanagers(perk

gat ekeepers)»

MobileApp»

Websit e»

DirectSales»

COSTSTRUCTURE


Sh ut t le Re nt a l(lo w ,up fro nt cost )»

Re v-sha re w it hSh ut t le Supp lie r(low ,po st -se rvice cost )

»

REVENUESTREAMS

Per-r idefee»

Subscrip t ions»


ride)»

Size of the Opportunity

12

million trips / yr.

@ $3/ trip: $36 million / yr.

@ $8 / trip: $96 million / yr.

SF-SF Commuters: ≈334,000 (2011)

Smartphone Enabled: ≈ 120,000

3

million trips / yr.

@ $3/ trip: $9 million / yr.

@ $8 / trip: $24 million / yr.

Yaygo

captures 20%:

Yaygo

captures 5%:

yaygo final 2013 berkeley

Education