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Eureka Business Plan Competition, 2012
mapTheCab
1
IIT Bombay
Content
Business Opportunity
Business Concept
Market and Customer Analysis
Marketing and Sales Strategy
Strategy and Implementation
Operational timeline
Revenue Model
Financial Projections
Summary
2
Business Opportunity
No
instantaneous
cab booking
facility
Frequent delay
on calls
Call multiple
providers if cab
is not available
Uncertainty in
the arrival of a
booked cab
• The radio cab market is in a nascent stage with a
huge demand-supply gap
Presence of a huge
market
• With the current booking mechanism, user faces a
long wait queue on the phone
Dissatisfaction with
the current model
• More people are willing to trade a few extra bucks
in return for comfort and quick, good servicePrice sensitivity
• An aggregated solution for prior-booking of cabs of
major operators
Centralization of the
cab booking system 3
Present Scenario
mapTheCab
Instantaneous
Cab-Booking
Centralized
Booking Portal
Cab Sharing
Business Concept
A one-stop solution for Radio Cab booking which makes the process
convenient and truly on-demand.
4
Product Description
User’s
position and
available
cabs
User selects
his destination
Chooses from
a list of free
and shared
cabs
Gets
confirmation
from cab
driver
Deal
confirmed!
5
Our Product – How it works
• The end-user application
which commuters install on
their phones
Mobile
App
• The application for the cab
driver to confirm a booking
with the commuters
Cab Device
Application
• To facilitate communication
between the mobile and the
cab device
Server
Script
6
Market and Customer Analysis
Radio Cab Market
• 20,000 cabs in India presently and fleet is expected to triple by the end of 2013
• 4 million passengers a month, HUGE DEMAND SUPPLY GAP!
• Growth depends on IT infrastructure for fleet optimization
Smartphone Market
• There are over 222 million smartphones in India
• Y-o-Y growth rate of over 100%
• 72% of the time is spent on a smartphone is on internet based apps
Mobile Ad Market
• India is the biggest mobile advertising space in Asia Pacific
• Over 5.8 billion mobile impressions are recorded monthly
• Mobile impressions increased by 22% in the last quarter of 2010
7
Sources - Nielson, Researchonindia.com, Cyber Media Research, RTO
Target Segment
• 65% radio cab
commuters own
smartphones
• 39,000 radio cab
trips by smartphone
users each day
• By 2013, 80% radio
cab will own
smartphones
8
35%
65%
Potential Market
Without
Smartphones
With
Smartphones
Tier I cities
Radio Cab
Users
Smartphone
Users
Competitive Landscape
There are no existing mobile-app based instantaneous cab booking services, we can only
face indirect competition through internet-based booking portals and cab-operators.
Current Players
Providing Cab
Booking Services
• Your Cabs and Taxi Guide,
run on a long-distance
travel booking model using
website and phone
services
• Primarily, target a different
set of commuters.
Private Cab Operators
• B2C marketing
methodology - Rapidly
solidify our position as a
one stop solution for Cab
Booking services.
Future Competition
• No established companies
operating in our vertical.
• Entry barrier for
duplication on account of
our first mover advantage
9
Marketing & Sales Strategy
• Major operators - Meru Cabs, Easy Cabs, Mega Cabs,
Wings Cabs, Gold Cabs.
• Their combined market share is approximately 70%
of the entire Radio Cab market.
B2B - Cab Operators
• Phased marketing approach
• Creative, low-cost and highly targeted marketing
strategies.
• Focus on customer retention through reward points
B2C – App Users
Our sales and marketing strategy consists of both B2B and B2C models. B2B model
consists of acquiring Radio Cab clients who will provide us with their server access
and integrate with our model.
10
Cab Operator Pitch
Profit Sharing
• Yearly subscription fee
according to the fleet
size and market share
• Gaining traction and
retention of clients
Fleet Optimization
• Usage of free time of
cabs
• Gives our clients a
competitive edge over
others
Incentives for
Drivers
• Additional trips add to
their revenue
• Free fuel-refills based
on trips made using
mapTheCab
11
Customer focused Marketing Strategy
Online PR
• Website and
Social Networking
Pages
• Daily events to
engage youth
interest.
Tie Ups with Cab
Operators
• Publicity on Cabs
• Mailers/SMSs to
their database
• Banners on their
Website
AppStore
• Advertising on
similar location
based apps
• Advertising on
convenience
apps like
bookmyshow
Paid Publicity
• Using Google ad
words on all radio
cabs related pages
• Outdoor publicity
– hoardings,
banners etc.
Complimentary vouchers for frequent users to encourage customer loyalty
12
mapTheCab
App
Development Customers
Server Side
Operations
Software
Installation
Client and
Server End
Clients
MarketingBeta Launch
Customer End
13
STRATEGY &
IMPLEMENTATION
Operational Timeline
Deve.
Phase
•Jan - Mar (Development of App, Setting of Server and first client acquisition)
Beta
Launch
•Apr - Jun (Beta Launch of the app with one client, 100 cabs and only targeted customers)
Year I
•July-Dec (Public Launch of the product, Intense Marketing in Mumbai, No convenience charge, Focus on
setting up a brand and acquiring leads
•Jan-Jun ( Convenience charge applicable, LBS client acquisition, expansion in Mumbai and marketing in 2
other cities )
Year II
•July-Dec ( Expansion to Bangalore and Delhi, increasing market share in Mumbai)
•Jan-July ( Expansion to Hyderabad, increasing market share in Delhi, Bangalore and Mumbai)
Year III
•Expansion to tier II cities and Revenues based on higher market share
Year IV
onward
•Expansion to other Tier II cities and conversion of non-radio cabs into radio cabs
14
Revenue Model
App based Revenue
Convenience Charges
Revenue through Downloads:
We will be having a Freemium model
Revenue through Advertisements :
We will be using Google ad-sense for ads
• Has been set at Rs. 5
• Approx. 1.5 -2% of the fare of an avg. trip
• Priced keeping in mind
• a) instantaneous, hassle free booking b) call free booking c) high-end customer
base
LBS Revenue
Try new
pizzas in
Pizza hut.
Powai
New deals in
Croma,
Mulund
• Map-integrated Ads for Location Based Services.
• Using GPS based tracking and user profiling - Location
based advertising.
• Growing and highly penetrative form of advertising
• Clients ranging from Pizza Hut, Subway to Croma etc.
0
5
10
15
20
25
30
Millions
Revenue Distribution
convenience
Charge
Advertisemen
t Charges
Download
Charges
LBS Service
15
Financial Projections
MapTheCab
Cab
Companies
Operational
Costs
Fixed Costs
Drivers
Incentive
LBS Revenue
Revenue
Through App
Convenience
Charge
Product
Develop
ment
Beta
Launch
Year 1 Year 2 Year 3
Jan-
March
Apr-Jun
Total
Revenue
0 0 4,263,500 30,677,350 69,024,500
Total Costs 3,00,000 3,00,000 2,670,000 11,430,000 21,970,000
Driver Fuel
Vouchers
0 0 283,500 1,960,875 4,567,500
Clients
incentive
0 0 1,500,000 8,000,000 13,000,000
Net Profit
Before Taxes
-3,00,000 -3,00,000 -190,000 9,286,475 29,487,000
Profit and Loss Statement Cash Flows
16
Break-even Analysis
-Rs. 5
Rs. 0
Rs. 5
Rs. 10
Rs. 15
Rs. 20
Millions
Net Profit Before Taxes
Net Profit Before Taxes
0
5000000
10000000
15000000
20000000
25000000
30000000
35000000
40000000
Years
Break-even Analysis
Costs
Revenue
1.75yrs
Break-even point
17
Capital Requirements
6 lacs
25 lacs
50 lacs
for initial app. development
and beta launch
For client acquisition, brand
establishment in Mumbai
Expansion to other cities,
extensive marketing
18
Team Organization
Rohit Shroff
•A keen startup enthusiast and has won Ideaz, PAN -IIT B-Plan competition
• Core group member of Mood Indigo and interned as a strategy analyst at Motilal Oswal
Naman Sarawagi
• Head of Product Development for startups like Freecharge.in and ZipDial
• A renowned author for Pluggd.in with extensive insight into the e-commerce industry
Kovid Kapoor
• Final year CSE student at IIT Bombay with an experience in developing mobile apps
• Interned at Intuit Inc, working on company’s premier mobile app
Aashimi Bhatia
• Final year student of Physics with a CSE minor; internship at Morgan Stanley
• Has a knack for solving algorithmic puzzles and loves programming
19
Team Organization (cont.)
Prateek Chauhan
• Currently working with Clinton Foundation In the HIV Aids Initiative>
• Valuable insights into the financial operations with intern in UBS and Berkshire
Amit Desai
• Working for Teach For India’s Fundraising team, gaining insights into market strategies
• Interned at Barclays Capital, dealing with client across various verticals
Aditi Jain
• Extensive experience in business analysis and development
• Has worked with Teach For India, TechCrew (an IT service startup) and as
Head for Marketing for Mood Indigo
20
Our Pitch
Innovative
Business Idea
Huge Market
potential
No Direct
Competition
Low Investment
Model with
High Returns in
a Short Term
Talented
Management
Team
21
Thank You!
Questions Please
22

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MapTheCab Presentation in Eureka 2012

  • 1. Eureka Business Plan Competition, 2012 mapTheCab 1 IIT Bombay
  • 2. Content Business Opportunity Business Concept Market and Customer Analysis Marketing and Sales Strategy Strategy and Implementation Operational timeline Revenue Model Financial Projections Summary 2
  • 3. Business Opportunity No instantaneous cab booking facility Frequent delay on calls Call multiple providers if cab is not available Uncertainty in the arrival of a booked cab • The radio cab market is in a nascent stage with a huge demand-supply gap Presence of a huge market • With the current booking mechanism, user faces a long wait queue on the phone Dissatisfaction with the current model • More people are willing to trade a few extra bucks in return for comfort and quick, good servicePrice sensitivity • An aggregated solution for prior-booking of cabs of major operators Centralization of the cab booking system 3 Present Scenario
  • 4. mapTheCab Instantaneous Cab-Booking Centralized Booking Portal Cab Sharing Business Concept A one-stop solution for Radio Cab booking which makes the process convenient and truly on-demand. 4
  • 5. Product Description User’s position and available cabs User selects his destination Chooses from a list of free and shared cabs Gets confirmation from cab driver Deal confirmed! 5
  • 6. Our Product – How it works • The end-user application which commuters install on their phones Mobile App • The application for the cab driver to confirm a booking with the commuters Cab Device Application • To facilitate communication between the mobile and the cab device Server Script 6
  • 7. Market and Customer Analysis Radio Cab Market • 20,000 cabs in India presently and fleet is expected to triple by the end of 2013 • 4 million passengers a month, HUGE DEMAND SUPPLY GAP! • Growth depends on IT infrastructure for fleet optimization Smartphone Market • There are over 222 million smartphones in India • Y-o-Y growth rate of over 100% • 72% of the time is spent on a smartphone is on internet based apps Mobile Ad Market • India is the biggest mobile advertising space in Asia Pacific • Over 5.8 billion mobile impressions are recorded monthly • Mobile impressions increased by 22% in the last quarter of 2010 7 Sources - Nielson, Researchonindia.com, Cyber Media Research, RTO
  • 8. Target Segment • 65% radio cab commuters own smartphones • 39,000 radio cab trips by smartphone users each day • By 2013, 80% radio cab will own smartphones 8 35% 65% Potential Market Without Smartphones With Smartphones Tier I cities Radio Cab Users Smartphone Users
  • 9. Competitive Landscape There are no existing mobile-app based instantaneous cab booking services, we can only face indirect competition through internet-based booking portals and cab-operators. Current Players Providing Cab Booking Services • Your Cabs and Taxi Guide, run on a long-distance travel booking model using website and phone services • Primarily, target a different set of commuters. Private Cab Operators • B2C marketing methodology - Rapidly solidify our position as a one stop solution for Cab Booking services. Future Competition • No established companies operating in our vertical. • Entry barrier for duplication on account of our first mover advantage 9
  • 10. Marketing & Sales Strategy • Major operators - Meru Cabs, Easy Cabs, Mega Cabs, Wings Cabs, Gold Cabs. • Their combined market share is approximately 70% of the entire Radio Cab market. B2B - Cab Operators • Phased marketing approach • Creative, low-cost and highly targeted marketing strategies. • Focus on customer retention through reward points B2C – App Users Our sales and marketing strategy consists of both B2B and B2C models. B2B model consists of acquiring Radio Cab clients who will provide us with their server access and integrate with our model. 10
  • 11. Cab Operator Pitch Profit Sharing • Yearly subscription fee according to the fleet size and market share • Gaining traction and retention of clients Fleet Optimization • Usage of free time of cabs • Gives our clients a competitive edge over others Incentives for Drivers • Additional trips add to their revenue • Free fuel-refills based on trips made using mapTheCab 11
  • 12. Customer focused Marketing Strategy Online PR • Website and Social Networking Pages • Daily events to engage youth interest. Tie Ups with Cab Operators • Publicity on Cabs • Mailers/SMSs to their database • Banners on their Website AppStore • Advertising on similar location based apps • Advertising on convenience apps like bookmyshow Paid Publicity • Using Google ad words on all radio cabs related pages • Outdoor publicity – hoardings, banners etc. Complimentary vouchers for frequent users to encourage customer loyalty 12
  • 13. mapTheCab App Development Customers Server Side Operations Software Installation Client and Server End Clients MarketingBeta Launch Customer End 13 STRATEGY & IMPLEMENTATION
  • 14. Operational Timeline Deve. Phase •Jan - Mar (Development of App, Setting of Server and first client acquisition) Beta Launch •Apr - Jun (Beta Launch of the app with one client, 100 cabs and only targeted customers) Year I •July-Dec (Public Launch of the product, Intense Marketing in Mumbai, No convenience charge, Focus on setting up a brand and acquiring leads •Jan-Jun ( Convenience charge applicable, LBS client acquisition, expansion in Mumbai and marketing in 2 other cities ) Year II •July-Dec ( Expansion to Bangalore and Delhi, increasing market share in Mumbai) •Jan-July ( Expansion to Hyderabad, increasing market share in Delhi, Bangalore and Mumbai) Year III •Expansion to tier II cities and Revenues based on higher market share Year IV onward •Expansion to other Tier II cities and conversion of non-radio cabs into radio cabs 14
  • 15. Revenue Model App based Revenue Convenience Charges Revenue through Downloads: We will be having a Freemium model Revenue through Advertisements : We will be using Google ad-sense for ads • Has been set at Rs. 5 • Approx. 1.5 -2% of the fare of an avg. trip • Priced keeping in mind • a) instantaneous, hassle free booking b) call free booking c) high-end customer base LBS Revenue Try new pizzas in Pizza hut. Powai New deals in Croma, Mulund • Map-integrated Ads for Location Based Services. • Using GPS based tracking and user profiling - Location based advertising. • Growing and highly penetrative form of advertising • Clients ranging from Pizza Hut, Subway to Croma etc. 0 5 10 15 20 25 30 Millions Revenue Distribution convenience Charge Advertisemen t Charges Download Charges LBS Service 15
  • 16. Financial Projections MapTheCab Cab Companies Operational Costs Fixed Costs Drivers Incentive LBS Revenue Revenue Through App Convenience Charge Product Develop ment Beta Launch Year 1 Year 2 Year 3 Jan- March Apr-Jun Total Revenue 0 0 4,263,500 30,677,350 69,024,500 Total Costs 3,00,000 3,00,000 2,670,000 11,430,000 21,970,000 Driver Fuel Vouchers 0 0 283,500 1,960,875 4,567,500 Clients incentive 0 0 1,500,000 8,000,000 13,000,000 Net Profit Before Taxes -3,00,000 -3,00,000 -190,000 9,286,475 29,487,000 Profit and Loss Statement Cash Flows 16
  • 17. Break-even Analysis -Rs. 5 Rs. 0 Rs. 5 Rs. 10 Rs. 15 Rs. 20 Millions Net Profit Before Taxes Net Profit Before Taxes 0 5000000 10000000 15000000 20000000 25000000 30000000 35000000 40000000 Years Break-even Analysis Costs Revenue 1.75yrs Break-even point 17
  • 18. Capital Requirements 6 lacs 25 lacs 50 lacs for initial app. development and beta launch For client acquisition, brand establishment in Mumbai Expansion to other cities, extensive marketing 18
  • 19. Team Organization Rohit Shroff •A keen startup enthusiast and has won Ideaz, PAN -IIT B-Plan competition • Core group member of Mood Indigo and interned as a strategy analyst at Motilal Oswal Naman Sarawagi • Head of Product Development for startups like Freecharge.in and ZipDial • A renowned author for Pluggd.in with extensive insight into the e-commerce industry Kovid Kapoor • Final year CSE student at IIT Bombay with an experience in developing mobile apps • Interned at Intuit Inc, working on company’s premier mobile app Aashimi Bhatia • Final year student of Physics with a CSE minor; internship at Morgan Stanley • Has a knack for solving algorithmic puzzles and loves programming 19
  • 20. Team Organization (cont.) Prateek Chauhan • Currently working with Clinton Foundation In the HIV Aids Initiative> • Valuable insights into the financial operations with intern in UBS and Berkshire Amit Desai • Working for Teach For India’s Fundraising team, gaining insights into market strategies • Interned at Barclays Capital, dealing with client across various verticals Aditi Jain • Extensive experience in business analysis and development • Has worked with Teach For India, TechCrew (an IT service startup) and as Head for Marketing for Mood Indigo 20
  • 21. Our Pitch Innovative Business Idea Huge Market potential No Direct Competition Low Investment Model with High Returns in a Short Term Talented Management Team 21