4. .. in Cairo
Daily Average Road Traffic Speed
Km/h
25
20
15
10
5
0
Daily Avg. commute time (minutes)
250
200
200
150
21
100
50
5
2001
2015
Source: Centre for Environment and Development for the Arab Region & Europe (CEDARE)
0
34
2001
2015
… and it is only
getting worse
5. 200
minutes are two
full working days
per week
Besides time & stress, the daily drive
in Cairo also costs 500 L.E in gas, 700
L.E for depreciation and maintenance
and arund 150 L.R for parklng
13. Daily Commuters
2 Hours+ daily commute
Average income above 5000 L.E.
Living in areas both commercial and residential
Need the service for 10 months per year
Spend an average of 1000 L.E. per month
Estimated
And they spend a total of
20,000
240
in Cairo are in this segment
Million L.E
Per year on daily commuting
15. Two Sided Market
Drivers
Daily Commuters
Professional drivers who are looking for a steady
monthly income and have their own cars
Employees and students who have daily fixed
trips and want to save costs and don’t want to
drive
They offer their monthly service, 5 days per
week for a monthly payment between 4000 –
They pay an average of 1200 L.E monthly
5000 L.E. All costs included
This allows PieRide to scale and respond to
demand changes
subscription for 40 rides in advance
This subscription model allows PieRide to plan
capacity according to demand without
committing upfront investment
16. PieRide Value Added
Drivers
Daily Commuters
Society
Job Creation
Higher productivity
Resource
utilization
Stable income
Cost cutting
Reduce traffic
congestion
Training
Social ridesharing
19. Business Model
& Unit Economics
Revenue
monthly
Fees
Paid in advance
1000 – 1600 L.E monthly subscription for
daily round-trips
2-3 subscriber per round-trip
2-3 round-trips per day
Expected average revenue per car:
(per car)
6000 L.E
Subscription period
Costs
Total operational costs:
4000 – 5000 L.E
Includes Gas, Driver, Car and
Maintenance
Buy low, sell high, collect early & pay late
Driver
Payment
Paid at the end
of the month
Minimal CAPEX & working capital
Demand is known in advance
Repeat purchase & customer Loyalty
21. Business Model
Comparison
Uber, Lyft, EasyTaxi
PieRide combines favorable
features from several successful
business models to offer a
unique value proposition
2 sided market
No fixed assets
tailored to daily
commuters and the local
market
CarPooling
BusPooling
PieRide
Daily Commuting
ZipCar
22. Revenue Streams & KPIs
Ride per Day
Customer per ride
Subscriptions
Price (ARPU)
Revenue
Churn %
Advertising
Total number of
customers
28. Where are we now
4
12
Routes
drivers
17
Agreed with Etisalat to offer
The service for employees
3 4 0% 35 90+
Co-founders
Employees
Churn Rate
Paying
subscriber
Request in
pipeline
Driver
Standing-by
29. Organization structure
Filled
PieRide
Subfunction (double role, filled by manager)
Future hire
COO
Product
Management
Strategy
Customer
Acquisition
& CFO
Partnerships
Product
Management
Branding
Investors
Relations
Planner &
Dispatcher
Software
Development
Community
Manager
Financial
controller
Customer service
Accounting &
Legal
Driver sourcing &
Training
31. Earnings growth
Scenario 1 (without investment)
150000
We will use profit and advance
payments from customers to fund our
growth
Growth will be slow as we gradually
build the infrastructure and capabilities
to absorb growth
Brand image might be at risk as we are
less responsive to demand increases
100000
50000
Scenario 2 (with investment)
We will invest in technology and human
capabilities necessary to accelerate
growth
We will be able to scale faster without
compromising profitability or quality of
service
We will be able to reach the scale
necessary to get favorable business
agreements, partnerships and offer
flexible service.
0
Jan Feb Mar Apr May Jun July Aug Sept Oct Nov dec Jan Feb Mar Apr May Jun Jul Aug Sept
-50000
-100000
Earnings without investment
Earnings with Investment
38. ..of total UAE residents:
Daily Commute Time
1%
9%
0-30
30-60
21%
Mode of Commuting
8%
27%
Car
12%
Taxi
60-90
Public Transport
90+
43%
Bike - other
79%
Total potential customers: 9M (UAE population) * 30% (60+ commute) *12% (using taxi)
Market Size: 324,000 * 10% (commute budget) * 18,000 USD
Data source: Regus Whitepaper (link)
(Avg. Annul Salary)
= 324,000
= 580 Million USD
39. 40
80
Miles
Daily
Commute
50c
6
Cents per
mile
Hours per
week
440$
Cost of driving
and car
ownership
Minutes
Daily drive
Alomst
another
working day!
Per month
Sources:
http://www.census.gov/prod/2011pubs/acs-15.pdf
http://lifehacker.com/5855550/the-true-cost-of-commuting-you-could-buy-a-house-priced-15900-more-for-each-mile-you-move-closer-to-work
.. In the U.S.
