SpotOn Parking Deck

Transcript

1. 1   Investor  Presenta,on   June  2014   SpotOn  Confiden2al  |  Hanna  Bui,  Founder  &    CEO  |  hanna@spotonparking.com  
2. 2   We  turn  empty  spaces  into  parking  for   drivers  and  money  for  spot  owners!   Parking     for   Drivers     Unmet  Demand   Money     for   Owners     Idle  Capacity   +  
3.     Collabora,ve  Consump,on       Rooms   Rides   Parking!       “Sharing  access  to  products  or  services,  rather  than  individual  ownership,  enabled  by   technology  and  peer  communi,es”      
4.     Revenue  Model  –  Match  Unmet  Demand  with  Idle  Capacity   4   Hourly  Fee   Monthly   Subscrip,on   Unconven,onal   Lots   Driveways   Commercial   Garages   30%  of  San  Francisco   downtown  traffic  is  from     drivers  looking  for  parking     Average  na,onal  wait  ,me     for  monthly  parking  is     currently  9.4  months     Idle  Capacity  
5. Transforming  People’s  Lives  Today!   5   Parker  Tes,monial:   “There  was  no  way  I  was  going  to  get   parking  there.    I  saw  a  sign  for  SpotOn   parking  at  a  church.  I  downloaded  the   app  and  paid  $2.50  to  park.    It  saved  my   life.”     Carrie  Busch  –  Parker,  San  Francisco  Chronicle  5/10/2014     Spot  Owner  Tes,monial:   “SpotOn  has  been  a  win-­‐win  for  our   neighbors  and  our  church.    ...we  are  also   networking  and  building  rapport  with  the   community  ”     Preston  Turner  –  Chairman,  Third  BapMst  Church,  San   Francisco  Chronicle  5/10/2014     Community  Tes,monial:   “It’s  a  great  concept  and  helps  to   alleviate  the  parking  shortage  that   impacts  our  merchants  in  the  Mission  .”     Amy  Morris  –  Mission  Merchants  AssociaMon,  San  Francisco   Chronicle  5/10/2014     Government  Tes,monial:   “[The  Police  Chief]  is  supporMve  of  any   creaMve  soluMons  that  might  affect  traffic   and  safety.”       Danielle  Newman  –  spokesperson  for  San  Francisco  Police   Department,  San  Francisco  Chronicle  5/10/2014    
6. SpotOn  An  Instant  Success!  –  in  ~6  months…:   6   •  600+  Spots  acquired  in  SF   •  200  regular  monthly  subscribers   registered   •  $25,000  in  monthly  revenue   •  Completed  deals  with:   •  Car  sharing  (e.g.  Getaround)   •  Tradi,onal  garages  (e.g.  CPC)   •  Local  businesses  (e.g.  The  Independent)   •  Local  non-­‐profits  (e.g.  churches,  schools)   •  Driveways  (e.g.,  homeowners)   Some  spot  owners  have  made  $15,000+  in  less  than  6  months!  
7. Demand  Case  Study:  San  Francisco   7   379,898  registered  cars   +61,755  trucks   +20,144  motorcycles   +8,536  trailers   +35,400  commuter  vehicles/day   505,733  vehicles  on  any  given  day   Vehicles  parked  96%  of  the  Lme   485,504  spots  needed  each  day       255,000  street  spaces   +25,000  street  metered  spaces   +161,541  garage  spaces   441,541  available  spaces     -­‐43,963  spaces  of     short  of  simple  demand     (does  not  account  for  locaMon   specific  needs)     ~10  month  wai,ng  period  for     subscrip,on  parking       Source:   hKp://www.7x7.com/travel-­‐ac2ve/parking-­‐quiz-­‐answer-­‐sf-­‐cars-­‐ vs-­‐parking-­‐spaces-­‐who-­‐wins     hKp://blog.sfgate.com/cityinsider/2010/03/31/guess-­‐how-­‐many-­‐ parking-­‐spaces-­‐are-­‐in-­‐san-­‐francisco/      
8. Supply  Side  Trac,on  To  Date   SpotOn  has  uncovered  several  sources  of  idle  parking  capacity  to  meet   demand       450       6,660   Unconven,onal  Spots   (i.e.,  churches,  schools,  small   businesses,  etc.)   50       24,600   Residen,al  Spots   (i.e.,  driveways,  residen2al   garages,  etc.)           100       16,937!   Commercial  Spots   (i.e.,  commercially  managed   garages  and  lots  with  unused   or  off  hour  capacity)     !       Spots  Secured     To  Date   Relevant  Idle   Supply   Supply  Type   600   Total:   99,543  
9. Why  is  Parking  Capacity  Idle?   9   1.  Don’t  know  it’s  possible  to  rent  out  a  spot   2.  Don’t  want  to  deal  with  hassle  of  finding  a   “tenant”  (spot  owner)   3.  Don’t  want  to  deal  with  an  individual   “landlord”  (parker)   4.  Don’t  want  to  manage  complex  logis,cs  and   enforcement   5.  Not  their  core  business  or  area  of  exper,se   6.  Not  worth  the  hassle  if  they  have  to  manage   everything  themselves   Spot  on  solves  for  all  of  the  above  
10. Unit  Economics   Line  Item   Es,mates   Notes   Average  Monthly  Subscrip2on  Fee   $150/month;  market   clearing  price  is  likely   $170   Current  running   average  for  uncovered,   unsecured  parking   Owner  Share  of  Subscrip2on  Fee   $105/month   70%  of  subscrip2on  fee   Credit  Card  Processing  Fees   $4.50/transac2on   3%  es2mated  charge   per  transac2on   Liability  Insurance  &  Setup   $5/month   Provides  X,  Y,  Z   coverage   Commissions   ~$5/month   $50  1X  MRR  amor2zed   over  9  month  average   subscrip2on  life   Gross  Unit  Margin   ~$30/month,  likely   mispriced  as  low;   more  likely  $50/ month   Ajer  all  direct  costs   Average  Life2me  Gross  Unit   Margin   ~$275/lifecycle     Assumes  9  month   average  lifespan  of   subscriber   10  
11. SpotOn  Has  Defensible  Pricing  &  Unit  Economics   $375/month  average  rate   $166.26/month  average  US   unreserved  rate   $150/month  SpotOn  rate   San  Francisco  Example:       3.4%  annual  price  growth     ~10  month  waiLng  period     Source:  hKp://www.colliers.com/~/media/ files/marketresearch/unitedstates/ colliers_2012_na_parking_survey.pdf  
12. Addressable  Market   Line  Item   Es,mates   Notes   San  Francisco  Relevant  Idle   Capacity   99,543  idle  spots   From  unconvenMonal,   residenMal,  and   commercial  sources   Unit  Price   $170/month   Likely  low  relaMve  to   market   Unit  Margin   $50/month   Assumes  all  direct  costs   Likely  Captured  Share   15%   SpotOn  captures  15%  of   idle  relevant  capacity   Likely  Annual  SF  Revenues   ~17M   At  current  average  price   point   Likely  SF  Annual  Direct  Margin   ~$5.8M     At  $30  per  space  or  20%   of  spot  price   Number  of  Similar  Markets   35     Based  on  other  P2P   markets  and  parking   challenged  city  analysis   Total  Poten2al  Opportunity  for   SpotOn  in  35  markets   $202M   Top  line/Margin   12  
13. 13   SpotOn  Confiden2al  |  Hanna  Bui,  Founder  &    CEO  |  hanna@spotonparking.com   12  Month  Go  To  Market  Strategy   •  Capture/Own  the  San  Francisco  Market  in  Year  1   •  Improve  sales  capacity     •  Finalize  valida,on  of  supply  hypothesis  from  all   likely  sources   •  Iden,fy  Next  2  Markets  and  Develop  Launch   Strategy   •  Refine  launch  playbook   •  Improve  technology  plaoorm  
14. 14   SpotOn  Confiden2al  |  Hanna  Bui,  Founder  &    CEO  |  hanna@spotonparking.com   Filling  In  Defensible  Technology  Needs   1.  Improve  user  interface   •  Enhance  parker  and  spot  owner  aler,ng  to  improve  opera,ons   •  Improve  spot  finding  capabili,es   •  Improve  spot  lis,ng  capabili,es     2.  Improve  opera,onal  interfaces   •  Improve  automated  violator  detec,on   •  Improve  aler,ng  management  with  towing  partners   •  Improve  security  func,ons  –  gate  management,  etc.     3.  Improve  matching  algorithm     •  Create  proximity,  hours  of  availability,  and  space  type  matching   for  spot  listers  and  poten,al  subscribers   •  Create  algorithm  to  leverage  any  idle  supply  for  ad  hoc  hourly   parking  
15. 15   SpotOn  Confiden2al  |  Hanna  Bui,  Founder  &    CEO  |  hanna@spotonparking.com   8  Step  New  Market  Playbook   Step   Ac,vity   1   Develop  heat  map  of  supply  and  pricing   2   Inves2gate  regulatory  landscape   3   Pull  na2onal  chain  affiliates  to  source  immediate  supply   4   Drop  in  launch  team  (2-­‐3  person)   5   Run  Google  Ad  and  Facebook  campaigns  to  refine  demand   heatmap     6   Establish  local  ground  team  (2-­‐3  people  once  demand  and   supply  are  verified)   7   Establish  opera2onal  infrastructure  (towing  &  enforcement   rela2onships)   8   Match  demand  and  supply  (leverage  spot  signage  to  create   awareness)  
16. 16   Mobile   App   App   Payment   Parking   Naviga,on   Parking   Management   Collabora,ve   Consump,on   ParkMe   ✓   ✖   ✓   ✖   ✖   QuickPay   ✓   ✓   ✖   ✖   ✖   ParkNow   ✓   ✓   ✓   ✖   ✖   StreetLine   ✓   ✓   ✓   ✖   ✖   Parking   Panda   ✓   ✓   ✓   ✖   ✓   Park  at  my   House   ✓   ✓   ✓   ✖   ✓   SpotOn   ✓   ✓   ✓   ✓   ✓   Compe,,ve  Landscape  
17. Vipul  Vyas  –  Chief  Strategy   BeVocal  (acquired  by  Nuance);  Victrio  (acquired  by  Verin);  MBA   Dartmouth;         The  Team   17   Hanna  Bui  –  Founder  &  CEO   Veteran  tech  deal  lawyer;  Cooley,  and  Fenwick  &  West;  UC  Has,ngs     Dwalu  Khasu  –  CTO   Serial  Entrepreneur;  BBN;  Excite@Home;  Boston  University  
18. Thank  You   18   Contact  hanna@spotonparking.com  for  more  informa,on