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
“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
• 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!
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/
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
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
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
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
CEO | [email protected] 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
CEO | [email protected] 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
CEO | [email protected] 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)
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
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