bus
Sam321
Example1.pptxSlugging on Steroids with Hitcher
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The Business Problem
The IT Concept and Solution
Strategic Analysis
The Business Case
Projected Costs
Projected Revenues
Payback Periods and Profitability Index
Potential Risks, Recommendations, and Conclusion
Overview
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Increased traffic congestion in metro areas expected1
Metro and VRE already operate over capacity2
More/Bigger roads won’t fix problem
The Business Problem
Government has incentivized ride-sharing without enabling it
Existing ride-sharing platforms are not agile, require time, offer low incentives
Uber isn’t really ride-sharing
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Photo courtesy of http://vaperforms.virginia.gov/images/graphs/Transportation/TrafficCongestion-AnnualHoursDelayPerTravler.png
Versel, David E. “Outlook for the I-95 Corridor in Fairfax and Prince William Counties.” George Mason University Center for Regional Analysis. November 2013. Accessed from http://cra.gmu.edu/pdfs/CRA2013-8_DVerselREVISED.pdf
2. Versel, David. “More roads won't solve traffic on I-95 in Northern Virginia.” Greater Greater Washington. December 2013. Accessed from http://greatergreaterwashington.org/post/20786/more-roads-wont-solve-traffic-on-i-95-in-northern-virginia/
IT Concept and Solution
Mobile Application solves multiple issues
Hitchers enter destination and preferences
Drivers enter destination and preferences
Supply/Demand adjusted pricing
Social media integration increases familiarity
Rating system increases safety and efficiency
Future development
Automatic weather adjusted preferences
Transparent navigation monitoring
A Ride Request has been found within your set preferences!
| Time off Route | Distance off Route |
| 4 Minutes | .3 Miles |
| Conrad | ||
| 2 Degrees of Social Separation |
ACCEPT
DECLINE
$4.10
See Pickup/ Dropoff on Map
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Free Market Pricing
Payments occur in app using existing digital wallet services
Drivers input what their time is worth
App shows average fees/minute in that area
App shows hitcher’s total price to accept or decline
Hitcher takes 15%
App sets minimum price (no free rides)
Marketing incentives possible (free rides funded by the App) for referrals, etc.
A Ride Request has been found within your set preferences!
| Time off Route | Distance off Route |
| 4 Minutes | .3 Miles |
| Conrad | ||
| 2 Degrees of Social Separation |
ACCEPT
DECLINE
$4.10
See Pickup/ Dropoff on Map
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Strategic Analysis
Business Context – “Ridesharing” apps trending upwards in popularity, acceptance, and compliance with laws
Customer Analysis – Elaborated during Business Problem
Competitor Analysis – UberPool and other less sophisticated products do not take advantage of computational efficiencies
Business Network Analysis – Google already owns proprietary map data, navigation algorithms, and real time traffic data
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Projected Costs
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Projected Revenues
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Payback and Profitability Analysis
Payback occurs in 1.62 Years
With a discount rate of 15%, NPV of $6,658,914 over 4 years with IRR of 108%
Profitability Index of 2.5443 to compare to other investment opportunities
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Potential Risks and Recommendations
Assumption that people are willing to pay mass-transit prices + small premium for a near door-to-door service
Assuming continuous increase in traffic congestion at current projections, increasing incentive to carpool
Risk of failure to generate users, which devalues the usefulness of the app
Use of the app at efficient levels creates positive externalities that extend beyond customers
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Questions
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