Stage: Alpha (prototype)
Number of employees: 1-5
Short URL: vator.co/hailcabcom-hail-a-cab-with-no-physical-effort-right-from-the-comfort-of-your-cell-phone
Three-Tiered Revenue Model
Hail CabTM will always be free for the consumer. This is key for early user adoption and widespread distribution with the mobile carriers.
Why make it free when a consumer may pay a small fee anyway?
Answer: Few Subscribers Paying for Applications Today
Few cell phone owners (two percent), have used dedicated location-based applications on their cell phones. Overall, three percent of cell phone owners have used maps and two percent have used turn-by-turn directions. Numbers for men, as well as young adults, are somewhat higher than among overall cell phone owners. Among those cell phone owners who purchase and consume mobile content (i.e., buyers: cell phone owners who have paid for mobile content in the past six months), adoption and use of these services is naturally higher across the board. In this category, cell phones compete with dedicated devices, which require no ongoing subscription fee. Ten percent of consumers surveyed own global positioning system (GPS) devices, with five percent planning to purchase one in the next 12 months.
WE ARE STILL DEBATING ON OFFERING THE SERVICE FREE OR POSSIBLY CHARGING $3.99 PER MONTH FLAT FEE FOR UNLIMITED HC USES BY THE CONSUMER TO INCREASE OUR REVENUE AND BRING REVENUE IN FROM 4 DIFFERENT DIRECTIONS.
HailCab will generate revenue in three ways:
1. A $99 monthly subscription fee per cab. (can be paid for by cab co or by driver or fare can be adjusted to pay for it as well.
2. There will be a $5000 management fee.
3. The Hail Cab Application itself will sell rotating ads.
HailCab's Market Opportunity
The HailCab network offers a very large opportunity to create efficiencies in the daily commuter market and create a paradigm shift in many cities for the way that people commute. Jupiter Research published a new report(July 2007) on Location Based Services that reveals that consumers are becoming increasingly aware of and interested in more sophisticated mobile services. The research firm emphasizes that wireless carriers should support this trend with ongoing education to enable them to capitalize on the opportunity to sell such services to a growing base of consumers. "There is a clear opportunity for carriers to take advantage of their unique access to user location information as the basis for new services and revenue streams," said David Schatsky, president of Jupiter Research. He continued: "Consumer behavior suggests that they will go where they can find the best and most complete service. Wireless carriers should evolve beyond what they have traditionally had to offer and create the scenario where they are viewed as a one-stop shop." Whenever you are in a major city you see many men and women commuting on a daily basis from home to work either by cab, car, bus, train or walking. Traffic in major cities continues to swell without the government relieving the situation in a proactive way. One thing that commuters have in common is that is that many of them are using mobile devices just in case there is an emergency on their trek, like the popular Blackberry, Palm device or mobile phone. The ability to stay in constant communication with clients, colleagues, partners, and vendors is so much easier with today's technological advances. Whether the business executive has traveled from another city or is a local resident, it's no longer a novelty to see him or her multitasking away from the office - it's expected. Over 100 million business travelers visit the top 25 United States business travel cities every year, and at least 90 percent of them carry a mobile device when traveling. During lunch breaks and after a day full of meetings and seminars, these on-the-go executives are typically searching for transportation and any help they can get about the city they are in. They need reliable information and they need them fast. After all, they may be trying to impress a prospective client in order to seal a big real estate deal, honor their production team of 20 with a congratulatory dinner, or they may simply want to treat themselves to a great solo evening in order to unwind from a hard day. All of that requires travel. Being late to a meeting is very much commonplace in large cities due to traffic and other hassels and this is just one untapped market for HailCab (the out of town business traveler). It is HailCab's goal to revolutionize the way people travel in the city. "It's estimated that, by the end of this year, as many as 63 percent of phones sold in North America will have built-in GPS chipsets, up from 55 percent in 2006" according to Gartner Research.
HailCab aims to be the sole service providing mobile access to real-time cab information. Through teaming with the major wireless carriers (Verizon, Sprint, ATT and T-Mobile) who are actively looking for these types of LBS partnerships (so that they can sell more data plans), we want to capture 10% of the cab commuting market within our first year.
How are we going to do that? With smart design. No cost to the user, no equipment for the cabs to buy or install and by leveraging already existing technology in people's handsets they own today to pull it all off in a cheap way that avoids many of the potential hurdles and pitfalls of early adoption of a new service. We are marketing this service to four different markets. Daily Local Commuters, Business Travelers, Cab Drivers and Cab companies who can all save time and money AND make more money(cab drivers/cab cos.) using HC.