Hometree - "Uber" for Last Mile Transportation
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Transcript of Hometree - "Uber" for Last Mile Transportation
Motorcycles is the preferred transporta8onmedium but they are unreliable, unsecured, and does not promote inclusion.
People and goods have to con8nuously movefrom point A to point B and most of the 8methrough dense streets inaccessible by cars.
An app that connects “idle supply” of driversto “unserved demand” of passengers.
And most drivers are idle during “non-peak”hours between 10am to 4pm.
An iOS and Android app made just forpassengers.
Hometree
Paruey Anadirekkul
Surcharge apply for addi8onal stops & wai8ng 8me.
Paruey Anadirekkul
$10.40 ~ $15.40
$9.80
Hometree Driver
Paruey Anadirekkul
Drescher CampusMalibu, CA
The Misfit Bar
Santa Monica, CA225 Santa Monica Blvd
$10.40 ~ $15.40
Hometree Driver
An iOS and Android app made just fordrivers with smartphone rental program.
Our business model makes sense forboth drivers and passengers.
HometreePassengers Drivers
+ $0.20 for every
successful booking
Fare + $0.40 Deduct $0.20
from account
Passengers pay fare + $0.40. When a new driver signs up, he/she is given a $10 credit. For each every successful booking, Hometree takes a $0.20 cut. The driver has to top up his/her account when it’s exhausted to receive more bookings.
Hometree has low expenses incurred with almost no fixed costs (office and IT infrastructure) just for being a middleman connecOng drivers to passengers. See scalability plan.
We double income of drivers throughincreasing earnings by $0.20 per ride andincreasing ride frequencies.
24 trips per day ~$0.60 per trip = $14.4 per day
40 trips per day ~$0.60 + $0.20 = $0.80 per trip
= $32 per day
AssumpLons: average trip is about 8 minutes (if 40 trips then about 5 hours and 30 minutes). There is sOll potenOal to bring number of trips to about 75 trips (10 hours).
HometreeStatus Quo
# of trips increased
price increased
We increase frequencies of ride by enablingdrivers to deliver goods during idle 8me.
08.00am - 09.30am
09.30am - 11.00am
11.00am - 11.30 am
11.30am - 01.30pm
01.30pm - 04.30pm
04.30pm - 07.00pm
07.00pm - 08.00pm
Rush hour - Move people (10+ rides)
Idle Lme - Move goods/services (5+ rides)
Lunch
Lunch hour - Move people (8+ rides)
Idle Lme - Move goods/services (10+ rides)
Rush hour - Move people (10+ rides)
Dinner
Logis8cs is a $400 billion dollar marketopportunity worldwide*.
See motorcycle license and registraOon for ASEAN countries.
155,000,000 Motorcycles in Southeast Asia
143,034,000 Motorcycles in
IN, TH, MY and VN
5,000,000 Motorcycles benefitted from Homtree by 2022
TAM SAM SOM
*Source: SupplyChain247
Capturing 2.45% of $400 billion would
YEAR 2016 2017 2018 2019 2020 2021 2022
Discount Factor 0.91 0.83 0.75 0.68 0.62 0.56 0.51
Revenue (in millions) $1.96 $19.60 $98 $980 $1,960 $3,920 $9,800
Cost (in millions) $1.54 $15.40 $77 $770 $1,540 $3,080 $7,700
Annual Benefits $0.42 $4.20 $21 $210 $420 $840 $2,100
Present Value (Benefits) $0.38 $3.47 $16 $143 $261 $474 $1,078
generate Hometree $9.8 billion in revenue.
0
1250
2500
3750
5000
2016 2017 2018 2019 2020 2021 2022
Number of Motorcycles (‘000)
0
750
1500
2250
3000
2016 2017 2018 2019 2020 2021 2022
Hometree’s profit (‘000)
We consist of market experts, marketer,coder, entrepreneur, and data expert.
Paruey Anadirekkul Entrepreneur
Han Zhou Coder
Punch Kasemsarn Marketer
Lu Jin Data Expert
CEO at Parking Duck Consultant at IBM
BA in Poli0cal Science UNC at Chapel Hill
Knowledge Manager at Capvision
BS in eCommerce Compu0ng
University of Liverpool
Market research at Nielsen
Cer0ficate in Marke0ng Chulalongkorn Univ
BA in Poli0cs Thammasat Univ
Sales manager at Ningbo Boda
BA in Intl Business University of No]ngham
Ningbo China
Obtaining an investment is crucialto our success.
Concern Response
Passengers don’t pay higher fee (fare +$0.40 and surge pricing)
Passengers get convenience, don’t have to negoOate price or ride declines.
Drivers don’t register with us Hometree is risk free investment that doubles income and have welfare programs.
Inability to obtain funding Hometree is tackling a large market with a proven business model (20% profit margin).
Incumbents will leverage ability to provide at lower prices
Hometree has a different target customer and has the first mover advantage.
Inexperience team to handle growth and management
Leverage mentorship network and experience hires.
Acquiring drivers and paying passengersinto our network is crucial to our success.
-$1,540 CAC < $1,920 CLTV*
*1 driver and 240 paying passengers, see next slide for assumpOons and calculaOons.
CreateAwareness
PersuasiveCampaigns
Recruitfromdriver’sstation|gasstation|localcommunities
$100perreferrals
Newcar-financingprogram
City-by-CityExpansion
Hometree Logoondriver’smotorcycle
Pilot project planned for Bangkok, and in thenext three years, we plan to move goods,and services, in addi8on to people.
eCommerce fulfilment
Food/water delivery
On demand services
Bangkok
Kuala Lumpur
Jakarta
Ho Chi Minh CityPhnom Penh
Singapore
You can help today by sending Hometreeto the regionals!
Paruey Anadirekkul Entrepreneur
Han Zhou Coder
Punch Kasemsarn Marketer
Lu Jin Data Expert
Hometree
Hometree will have posi8ve social andeconomic contribu8on to users.
DriversPassengers
1. Speed: Passengers can have their ride fast through our matching plaBorm to the nearest motorcycle hub.
2. Safety: Able to share trip on social-media in real 0me.
3. Value: Fare based on fair market price.
4. Certainty: Driver’s detail, fare, and ride dura0on are transparent. Booking confirma0on to make sure drivers deliver and pay regulated rate.
1. Increase in rides (~2x): Drivers don’t have to reach for customers themselves. Hometree brings in the customer and increase the number of rides.
2. Increase in income (~2x): Driver earns $0.20 in addi0on to standard fare per ride and also benefit from surge pricing when implemented.
3. Beeer standard of living: Hometree have plans to help with driver’s welfare such as monthly loOery program to promote less underground loOery involvements and prizes given to drivers that exceed ride quotas.
4. Ability to learn new skills: Drivers can learn about technology and skills necessary to be inclusive in the app economy.
We seek to form partnerships and leveragenetworks with startups and investorsin Southeast Asia for growth.
Startups Investors
Hometree Pla^orm
How Hometree connects passengers todrivers.
Incoming request Dispatch request
Pick up and deliver passenger
Passenger pay fare + $0.40 to driver
Deduct $0.20 from driver account
Driver bids and confirm
Passenger Driver
Our pla^orm is scalable and would u8lisebig data and advance algorithm to be_ermatch drivers and passengers.
Passenger’sApp Hometree Server Driver’sApp
SendRequest Order Received AcceptOrder
AcceptDriver UpdateOrderList BacktoHomepage
UpdateOrderandDriveID MeetingYourCustomer
UpdateStatusandTime
ReachDestination UpdateStatusandSummary ReachDestination
No YES No
YES
Market valida8on (1/2)
# Option Total Answer %
1 GoJek 259 65.9%2 Grab Taxi 146 37.15%3 Uber 61 15.52%4 Grab Bike 22 5.6%5 Others 6 1.53%
# Option Total Answer %
1 Convenient 227 57.76%2 Cheap 165 41.98%3 Referral 130 33.08%4 No pub trns 77 19.59%5 No vehicle 57 14.5%
What is your favourite ride booking app?
Why are you interested to use this kind of apps?
Source: Ride Booking App Trend in Jakarta, Indonesia
GoJek is an Indonesian startup that is similar to Hometree and Grab Bike, and could be a potenLal partner. Grab Bike is Grab Taxi’s own version of “Uber” for motorcycles.
Market valida8on (2/2)
Source: Ride Booking App Trend in Jakarta, Indonesia
# Option Total Answer %
1 Yes 362 92.11%2 No 31 7.89%
Do you think this kind of app is riskier than regular
public transport?
Will you use the ride booking apps again in the
future?# Option Total
Answer %
1 Yes 80 20.36%%2 No 313 79.64%%
Investment Return (20% of profit)
Year 0 1 2 3 4 5 6 7Return (millions)
-$1.00 $0.08 $0.84 $4.20 $42.00 $84.00 $168.00 $420.00
Discount rate 1.00 0.91 0.83 0.75 0.68 0.62 0.56 0.51Present Value -$1.00 $0.08 $0.69 $3.16 $28.69 $52.16 $94.83 $215.53NPV $394.13IRR 231.26%
SUMMARYReturn on Investment per year 56.29%Net Present Value (NPV) (in Millions) $394
Internal Rate of Return (IRR) 231%
We plan to engage drivers and promotetheir welfares.
01
02
03
04
Monthly Lo_ery Program Based on license plate
Welfare fund for drivers Based on weekly ride quotas
Surge pricing 2x or more increase in driver income
Driver referral program Refer a driver, get account credit
ASEAN countries have higher motorcycleregistra8on than cars.
Source: Ministry of TransportaLon Thailand (2015)
We expect our customer life8me value ofdrivers/passengers to be greater thanthe customer acquisi8on cost.
PassengerDrivers
-$100 CAC < $1,920 CLTV
40 rides per day x $0.20 commission x 20 working days = $160 per month
= $1920 per year
-$6 per passenger
$6 per customer x 240 customer
= $1,440 per year
= -$1,440 per year
-$1,540 CAC < $1,920 CLTV
We are a social enterprise that seeks todouble the income of 10 million peoplein crowded urban spaces by 2020.
Drivers Create jobs - promote economic inclusion Double income - by an esLmate of 30% - 300% per driver* Save costs - opLmised hub planning, route, no mafia costs, etc Provide driver support/incenLve programs**
Costs of becoming a motorcycle taxiand eats into the income of drivers.
Status Quo Hometree
Membership Cost ~$14,000 $0.20 per
transaction
Police Ticket Cost ~$72 per year None
Mafia Protection Cost ~$96 per year None