Moveo is a ground transportation business that is taking a different slant from the Ubers and Hailos of this world by putting its initial focus on the B2B, pre-arranged sector before adding a B2C on-demand product.
It also concentrates on a more upmarket product - think limos and chauffeurs rather than taxis.
The technology available to deliver that service is also seen as a differentiatior. In fact, it has filed a patent for its centralized point of contact for all communications between the driver, the passenger, the travel arranger and the moveo platform.
The patent-pending system also has a back-office set up to share relevant info with the corporate.
It already has an impressive list of clients, from Apple and Nike to Bloomberg and Bank Of America via Carnival Cruise Lines and LaTam Airlines.
Tell us how you founded the company, why and what made you decide to jump in and create the business.
In 2011, former executives from the telecoms, mobile financial and digital agency industries identified an opportunity to apply technology to the pre-arranged limousine and livery space - namely scheduled services, which is primarily B2B and about 2/3 of the market.
The remaining 1/3 of the market is B2C, which now includes unscheduled, on-demand services, currently dominated by players such as Lyft and Uber. Competitors in this larger B2B space have almost no technology (literally run by fax machines) and weak branding. The team felt that with its collective abilities, a credible product would be immediately competitive.
Size of the team, names of founders, management roles and key personnel?
15 employees including:
- Mario Medina, founder CEO
- Ted Moffly, founder CFO
- Danielle Saltrese, founder CCO (Chief Creative Officer).
Additional key executives are:
- Dr. Keith Collins, Chairman
- Carlos Matos, COO
- Fernando Catania, CTO.
Funding arrangements?moveo raised over $1,000,000 in an angel round with friends and family. The company will be starting its first institutional raise of $5,000,000 during Q4 of 2014.
Estimation of market size?
As of August 2013, total US limousine and livery transportation volume is $6 billion; total US B2B $3.9B; total US B2C $1.7B.
These volumes represent approximately 65% B2B corporate and 27% B2C consumer.
The $0.8bn/8% remaining is defined as coming from tourists and others.
Competition?
Uber, Lyft, Groundlink, Carey, and others
Revenue model and strategy for profitability?
Revenues are derived from actual ride usage, not technology fees. The company is EBITDA positive, but is investing significant capital in the technology which generates a moderate cash flow burn.
New revenue has about 60% COGS (cost of goods sold); about 6% variable cost and fixed costs of 35% (excluding non cash charges).
Fixed costs will decline on a pro rata basis from approximately 35% at current revenue levels to about 20% by FYE 2015, and 15% by FYE 2016.
What problem does the business solve?
The lack of branded, mobile-enabled, geo-location aware, and automated dispatch technology in B2B ground transportation services.
How did the initial idea evolve and were there changes/any pivots along the way in the early stages?
moveo began by creating a compelling and differentiating brand, and then built technology around it. The most significant pivot on the model was realizing we could build a pre-arranged platform that could provide better logistics than the fully manual systems that dominate the market now by adding a fully automated dispatch system (no human intervention except for level 2 exception handling). This yields a reduction in dispatch cost from about 17% of gross revenue to less than 5%.
Why should people or companies use the business?
Consumers get a trusted brand with superb, well-trained and committed drivers (primarily independent operators and affiliates), with the convenience of an innovative mobile app that manages current and future rides.
Corporate clients get a single management point that can schedule thousands of rides securely, efficiently and consistently without relying on phone calls, faxes or emails.
Travel managers for large accounts get the added benefit of being able to: see rides real-time on a VIP Portal that shows route, driver name, car, passengers on-board, and arrival times (updated real-time); manage changes real-time (flight delays, additional stops and passengers, changes to itinerary, etc.); real-time booking and management of bookings; and provisioning and reporting on all ride settlement.
What is the strategy for raising awareness and the customer/user acquisition (apart from PR)?
Corporate and B2B services are promoted through direct enterprise sales, an M & A strategy that targets one high-value operator in each major market and channel development in the travel industry segment.
For consumer and B2C moveo is planning a rollout of its ASAP service for consumers (equivalent to the B2C on-demand product) through an initial rollout to all our corporate and consumer passengers coupled with a mobile marketing campaign.
Where do you see the company in three years time and what specific challenges do you anticipate having to overcome?
We expect to be the dominant player in Latin America and to have offices in all major league sports cities in North America.
What is wrong with the travel, tourism and hospitality industry that it requires a startup like yours to help it out?
Ground transportation is the poor stepchild of the travel industry than no one wants to deal with. The technology dollars spent on the travel industry are enormous, but very little trickles down to ground transportation. The common lament of corporate travel planners is that they would pay to have someone deal with the management of ground transportation; this is the problem we solve.
What other technology company (in or outside of travel) would you consider yourselves most closely aligned to in terms of culture and style... and why?
moveo provides the progressive technology of an “Uber”, with the friendlier face of a “Lyft,” and the deep commitment to both service and regulatory compliance of a “Carey”.
Which company would be the best fit to buy your startup?
Companies like: Lyft (no pre-arranged product and regulatory friendly model), Amadeus (ground handling is a priority and don’t’ have a technology product like moveo’s), Hailo (committed to the US market but have no traction), or CWT (huge ground demand that could be filled without being perceived as a competitive problem).
Describe your startup in three words?
Ground Transportation Redesigned.
Here's moveo's Vine submission:
Tnooz take
Ground transportation is the new gold rush for travel technology companies.
But moveo has looked at the numbers and realised that a significant majority of this market is in fact B2B - corporate travellers wanting to book a reliable ride for when their meeting finishes rather than risk missing their flight trying to get a taxi on demand. A decent car, booked in a way that can connect with the corporates requirements, also helps.
But the B2C on-demand crowd are also aware of road warriors as potential customers - Uber's link-up with TripCase could be the first of many.
The B2B push for moveo could give it a heads-up with the corporates, but it will need to move quickly to get a head start. Getting that patent for its technology would also help.