THUMB-A-RIDE

Thumb A Ride, Inc.  is a new ride hailing service for college students living in areas where Uber and Lyft do not operate. 

Traditional ride hailing services like Uber and Lyft do not offer reliable transportation services in many regions throughout the United States. In fact, only 19% of Americans in rural areas have consistent access to ride hailing services. 

Louisiana is one state that demonstrates this disparity. Uber and Lyft only operate in 5 cities throughout the entire state. In small college towns, the situation is exacerbated due to driver age restrictions. Uber and Lyft do not accept drivers under 25 years of age, meaning most college students (the largest workforce in these towns) are unable to hold these jobs. As a result, 51,000 college students in Louisiana live in transit deserts. With no access to Uber, Lyft, or taxis, these students are much more likely to drink and drive. First year and foreign students also struggle to find adequate transportation for simple chores such as grocery shopping. 

Thumb is shaking up the traditional ride hailing business model to cater specifically to college students and their parents. First, Thumb has lowered the age of drivers to 18. This will provide college students with safe rides and flexible job opportunities near campus. Second, Thumb will charge a flat rate for rides under semester-long subscription plans paid by parents. Much like a meal plan, parents pre-pay for rides, which encourages students to use the service. Third, unlike Uber and Lyft business models which price rides according to distance and demand, Thumb will charge a flat rate per ride. This is a critical business model shift for small college towns where most rides will likely be less than 5 miles. Finally, Thumb will pay drivers a competitive hourly wage with bonuses for late night rides. This structure allows the company to operate profitably and ensures that students can access safe rides when needed – especially at night. 

Thumb’s mobile app will work much like other popular ride hailing apps – with a few upgrades. For example, drivers can pre-schedule two-way rides, ensuring that students have a ride home at the end of the evening. Safety is a high priority for the Company. Safety features include in-app video recording; options to request male or female drivers; and breathalyzer testing requirements for drivers to start their shifts. Although the technology is familiar, it is not simple. There is a high level of sophistication behind the app interface. Thumb’s app will have mapping analytics for route guidance; rider tracking; separate administrative portals for drivers and staff; and user interfaces for riders as well as parents. 

Everyone knows how popular ride hailing apps have become. Uber is the #1 provider globally with an estimated company valuation of $80 billion. Recently, new entrants catering to the “under 18” segment are growing in popularity as well. Companies like HopSkipDrive and Zum have raised $87 million and $208 million respectively for this growing market opportunity. 

Thumb is filling an overlooked market niche: college students. In 2018, there were more than 3,400 colleges in the US with fewer than 10,000 students. If we conservatively assume that 20% of these are located in small college towns, Thumb’s total addressable market in the US includes almost 700 colleges and 7.5 million students. 

Thumb intends to enter the market and prove its business model in Louisiana. There are 7 colleges and approximately 52,000 students in Louisiana who do not have reliable access to ride hailing services. From there, the Company has aggressive expansion plans – first in Louisiana and later throughout the entire Southeast US region. The goal is to be on every campus and/or town in the US without access to Uber or Lyft. 

Marketing efforts will focus on parents first. Initial surveys have shown overwhelming support for Thumb’s subscription model among parents with college-age children. On-campus marketing will begin at college orientation or even earlier at the high school level. In addition, campus ambassadors will be incentivized with bonuses to recruit drivers and riders using a number of grassroots marketing tactics, including flyers, social media, and direct sales at parties, bars, greek life events, and games. 

Spencer Mounger, a second-year student at Northwestern State University in Natchitoches, LA, introduced the idea for Thumb out of pure frustration with the lack of ride hailing services available at his college. It is an uncomfortable truth that Spencer and his friends have driven home after a night of drinking – more than once. Without a viable solution, this dangerous pattern will repeat for thousands of college students each year. Spencer is supported by his parents Dr. Aimee Russo-Mounger, DDS and Marcus Mounger, both successful and experienced entrepreneurs who are passionate about Thumb’s mission to protect and save lives. 

Thumb is seeking $750K in convertible equity to build the software and launch at one college. In January 2023, Thumb plans to launch at Northwestern State in Natchitoches, LA. As shown in the financial assumptions, management projects 20% market capture in year one, resulting in 2,400 subscriptions. After proving the model at one college, the Company has an aggressive expansion goal of 80 colleges within 5 years – at which point the Company anticipates gross revenues exceeding $87.8 million with significant growth prospects.