EXECUTIVE SUMMARY  

Uber created a market that quickly generated a huge demand for drivers to get passengers where they wanted to go.  Riders loved being able to use their smartphones to order, track and pay for their transportation with just a few swipes of their finger. This technology has been in place for about a decade in the United States.  Over the course of time, the things that initially attracted both riders and drivers in droves like great earnings potential for drivers and low cost and dependability for riders have diminished dramatically. 

The rideshare industry hasn’t changed much since it came into existence.  Although drivers once felt they could make a decent living while being their own boss, most of the glamour of being a rideshare driver has diminished to the point that most have determined that they can no longer survive financially due to reduced revenue sharing, constantly increasing costs and lack of benefits such as healthcare and retirement.  Over the years, as new drivers came on board, it was a matter of a few months before they realized that without the initial hiring bonuses, it really wasn’t worth it.  But there was always a fresh supply of new drivers to keep the pipeline full.  In the last few years, driver attrition has continued while the number of new driver prospects continues to decline.  The result is a severe driver shortage today. 

As a result of the driver shortage, riders have found it increasingly difficult to find a ride in short order.  Business travelers have all but given up using the current platforms for their airport transportation needs.  When appointments can’t be fulfilled and they are stranded time and time again, they have no choice but to find other means of transportation to catch their flight.  In most cases, they have chosen to drive themselves, which is apparent when you see that the airport parking facilities around the country are thriving with a record number of vehicles parked for several days at a time.  Taxis were a good option several years ago to fulfill this need, but taxi fleets today are a fraction of what they used to be and taxi companies are hesitant to reinvest in their fleets out of fear they will put out of favor again. 

Driver quality as well as vehicle quality have diminished as well.  I deem this is likely due to a lowering of standards.  I hear examples of rider dissatisfaction daily.  It’s obvious that what was once a convenient and pleasurable way of getting around town now comes down to how tolerant a rider can become due to longer wait times, cancellations, no shows, driver quality and vehicle condition. 

Ridesharing, along with several other “gig economy” business that have appeared over the last decade, are becoming more and more criticized and scrutinized for some of their business practices.  State as well as federal tax income has suffered because of the ever-increasing number of “independent contractors” in existence today that in a “traditional economy” are classified as employees. Let’s consider the impact on Social Security as well.  If Uber classified their drivers as employees, they would be the single largest employer in the United States. I estimate that rideshare drivers in this country represent approximately 1% of the wages paid in this county, that is, if they were classified as employees. 

When we look at the driver side of this same issue, you must consider things from their perspective as well.  As independent contractors, they have no company benefits.  They must obtain their own healthcare insurance. In many cases, they may be the primary source of household income, which means they need healthcare coverage for the entire family, at their cost.  Since their income after expenses is minimal, they are likely to obtain a low monthly cost policy with high deductible and coinsurance that they can’t afford to pay in many instances.  They receive no unemployment insurance, no workers compensation insurance and are not covered by the Family and Medical Leave Act.  All these deficiencies lower the overall quality of life potential of the drivers and cost the state and federal governments in so many ways. 

It is time for a change.  I have designed a rideshare platform that will revolutionize the industry.  I have addressed every negative issue, every obstacle.  I have looked at it from every perspective, the driver, the rider, the governmental and the social impacts. The results are overwhelming.  I improve the income and the overall quality of life for the drivers and their families.  I improve the experience, safety, and overall satisfaction of the rider.  I establish a level of loyalty never seen in rideshare, both on the part of drivers and riders.  In the short term, over the next 3-5 years, this new platform will inject over $5,000,000,000 into our local, state, and federal tax systems, Social Security and Medicare. 

DRIVERS  

THE WAY IT IS                                                                                                           THE WAY IT SHOULD BE 

 INDEPENDENT CONTRACTOR                                                                                                  EMPLOYEE 
1099                                                                                                                                                                                W-2 
NO HEALTHCARE BENEFITS                                     UP TO $400/MONTH FOR HEALTHCARE 
NO UNEMPLOYMENT INSRANCE                                                                                 COMPANY PAID 
NO WORKERS COMPENSATION                                                                                   COMPANY PAID 
NO FMLA BENEFIT                                                                                                                      FMLA BENEFIT 
DRIVER PAYS FULL SOCIAL SECURITY                                                            COMPANY PAYS 50% 
LOW DRIVER REVENUE SHARE (APPROX 50%)                  DRIVER RECEIVES 70% SHARE 
DRIVER RECEIVES ORDERS                                                                           DRIVER CHOOSES TRIPS 
LOW EFFICIENCY                                                                                                       MAXIMUM EFICIENCY 
UNKNOWN TRIP PROFIT/LOSS                                                        FULL DISCLOSURE UP FRONT 
NO REGULAR CUSTOMERS                                    HELP THEM BUILD A BOOK OF BUSINESS 
LACK OF COMPANY SUPPORT                                                             24/7 LIVE PHONE SUPPORT 
VEHICLE MAINTENANCE                    COMPANY PAID OIL CHANGES & TIRE ROTATIONS 

 RIDERS 

 THE WAY IT IS                                                                                                             THE WAY IT SHOULD BE 

 FAILURE TO KEEP APPOINTMENTS                                         GUARANTEED APPOINTMENTS 

 DRIVER CANCELLATIONS                                                                                        NO CANCELLATIONS 

 RANDOM DRIVERS                                                                                                            REGULAR DRIVERS 

 SURGE PRICING                                                                                                                  NO SURGE PRICING 

 POOR DRIVER VETTING                                NATIONAL CRIMINAL BACKGROUND CHECKS 

 NO DRUG SCREENING                                                              10-PANEL PRE-HIRE DRUG SCREEN 

 VEHICLE QUALITY                                                                      QUARTERLY VEHICLE INSPECTIONS 

 NO REAL TIME SUPPORT                                                                           24/7 LIVE PHONE SUPPORT 

 NO AVAILABILITY IN REMOTE AREAS                        EXURBAN AND RURAL AVAILABILITY 

 CAN’T SCHEDULE AIRPORT PICKUP                           AIRPORT PICKUP BY APPOINTMENT 

 

THE RIDESHARE REVOLUTION 

 

This revolution will undoubtedly allow Way2go to dominate the industry in a relatively short period of time.  Drivers will quickly realize that we are the company of choice.  A roughly 40% increase in revenue share, full benefits including healthcare insurance, the ability to build a regular customer base, their vehicle maintenance costs decreasing and being more in control of their daily efficiency will build loyalty.  With so much more earnings potential, drivers will favor the Way2go platform and stop driving for the other platforms.  Many drivers that left the rideshare industry will likely return once they become aware of the earning potential. 

 

Rider loyalty will have a similar effect.  Business travelers that gave up using the existing platforms will find peace of mind having a reliable regular driver to get them to the airport on time every time.  With the ability to have a regular driver meet them upon arrival in every city they travel to, their efficiency increases by not having to search for a ride.  Even if their travels take them to a remote location, they can be assured that their driver will pick them up when needed.  Not only will Way2go dominate rideshare, but it will also have an impact on private car services by offering a lower cost along with a regular dependable driver. 

 

Accomplishing all of this will not be an easy task.  I have spent countless hours carefully determining the logistics and company structure to make it possible.  Here is that structure: 

 

Regional Managers 

            I have divided the country into 29 districts of roughly equal population.  Then, I created 8 markets, with each market containing between 3-6 districts.  Each of the 8 markets will have a Regional Manager responsible for the success of his/her market.  Those responsibilities include the supervision of each of the District Managers, the Training Managers and the phone support staff in the region.  

District Managers 

 

            Each of the 29 districts will have a District Manager. His/her role will include developing business to business relationships, driver recruitment and retention and the overall satisfaction of the riders.  

 

Training Managers 

            Each of the 29 districts will have a Training Manager.  His/her primary role will be the classroom and ongoing training of the drivers and phone support personnel.  By the end of the first year, they will likely have trained more than 12,000 drivers and more than 350 phone support staff.  Within three years those numbers reach more than 150,000 and 4,000 respectively.  

Phone Support Staff 

            This is probably the most critical position in the company.  The Phone Support Staff is responsible for fielding calls from both riders and drivers to address any issues or difficulties at any given moment.  One toll free phone number from anywhere in the country will direct the caller to the closest operator available at that time (in most cases, since cellphone number portability may skew the actual location of the caller).  If the call was given to an operator not local to the caller and it requires someone that is, it can be forwarded appropriately.  The Phone Support Staff will also field calls from local businesses that need transportation for their employees.  This is in place as a matter of convenience for local companies that currently order transportation from private car services.  They will also field calls from riders that don’t have access to a smartphone or the Way2go app because of disability or lack of familiarity with technology.  The app will automatically follow up with scheduled appointments.  However, if a driver becomes unresponsive to an upcoming scheduled appointment, staff will intervene by attempting to contact the driver or locate an available driver to fulfill the need.  

Drivers 

            Drivers are the heartbeat of the company.  The biggest challenge will be onboarding qualified vetted drivers at a pace to keep up with rider demand without varying from the high standards necessary to dominate the industry.  Existing drivers will receive $300 for each successful referral in the form of gas or gift cards which we can purchase at a discount.  Drivers that successfully complete the training class will receive $100 for that time and effort.  Initial driver onboarding, given that markets will open every two months at inception, should not be difficult.  The average market will open with 300-500 drivers.  During the second year, the demand for drivers will average over 3,500 per month.  During the third year, the demand will average nearly 7,000 per month and reach 9,000 per month by the end of that year.  Drivers will onboard themselves by linking via the internet to give permission for the necessary background and motor vehicle checks, scheduling their drug screening and if all is acceptable, they will link to the payroll service company to provide the necessary information, review their benefit options and ultimately schedule their classroom training. 

            Healthcare will be a significant influence to attracting new drivers.  Drivers will earn $1 per trip each month, up to $400 per month, towards their choice of plan.  It will take 90 days of driving to qualify for coverage and it will be based on a three-month rolling average of trips completed.  

Summary 

All of the above is unique to the rideshare industry.  No other company in existence is taking this approach.  Classifying drivers as employees, healthcare, classroom training, phone support, developing B2B relationships, commitment to rider safety and satisfaction, quarterly vehicle inspections and paid vehicle maintenance, all of which ultimately determine rider and driver loyalty, swift market share results and market domination.  Local, state and federal support will enhance growth as well.  

THE REST OF THE STORY  

BUSINESS TRAVELERS 

            The most stability can be gained by concentrating on the business traveler.  Incentives such as guaranteed appointments, regular drivers wherever they are, scheduled airport pickups, a business travel rewards program that they can use for their personal transportation needs and a referral program that earns them additional personal rewards will earn their loyalty.  Riders and drivers who have established a long-term business relationship can negotiate trip prices between themselves.  Until a relationship is established, an appointment fee of $15 applies.  Riders will likely accept the appointment fee in return for their peace of mind and driver familiarity, while drivers benefit by covering the down time necessary to service the appointment.  

ENHANCED AIRPORT PICKUPS 

            Riders can schedule airport pickups.  For an additional fee of $15 to cover the lost time for a driver making a scheduled pickup, a rider can have a driver waiting for him upon arrival.  Within the parameters of a particular airport, a designated meeting location can also be determined.  Once again, this can be negotiated between the driver and rider in prearranged circumstances.  Any fees that would apply at a given airport would be additional.  

NO SURGE PRICING 

            While the competition tries to enhance their bottom line by instituting surge pricing in periods of high demand, Way2go discards that price method by allowing and encouraging riders to offer a bonus to elevate them in ride priority.  Not only can the bonus be used when supply and demand is the issue, but it can also be used to obtain a ride in a remote location.  Using it in this fashion will encourage a driver to accept a ride request by enhancing his overall revenue per mile to drive to the rider.  

RIDER SAFETY 

            Way2go is committed to providing the best drivers and safest vehicles in the industry.  Driver vetting, particularly the criminal background investigation, is taken to an entirely new level.  Drug screening as a pre-hire requisite, is something that doesn’t exist with the existing platforms.  Neither does vehicle inspections or someone from the company actually meeting a driver in person.  Each potential driver with Way2go will be met by a district manager, his/her vehicle will be inspected by that person, he/she will be required to participate in a structured training class at a district office and every vehicle will undergo a physical inspection at a national auto service chain every 90 days.  Failure to rectify any vehicle deficiencies will prevent the driver from logging into the platform.  Each of these items will be touted to potential riders and will be instrumental in every aspect of our marketing plan.  

DRIVER ENHANCEMENTS 

            Compared to the existing platforms, Way2go is hands down the most profitable, most efficient, employee friendly choice.  Current platforms send orders to the drivers.  Those orders lack the information necessary for a driver to do his job efficiently and most profitably.  Many orders are unprofitable and aren’t identified as such until completed.  The cost to get to the riders’ location may be the reason, or the distance of the actual ride may be the reason and in some situation both.  The Way2go platform gives the driver every piece of information he/she needs to be as efficient and profitable as possible.  Information such as the general area of pickup as well as drop off, the total miles involved with the ride (including those to drive to the rider), the total revenue paid to the driver for that trip and the most revealing item of revenue earned per mile driven.  Existing platforms encourage many drivers to wait in an airport queue for a profitable ride while Way2go will encourage a driver to keep his wheels turning by offering every single ride request regardless of location, distance, or vehicle class.  This allows a driver to decide using “revenue per mile”, “total revenue”, “origination point” or “destination point”.  An educated driver would likely use a combination of those throughout a typical day.  

MARKETING PLAN 

            An aggressive marketing plan will support rapid growth.  The marketing expense budgeted for the first month exceeds 150% of net revenue (after driver share).  During the first two months when only market #1 is open the budget is $1,750,000.  During the following two months, when market #1 and market #2 are open, the budget is $3,500,000.  The next two months, when three markets are open is budgeted at over $6,500,000.  A significant part of the budget includes targeted airport advertising at the busiest 65 airports.  Depending on passenger volume, each of those airports will receive $25,000 - $100,000 per month for advertising for six consecutive months.  The balance of the marketing budget will include social media, airport and hotel geofencing and direct to rider promotions.  The annual marketing budget per year is as follows: 

                                                YEAR 1            $  56,000,000 

                                               YEAR 2            $291,000,000 

                                               YEAR 3            $673,000,000 

 

MARKET SHARE 

Based on the substantial differences between Way2go and the existing platforms, the impending loyalty that will be earned by drivers and riders, all of which is without a doubt a necessary disruption and revolution needed in rideshare I see the following market share results at the end of each year: 

 

                                    YEAR 1              6.7% 

                                    YEAR 2            26.3% 

                                    YEAR 3            55.8%  

FINANCIAL HIGHLIGHTS ($MIL) 

                                                                               YEAR 1                         YEAR 2                          YEAR 3 

GROSS REVENUE                                         569.3                          4,384.1                       13,038.7 

PAYROLL                                                           (405.8)                       (3,104.4)                      (9,223.3) 

PAYROLL TAXES                                              (46.8)                           (414.3)                      (1,283.0) 

EMPLOYEE BENEFITS                                    (7.1)                              (82.9)                          (279.3) 

RECRUIT, TRAIN & RETAIN                         (7.7)                              (28.7)                             (67.9) 

MARKETING & PROMOTIONS              (56.0)                           (291.4)                          (673.2) 

CREDIT CARD PROCESSING                  (15.7)                            (120.6)                         (358.6) 

INSURANCE                                                          (5.7)                               (43.0)                         (127.7) 

SOFTWARE                                                           (1.7)                                (11.1)                            (32.8) 

LEGAL & ACCOUNTING                               (1.9)                                   (7.0)                            (17.2) 

VEHICLES & TRAVEL                                       (3.7)                                   (8.8)                               (7.0) 

OFFICE                                                                     (1.4)                                   (2.4)                               (3.4) 

NET PROFIT                                                         15.9                                269.6                             965.3   

 

VENTURE CAPITAL REQUEST 

 

Each of the eight regional markets becomes cash flow positive in its fourth month in operation.  Because the opening of additional markets is every two months, the company is cash flow positive by month six.  I am seeking the funds necessary to cover the initial startup costs and cash flow needs for the initial four months of $4,000,000. 

 

Cash flow projections reveal a complete return of investment by the ninth month. 

 

In return, I am willing to offer a substantial interest in the company for the long term.  

 

STRATEGIC ALLIANCES 

I have established relationships with several key vendors that are excited to have an integral role in assisting the company during startup and hopefully throughout the company’s long-term success.  Several of them are headquartered in Ohio.  They Include: 

 

            BENESCH FRIEDLANDER COPLAN & ARONOFF 

                        Cleveland, Ohio 

                        US News & World Report Law Firm of the Year in Transportation Law 2022 

            CODE BREW LABS 

                        8,000+ apps to date 

            FRONT BURNER MARKETING 

                        Northfield, Ohio 

                        20 Years of digital marketing experience 

            THE HARTFORD 

                        Westlake, Ohio agency 

                        Fortune 500 – Specialized insurance solutions for business 

            KEYBANK 

                        Cleveland, Ohio 

                        Commercial banking – Merchant services – Card services 

            REGUS 

                        Office space everywhere for every business 

            TRUE-HIRE 

                        Uniontown, Ohio 

                        25 years of accurate & reliable background checks and drug screening 

            DATATALK TELECOM 

                        Columbus, Ohio 

                        Cloud phone system