Ritu Narayan, GSB Maayan Yavne, GSB Yang Zi Dong, MS&E Eric Lam, CS

Be  a  parent,  not  a  chauffeur  

Li1ee  Journey  

Busy Parents Child Transportation

Initial Hypothesis Child Transportation is the #1 reason why parents have to scale down their career

In  the  beginning  

Customer  segments:  our  ini;al  hypothesis  

Children Drivers

Ambitious working professional moms who do not like to rely on ongoing social reciprocity

Children from ages 8 - 15 Individuals from trusted

professions working in shifts who need supplemental

income

Busy Parents

We enable point-to-point transportation of kids for their after-school activities

Value  proposi;on:  our  ini;al  hypothesis  

=

Peace-of-mind Trustworthy transportation service

+

Reduced hassle Dedicated face-time

Business  Model  Canvas  -­‐  Week  2  

Experienced scheduling/dispatching/driving Understood pickup/drop-off complexity Realized significance of child experience

So  we  got  out  of  the  building...  

Meet Yash

“Outstanding customer service”

“Recommend: 5 - absolutely” “It will be great to know in advance who is picking up”

Meet Riley

“Text info was very helpful”

“An inefficient route from Pinewood to Home” “My only concern was how a change might impact you”

Meet Ben

Our Real Users

Parents  want  to  change  their  exis;ng  solu;on  only  during  transi;ons:  Nanny  leaves,  parents  take  more  demanding  job,  kid  transi6ons  from  

elementary  to  middle,  new  a9er-­‐school  ac6vity  

Where  we  went  wrong...  

Windows  of  opportunity  are  correlated  with  breakdown  of  current  solu6on  

Parents  value  our  service  against  their  exis6ng  op6ons  on  a  cost-­‐basis  -­‐  they  do  not  calculate  opportunity  costs  

Doub6ng  our  ini6al  value  proposi6on   Need  to  find  segments  for  whom  our  service  holds  the  highest  value  

Exploring  other  Value  Proposi;ons  

Full concierge services for busy parents

Dry Cleaning Groceries

Cooking Transportation

New  hypotheses  for  value-­‐based  customers  segments    

Schools

Transportation Companies

Activity Centers

Benefit Aggregators HR Consultancies

HR (Benefits) HR (Recruitment)

Corporations

Independent Drivers

Business  Model  Canvas  -­‐  Week  6  

Where  we  were  wrong  

Schools

Transportation Companies

Activity Centers Benefit Aggregators HR Consultancies

HR (Benefits) HR (Recruitment)

Corporations

Independent Drivers

Long Term Solution

Where  we  were  right?  

liftee.webflow.com

Facebook advertising

There is a strong need for child transportation

20 Pilot Signups

280 Unique Visitors

“When are you launching?”

“I’m calling other parents”

Where  we  were  right?  

© 2012 Steve Blank from the Startup Owner’s Menu

New  hypothesis  to  test  value  based  pricing  

Price  Conscious  -­‐  Carpooling  -­‐  Leverage  driver  plaOorms  

Aspira;onal-­‐Value  -­‐  Trust  and  safety  -­‐  Social  valida;on  

Drivers  -­‐  Value  advanced  scheduling  -­‐  Value  addi;onal  leads  

Child  -­‐  DelighOul  child  experience  -­‐  Handoff/pickup  concierge  

Business  Model  Canvas:  Week  9  

So  we  got  out  of  the  building...  

Will  charge  by  hour,  no  Uber  pricing  for  advanced  scheduling  

Use  Uber  only  to  fill  in  on  demand  down  6me  

Price  per  ride  expecta6on  below  break  even  

We  recruited  Uber  type  driver:  Commercial  license  and  insurance    

We  signed  up  a  carpool  ride  

Enjoyed  Service,  Convenience,  and  Flexibility  

We  delivered  the  ride  for  carpool  parents  

Cost  ($50  per  hour)  >  Price  per  ride  ($20  for  ½  hour  carpool)  

Influenced  parents  to  provide  high  NPS  

Liked  personalized  experience  of  car,  chat,  and  music  in  car  

Where  are  we  now?  

Kids  have  an  influence  on  reten6on  

Kids  can  be  delighted  by  paying  aUen6on  to  their  

preferences  

Parents  love  ease  and  convenience  of  LiVee  

Parents  are  great  referrals,  LTV  can  be  high  $800  

Pricing  needs  to  work  for  ongoing  repeat  use    

LiVee  driver  persona:  Reliable,  Kids  friendly,  and  can  act  as  concierge  

Needs  valid  license  and  insurance  coverage  

Driver  Parent  Rela6onship   Advance  scheduling  Deligh\ul  and  high  trust  

family  experience  

Should  think  Advance  scheduling  =  Lower  cost  

MVP  -­‐  Schedule  a  ride  

Sarah  schedules  a  ride  

Mike  delivers  the  ride  

MVP  -­‐  Track  and  Rate  your  ride  

Sarah  tracks  Jenny’s  ride  

Sarah  rates  Mike  aVer  the  ride  

5

Are  we  ready  for  investment?  

Refine  Parent  and  Driver  segments  

Validate  unit  economics    

Road  Ahead:  Run  more  Pilots  to  

Validate  mul6  kids  per  car,  carpool  viability  

Investment  Readiness  Level    

http://www.youtube.com/watch?v=skwSCA7ZDHY

Journey Video

Appendix

Market Sizing Estimate (High Performance Individuals)

Number of Full time Working Women in the US

43,200,000

Top 10% income 4,320,000

US Average fertility Rate 2.1 kids/women

Kid Activities/week 2

Weeks per year 50

Mobile ownership 61%

Average Price per Trip $20

% Strong interest - willingness to Pay 10%

TAM: $18.1 B

SAM: $11.1 B

TM: $1.11 B

Es;mated  Market  Size  

Compe;;ve  landscape?  

Metrics What it means for us Value

Lifetime Value

50% of our overall families estimated to be under subscription plan given repeat and predictable nature of school and activity rides. This gives us a high LTV per user

$800 per family

Price per ride

Fixed price + Mileage + Time Average distance = 5 miles, Average time = 30 minutes

$22 per ride per kid (Assumption)

Cost per ride

Driver pay (assuming driver has own vehicle, is licensed and insured, is paying for gas)

$17 per ride per kid (Assumption, still validating driver fit vs. cost)

Margin per ride

We expect people to pay comparable price of Uber X and additional 15-20% premium for trust and safety for kids.

20% over driver cost per ride

Customer Acquisition Cost

Referral, online, and direct sales to grow customer base

$20- 50 per user (online vs. offline sales)

Metrics  that  maXer  

Metrics What it means for us Value

Number of Referrals

Referrals from existing families will reduce marketing cost and increase loyal base

2 referrals per current family per year

Number of new family sign ups

Grow customer base - same city area, expand to new cities

10 new family per week

% of families in subscription

At least 2 rides per week for 10 months in a year 50%

Churn Number of customers leaving per year and not returning back

20%

Operational Cost

We will have an ongoing cost of insurance for driver, background checks, direct sales, customer support, and R&D

Insurance - around $2000 per year per driver Background check - $30 per driver, Direct Sales - $ 50,000 per year, Customer Support - $10 per call, R&D - 500k

Metrics  that  maXer  contd..  

Assumptions:

●  Number of kids per family: 2 ●  Number of months in year: 10 ●  % Family in Subscription: 50 ●  # Pay per use rides per family per

month : 4 ●  # Subscription rides per family per

month: 20 ●  Average Price per ride: $20 ●  % Liftee commission: 20%

Financial  and  Opera;ons  Timeline