Pitch deck Venture Cup 2021 - for the climate and your wallet
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Pitch deck Venture Cup 2021 for the climate and your wallet
Intro • Coride Sweden AB was founded late 2020 by Christian Persson and Jacob Gustafsson after discussing the idea of ridesharing for more than a year. • We want to build an international ridesharing alternative, targeted towards car commuters that currently do not commute by public transport. And save tonnes of CO2 emissions. • At the moment, we are developing an MVP which we will test mid-2021 and launch in Sweden late 2021. International expansion in selected countries 2022/2023. • We are looking for startup support, contacts, advice and ultimately external financing to launch and expand.
Vision and value proposition
Coride will be the preferred alternative for car
commuters to safely and easily share rides, save
money and reduce their CO2 emissions.
Every year, Swedish commuters who use Coride could
save tens of thousands of SEK and at least 20% of their
total CO2 emissions.
The problem Commuting in Sweden today • 20% commute by bike or walk, 20% commute by train or bus • 60% commute by car, most often alone • 1M car commuters cross municipal borders daily, spend >50 kSEK per year on car costs, and generate 3 tonnes of CO2 annually Why do people commute alone in the car? • Commuting by public transport is not always an alternative or too time consuming • Difficult to find suitable ridesharing partners, no marketplace • Too complicated to plan and compensate costs • Mindset! Ridesharing is not a considered alternative today
The solution • Coride matches the needs of passengers and drivers • The app is free. We distribute costs and charge a small transactional fee • Coride facilitates planning of recurring rides and automatic compensation based on fixed price • AI functionality learns the users’ preferences to constantly improve usability • Features, UX and communication based on behavioral research and extensive user verification • Available on iOS, Android and web (multi-platform development) • Built to scale and to work internationally from the start • Allows companies and organisations to affect the environmental footprint of its employees and/or members. • Emission saving and cost saving data available on individual and aggregate level (allowing for future gamification)
S S
RE
IN
P R OG
The Coride app (MVP)
ORK
W
• Search for or create a new ride
• Match with others
• Publish and book a series of recurring rides
• Handle changes and adjustments
• Automatic transferring of costs based on fixed
price
• Rating
• Wallet and transactions
• Top-up and withdraw via Swish
• Messaging in-app
• Cost and emissions savings statistics
• Blocking and reporting
• Reminders and notificationsThe benefits • Coride users can easily match their needs with others and find people to share rides with. Targeted towards commuters but anyone can join. • They can publish and book recurring trips in the future, building a critical mass of rides in the system • Costs are automatically calculated and transferred to driver through the app. Balance and transactions available in app. • Coride users can cut one third of their total yearly CO2 emissions • They can save tens of thousands of SEK, or even get rid of a car which would save them even more • Emissions and costs saved are tracked and can be accumulated on employer level for sustainability/CSR reasons
Target market • The first target market is Sweden but ambitions are international • The first target group are commuters, especially car commuters crossing municipality borders (1M). • The typical user in the target group travels 140 km per day alone in her car to and from work • Initially, we aim to capture 1% of this target group (10k), which would make the company profitable. Extended target is 5% (50k). • Upsides: • Higher penetration in the target group • All commuters within municipality borders • All non-commuters, i.e. one-time riders • International expansion • B2B market/CSR
Trends
• Corona
• Will affect society for years
• Will make companies and employees re-evaluate their commuting needs after pandemic. Maybe less time in the
office? Maybe getting rid of a car?
• Less interesting to commute by public transport?
• Maybe more interesting to share ride with small number of people/neighbours/colleagues?
• Environmental awareness
• Car-shaming? People want to be good global citizens and do what they can to minimise CO2 emissions
• Electronic cars
• Becoming more common. Coride allows for the use of electronic and hybrid cars as well
• Sharing economy maturing
• People are used to booking Uber rides and staying with AirBnB, using their smartphone and being connected
• Cashless is king
• Sweden is leading cashless. Swish has contributed to this and Swedish consumers expect cashless transactions
• Good companies
• Companies are running out of ways to reduce their carbon footprint
• Employees want to work for good and sustainable companiesOpportunity Per commuter Society (1%) Society (5%)
Less distance 14.700 km 147 million km 750 million km
travelled alone
Annual financial and
environmental effects Money saved 27.195 SEK 277 MSEK 1.387 MSEK
for individual and
society assuming: CO2 saved 1.7 tonnes 18.000 tonnes 90.000 tonnes
1% penetration in the
target group (10K active Other effects Other car costs Fewer cars on the roads
Social engagement Fewer parking lots needed
users)
Less infrastructure wear
5% penetration in the Fewer accidents
target group (51K active Increased environmental awareness
users)
Assumptions:
210 workdays
140 km roundtrip
Only two people per car
60% utilisation (three days a week)
120g CO2 per kmBusiness model Two revenue streams • A transaction fee (percentage) per shared ride. Passengers and driver all contribute. Cashless and simple. Not subject to taxation since this is cost sharing (SEK 1,85 per km) • Company sponsorships (CSR). Allowing companies to reduce their environmental impact by sponsoring their employees’ commuting. Costs • Development • Transactional costs (map lookup, Swish, BankId, server costs etc) • Marketing (digital) • Overhead
Traction and Validation
• Validation will be done continually through online surveys, focus groups
and pilot testing
• Initial surveys indicate that
• 60% commute by car
• 93% of car commuters are alone in the car
• 52% does not share rides since they don’t know who to ride with
• 89% would share rides if they could
• 90% would share rides with a stranger if they use the same service,
can trust the identity of the person or if they have a common friend
• Main reason for ridesharing? 66% environmental reasons, 24% cost
reasons, 10% social interactionRoadmap
MVP ready Pilot May – Dev Coride v1 Launch v1 Launch v2 International
May 2021 Aug 2021 Aug-Sept 2021 Sweden Sweden Launch
Sept 2021 Jan 2022 Q1 2023
Coride MVP May 2021 Coride v1 Sept 2021
• Search and book rides • Security features
• Recurring rides • Friend functions
• Cashless transactions (Swish) • Gamification
• Company/group functions
• Simple web version
• Card payments
• Simple backend admin
• Internal messaging system
• Elaborate web version
• Elaborate backend adminCompetition
• Sweden
• A few initiatives have tried and failed (Passenger, Uniride, Skjutsgruppen
etc)
• Too low ambition or too narrow target groups
• Trying to compete with taxi companies and Uber (one-time rides)
• Security, establish trust in service
• Ezeride new player. GoMore from Denmark.
• Internationally
• Many local efforts, mainly competing with taxis
• Big companies like Uber and Waze could launch similar initiatives but they
would cannibalise their main businessThe challenges Covid-19 has affected us all and will continue to do so. What will the commuting patterns be like after the pandemic? We hope that the pandemic will have subsided by the time we launch. Behaviour. Are people ready for ride sharing? Will consciousness about cost and environment be more important than flexibility? We will spend a lot of efforts trying to understand how Coride needs to work to meet behavioral needs. Critical mass. The system needs a critical mass of rides to chose from. If there are too few, users will not use the service. Coride targets commuters with similar needs and allows commuters to plan multiple rides in the future. The entry barrier will be low and networking, sharing and gamification will hopefully grow user numbers organically. Security. Will people be willing to ride with strangers? We believe people are ready for this, especially if you ride with colleagues or neighbors. Coride will include a number of security features to make ridesharing safe for everyone.
Marketing and Sales strategy • Before pilot: surveys and teaser activities. Get pilot users/companies onboard. • Pilot based on MVP: with selected users/companies. Validating features and usability. • Pre-launch: digital campaigns and teasers, create awareness (digital) • Launch: digital campaigns, PR/press, bloggers/influencers, quickly build critical mass, promote sharing between users
Pilot project • We are planning a pilot project based on the MVP • The main goal is to work with a company or organisation and a reference group of employees or members to validate the functionality • The pilot partner will ask users to participate and get results on CO2 emissions savings • User behaviour will be studied, surveys and interviews will be done
Projections and Financials
MVP ready Pilot May – Launch v1 Launch v2 International
May 2021 Aug 2021 Sweden Sweden Launch
Sept 2021 Jan 2022 Q1 2023
2021 2022 2023
End 2021: 7.500 users
End 2022: 50.000 users
Projected revenue:
Projected revenue:
Sales: 0.5 MSEK
Sales: 16 MSEK
Owner funds: 0.5 MSEK
Projected costs:
Projected grants: 0.5 MSEK
Development: 3 MSEK
Projected costs:
Marketing: 2 MSEK
Development: 1.0 MSEK
Salaries: 3 MSEK
Marketing: 0.25 MSEK
Overhead: 0.5 MSEK
Overhead: 0.25 MSEK
Assumptions: Revenue and cost projections are based on:
• number of users (launch Sept 2021 -> 7.500 users by end of 2021 -> 50k users by end of 2022)
• average number of rides per month per user (4 increasing to 16 late 2022)
• average distance per ride: 50 km
• transaction fee: 5%Investment and use of funds • Self-funded at the moment • ALMI verification funds have been approved (50k) • Applying for support via Vinnova, the Swedish Energy Agency and others to finish MVP development • Looking for further investments to • Pilot project • Market research • V1 development after pilot • Launch activites and marketing • 2-4 employees • International expansion
The Team
Two founders 50%
Based in Ystad,
Sweden
Christian Persson, Dev Manager Jacob Gustafsson, CEO
MSc, Executive MBA MSc, BSc BA
entrepreneur, business management, entrepreneur, business developer,
sales, IT management, CEO business management, sales/marketing,
CEO/MD
Fujitsu, Mahindra, Ikano Bank, Malmö
Stad and more 25+ years experience
25+ years experience Ericsson, Sony-Ericsson, Framfab and
more
christian@coride.se
jacob@coride.se
+46 70 819 74 74
+46 70 545 90 74You can also read
