21
Los Angeles Expansion Brainstorm 9 th March 2011 By – Jeffrey Morris [email protected]

Uber Los Angeles - My Job Application from March 10, 2011

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I believe that sharing your moments of failure is the most powerful thing in the world — and I am not afraid to share this with you.  In March 2011, I applied for a job at Uber, and I created a presentation with my application to differentiate myself from every other candidate.  At that time, Uber had just 10 employees and was renting two desks at Rocketspace, a shared office in San Francisco.  I was working on my own startup idea at Rocketspace, and I sat next to the Uber team every day. I remember how much their work ethic impressed me. I knew their team would build one of the most important companies in the world.  Uber is now an $18 billion company and has 1000+ employees throughout the world.  I created this presentation when Uber was operating only in San Francisco and I imagined what a potential expansion to Los Angeles might look like.  I worked on the proposal for two weeks and worked up the courage to email the Uber founders directly.  I never heard back.  ------------- A week after failing to secure a position at Uber, I accepted a job at Zaarly, and embarked on the most incredible adventure of my life.  I met the most amazing people in the world, lived in 10 apartments in 2 years, and traveled the country.  The company is not yet worth $18 billion dollars, but I loved every single minute — and I would trade that experience for anything in the world.  ------------- What have you failed at in your life?  Share those moments with the world and be proud that you are now a better version of yourself.  Failure is a beautiful thing — and you should never hide from it.  No regrets. Never ever.  -Jeff Morris Jr. ------------- Note: This author is still a loyal Uber customer and is great friends with several members of their team.  He is also working building his own startup and promises to share his failures along the way. Hopefully he can share a few victories too ☺

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Page 1: Uber Los Angeles - My Job Application from March 10, 2011

Los Angeles Expansion Brainstorm

9th March 2011

By – Jeffrey Morris"[email protected]

Page 2: Uber Los Angeles - My Job Application from March 10, 2011

Los Angeles – Taxi Industry Overview

2

Fare Revenues LA Taxi franchises are worth an estimated $180 million in annual fare revenue from the 2,303 licensed taxis operating in the City of Los Angeles. The City’s take is about $4.5 million a year in franchise and related fees

Taxi Market 9 companies control all of L.A.’s 2,303 cabs largely through a structure of cooperatives and private corporations. Approximately 3,500 drivers make an estimated 7 million taxi trips each year

Ownership One-third of the drivers own their cabs; two-thirds lease cab time when the owners aren’t behind the wheel. Each cab owner has a share in the company, which they pay for with an annual fee for permits and access to company dispatchers

Wages The average wage for taxi drivers is $11.75 an hour – usually without health benefits – and they spend approximately 61 hours per week fighting L.A.’s notoriously congested streets

Drivers The median driver is a 47-year-old man who is a legal immigrant and a father of school age children, who sometimes works 18 to 20 hour days

Cars The driver’s workplace is typically a used police car worth about $4,000, now painted yellow and equipped with a leased radio and taxi meter

Page 3: Uber Los Angeles - My Job Application from March 10, 2011

3

Cab Fare Averages – Los Angeles Ranked no. 6

3

Fares for Typical Trips Area Costs . . . City

DC suburbs**

San Diego**

Orlando

Denver

New Orleans

Cleveland

Phoenix

Honolulu**

Miami* San Francisco** Boston** Los Angeles** Seattle* Las Vegas St. Louis Philadelphia* Atlanta

Minneapolis

New York**

Houston Chicago**

Dalllas

Detroit Baltimore

Avg. US Trip ($)

$12.08

$16.17

$13.38

$13.23

$11.80

$10.78

$12.87

$19.75

$16.10 $15.90 $15.45 $15.00 $14.80 $14.75 $14.30 $14.17 $14.00

$13.37

$13.10

$12.85 $12.70

$12.55

$11.65 $11.60

Short Trip ($)

$8.35

$10.59

$8.89

$8.74

$8.21

$7.21

$8.83

$13.04

$10.73 $10.85 $10.08 $10.07 $10.29 $10.27 $9.81 $9.47 $9.52

$9.11

$8.65

$8.81 $8.66

$8.52

$8.07 $7.99

Long Trip ($)

$23.70

$33.67

$27.38

$27.23

$23.00

$21.98

$27.10

$40.75

$32.90 $31.65 $32.25 $30.40 $28.80 $28.75 $28.30 $28.87 $28.00

$26.67

$27.10

$25.45 $25.30

$25.15

$22.85 $22.80

Initial Charge

2.25

2.00

1.60

2.50

1.80

2.50

3.00

2.50 2.85 1.75 2.20 2.50 3.20 2.50 2.30 2.50

2.50

2.50

2.50 2.25

2.25

2.50 1.80

Initial Distance

1/10

1/4

1/8

1/8

1/6

1/6

1/4

1/6 1/5 1/8

1/11 1/10 1/8

1/10 1/7 1/8

1/5

1/5

1/6 1/9

1/9

1/8 1/8

Mileage Charge

0.25

0.25

0.25

0.20

0.40

0.30

0.75

0.40 0.45 0.30 0.20 0.20 0.25 0.20 0.30 0.25

0.38

0.40

0.30 0.20

0.20

0.20 0.20

Mileage Distance

1/10

1/8

1/8

1/8

1/4

1/6

1/4

1/6 1/5 1/8

1/11 1/10 1/8

1/10 1/7 1/8

1/5

1/5

1/6 1/9

1/9

1/8 1/8

Wait Time Per Hour

20.00

22.50

22.50

18.00

15.00

20.00

30.00

24.00 27.00 24.00 24.00 30.00 22.00 24.00 20.00 21.00

21.00

12.00

20.00 20.00

18.00

16.00 24.00

Last Change

Nov-05

Oct-05 Sep-03 Sep-02 Nov-05 Apr-05 Apr-05 Jul-03 Jul-05 Oct-05

Sep-05

May-04

Aug-05 May-05

Nov-05

Aug-01 Jul-05

Components of the Fare

  Boston and NYC also prime markets

Page 4: Uber Los Angeles - My Job Application from March 10, 2011

Los Angeles – Taxi Operators

4

United Independent Taxi Drivers (United Taxi of San Fernando Valley) San Gabriel Transit (City Cab)

LA Taxi Co-operative (Yellow Cab Company and Fiesta Taxi)

Beverly Hills Transit Cooperative (Beverly Hills Cab Company)

Independent Taxi Owners’ Association (Independent Taxi)

United Independent Taxi Drivers (United Independent Taxi)

Los Angeles Checker Cab Company (Checker Cab)

Bell Cab Company (Bell Cab)

South Bay Co-operative (United Checker Cab Company)

Company Zone A – San Fernando Valley

Zone A – San Fernando Valley Zone C – Central and Eastern Zone B – Western Zone C – Central and Eastern Zone D – South Central Zone B – Western Zone C – Central and Eastern Zone B – Western Zone C – Central and Eastern Zone D – South Central Zone B – Western Zone C – Central and Eastern Zone D – South Central Zone B – Western Zone C – Central and Eastern Zone D – South Central Zone B – Western Zone C – Central and Eastern Zone D – South Central Zone E – Southern

Service Area 100

96 70

160 370 209

93 70 72

110 64 88

130 71 67

134 68 70

126 65 70

No. of Taxis

100

166

739

163

246

289

269

261

70

Total Taxis

Page 5: Uber Los Angeles - My Job Application from March 10, 2011

Los Angeles – Taxi Zones

5

Page 6: Uber Los Angeles - My Job Application from March 10, 2011

Los Angeles Taxi Passenger Complaints

6

296

2007 – Nos. and % of Total

3 - 1.0%

22 - 7.4%

26 - 8.8%

80 - 27.0%

8 - 2.7%

34 - 11.5%

61 - 20.6%

43 - 14.5%

12 - 4.1%

1 - 0.3%

0 - 0.0%

6 - 2.0%

Total

Company Type

1.  Company Service Refusal

2.  Driver Service Refusal

3.  Service Time Response

4.  Driver Discourtesy

5.  Driver Service

6.  Driver Safety and Ability

7.  Overcharge

8.  Payment Acceptance (CC)

9.  Vehicle Condition

10. Dispatch Service

11. Insurance

12. Other Operator Problems

235

2008 – Nos. and % of Total

1 - 0.4%

17 - 7.2%

12 - 5.1%

63 - 26.8%

19 - 8.1%

23 - 9.8%

58 - 24.7%

34 - 14.4%

4 - 1.7%

1 - 0.4%

0 - 0.0%

3 - 1.3%

214

0 - 0.0%

25 - 11.7%

11 - 5.1%

32 - 15.0%

24 - 11.2%

27 - 12.6%

33 - 15.4%

27 - 12.6%

9 - 4.2%

0 - 0.0%

1 - 0.5%

4 - 1.9%

2009 – Nos. and % of Total

 The total number of complaints received for overcharges (sub-item 7) has decreased, but it remains the no. 1 ranked complaint, followed by driver discourtesy, driver safety and ability, and payment acceptance.

Page 7: Uber Los Angeles - My Job Application from March 10, 2011

Taxi Service – Growth in Los Angeles

7

1,347 1,432

2,143

2,303

1,000

1,200

1,400

1,600

1,800

2,000

2,200

2,400

1990

Jan-

92

Jan-

93

Jan-

94

Jan-

95

Jan-

96

Jan-

97

Jan-

98

Jan-

99

Jan-

00

Dec

-00

Jul-0

1

Jul-0

2

Jul-0

3

Jul-0

4

Jul-0

5

Jul-0

6

Jul-0

7

Jul-0

8

Jul-0

9

Chart 2A Taxicab Vehicle History – City of Los Angeles Vehicle Authority and PC&N History Since 1990"Number of taxicabs authorized and actual numbers decaled

Vehicles authorized Vehicles decaled (operating)

Page 8: Uber Los Angeles - My Job Application from March 10, 2011

8

Los Angeles: Rate Optimization

8

Pricing Uber pricing must be adjusted to account for the urban sprawl – consider new prices for distance and idle time. Los Angeles has 6,499.5 miles of public streets in an area of approximately 470 square miles.

Flat Rates

Event Pricing Offer “Event” pricing for all major sports teams, events, and venues. Examples include: • Beverly Hills Staples Center for Lakers/Clippers/Concerts. • Westwood Pasadena for UCLA football games.

Time of Day “Time of day” pricing should be a consideration due to traffic (see slide #10). • In Los Angeles: On Thursday at 5:30 p.m., the average trip takes 71 percent longer than normal. • In San Francisco: On Thursday at 5:30 p.m., the average trip takes 63 percent longer than normal.

Flat Rates should be offered for many destinations, in addition to major airports. The City has limited pedestrian traffic and citizens rarely “hail” cabs on the streets.

Page 9: Uber Los Angeles - My Job Application from March 10, 2011

Los Angeles Traffic 2010: Worst in the World

9

Travel Time Tax in Los Angeles: 34.7% average

•  Time tax is additional cost of travel above the uncongested conditions

Page 10: Uber Los Angeles - My Job Application from March 10, 2011

Uber vs. Taxi – Los Angeles Airport

10

Destination

Staples Center – Downtown

3rd St.Promenade – Santa Monica

Rodeo Drive – Beverly Hills

Sunset Plaza – Hollywood

Origin

Los Angeles Airport

Los Angeles Airport

Los Angeles Airport

Los Angeles Airport

Uber Fare

$106.00

$92.14

$83.05

$108.24

Uber Cost Multiple

1.62x

1.64x

1.62x

1.64x

Trip Statistics

 16.94 miles  26 minutes total  12 minutes idle

 14.11 miles  25 minutes total  12 minutes idle

 13.02 miles  27 minutes total  9 minutes idle  17.65 miles  32 minutes total  11 minutes idle

 All fares estimated for 6:00 pm trips  Taxi fares include 15% tip  Uber fares = $8.00 base + $4.90 per mile + $1.25/idle minute (no tip)

$65.19

$56.24

$51.13

$65.81

Taxi Fare"$

Page 11: Uber Los Angeles - My Job Application from March 10, 2011

Uber vs. Taxi – West Hollywood

11

Destination Origin Taxi Fare"$ Uber Fare

Uber Cost Multiple Trip Statistics

Staples Center West Hollywood (Fairfax Ave/Santa Monica Blvd.)

$38.78 $67.69 1.75x  9.63 miles  22 minutes total  10 minutes idle

Los Angeles Airport West Hollywood (Fairfax Ave/Santa Monica Blvd.)

$51.01 $89.28 1.75x  12.25 miles  37 minutes total  17 minutes idle

Dodgers Stadium West Hollywood (Fairfax Ave/Santa Monica Blvd.)

$36.54 $64.40 1.76x  8.96 miles  21 minutes total  10 minutes idle

Malibu Country Mart West Hollywood (Fairfax Ave/Santa Monica Blvd.)

$88.41 $152.34 1.72x  24.1 miles  44 minutes total  21 minutes idle

 All fares estimated for 6:00 pm trips  Taxi fares include 15% tip  Uber fares = $8.00 base + $4.90 per mile + $1.25/idle minute (no tip)

Page 12: Uber Los Angeles - My Job Application from March 10, 2011

Largest Private Car Fleets in Los Angeles

12

Company Name Name of CEO City, State Total

5 Music Express Cheryl Berkman, CEO

Los Angeles 30 197 44 24 0 11 0 0 306

6 Diva Limousine BijanZoughi, CEO

Los Angeles 45 109 52 16 0 4 0 0 226

35 VIP Limousines & Coaches Inc. Roger Webb, CEO

Santa Ana 5 32 4 2 1 16 4 5 69

54 Best Chauffeured Worldwide Robert Vaughan,CEO

Huntington Beach 3 22 5 6 1 14 0 0 51

Limo Sedan SUV Van Limobus Shuttle Motor-Coach Other

USA Ranking

 Action – identify highest-rated private fleets in Los Angeles submarkets. Account for revenue, employee size, fleet size, car models, location, and price.

Page 13: Uber Los Angeles - My Job Application from March 10, 2011

Customer Acquisition Strategy

13

Sub-markets

Corporate Accounts

Focus on Entertainment, VC, Technology, and Finance.

 Entertainment – Century City, Beverly Hills, Studio City, Santa Monica

 Venture Capital – Santa Monica, Sherman Oaks, Downtown, Westwood

 Technology – Santa Monica

 Finance – Century City, Downtown

 Prioritize locations based on demographics and revenue potential. Acquire Uber customers who evangelize the product

Page 14: Uber Los Angeles - My Job Application from March 10, 2011

Demographics: Most Expensive Zip Codes in LA

14

City, Zip Code

Median Home Price"$

Median Household Income"$

Beverly Hills, 90210 6 $3,684,150 $112,572

Malibu, 90265 24 $2,730,577 $100,857

Beverly Hills, 90077 33 $2,347,030 $141,527

Santa Monica, 90402 35 $2,338,049 $118,553

Pacific Palisades, 90272 46 $2,133,148 $122,877

Manhattan Beach, 90266 87 $1,641,666 $100,761

Santa Monica, 90401 104 $1,491,117 $48,317

West Hollywood, 90069 130 $1,368,998 $51,215

Hermosa Beach, 90254 138 $1,333,731 $81,352

Century City, 90067 155 $1,237,576 $74,830

Venice, 90291 157 $1,229,241 $45,769

Beverly Hills, 90212 161 $1,224,020 $61,039

Los Feliz, 90027 223 $1,006,491 $31,820

Hollywood, 90068 232 $993,523 $52,890

Brentwood, 90049 75 $1,693,033 $84,342

Beverly Hills, 90211 164 $1,209,132 $57,746

Pasadena, 91105 219 $1,018,709 $83,737

National Rank

 Action – perform detailed analysis of every listed zip code (age, gender, education, public/private transportation, social habits, profession) and prioritize locations for launch.

Page 15: Uber Los Angeles - My Job Application from March 10, 2011

Corporate Accounts – Fortune 1000 Companies in Southern California

15

60 67 69 98

126 165 168 184 241 298 319 329 376 398 415 433 458 464 495 517 524 545 551 580 673 675 682 705 745 769 800 878 902 927 932 986 993

Rank Walt Disney Ingram Micro Northrop Grumman Occidental Petroleum Direc TV Group Health Net Amgen Edison International Jacobs Engineering Group Reliance Steel & Aluminum Western Digital Dole Food Avery Dennsion First American Corp. Mattel DaVita AECOM Technology CB Richard Ellis Group Broadcom Allergan Live Nation Unified Grocers Pacific Life Stater Bros. Holdings Molina Healthcare Beckman Coulter KB Home Activision Blizzard Quiksilver Watson Pharmaceuticals Mercury General Guess Ryland Group Teledyne Technologies Sun Healthcare Group Public Storage Fleetwood Enterprises

Name $37,843.0 $34,362.2 $33,940.0 $24,480.0 $19,693.0 $15,366.6 $15,003.0 $14,112.0 $11,252.2

$8,718.8 $8,074.0 $7,732.4 $6,710.4 $6,213.8 $5,918.0 $5,660.2 $5,216.2 $5,130.1 $4,658.1 $4,403.4 $4,327.1 $4,104.8 $4,023.0 $3,741.3 $3,112.4 $3,098.9 $3,033.9 $2,898.1 $2,638.8 $2,535.5 $2,414.2 $2,093.4 $1,976.1 $1,893.0 $1,883.7 $1,745.6 $1,736.6

Revenues"$ millions

Burbank Santa Ana Los Angeles Los Angeles El Segundo Woodland Hills Thousand Oaks Rosemead Pasadena Los Angeles Lake Forest Westlake Village Pasadena Santa Ana El Segundo El Segundo Los Angeles Los Angeles Irvine Irvine Beverly Hills Commerce Newport Beach San Bernadino Long Beach Fullerton Los Angeles Santa Monica Huntington Beach Corona Los Angeles Los Angeles Calabasas Thousand Oaks Irvine Glendale Riverside

Location

Page 16: Uber Los Angeles - My Job Application from March 10, 2011

Los Angeles Visitors: Bay Area Ranked No. 1

16

LA’s Top 5 Domestic Feeder Markets"Percent of all domestic overnight visitors to LA

Seattle-Tacoma

New York

Phoenix

Sacramento-Stockton-Modesto

San Diego

San Francisco-Oakland-San Jose

Santa Barbara-Santa Maria-SLO

Philadelphia

Fresno-Visalia

Las Vegas

Page 17: Uber Los Angeles - My Job Application from March 10, 2011

San Francisco and Uber Cities

17

Travel Accounts

 During initial expansion, San Francisco Uber passengers should be served in their most traveled destinations. “On the road” support from early adopters will be critical.

San Francisco Departures

 Los Angeles ranks no. 4 among cities that San Francisco travelers are looking to visit

1.  New York 2.  Washington, DC 3.  Boston, MA 4.  Los Angeles, CA 5.  Chicago, IL

6.  Seattle, WA 7.  Dallas, TX 8.  Newark, NJ 9.  San Diego, CA 10. London, United Kingdom

Substitute for Car Rentals

 Allow travelers to book Uber rides in advance – important for airport rides at LAX.

Page 18: Uber Los Angeles - My Job Application from March 10, 2011

College Campus Reps

18

New Freshmen

New First-time Freshmen, by Home Location

USC Fall 2010

911

571

1,074

313

Nos.

2,869

31.8%

19.9%

37.4%

10.9%

%

100.0%

UCLA Fall 2010

2,078

2,123

176

45

Nos.

4,422

47%

48%

4%

1%

%

100.0%

Other California

Out of State, but in US

Outside US

Total

Los Angeles/Orange County

At a Glance – Student Characteristics

 31.4% of USC students are from Los Angeles/Orange County

 47% of UCLA students are from Los Angeles/Orange County

 Uber will target the local college student demographic, as they are likely to promote the service to friends and family in the area

 Los Angeles college students are more mobile than Stanford or Berkeley and leave campus frequently

 Action: Hire campus representatives and interns to promote Uber

Page 19: Uber Los Angeles - My Job Application from March 10, 2011

Strategic Partnerships

19

REITs  Apartment and office REITs that house

employees at home and at the workplace. Become preferred provider and create revenue share agreement with groups that have millions of productive employees underneath their rooftops

Hotels  Joie de vivre (recently partnered with

Virgin), W Hotels, Kimpton Hotels, SLS,"Hyatt, Marriot, Ritz Carlton

Sports Teams Entertainment Industry

Page 20: Uber Los Angeles - My Job Application from March 10, 2011

Los Angeles – Marketing Targets

20

Publications Technology (With Offices in LA)

Events Venues

Page 21: Uber Los Angeles - My Job Application from March 10, 2011

21

Uber Ideas for all Locations

21

Free Wifi Install free wifi in Uber cars. Connectivity remains an issue for travelers on the move. In Tokyo, 820 black sedans operated by DoCoMo will offer free wifi in March 2011. Establish partnerships to subsidize wifi costs – like Google on Virgin America flights.

iPhone Chargers Every Uber vehicle will be equipped with a complimentary iPhone charger for passenger use. Uber riders should never run out of battery!

Sponsored Rides On weekend nights: “sponsored rides” awarded to limited number of customers. Partner with brands and local businesses to pay for sponsorship opportunity. Ex: In SF, Tipsy Pig offers bar patrons with $200 bar tab a free local ride after 1:45am.

Uber Safe Partner with colleges/safe ride programs to promote Uber Safe. Offer discounted fares to students at college bars. Allow advertisers to pay for student “Uber Safe” trips at night. Allow students to pay with pre-loaded accounts like University ID (ex. Bruincard at UCLA).

Uber Social Connect with 3rd party APIs for linking passengers to information they care about on sites like Twitter, Facebook and Foursquare. Passengers can be alerted when friends are close by and determine the best way to meet up.

Uber Nascar Buy a Nascar team. Hire Danica Patrick to drive. Just kidding… don’t do that