TNC-enabled Sightseeing Transportation Opportunities

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Information about TNC-enabled Sightseeing Transportation Opportunities

Published on February 6, 2014

Author: shaunbjohnson



TNC enabled sightseeing transportation opportunities.

On  September  19,  2013,  the  California  Public   U<li<es  Commission  established  the   Transporta<on  Network  Company,  allowing  LyF,   Uber,  and  SideCar  to  operate  legally  in   California.     We  asked  the  ques<on:       “Can  this  change  in  legisla<on  spawn  the  birth   of  a  local-­‐powered  transporta<on  service  for   tourists?”         h"p:// K132/77132276.PDF  

The  Market     50M+  Visitors  to  NYC  in  2012  spending   $6.8B  on  transportaGon  and  $100M  on   Hop  On  Hop  Off     Ø  Hot  spot  bound:  going  to/from  10-­‐20  places   around  the  city   Ø  Travel  in  groups  of  ~2-­‐3   Ø  Willing  to  pay  fixed  price  per  person     Visitor  counts  for  2012   SF:  16M+     NYC:  50M+     Chicago:  46M+     DC:  18.5M+     *NYC  stats  from  NYC  &  Company  h"p://   *SF  stats  from  h"p://     *NYC  Hop  On  Hop  Off  revenue  h"p://      

  Current  Transporta<on   Op<ons     Ø  Ø  Ø  Ø  Ø  Ø  Hop  On  Hop  Off  Buses   Public  Transit   Lya,  Uber,  SideCar   Cabs   Walking   Other  (Trolley  cars,  tour  vehicles…)     We  introduced  a  solu<on  that:     ①  Focused  on  transportaGon  between   a"racGons   ②  In  a  car  owned  and  driven  by  a   knowledgeable  local   ③  Allowed  the  visitor  to  alight  the  car  at  any   a"racGon  and  text  15  minutes  before  they   wanted  to  be  picked  up  

Tested  Channels     1.  Outside  sales  at  Union  Square  and  Pier  39.   Learning:  The  near  zero  variable  costs  of   compeGng  bus  services  allowed  them  to  price   drop  up  to  75%.  We  sold  the  service  to  four   customers  for  a  total  income  of  ~$340.     2.  20+  Hotel  concierge   Learning:  IncenGvizing  concierge  to  acGvely  sell   the  service  is  difficult.  This  could  be  a  great   complimentary  channel,  but  not  the  first.     3.  Online  through  Google  Search   Learning:  14  potenGal  customers  clicked,  one   completed  the  survey.  A  strong  online  presence   is  needed  to  make  this  work.  

  Conclusions     Ø  Tourism  transportaGon,  given  the  creaGon   of  Lya,  SideCar,  and  UberX,  are  prime  for   disrupGon.     Ø  Incumbents  such  as  Hop  On  Hop  Off  buses   have  a  low  variable  cost,  giving  them  pricing   power  and  margin  dollars  to  adverGse   aggressively.     Ø  A  strong  online  presence,  coupled  with  a   devout  community  of  city-­‐savvy  drivers,  are   required  to  acquire  customers.   @shaunbjohnson,  @brbayat      

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