Rideshare Seat


How much will each additional Rideshare Seat airport location cost?

Each additional Rideshare Seat location will vary based on many factors (airport size, number of terminals, number of annual passengers, etc.); however, the goal is to lock in as many locations as possible that match our target demographic. We can run multiple locations with a minimum presence until we can get the proper funding to expand our locations and total number of car seats in that airport. It is more important to get contracts with as many airports as possible to dissuade possible competition from entering this market. Even if we are operating 10 bare-bones locations we have those locations under contract and will have a monopoly on that market. Each bare-bones location will cost approximately $65,000 per location. This will give us enough for 4 rental lockers, 4 return lockers, and 70 car seats and branded backpacks.

What about competition inside the airport?

Airports will not put direct competition within the vicinity of a competitor. They won't put a coffee shop near another coffee shop or a deli near another deli. They do this because there is only a limited number of patrons and they don't want two companies to compete for the same patron; therefore, if we are first to market, we can have monopolies on the car seat rental market inside baggage claim.

How long are airport contracts?

Airport contracts typically range from 5-10 years. Because the airport is such an expensive place to operate (they take a percentage of your gross income, every employee needs background checks, every employee needs to pass through security and leave through security daily, and employees at airports need to be paid more than they would outside the airport), airports give longer contracts to give businesses the opportunity to recuperate their costs.

Is there a possibility of a competing company?

Yes. Our goal will be to get contracted with as many airports that fit our target demographic as possible in a short time. This will eliminate any possible competition within those airports. The more airports we have, the less viable it will be for someone else to enter our market.

Why are you starting with 70 car seats?

According to the Las Vegas Convention and Visitors Authority, the average stay in Las Vegas is 3.6 days. This means we need roughly 4 times the amount of car seats as car seat daily rentals. With 15 rentals per day rented out for around 4 days we would need 60 rentals at any given time. We added another 10 so we have extra for last-minute bookings.

What if there's simply no market for Rideshare Seat?

We think our problem is more likely to be that we can't keep up with customer demand. With our target market being ages 18-45 and the fact that they can save 50% over renting a car I don't know why anyone would not use Rideshare Seat. Our target demographic grew up with technology and makes up 65% of all Ubers riders. I believe we are more likely to achieve a 50% market share than a 1% market share.

How many locations could Rideshare Seat have?

In the US alone there are over 800 commercial airports. While not all of them would make sense it does not take much for us to achieve a profitable location. For instance, even with just 15 rentals per day our gross revenue would be $393,214.50 per year (15 X 3.6 X 19.95). With a net profit margin of 57% that would give us a profit of $224,132.27 per year. We can also expand operations to Canada and Europe as well.

What is the timeline for an airport location?

Contracting with the airport can take up to 3 months with background checks and redlining agreements. Once that is complete, we can order the car seats, smart lockers, return lockers, and build the website/app simultaneously so that process can be completed withing a matter of a few weeks. Total timeline for one location could be up to 6 months; however, we can work on contracting with multiple airports at the same time, so realistically we could have 4+ operational locations withing 6 months.

What ages need a car seat?

Ages 1-7 (depending on weight) need a forward-facing car seat.

Who else does Rideshare Seat benefit?

Rideshare Seat benefits parents and anyone travelling with children by saving them hundreds of dollars per trip; however, Rideshare Seat also benefits locals. Local rideshare and cab drivers, local car rentals like Turo or Uber Car Rental, and local people who work in the hospitality industry. Rideshare Seat gives people extra money to spend, and it allows them to go to another nice dinner or stay an extra day. It also means they can potentially travel more often.

What is Rideshare Seat's exit strategy?

Ideally, we would like to sell to a company who benefits from purchasing Rideshare Seat. For instance, Uber or Lyft. We are essentially creating a new market for them that didn't exist before. Not only would they see the value in purchasing Rideshare Seat, but also the benefit of parents having to go through their app to rent a car seat, knowing when someone is going on vacation before their competition, and any affiliate marketing that would go along with that.

What happens if you can't purchase the car seats at a discount?

No problem! Even if we cannot purchase the car seats directly from WAYB, we can purchase them at full retail through WAYB or through companies like Amazon and Buy Buy Baby. We have projected costs of the car seats to reflect full retail price in all our financial projections, even though we should be able to get a contract for bulk purchasing and get them at a discount.

What if the airport says no?

Then there will be many that say yes. If, for some reason, they all say no, then the money will be returned to the investor minus anything already paid out (such as attorney fees). Getting the airport contract(s) will be done before any major purchases (car seats, smart lockers, return lockers, app build) are done so there will be little to no risk to the investment if airports decide not to let Rideshare Seatset up locations.

Can Rideshare Seat rental lockers work without any employees?

Yes. Rideshare Seat lockers are essentially large vending machines. Once the car seat is placed inside, a customer only needs to use their code to open and retrieve their car seat. There will be an independent contractor who picks up the car seats from the return lockers inside airport ticketing and baggage drop off. They will clean, steam sanitize, and thoroughly inspect each car seat for damage or defects and then return the car seat to the locker.

How long will each car seat be used for?

Each Rideshare Seat car seat will be used for a maximum of 4 total years (1,460 days of being rented) although the general rule of thumb would allow for 7-10 years of use. Because Rideshare Seat car seats will see more use and wear and tear than a common car seat we will be retiring them well before the recommended guidelines to ensure utmost child safety.

What happens if someone steals or simply doesn't return the car seat?

They will be charged for the full amount of the car seat ($380), along with the rental fee, but without a cleaning fee.

Does Rideshare Seat donate car seats when they have reached their retirement?

No. If we don't deem them safe enough for our customers then why would we allow others to use them. It simply would not be right of us to donate or sell our car seats when we don't feel that they are safe enough to use.

What if the car seat is returned dirty?

Dirt and crumbs are to be expected and will be cleaned with the standard cleaning fee of $9.95. However, spills and bodily fluids will require more stringent cleaning and will be charged extra. Our fee structure will be clearly stated so there are no surprises for the parents. It should be noted however, that these car seats are only in use for short periods of time and typically would not be used during a messy time (most parents are probably not going to get into an Uber/Lyft while their child is eating ice cream or drinking something that could stain). Our fees pale in comparison to rideshare cleaning fees and most children can go without a juice or snack for the duration of the 10-20 minute ride. The rest of the time our car seat is not in use, our car seats will be in their backpack and will be protected.

What if Rideshare Seat needs to purchase more car seats?

Fantastic!! Rideshare Seat will only purchase more car seats as needed, which means we're projecting selling out of our available rentals. The average rental is 3.6 days so we would need roughly 4 times the amount being rented out. If we are renting out 15 per day, we would need 60 car seats to ensure we are able to meet our customers' rental needs.

What if portable car seat prices go up?

Fantastic!! The higher the price of a car seat then the less likely people are to purchase one and the more likely they will be to rent one. No matter how much the price goes up for us to purchase portable car seats, it will be negligible in the long run. Every car seat we purchase will be rented for 1,460 days at $19.95 per day; therefore, each car seat has a potential revenue of $29,127. If the portable car seat goes up from $380 to $600, we effectively make $28,527 per car seat instead of $28,747.

What if portable car seat prices go down?

Very unlikely. Most car seats have gone up in price, not down. Inflation is going to make this trend continue. Car seats are also unique in that they must undergo strict government safety testing before they can begin distribution (rightfully so) which is why car seats are so expensive to begin with. Most car seats are basically injection molded plastic but still cost hundreds of dollars.

What is the Customer Lifetime Value and how does Rideshare Seat calculate it?

Each Rideshare Seat customer has a CLV of $430.92 (based on gross revenue). We calculate that number by taking our average customer rental (3.6 days) times rental cost ($19.95) times the number of lifetime rentals (6, 1 rental per year between the ages of 1-7).