Mobility-on-Demand RideYour personalized taxi at a fraction of the cost

Ryan ThurstonAleem MawaniVirot ChiraphadhanakulRyan Chin

Confidential / Do Not Distribute | sales@modride.com

Founders

Company Snapshot

The Team Advisors

MIT PhD and Masters students with operations and transportation expertise

Future offices in San Jose, CAFounded in 2011, Cambridge, MA

Financials

$250k Seeking for angel

$5.3MM Seeking for Series A

Potential Investors

U.S. Carsharing Market Revenue2009 - 2016

• One-way car sharing• Rentals by the minute• Commercial vehicles

Market

Non-dilutive grants and subsidies available

Aleem MawaniHarvard Business School

Virot ChiraphadhanakulPhD CandidateMIT Operations Research Center

Ryan ChinResearch Specialist & PhD Candidate, MIT Media LabSmartCities Group

Ryan ThurstonMIT Sloan School of Management

Primary Media Lab funderOngoing technical interest and support

$3.4 B oppty44.4% CAGR

Dimitris PapanikolaouPhD Candidate, MIT Media LabSmartCities Group

Kent LarsonDirector Changing Places GroupMIT Media Lab

Todd WhitelawBrand ManagerSMART Center Boston

SMART Center Boston

53% Amount of carbon

emissions devoted to transportation

Source: Frost & Sullivan, EPA

By far, the largest source of C02

emission is fossil fuel consumption via transportation

Problem: Urban mobility is unsustainable

Clean energy issues

• Pollution via carbon emissions53% of carbon emissions from fossil vehicles

• City congestion• Energy inefficiency

Lifestyle trends

• Rent vs own• Demand for green vehicles

Existing Solutions Fail

• Private automobiles• Major source of CO2 emissions

• Cause massive congestions

• Public Transportation• Does not cover entire city• First mile - Last mile problem• Inconvenient and inflexible schedules

200,000 # of bicycles rented daily in Paris

80 # of cities that currently offer bicycle sharing

Manufacturer Vehicle Release Photo

Smart ForTwo 2008

Toyota iQ City Car 2012 est

Ford Focus 2012 est

Honda Fit 2012 est

The future: Clean and sharable vehicle use

Urban car sharing expanding

• Zipcar expanding rapidly6000 vehicle network

49:1 Member:Vehicle ratio in 2009 and growing

• AutoLib debuts in ParisFleet of 3,000 cars

Half hour rentals

• Hertz, Enterprise launch car sharingCombined fleet of 850 cars and growing

Source: Frost & Sullivan, U.S. Dept of Energy

Bike sharing programs exploding

Auto OEMs releasing clean, “urbanized” vehicles

Solution: One-way, fuel efficient car sharing network

One-way car sharing

VS

Traditional two-way car sharing model

• Commercially available SMART ForTwos, rented by the minute

• Pickup and drop-off anywhere in the urban area

• Maximized service level and fleet utilization through our patent-pending fleet management system

Pros Challenges• Increases vehicle utilization

Leads to higher revenue

• Reduces congestion Each shared car removes up to 30 vehicles

• Flexibility & Convenience Mobility-On-Demand

• Solves first mile – last mileIncreases ridership of mass transit

Complementary to mass transit

• Fleet ManagementVehicle availability

No parking

Costly redistribution

• Critical Mass• Reliance on Local

Municipalities to fund parking

Source: Frost & Sullivan

Phase 1Launch small pilot MIT• Operate on campus (25-50 cars)• Current partnership with SMART• Prove use-case and niche• Learn and optimize• Rely on word-of-mouth marketing

Phase 2Expand to nearby colleges• Restrict usage to students

Phase 3City and general public use

Candidate cities include:• High GDP• Population density• Mixed land-use• Poor public transit coverage• Motivation to reduce traffic and

energy consumption Iterate and perfect product based on customer feedback

2011-2012 Phase 1 Schedule

Cambridge - MITMarket Entry Plan

Decision Making Unit (DMU)Percent time spent on managerial responsibilities

Transportation Manager75%50% IT manager

25% Consultant technical architect

Persona and Description

“The Influencer”. Responsible for sizeable budget ,staff, operational and strategic planning. Performance review weighted toward managerial responsibilities

Rank University & Neighborhood Location # of students

1 BU/BackBay Boston 32,053

2 U of Mass/South Bay Boston 25,873

3 Harvard/N Cambridge Cambridge 25,690

4 Northeastern/Kenmore Boston 24,434

5 Boston College Chestnut Hill 14,621

“The Driver”. Performance review balanced between managerial and technical achievements

“The Veto”. Technical leader in one or more domains. Performance review weighted on technical achievements

Market Opportunity 122,671 students

Appendix: Boston area target markets

Source: http://www.doe.mass.edu

Zipcar CommunautoHertz

ConnectPhilly

CarShare*City

CarShare*Car2Go

# of members 340,000 18,500 7,500 35,000 12,000 10,000

# of vehicles 6,950 830 479 410 324 350

Member : Vehicle 49 22 16 85 37 28

Geographic Coverage

66 U.S. cities + 100 college

campuses

4 cities in Canada

19 U.S. cities +

12 colleges

1 U.S. city (Philly)

4 cities in the bay

area

1 U.S. City + 2 Europe

Rental TypeHourly, two-way

Hourly, two-way

Hourly, two-way

Hourly, two-way

Hourly, two-way

Minute, one-way

** = nonprofit

One-way, fuel efficient car sharing is an entirely new market opportunityMinute-minute rentals further differentiates our offering

Source: Frost & Sullivan

Appendix: Benchmarking Top 6 Car share organizations

58%Gross Margins (worst case – will rise after fixed costs removed)

Appendix: Detailed Financials

Assumptions

• Vehicles leased through OEMs

• RetrofittingIncludes Android tablet, smartphone apps,

GPS, keyless entry, etc.

Key Figures

Gas proposal (back-of-envelope calcs, bottom up)number of cars 25 utilization per day 15%rev per minute per car $0.35

operating revenueshrs car available per day 24hrs per day car in use 3.6rev per hour per car $21.00 rev per day per car $75.60 rev per month per car $2,268.00 rev per month per fleet $56,700.00 rev per year per fleet $680,400.00

variable costslease per month per car $120.00 parking per month per car $150.00 insurance per month per car $102.00

fuel per hour $3.75 fuel per day $13.50 fuel per month per car $405.00

maintenance per month per car $50.00 redistribution costs per month per car $50.00 3G GPS/web services per month per car $30.00 total costs per month per car $907.00 total costs per month per fleet $22,675.00

fixed costsretrofitting per car (keyless entry, android tablet, etc) $500.00 retrofitting per fleet $12,500.00

profitsgross profit first month per car $861.00

gross profit per year per fleet $395,800.00 gross margins per year per fleet 58%

40%

2%

58%

variable costsone-time fixed costsoperational profits

Appendix: Car2Go Market Surveys

Car2Go user Positive Feedback

“I love the idea of car2go, and the few times it was available to get me to work on time, it was fantastic and I was grateful.”

“I was dreading the walk home, but voila! someone had parked a car2go right in front of the restaurant! It really has been a lifesaver on my laziest occasions.”

Karen L. Austin, TX12/1/2010

Meg C. Austin, TX12/14/2010

De C. Austin, TX11/10/2010

“I got an email confirmation showing the location of the car on a map. I got to the location- no car. I checked around the area. No car.”

“Car2Go's silver bullet is that you don't have to return the car to where you started”

Tate S. Austin, TX10/6/2010

Mercedes P. Austin, TX12/14/2010 “I can never find one when I need it. EVER.“

“Someone of course took our car by the time we were gonna leave. We walked around a bit before finding a new one since the website from phone sucks.“

B.T. Austin, TX1/1/2011

Confidential / Do Not Distribute | sales@modride.comSource: www.yelp.com

Negative Feedback

• The breakeven point for car ownership and carsharing is approx 4k miles

• Our target market is urban dwellers who drive less than 4k miles per year

• Carsharing is more cost effective vs car ownership

• Carsharing programs save up to 70% of the total transit costs for its members

• Utilization rate is the key revenue driver

Appendix: One-way Car Sharing Business Model

Confidential / Do Not Distribute | sales@modride.comSource: Frost & Sullivan

• Most car sharing serves one city/market (except ZipCar and U Car Share)

• Rental companies recently joined (e.g. Connect by Hertz, WeCar)

• One-way trips will raise membership and serve urban niche

Appendix: U.S. & Canada Two-way car sharing market (2009)

Confidential / Do Not Distribute | sales@modride.comSource: Frost & Sullivan

• Tremendous growth over the past few years• Market consolidation grew the avg revenue of carsharing

programs• Startup financing and partnerships will remain key issues for

future carsharing programs

Appendix: Two-way car sharing market (U.S. & Canada ’01-’09)

Confidential / Do Not Distribute | sales@modride.comSource: Frost & Sullivan

More members and increased vehicle utilization rate after consolidation make total industry revenue grow fast

Appendix: Two-way car sharing market (U.S. & Canada ’09-’16)

Confidential / Do Not Distribute | sales@modride.comSource: Frost & Sullivan

For the first time in history, there are more people who live in urban vs rural areasAppendix: Future of Transportation in urban environments

Source: UN Population Division Confidential / Do Not Distribute | sales@modride.com

• Majority of Car2Go users spend 15-25 minutes using rental. • Car2Go utilization rates 13-15% per day on average

5 10 15 20 25 30 35 40 45 50 55 60 65 70 75 80 85 90M

ore

0

100

200

300

400

500

600

700

800

900

Car2Go data: # of users vs trip time

Frequency

trip time (minutes)

# o

f u

sers

Appendix: Car2Go # of users vs trip time

Confidential / Do Not Distribute | sales@modride.comSource: Frost & Sullivan

Challenge Notes Level of Importance

Increased vehicle utilization rates

Two-way vehicle utilization rates should be 40%, otherwise carsharing fails to recover costs.

High

Change members driving decisions

Currently, 11-32% of charsharing members give up their vehicles, and 25-71% avoid buying one. The success of any carsharing program depends on how to exploit these trends

High

Expand member base A mix of residential, business and government members lead to complementary usage of vehicles and higher utilization rates.

High

Financial resources Carsharing businesses initially lose money until they reach critical mass. Outside funding is critical.

High

Awareness & Mindshare Carsharing members only account for 0.2% of registered North American licensed drivers. Carsharing programs must increase awareness to expand.

Medium

Partnerships Partnering with transit agencies, parking authorities, shops and services is imperative for long term growth

Medium

Communicate carsharing benefits

Communicate carsharing benefits to government municipalities, transportation authorities and future members to increase membership and government support

Medium

Appendix: Carsharing industry challenges

Confidential / Do Not Distribute | sales@modride.comSource: Frost & Sullivan

• ZipCar expanding rapidly• 49:1 Member:Vehicle Ratio in 2009• 63:1 expected in 2016

Appendix: Zipcar Member:Vehicle Ratio

Confidential / Do Not Distribute | sales@modride.comSource: Frost & Sullivan