Pickmeup is merging everyday personal needs into a digital platform for emerging market, starting with mobility.
Self-funded - $25K MRR; - 50,000+ customers; 3,500 drivers; - 65,000+ completed happy rides; 3,000+ avg monthly rides - Dec 2021 GMV Run Rate - $4m - 20% average monthly organic growth rate - 4.4-star rating on App store - 76% rate the product 4 of 5 stars or higher
Mobility is one of the largest industries. Our immediate addressable market (Nigeria) is massive, underpenetrated and fast growing.
Nigeria has the largest economy and largest population in Africa. The total addressable market (TAM) is $71.9 billion while the serviceable addressable market (SAM) is $38 billion. The serviceable obtainable market (SOM) is $5 billion. The total population is 206 million and 52% of the population are in urban areas.
Global revenue in the Ride-Hailing & Taxi segment is projected to reach US$257 billion in 2021. Revenue is expected to show an annual growth rate (CAGR 2021-2025) of 11.05%, resulting in a projected market volume of US$391 billion by 2025.
We have a clear path to $100m ARR. We’ll convert a lot of users with Free rides/Referral incentives. We target to convert 2% of the SOM ($5B) to reach ~$100m ARR.
Problem or Opportunity
Emerging markets lack a scalable solution for mobility. Sub-Saharan Africa population is growing at 2.7% a year. Infrastructure planning cannot keep up with population growth. Current taxi solutions are inefficient, fares are opaque, driver information and backgrounds are unclear, presenting safety problems.
They are also controlled by a few monopolies that continue to provide poor services that are unsafe and lack tools to track quality or performance.
Solution (product or service)
We take an innovative approach to solving mobility challenges by providing a safe and affordable on-demand mode of transport and low service fees for drivers, making driver earnings strong and lowering our cost of supply acquisition while increasing retention.
Now this creates two distinct advantages; drivers can earn more and riders are able to pay less. This balance between these two groups of users is what forms the basis of our solution.
Currently, our main competitors are Uber and Bolt. Although they only own 40% of the market share and are only focused on the ride-hailing aspect of our business, whereas we are building a range of on-demand services just like Grab in South East Asia.
Advantages or differentiators
1. We have the best drivers welfare on the market. 2. A flexible and self-payment system for drivers via a digital wallet, enabling faster driver settlement cycle. 3. Free vehicle inspection and training for drivers. 4. A live chat support to resolve queries in real-time. 5. Customers can favourite their drivers which are then prioritized for future ride requests. This enables them to have a level of control over their experience as well as incentivizing drivers to offer a competitive service. 6. Multiple channels of accessing the platform such as booking a ride from our website, Start a Ride feature for Drivers to serve Riders without smartphone or internet, and a central dispatcher hotline to harness call-in customers. 7. We offer lower costs for the same quality of service and have better understanding of the market terrain. 8. High compensation model for drivers, making our value proposition for drivers stronger, lowering our cost of supply acquisition while increasing retention.
Current Revenue Stream - Ride Hailing Average ride cost - $5 Margin - 15% Transaction channels - Mobile App and Website
Sales expectations in the next 5 years - $300m
We have a highly efficient and simple transaction based business model.
Pickmeup matches drivers with passengers and take 15% commission on each transaction. We are evolving and will be further monetized through additional revenue streams such as deliveries (food, parcel) and payment solutions.
Money will be spent on
We need an investment of $1.2m to accelerate growth and strengthen our product development efforts.
See breakdown of the use of funds below: 30% - Marketing & Customer Acquisition 25% - Geographic Expansion 30% - Grow Team & Product Development 15% - Fleet Growth
Offer for investor
We are ready to offer 20% share of the company to an investor.