Photo - FLAPZ
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FLAPZ

PRIVATE AVIATION MARKETPLACE

Colombia
Market: Transport, Services, Mobile applications
Stage of the project: Operating business

Date of last change: 27.04.2021
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Idea

We centralize the offer of an extensive network of partners; PART 135 certified air operators, which includes hundreds of aircraft, helicopters and business jets, and we connect them with that business class user who feels abandoned and who is looking for a new, more flexible, private and efficient travel experience, in which they can decide how, when and where to fly, 100% digitally

Current Status

Sales in Q1 2021 rose to US$ 200K and we have projected to finish April with US$ 70K to round up the operations of 2021 with an average of US$ 65K monthly sales.


Market

In Latinamerica there were 359 million passengers carried by air in Latin America and the Caribbean back in 2019. 6.2 million belong to Business Travellers, of which 70% of them have never flown in private aviation.
Our customers can be summarized as Business Owners, C-Suites Executives, and Entrepreneurs, which is also confluent to Henrys' demographics characteristics (High Earners Not Rich Yet) and DINKS (Dual Income No Kids).

Problem or Opportunity

The private aviation industry is one of those industries that has not yet been digitized, in addition, the Air Charter Operators individually faces the following problems:

- Idle capacity of high-cost assets underutilized
- Empty Legs; that operators are not able to commercialize
- Lack of digital sales strategy and channels

Finally, the industry is fragmented adding friction to the commercialization process.

While on the other side, the Business Traveler feels abandoned in LATAM due to the high penetration of low-cost models, added to the following problems:

- Loss of time in check-in, security checks, among others queues in commercial aviation
- Limited flexibility in routes and itineraries
- Business-class experience no longer available

They are looking for a new way of traveling that is more flexible, private and efficient, with the freedom to define how, when, and where to fly, optimizing their times.

Solution (product or service)

We are the first Spanish-speaking private aviation Marketplace in Latin America. We centralize the offer and digitize the fleet of hundreds of partners, all Part 135 air operators, so the business-class user who feels abandoned and is looking for a new, more flexible, private and efficient travel experience, in 3 simple steps can have access to private aviation through charter flights, empty legs and shared flights.

For us, democratization is making private aviation more accessible. The market it was once targeting was tens of thousands Flapz is bringing private aviation into the millions through technology and digitization.

Competitors

Flapper
Jetsbooking
XO
Vistajet
FlyAdam

Advantages or differentiators

1.- End-to-End Experience, we are not a broker, we go further, we offer a personalized concierge service to provide a first in class in-flight and off-flight experience, with the ability to meet each of our clients' needs

2.- Proprietary Technology, developed for the Marketplace and the Partners Operation Management System

3.-Know How, a local team from each of the markets knowledgeable of their regulations, operators, geography and meteorology, which allows us to safeguard the highest levels of security as well as nurture long-term strategic relationships with our partners

4.- Regional Presence, with the ability to open operations efficiently and scale effectively, to build the network of operators in LATAM

5.- Strategic Alliances, that allow us to effectively reach our target user, as well as partnerships with Aircraft OEMs that under their sponsorship allow us to accelerate the incorporation of new operators

Finance

Flapz has a business model that considers 4 revenue streams, up to date only 3 of them are active:
- Saas Fee Flapz Partners Plataform (MRR) - not in place yet
- Commission Fee: Sales commission ranging from 5% for charter flights to 50% on seats and empty legs
- Booking Fee: For each transaction made by the user, the fee will depend on the membership category, from 3% to 5%
- Sales Commission: Commissioned sale for additional services to customize the user experience and Getaways, from 10% to 15%

Business model

- Saas Fee Flapz Partners Plataform (MRR) - not in place yet
- Commission Fee: Sales commission ranging from 5% for charter flights to 50% on seats and empty legs
- Booking Fee: For each transaction made by the user, the fee will depend on the membership category, from 3% to 5%
- Sales Commission: Commissioned sale for additional services to customize the user experience and Getaways, from 10% to 15%

Money will be spent on

1.- Strengthen operations in Colombia and the team that will support future markets
2.-Build the Chile team to become the Hub of the Southern Cone
3.-Strengthen the technology of the current web platform, develop the application for both IOs and Android, launch the final version of Flapz Partners with automation and onboarding, and develop Flapz Corporate for OTAs integration
4.- Develop and implement the Digital Marketing strategy focused on ROI, with the aim of increasing leads, reducing CAC and accelerating the scalability across the region
5.- Implement a loading factor strategy with anchor routes and test the market until the product market fit of this new product is reached
Develop and implement the Shared Flights strategy, an inexistent model in the market
6.- Incorporate operators from adjacent countries to expand fleet availability and consolidate the regional neural network of partners
7.- Project the opening of operations in Mexico from the end of 2020 to launch in Q1-Q2 of 2021

Offer for investor

In this round we are raising US$ 1M with a CAP of US $5,7M (post-money) equivalent to 18,18% through a SAFE.

Risks

I think one of the biggest risks is the speed at which the technology needs to be in place to conquer the region and the infrastructure needed to support it.

Incubation/Acceleration programs accomplishment

No

Won the competition and other awards

Best Private Charter Company Colombia 2020
Aviation and Aerospace Awards 2021
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Idea
Current Status
Market
Problem or Opportunity
Solution (product or service)
Competitors
Advantages or differentiators
Finance
Invested in previous rounds, $
Business model
Money will be spent on
Offer for investor
Team or Management
Mentors & Advisors
Lead investor
Risks
Incubation/Acceleration programs accomplishment
Won the competition and other awards
Invention/Patent
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