About Chariot Ridesharing Limited
Become a Driver of Change.
Chariot was started in early 2014 out of our CEO’s frustration from spending too much time in traffic jams on his way home instead of playing with his daughter. To add to that frustration, he was constantly missing meetings or being late when travelling by car due to the increasing amount of traffic congestion. The need for a ride sharing application was reinforced when no affordable transportation was available after having drinks with his suppliers and friends. He thought, “How cool would it be, just tap on your screen to figure out who is driving in the same direction or even close to your home and ask for a lift?” Chariot was born and the team crafted shortly after.
Chariot is like the Airbnb of transportation. A carpooling and ride sharing mobile application for recurring rides (commuting people), one-off short rides (within the city) or long haul rides (intercity travelling). Drivers can “rent out” spare seats in their vehicles, while at the same time increasing the occupancy rates in cars and reducing the number of vehicles on the roads. Passengers share the driver’s costs for the trip, and payments are made securely through the app. Chariot’s income will come from a 20% commission on the amount paid by each passenger.
We want to make carpooling and ride sharing fun and easy for everyone. Our community’s safety is our number #1 priority. For that reason we are building a comprehensive safety system for peace of mind. In addition to background checks we will verify user’s identity and supporting documents, create an innovative 2-way ratings system (driver rates passenger and vice versa), real-time GPS trip monitoring and provide a support team that is available 24/7.
Chariots vision is to revolutionise the way people travel in NZ and around the world being more environmental responsible and to become the first choice and global leader and to bring more motivation, playfulness and joy into their lives through Chariot as measured by our users, our employees, our shareholders, and the community we live in.
Through this Equity Crowdfunding Campaign we want to secure funding from interested investors to become part of another Kiwi-Success Story.
The money raised will be used to commercialise the app and to grow our business. It will support user acquisition, marketing and cover operational costs. The scene is set for successful entry into the market with excellent growth prospects.
We are inviting you to invest in success by buying up to 20% of Chariot Ridesharing Limited. This will enable us to enter the market with a big bang.
You can read online our Information Memorandum (IM) here or download a pdf copy below.
We are offering a minimum of 37,500 shares (to close the offer) and up to a maximum of 250,000 shares at $0.80 each. This maximum represents up to 20% of Chariot Ridesharing Limited.
Share types include Ordinary shares for parcels of 12,500 shares and above (represents $10,000 and above of investment) and Investor shares for parcels of less than 12,500 shares.
Rights Attaching to the Shares
Each Ordinary Share gives the holder the right to one vote at a meeting of shareholders.
However, in general, the Investor Shares do not give the holder the right to vote at meetings of shareholders. In very limited circumstances (to ensure the shareholder's core rights are protected) each Investor Share gives the holder the right to one vote. This only occurs where there is a proposal or resolution:
- that will affect the rights attached to the Investor Shares
- to put the company into liquidation
- for the disposal of the whole, or a material part, of the property, business and undertaking of Chariot
Both the Ordinary Shares and the Investor Shares give the holders:
- The right to an equal share in dividends and other distributions made by Chariot (subject to the rights of any other class of share)
- The right to an equal share in the distribution of surplus assets of Chariot.
The constitution sets out other terms that will apply to any shareholding in Chariot. You should read the constitution before pledging for shares.
How the Capital will be invested
The funds raised through the PledgeMe Equity Crowdfunding Campaign are expected to be used for user acquisition before and immediately after product launch, to grow a viable platform, to establish, maintain and retain a strong active user base, upscale server infrastructure and engage in on-going promotions.
If the funds raised are at the upper end, hiring additional staff for product development may be considered. We have also planned, where possible, to utilise funds to acquire or partner with existing carpooling and ride sharing websites, transferring their customer base to Chariot. The below allocation of funds is expected if fully subscribed but may change in future.
About our Team
We have built a small team of very talented and well balanced people who are eager to become leaders in the ride sharing space.
Our team is young, fearless and believes in the company’s mission. We have commitment and relentless passion; our belief and focus in doing something good for New Zealand and its communities gives us the edge and necessary motivation to succeed. This has so far allowed us to achieve a lot with little resource.
Dr. Thomas Kiefer, MBA - CEO, Co-Founder
Thomas is our “Mobility Pope”. He has a strong technical and business background having worked for numerous internationally recognised companies across Europe and Asia before moving to New Zealand. He held various senior management roles that enabled him to obtain a sound understanding of corporate business acumen, finance, people and stakeholder management. Loaded with academic achievements, such as BA (Hons) Engineering, MBA and a PhD, is he well equipped to steer the ship and keep everyone engaged and motivated to build a thriving business.
Milan Reinartz, BDes - CPO, Co-Founder
Milan graduated from the Christchurch Polytechnic Institute of Technology (CPIT) with a Bachelor of Design. He obtained professional experience working as a designer at agencies like Saatchi & Saatchi, BBDO, Y&R and various local design firms. He has since co-founded various start-ups which were featured on the likes of Forbes, TechCrunch and Idealog. He is currently also the CEO of the mobile application start-up Postr that has closed various rounds of funding. Milan is the backbone of product management at Chariot.
Martin Hipp, CTO - Co-Founder
Martin started making website templates at the age of 16, and since then has worked in many different contexts including back-end, front-end and app development. Mostly self-taught, he moved to Wellington to gain a Web Development diploma at the National College of Technology. After graduating, he started working at an event ticketing company, developing their ticket selling and scanning platform until the start-up was successfully acquired. He is passionate about new technology and uses best practices to produce modular, robust and reusable code with a strong focus on performance and usability.
Nick Hughes, Director of Technology
Nick is by day the Lead Developer at NZ’s leading design agency, with creative expertise and more than 13 years industry experience in interactive design, digital development and B2B technology marketing. He brings fresh smarts and technical help to the table whenever needed and has a great understanding of all things digital with vast technical knowledge. Before moving to Wellington Nick spent 4 years in an agency in London, leading web development projects for the likes of Hewlett Packard, Adobe and Canon and has won plenty awards to show for it.
Matt Bondi, BCom (Info Sys) - Developer
Matt has as a strong technical background with over 8 years of industry experience working for several design companies in New Zealand. He graduated from Rhodes University in South Africa with a Bachelor of Commerce majoring in Information Systems and Management. With a keen sense of adventure, Matt continues to tick off more parts of the globe when he can. Matt will be looking after implementation and maintenance of the web app.
Rhiannon Josland, BDes Hons VCD - Designer
Rhiannon moved to the windy city five years ago, armed with a rudimentary knowledge of Photoshop and little else. Since then, she has managed to make her way up, to where she now works as a designer for one of Australasia's leading Strategy and Design firms. With a Bachelor of Design with Honours in Visual Communication Design from Massey University under her belt, Rhiannon is a critical thinker who is passionate about creating social change through design.
Matt Penman, App Developer
Matt has a keen interest in developing and designing for mobile and web, a passion that he has followed from his early high school years. He has developed his skills across a variety of projects, including frontend and backend development. Matt left his degree at Massey University to pursue a career at Weta Digital and expand his development skills whilst learning on the job. He hopes to bring with him a fresh mind, a willingness to learn and grow and a strong skill set comprised of the best industry standards and practices.
Hemant Maharaj, BA Commerce, Finance Manager
Hemant has a Bachelor of Accounting and Information Systems degree and he recently became an accredited Chartered Accountant. His practical experience includes being an external Auditor for BDO, a Senior Accountant for an American publically listed company, and now Finance Manager for an Australian billion dollar publicly listed company. He moved recently to Australia and is ready and waiting in Perth for Chariot to make its move towards Australasia and global domination! He enjoys thinking about how Chariot is going to shake up the way people travel around New Zealand’s congested metropolitan areas.
Ilya Shereshevsky, BA Accounting, Head of Growth
Ilya brings a wealth of knowledge from many areas of Marketing including Product Marketing and User Acquisition. Most recently, he led DeNA West’s Performance Marketing team and has held leadership Marketing roles at OnLive, SEGA, and Glu. He also has an MBA from UC Berkeley Haas School of Business, a BA in Accounting and BS in Psychology from Rutgers College. In his spare time he enjoys playing video games, ping pong, and reading graphic novels.
Management & Board of Directors
Chariot’s management and Board of Directors is currently made up of its three co-founders, Dr. Thomas Kiefer, Milan Reinartz and Nick Hughes.
They are like a tripod, no matter how shaky the ground, stormy the sea or unpredictable the future is – they always stable, bonded but balanced out.
Our management is expected to use resources wisely, operate profitably, pay debts, and abide by laws and regulations. Our management philosophy is based on teamwork, responsibility, honesty and mutual respect. People who work at Chariot Ridesharing Limited would want to be part of our team because we operate in an environment that encourages creativity, diversity, growth and performance.
Our Advisory Board
Chariot’s advisory board will be appointed to escort the company through the next stage of growth. They are well experienced in the technology sector, understand our business model, know the mission and what motivates us, and bring new skill sets and ways of thinking to the team.
Rodney Craig, Partner at Minter Ellison Rudd Watts
Rodney has over 16 years’ legal experience. Rodney’s clients include a number of early-stage and growth businesses in the technology sector, for whom he provides all-round legal support – including governance and structuring advice, and assistance with capital raisings, crowdfunding and liquidity events.
What we've done so far
From an initial idea and a few discussions in June 2014, to 9 active team members today, who have spent thousands of hours outside their day job – after hours, nights and weekends, we have come a long way.
We started by mapping out the user workflow, then analysed hundreds of completed questionnaires, built a live wireframe (prototype) which was tested in the field to identify improvements, and then spent many hours designing and fine tuning 100+ app screens between 2 designers and a user experience expert, resulting in a state of the art user interface and user experience.
From here we started building the app with our team of 4 developers who are now well across the technology management, services integration, database, API and front end development.
Our website promotes pre-registrations and has already seen just about 1,000 people sign up to get an email when the app launches. A user acquisition experiment of testing various styles of messaging and designs (conducted on Facebook for over 5 days) resulted in approximately 700 pre-registrations and 1,000+ Facebook likes. The experiment highlighted two facts. Firstly, our creative was more than twice as successful as we had expected and provided us with confidence to continue with our current marketing strategy of focusing on performance media (e.g. Facebook). Secondly, there is a huge demand in the market and appetite for our app that confirms our previous surveys.
With this capital raising we are expecting the rate of pre-registrations and post-launch sign-ups to dramatically increase in the months to come.
Currently the hybrid mobile app is in the final phases of build; the database and the API are ready and are now being integrated into the actual mobile apps. An alpha release is anticipated in early April 2015 and pre-registered users will be invited for testing purposes.
Our Timeline (indicative)
We plan to grow our business rapidly in New Zealand through user acquisition focused marketing and possible joint ventures and partnerships.
For further growth we aim to acquire carpool and ride sharing websites as well as mobile applications with a potential for membership transference to Chariot. Where acquisition is not possible a joint venture or partnership may be considered.
Like many other technology companies, Chariot plans to focus on its domestic market first. After the initial marketing launch in the metropolitan areas of Wellington, Auckland and Christchurch, Chariot will, shortly after, also be marketed in other key areas such as Dunedin and Hamilton. Chariot intends to cover all other remaining cities and towns by the end of year one of operations.
The company plans to grow and hire additional team members to support its expansion into Australia in year two of operations. Eventually, Chariot hopes hope to take the business into the European, North American and Asian markets.
Over the next 6 months, investment will be utilised to achieve speed-to-market, with a focus on user acquisition via digital media and earned media (publicity).
The following financial forecast for the projected scenario is what we currently expect but this may change in the future. The forecast is based on our best assumptions about user acquisition, average user activity, average cost per installation and costing model at this point in time.
For more information about our projected scenario and general assumptions underlying these forecasts please click here or see page 32 of our IM.
Target Key Performance Metrics
Projected User Summary Year 1 – Year 3
In the years to come we intend for all of our shareholders to receive attractive rewards and healthy dividends, while we continue to build a thriving business and grow internationally.
However, it is envisaged that no dividend payment will be made over the next three years unless a reasonable net profit is achieved, and the Board deems it prudent. The undistributed dividends will increase the amount of retained earnings, as a strategy to strengthen the company's financial position for sustainable future growth, to increase the company's net worth, and subsequently the market value if it goes public. The Board will review this policy annually.
In the event that an opportunity of a liquidity event arises which is too good for our shareholders to miss out, we would certainly consider it. This could include being acquired or an initial public offering (IPO).
Risks and Challenges
Running a start-up, building a sustainable business and investing in a start-up is an inherently risky business. In our SWOT Analysis we highlight a number of strengths, weaknesses, opportunities and threats. However, if these threats or weaknesses eventuate, they may affect the price of Chariot shares and you could lose some or all of your investment.
We will take all practicable steps to mitigate risks or minimise their impact should they arise.
Chariot’s strengths include:
- Our People/Team management - proven experience, skills, relentless passion and drive to succeed in building a sustainable product.
- Domain Knowledge - clear vision of the market needs via testing, resulting in an understanding of what is required to provide a solution. Understanding our individual customer/user, their pain points as well as the overall market. We have subject matter expertise with the latest mobile application technology and we can offer the alternative transportation services that would bring the two together.
- Location - New Zealand is a niche market and its metropolitan cities suffer from increasing traffic and traffic congestion with no end in sight.
- Product/Service - a scalable innovative problem solution and first to NZ market.
- Genuine Cost-Sharing-Model (CSM) - low amounts payable by passenger(s) to share the costs of the journey; we believe this is a win-win situation.
Strengths are valuable, but it is useful to realise the weaknesses. We identified some of our weaknesses:
- Capital - We need to focus on leveraging the low cost alternatives that come hand in hand with a technology business. The alternative is to focus on investors, however finding investment may become a distraction and is unlikely to be found without continuously increasing traction. Where funding or investment is not possible, out-of-the box thinking and development of cost effective customer acquisition will overcome a lack of funds.
- Start-up challenges - seeking advice and governance from experts in the industry has helped us tackle these challenges.
- Resources / cost factor - associated with system scaling, hosting, keeping state-of-the-art equipment and technology and limited key personnel for product development. Offering shares to new key personnel could be used as a cost effective mitigation strategy to keep the product development going; seeking loan, overdraft or alternative financial injections to cover technology resource costs.
- Operations capacity limited - operating capacity following launch during peak sales periods, possibly mitigated through hiring contract staff.
Our strengths and awareness of our weaknesses will help us capitalise on emerging opportunities. These opportunities include, but are not limited to:
- Societal – sharing economy and digital shift.
- Technology – no state-of-the art mobile application alternative is currently available within New Zealand that has an intuitive UX design, providing mobility and 24/7 accessible service.
- Commuters – needs are currently not being met to provide an easy-to-use service, cost-effective ride sharing and convenient carpooling.
- Partnerships/Joint Ventures – for endorsement and marketing purposes; to access a customer base for growth as well as offer reduced memberships or discounts to our users.
- Traffic congestion – increasing occupancy rates of cars and reducing the numbers of cars in metropolitan areas thereby improving the driving experience, reducing traffic congestion and the carbon footprint significantly.
- Costs of living – high property prices in metropolitan areas results in the populace moving to outer suburbs, which in turn has a link to increasing fuel prices and vehicle running costs. This will force people into more cost effective transport alternatives.
- Carbon Emission – reducing carbon emissions, supporting Government offsetting through the Carbon Emission Trading Scheme (ETS) and selling carbon credits.
- Competition – there is a high threat of existing carpool websites building a mobile application, new entrants to the market as well as copy cats and substitutes. We therefore need to understand the customer and think differently about how we market the product.
- Barriers (i.e. acceptance) – limited acceptance and trust in the product and a fear of sharing rides with unknown people. We therefore need to educate customers and think about how we can mitigate those barriers by putting safety and safety education at the heart of our business.
- Business – changes in the business environment that might reduce our user acquisitions and activity. Tight credit times, higher interest rates and higher inflation rates than predicted.
- IRD – higher taxes in future.
- Politics – change in government and regulations.
If you'd like to know more, download the IM below:
We made it!
09:54PM Sun 10/05/15 on Chariot Ridesharing Limited
Exciting times… we made our minimum target… and a little bit more…woohooo!!!
We just want to say a huge thank you to all our pledgers and to everyone (aka friends, family, colleagues, advisors, PledgeMe team) who did help us to come so far.
Next stop on our journey is getting the app ready in the upcoming months.
We're looking forward to growing with you… keep in touch.
Comment on this update:
Thanks to everyone
04:00PM Sat 09/05/15 on Chariot Ridesharing Limited
It has been a great journey so far. A huge thanks to everyone who supported us to-date to push us over the bump in the road to achieve our min target.
With only one day left there is still enough time to pledge. If you have already pledged please share this opportunity with your crowd.
Comment on this update:
Our road to Equity Crowdfunding success
12:14PM Sun 12/04/15 on Chariot Ridesharing Limited
A big thanks to everyone who has already pledged, we’re now half way to the minimum target for our PledgeMe Equity Crowdfunding campaign! It’s been exciting to watch as the gap continues to close in on our financial goal.
Our investors are a testament to what we are doing, and together, are fundamental to making real change in the way we drive in New Zealand. The below illustration indicates that we still have a bump in the road that is stopping us from being successfully funded and we need you, our crowd, to help us get to the other side of it.
So if you haven’t already, we warmly invite you to invest in Chariot Ridesharing Limited and join us on the exciting road ahead.
Comment on this update:
10:16PM Fri 27/03/15 on Chariot Ridesharing Limited
Thanks for pledging and coming along to our launch party @ Rogue and Vagabond. Surrounded by our supporters we had a great time and fun night out.
If you haven't pledged - now is a perfect time to do so. Please share our page with your private and professional network to give them the same opportuntiy to invest in Chariot.
Thank you for joining us on the ride so far.
Comment on this update:
|Maximum Shares Offered||250,000|
Explanation of valuation:
Chariot Ridesharing Limited applied the Berkus method which is one of the most well-known and widely respected methodologies, especially for technology start-ups, and the Berkus method uses both qualitative and quantitative factors to calculate a pre-money valuation. The total value has been altered to a maximum of $2.0 million to reflect the NZ market, instead of the US$3.0 million maximum in the original Berkus method for the US market. Numbers are maximums that can be “applied” to form a valuation, allowing for a pre-money valuation of up to $2.0 million. The $2.0 million as a pre-money is relevant to high growth opportunities in the NZ market. It is a level that a company that is strong in all the key aspects it needs for growth that might hope to get in the NZ market. The Berkus method scales a company against that local 'ideal' investment.
Please note: no one method is correct but the modified Berkus method really helps to show the thinking behind the valuation. All methodologies for early stage companies are just approximations of the thought processes that investors follow to make their decisions.
We are comfortable that the valuation reflects a fair value of the company and market position, and, more importantly, the growth potential that Chariot Ridesharing Limited can offer.
|Prev Year||Current Year||Est. FY 2019||Est. FY 2020|
Company Name: Chariot Ridesharing Limited (registered as CHARIOT RIDESHARING LIMITED)
Company Number: 5356661
Companies Office URL: http://www.business.govt.nz/companies/app/ui/pages/companies/5356661
Incorporation Date: 11 Jul 2014
Company Status: Registered
Entity Type: Registered
Constitution Filed: Yes
Annual Return Filing Month: September, last filed never
|Registered Office||14 Concord Street
|Address for Service||14 Concord Street
|Dr. Thomas Kiefer||CEO||https://www.linkedin.com/in/drkiefer||✔|
|Nick Hughes||Director of Technology||http://nz.linkedin.com/in/nickhughesnz||✔|
Ask a Question (You must login to ask a question)
Hi Thomas. Thank you for the reply to my previous question. If the swap is an option for KM's instead of the Helicopter ride then I can talk to PledgeMe about changing my pledge to 2500+. Let me know if you want me to talk to PledgeMe about it. Cheers.Posted on 30-03-2015 by Adarsh Jupudi
Hi Adarsh, thank you for your query. We are happy to accommodate every request as much as practicable and financially sensible. Please send an email to info (at) chariot.co.nz to discuss your request in detail. Thank you.Answered on 30-03-2015 by Thomas Kiefer
What sets you apart from similar products on the market? Do you employ any unique methods for pairing (eg Algorithms to find people who travel the same route at a similar time each day)?Posted on 30-03-2015 by Jonathon Lintott
Hi Jonathan, in response to your question we utilise real time GPS trip monitoring and pair people based on locations, routes and time parameters. However, this isn't first and foremost an "IP play" but rather a first to market play. Our app will be available across iOS, Android and desktop. Another unique competitive advantage is the app's ability to handle long haul / intercity trips (ride sharing) as well as commuting (carpooling) within the same, easy to use UI.Answered on 02-04-2015 by Thomas Kiefer
I was waiting on a response to Jonathon Lintott's question before some follow up questions, not sure if you have missed his question.
How much of your forecast revenue in March 2018 is attribuatble to markets other than NZ and Australia.
From my quick research of the US and European ride sharing market there appear to be some very well funded and established competitors. How does Chariot expect to compete with the likes of Uber and Lyft both of whom have been funded in the $100s of millions to target this market. Are you not facing a similar challenge to people trying to take on Trade Me - a better offering / lower price does not overcome the issue of critical mass that the encumbants have established. Similar activity is happening in Europe.
Can you also comment on https://www.chariotsf.com/ which appears to be in the ride sharing / transport space in the US and already using Chariot as a brand?Posted on 02-04-2015 by Ralph Shale
March 2018 forecast is attributed to New Zealand and Australia only and we believe this will just be scratching the surface of the market opportunity in these markets.
Uber & Lyft employ fundamentally different business models (they are essentially private hire / taxi services) that require a significantly larger amount of funding to get moving. Plus America is a big country - and so is Europe. We will be doing through DD before deciding on the exact 3rd and 4th stage markets.
We are not faced by the TradeMe / Critical mass competitor issue as there is currently virtually no mentionable competition in the social ride sharing and carpooling space in New Zealand or Australia who can offer same or similar product.
ChariotSF also employs a different business model; they offer crowd sourced commuter shuttle bus service on predefined routes and schedules. We have basic IP around the name secured in New Zealand through the URLs and are looking to do more DD on this for the local and the Australian market very soon.Answered on 03-04-2015 by Thomas Kiefer
Thanks for the clarification Thomas, and I take on board the early adopter approach in NZ and Australia. Your timeline graph indicates that you were looking to enter Europe in 2017 and USA in 2018, I had assumed that the financial forecasts related to that plan, and therefore some of the revenues where coming from those markets. Hence my comments about being up against a TradeMe type competitor in those markets. Have to say i had assumed most of the revenue would be coming from larger markets, especially given the revenues being generated by Uber and Lyft in the US.
I think both Uber and Lyft are entering / have entered the carpooling markets alongside the taxi services. So I think they would be direct competitors. Reference to Chariot in the US was more that you will probably struggle with the brand if and when you enter that market, with the brand, not so much the direct competiton.
What stops someone else, better funded than Chariot entering the NZ and Aussie market, if the opportunity is as large as you have indicated? What is the competition in Australia?Posted on 03-04-2015 by Ralph Shale
In principle anyone could enter into any market. However it is the following unique aspects that lower Chariot's barrier to entry and subsequently raise the bar for overseas competitors:
- A compliant business model,
- Sound knowledge of local legislation and rules,
- A first-to-market approach with a fast growing viable user base,
- The app's ability to handle different services within the same, easy to use UI,
- A loyalty programme for customer retention will assist in increasing Chariot's market share,
- Most importantly - being a local Kiwi Business that is generally well supported in the community.
In regards to the Australian competition, when we conducted our market analysis we focused primarily on the New Zealand market but also looked over the ditch to Australia in order to get an understanding of what the competition might be. We found that the Australian market for carpooling and ride sharing services amount to a collection of desktop applications and assumably only two smartphone apps, both of which identifying only a handful of installs.
None of the identified smartphone apps are available on a cross-platform (iOS, Android, Desktop). They also do not offer the ability to handle different services (long haul / intercity trips & commuting) within the same, easy to use UI. Safety features like cashless payment of contributions through the app were rare or not available.
To get a feeling of the estimated market size it was found that in Sydney alone, the carpool trips potential is estimated somewhere between 4m and 13.9m per annum. This estimation is based on the assumption that one out of hundred (1%) of the total number of annual weekday trips could be carpool trips and is derived from the following:
- A total population in Sydney of 4,554,900;
- A working age population in Sydney of 3,142,881 (age 15-64, 69%);
- An average number of trips per weekday at 0.5-1.7;
- An average number of weekday trips made at 1.6m-5.3m (working age population x range of average trips per day);
- An annual total number of weekday trips of around 400m-1,390m.
(Source: Australian Bureau of Statistics, June 2010)
We will continue to closely monitor the Australian market (and others) while focusing on the successful launch and market entry in New Zealand. Lessons learned will be applied for the Australian market entry and product launch.Answered on 04-04-2015 by Thomas Kiefer
Your assumption that drivers will not be required to obtain a 'P' endorsement seems fairly large. How do you propose to incentive people to provide rides if they're not receiving compensation for their time? Further, the fact that you are explicitly for-profit would seem to undermine the argument that the 'genuine cost-sharing arrangement' exception applies.
Have you received any formal legal advice towards this question? Do you have an alternative strategy to encourage drivers to go to the cost and expense of obtaining a 'P' endorsement if required.
Looked at individually, Chariot is a business and as such is for profit – our operations model is a cost-sharing model.
Under the “Land Transport Rule – Operator Licensing”, drivers are required to hold a transport service licence or to hold a “P” endorsement if passengers are transported for hire or reward (paid for their time, employed or contracted).
Chariot drivers will operate under a genuine cost-sharing arrangement with their passengers and will therefore fall within the exemption. The margin on top (aside from covering third party service costs like credit card fees) is our fee, which the passenger pays for the Chariot service, quite apart from the cost-sharing arrangement reached with the driver.
Rest assured that before we started to build our platform we studied the appropriate regulations, acts, rules and have been in consultation with an NZTA police advisor.
The incentive for Chariot drivers is the accumulated cost saving for their trips, or if you will, the contributions they receive from fellow travellers for the trips they would otherwise have done alone and as such without any contributions towards their costs (i.e. for fuel, vehicle maintenance or wear and tear).
Thanks, Team ChariotAnswered on 11-04-2015 by Thomas Kiefer
Can you please expand more on your pricing model for commutes? In reading the IM it is vague but seems based on a notional full cost recovery. As a former carpooler and carpool driver your main modeshare price competitor is the bus - so how does that factor into your pricing model?Posted on 12-04-2015 by Damian Griffiths
Chariots current proposed pricing model, which may change in the future, is applicable for carpooling (commuting), one-off short-rides and long-haul rides.
The calculation of the total costs of a specific trip is based on the trip distance and applicable mileage price per fare zone travelled. For example, a total trip distance of 25.2km (Manor Park – Wellington, Tory St) is computed as follows: [5km x $2.50 (fare-zone 1)] plus [5km x $1.75 (fare-zone 2)] plus [10km x $1.25 (fare-zone 3)] plus [5.2km x $0.80 (fare-zone 4)]. The resulted total costs would be equally shared, by the maximum occupancy number of 4 people per vehicle (3x Passenger, 1x Driver), resulting in each passenger's share at around $9.50 (rounding). For fairness and simplicity the fare (total trip cost) is always divided by four, our current maximum number of seats in any vehicle at any one time. Since it’s a cost-sharing model the drivers own share needs to be considered in the pricing and split of the costs as well.
While developing the proposed pricing model we looked into Public Transport (PT) options and considered our competitiveness in terms of: fares, travel distance, travel time, quality of travel, reliability, punctuality and schedules, connectivity, availability and access to affordable transportation systems in general.
• Paraparumu – Wellington, Tory St
- Car (ride sharing using the app): 44min @52km, $14.73 per Pas. (Total Trip $58.94)
- PT (train, bus): 1h 21min, $13.50
• Manor Park – Wellington, Tory St
- Car (ride sharing using the app): 23min @25.2km, $9.48 per Pas. (Total Trip $37.90)
- PT (train, bus): 57min, $10.00
(Source: Google Maps, www.metlink.co.nz)
In these examples the nominal amounts are higher and lower for a passenger using the app however, as previously mentioned our competitive advantage lies in the quality, convenience and timing factors of the ride.
Thanks, Team ChariotAnswered on 15-04-2015 by Thomas Kiefer
How will you avoid the cheating problem for commutes? It should not be a major problem for one-off rides (which have other density problems) but for commutes, what is the mechanism to stop the driver and passengers cutting you out after a couple of days? I am struggling with your approach on this. You are effectively replacing introduction services - once the introduction is made, why should users for an established commute continue to pay you?Posted on 12-04-2015 by Damian Griffiths
Through proposing a loyalty programme, reward scheme as well as gamification features we believe we can achieve higher retention rates, being able to maintain ongoing and strong relationships with our users.
However, people who do use the service as a means of introduction to fellow carpoolers and subsequently leave our service are welcome to do so but will lose the security of credit card payments received via the app.
We're not here to lock everyone into our app for ongoing carpools - we're simply here to provide value and the ability to facilitate one off and recurring rides between individuals and groups of people. We believe that by giving people the freedom to use the app or leave as they see fit, means that they will always come back when they're looking for a new carpool or long distance ride.
Thanks, Team ChariotAnswered on 15-04-2015 by Thomas Kiefer
Followers of Chariot Ridesharing Limited
Peter Miles2015-05-10 19:36:07 +1200
Peter Miles has pledged on 1 campaign
Steven Giannoulis2015-05-10 15:46:16 +1200
Steven Giannoulis has pledged on 1 campaign
Kenneth Chew2015-05-10 13:03:14 +1200
Kenneth Chew has pledged on 1 campaign
LMMN Ltd2015-05-10 12:40:35 +1200
LMMN Ltd has pledged on 2 campaigns
Grant Maxwell2015-05-09 23:45:11 +1200
Grant Maxwell has pledged on 2 campaigns
Peter Torr Smith2015-05-09 11:07:44 +1200
Peter Torr Smith has pledged on 3 campaigns
“Go for it! Ridesharing just makes sense. I feel a trip to Palmy (and back!) coming on ;-)”
Heather Josland2015-05-08 14:27:48 +1200
Heather Josland has pledged on 1 campaign
Ah Song Sunwoo2015-05-08 01:12:45 +1200
Ah Song Sunwoo has pledged on 1 campaign
Nydegger2015-05-07 07:00:02 +1200
Nydegger has pledged on 1 campaign
Stefan Rastatter2015-05-06 23:40:45 +1200
Stefan Rastatter has pledged on 1 campaign
Zef2015-05-05 15:26:32 +1200
Zef has pledged on 4 campaigns
Jonathan Barron2015-05-05 14:28:50 +1200
Jonathan Barron has pledged on 2 campaigns
Nathan2015-05-04 20:40:40 +1200
Nathan has pledged on 2 campaigns
“Great idea guys.”
Callum Herries2015-05-04 09:48:34 +1200
Callum Herries has pledged on 2 campaigns
“Go Team Chariot!”
Paul Holohan2015-05-03 11:14:13 +1200
Paul Holohan has pledged on 1 campaign
Marshal WEI2015-05-01 11:26:33 +1200
Marshal WEI has pledged on 2 campaigns
Jasmine Josland2015-04-30 21:44:58 +1200
Jasmine Josland has pledged on 2 campaigns
“Nice work guys - keep going strong!”
Kelly2015-04-30 15:04:33 +1200
Kelly has pledged on 1 campaign
Annabelle Smart2015-04-29 22:19:51 +1200
Annabelle Smart has pledged on 2 campaigns
Anita Krueger2015-04-28 21:08:06 +1200
Anita Krueger has pledged on 1 campaign
Adam Millen2015-04-28 17:54:53 +1200
Adam Millen has pledged on 30 campaigns
“A great use of technology to bring people together for better use of existing resources.”
Maik Paprott2015-04-27 19:52:30 +1200
Maik Paprott has pledged on 1 campaign
Adel2015-04-26 18:02:09 +1200
Adel has pledged on 1 campaign
A Melton2015-04-21 14:23:43 +1200
A Melton has pledged on 5 campaigns
glaeser2015-04-21 06:11:42 +1200
glaeser has pledged on 1 campaign
Andrew Rowden2015-04-20 16:18:30 +1200
Andrew Rowden has pledged on 1 campaign
Neelish Budhia2015-04-20 14:08:38 +1200
Neelish Budhia has pledged on 6 campaigns
David Snelling2015-04-19 18:21:06 +1200
David Snelling has pledged on 1 campaign
Martin Twum2015-04-18 17:45:30 +1200
Martin Twum has pledged on 1 campaign
Mikaël M2015-04-13 21:57:36 +1200
Mikaël M has pledged on 1 campaign
Equity crowdfunding is risky.
Issuers using this facility include new or rapidly growing ventures. Investment in these types of business is very speculative and carries high risks.
You may lose your entire investment, and must be in a position to bear this risk without undue hardship.
New Zealand law normally requires people who offer financial products to give information to investors before they invest. This requires those offering financial products to have disclosed information that is important for investors to make an informed decision.
The usual rules do not apply to offers by issuers using this facility. As a result, you may not be given all the information usually required. You will also have fewer other legal protections for this investment.
Ask questions, read all information given carefully, and seek independent financial advice before committing yourself.