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BUSINESS PLAN OF HAILO
Management and Ownership
Corporate and Governance Structure of Hailo
According to Crunch Base (2013), Hailo was launched in 2011 is a mobile application taxi-hailing business in London. At the last quarter of 2012, Hailo was introduced in Dublin, Boston, Toronto, and Chicago. Chapman (2013) reported that the business tycoon Richard Brandson even got interested to finally join the business through its Japanese telecom groups KDDI. Hailo started its operations in 2013 with three London taxi drivers together with three technology entrepreneurs who joined in the business such as Jay Bregman, Hailo CEO, Ron Zeghibe, the Executive Chairman, Caspar Woolley, the Chief Operations Officer, and Russell Hall, Gary Jackson, and Terry Runham, all of them are Driver Community Leaders. Hailo provides taxi service to the passengers with more than 30,000 units of cabs registered in the Hailo Passenger Apps. This hailing service is very easy to avail; the user may only register in Hailo App service then download the App.
Pollack (2013) represents the value proposition of high level of technology and innovative transportation application. Hailo business focuses on the effective way of connecting Hailo success to the aspiring investors to try to consider to invest in this kind of business where the online tools are great potential opportunity for profitability and growth both local and international locations.
Bennett (2013) claims that Hailo is generating revenue through the customers who pay for the cab-hailing services. The taxi-drivers pay a certain percentage of the fare to Hailo. In some areas in the United States, the customers are the one paying small fees that range from $1 to $ 1.50 up to $2.
Hailo (2013) asserted that requirement for investing or funding in Hailo is to transform this hailing business into wider markets not only in the local settings but also to different parts of the globe today. Grant (2013) even found out that currently, Hailo raised its capital around $ 50 million. And, the rise of the internet application as well as the telecommunications partnership with Hailo opens many business opportunities in different countries to enter the same e-hailing business. The e-hailing business of Hailo is planning to expand to different locations worldwide such as Hong Kong, Bangkok, Philippines and Brazil.
Corresponding to the high level of technology and innovative transportation application of Hailo business. The company has been focusing on the effective ways in inviting aspiring investors to invest in this business where the online applications are the major structure of the business in order to gain profits and growth both for local and international operations. This e-hailing business is inviting all the cab drivers, business enthusiasts and taxi company owners may all benefits from e-hailing business since it is highly in demand field nowadays among different people from all walks of life. (Pollack, 2013).
Hailo has acquired more than 5 million passengers already. It has market share of $100 million annually. There is a total of $ 50.6 million dollars funding for Hailo –cab hail business. Furthermore, the company has received $ 3 million for the series an in two tranches of seed funding in 2011. In 2012, Accel Partners, together with Atomico and Wellington Partners also invested another $ 17 million in Hailo cab hailing business. Then, at the last quarter of 2012, Union Square Ventures joined the company, and invested $30.6 million, as additional series b funding. Then, at the last quarter of 2012, another Series B investment of $ 30. 6 m. Series B invested in the business by Union Square Ventures. (Hailo, 2013).
Risks and Critical Issues
A. Market Related Risks
· Lagorio-Chafkin’s (2013) theory has explained that a highly fragmented Hailo-taxi business has a robust competition nowadays all over the world due to the increasing demands of the commuter’s everyday for public utility vehicle.
B. Supplier Network Related Risks
Aside from Hailo App, there are many hailing cab companies that also operate and offer the same business to the cab-drivers such as my taxi, Taxi Magic, Hitch Rides, Taxi Radar, Yellow Cab and Uber. (Lagorio-Chafkin’s, 2013).
C. Operations Related Risks
Verifone Systems, Inc. (2013) admitted that there are also operations related risks in hailing app business. These operations-related risks are the following:
· Successful roll-out of the integrated Verifone-Hailo taxi solution
· Merchant acceptance and adoption of the new solution and services.
· Third party relationship both in local and international operations.
· Limited number of customers.
· Short product cycles
· Rapid changing technologies
· Difficulty in sustaining the leadership position due to payment system.
Bennett, M. (2013). Say Hailo to Big Data. http://blogs.forrester.com/martha_bennett/13-06-10-say_hailo_to_big_data [Accessed 26 September 2013]
Crunch Base. (2013). http://www.crunchbase.com/company/hailo[Accessed 26 September 2013]
Hailo. (2013). http://en.wikipedia.org/wiki/Hailo [Accessed 26 September 2013]
Hailo Becomes First 3rd-Party E-Hailing App to Tap into VeriFone’s Open API Cloud Platform for NYC Taxi Payments. (2013). Verifone Systems, Inc. http://finance.yahoo.com/news/hailo-becomes-first-3rd-party-120000143.html[Accessed 26 September 2013]
Lagorio-Chafkin, C. (2013). Urban Transit Drag Race: Uber Vies for Global Ubiquity. www.inc.com/christine-lagorio/car-hailing-global-transit-industry-shake-up.html[Accessed 26 September 2013]
Pollack, L. (2013). Hailo Capabilities Presentation. Denterlein.
http://www.slideshare.net/LisaPollack/hailo [Accessed 26 September 2013]