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Tuesday, October 19, 2010
The Pitch
RelayRides puts car-sharing service in keys of neighbors
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RelayRides
Headquarters: Cambridge
Phone: 866-735-2901
Email: jonah@relayrides.com
URL: www.relayrides.com
Year founded: 2008
Employees: 12
In the company’s own words:
“RelayRides is the world’s first neighbor-to-neighbor car-sharing service. Without the fixed costs of owning and maintaining cars, RelayRides can grow faster on less capital than traditional competitors, while also being able to serve less dense cities and suburbs where traditional car-sharing firms couldn’t affordably operate. This model is particularly attractive to both car owners and those in need of a car: car owners can make thousands of dollars per year in reservation money, while the car-less now have access to a convenient and affordable alternative to traditional car ownership.”
The technology:
Car owners register their cars on the site and RelayRides installs a small in-vehicle computer inside the owner’s car. The device controls the locks and ignition and allows approved RelayRides members to access the car with a valid reservation and a membership card. Car owners choose the times that their car is available for rental, and car borrowers pay the owners to borrow the car on an hourly basis. Car owners set the rates for their vehicles, and RelayRides takes a 15 percent commission. Fees, such as late car return penalties, are split between the company and car owner. Unlike car-sharing service Zipcar, RelayRides does not plan to charge users for a signup or annual fee. In case of damage to the vehicle, RelayRides has a $1 million insurance plan, but general maintenance and fuel expenses are the responsibility of the car owner.
People behind the company:
Shelby Clark, CEO, previously worked as a director at micro-financing startup Kiva. Desmond Pieri, COO, has served as CEO or COO at ten companies, a majority of them startups. Boris Mordkovich, director of marketing, previously founded AdWatcher, a marketing firm that dealt with search engine marketing fraud, and search marketing magazine, Search Marketing Standard. Gus Holcomb, lead engineer, has previously worked at software startups, including Twin Technologies LLC. Jonah Bliss, marketing manager, has worked at startups in the mobile, gaming and social industries. Robert Guinn serves as director of operations.
Accomplishments:
The company is one of the 26 finalists in the MassChallenge startup competition.
The pitch:
RelayRides is seeking to partner with local businesses that are community-focused and emphasize sustainability. Examples of such businesses are cafes, art galleries and local markets, according to Bliss. RelayRides is open to co-hosting events with those companies or promoting its members to shop at partner businesses in return for them getting a slight discount. The company is also seeking funding, but the details of how much it is seeking are currently private, although the company is open to discussions with potential investors.
The market:
The company sees a $10 billion global market for its car-sharing service.
The competition:
According to Bliss, the company’s major competitors include California car-sharing startups Spride and Getaround Inc. as well as Cambridge-based Zipcar Inc. Other types of competition he cites are traditional car ownership, taxis and commuter rails.
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