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AI for Car Rentals?! Prove It! | Pitch.Tech EP 2
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04/28/25
Takeaways
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John Whaley
04/28/25
@ EO
Many pitches at this event used AI as a buzzword rather than demonstrating its practical application.
JW
John Whaley
04/28/25
@ EO
I'm John Willie, a three-time founder with degrees from MIT and Stanford, and I've had multiple successful exits in the tech industry.
JW
John Whaley
04/28/25
@ EO
As an investor, I'm looking for opportunities where I can invest a million dollars and expect at least a 100x return within 5 to 10 years.
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Loriana Sardar
04/28/25
@ EO
The car rental industry is facing challenges like rising vehicle prices and the need to focus on profitability rather than just reselling cars.
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Loriana Sardar
04/28/25
@ EO
We've developed an AI dynamic pricing engine that sets optimal prices based on historical data, market trends, and various external factors.
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Loriana Sardar
04/28/25
@ EO
Our AI engine uses up to 500 data points for mobility companies, while car rental companies typically use only 20 to 40 data points.
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Loriana Sardar
04/28/25
@ EO
We currently have 20 paying customers and have generated about $200,000 in annual revenue, while raising a round of $1.5 million.
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Loriana Sardar
04/28/25
@ EO
Our customers include small companies with limited fleets and larger enterprises that need consistent pricing across their franchises.
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Loriana Sardar
04/28/25
@ EO
Our dynamic pricing engine is superior because it absorbs a vast amount of data and learns from past performance to improve predictions.
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Loriana Sardar
04/28/25
@ EO
We initially tried a revenue-sharing model with one customer, but it didn't work as they wanted to attribute revenue increases to other factors.
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EO Cast
04/28/25
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We want to be clear and straightforward with our pricing, offering standard pricing per car per month.
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EO Cast
04/28/25
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Measuring the improvement in revenue over time can be challenging, especially when comparing short-term results.
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EO Cast
04/28/25
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Customers can run A/B testing side by side in different locations to compare pricing strategies effectively.
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EO Cast
04/28/25
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The worst revenue increase we experienced was 5%, while the best was a sixfold increase in a specific luxury car rental case.
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EO Cast
04/28/25
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In Dubai, during peak demand, we found that two Lamborghinis could command any price due to high demand.
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EO Cast
04/28/25
@ EO
Customers dislike dynamic pricing because it creates confusion and perceived unfairness, which can harm brand reputation.
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EO Cast
04/28/25
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Revenue is not the only key performance indicator; many customers use our service to avoid human errors in pricing.
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EO Cast
04/28/25
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Automating the pricing process is a top priority for many of our large clients to reduce manual errors and improve efficiency.
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EO Cast
04/28/25
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We do not change prices based on individual customers; instead, we cluster customers to apply different pricing strategies.
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EO Cast
04/28/25
@ EO
Our previous company focused on pricing strategies for car sharing, and we decided to replicate that success in the car rental market, which is outdated.
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EO Cast
04/28/25
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I want to build something new in the U.S. using the knowledge and experience gained from my previous company.
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EO Cast
04/28/25
@ EO
It's important to present customer numbers early in a pitch to establish credibility and demonstrate market validation.
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EO Cast
04/28/25
@ EO
Many pitches mention AI, but they often lack a clear explanation of its importance and relevance to the business.
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EO Cast
04/28/25
@ EO
The chosen domain name should reflect the tech nature of the business, helping it stand out from competitors.