Emails from 2009 - 2010 showing the invention of using marketing to make taxis rides to destinations cheaper.

1. 3/3/2014
Google Desktop: VC Pitch | How to value Texxi | Sales Partners?
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VC Pitch | How to value Texxi | Sales Partners?
From: Eric Matthew Masaba/Texxi/CraneDragon
To: Gerry Seidman <gerry@iamx.com>, Dan Jacoby <dan@danjacoby.com>
CC: Matthew David Burden/Texxi/CraneDragon@CraneDragon
BCC: Mark Woolley <mark_d_woolley@yahoo.co.uk>
Date: 07 Jan 2010 - 8:05p.m.
Company Overview
1. Vision of the Company.
Texxi is a revolutionary transport scheme available in seven modes or applications: Evening & Night,
Shopping, Commuter, Corporate, Big Event, Tourist and School Run
Texxi was conceived in 2004 as a solution to market conditions of high oil prices, constrained
consumer spending and a collapse of the credit system. Its source material comes
Aim: Become the market leader in Demand Responsive Transit Brokerage Applications and in the
space for Demand Responsive Transit Exchanges.
Texxi is an abbreviation for Transit Exchange for the XXI Century. It can also be considered to be
"The Taxi you Text". The vision of Texxi is to enable any type of vehicular transit provider in any
location in the world to advertise whichever transit services they provide on an exchange.
Counterparties can enter into transactions on the exchange to effect transport operations in an
efficient manner. The system message carrier is primarily SMS to allow for the widest possible
uptake across a broad spectrum of technological capability, allowing a Texxi HLT cloud to be
deployed as readily in Mogadishu as in Milton Keynes.
Texxi can also be considered to be a C4I urbanspace logistics system, similar in design intent to
military logistics battlespace systems and a direct corollary of Collaborative Engagement Capability
(CEC) systems.
In its military application, Texxi would allow a logistics agency to move units around an incident
theatre in the most efficient manner (market based pricing, constrained by priotisation) to enable
resources to be routed efficiently in realtime to where they are needed. In the case of disaster
management, this would allow for discovery of resources and solution maps to be plotted
instantaneously to allow first responders a better chance of getting to people who need help more
quickly.
There are 7 modes of Texxi
2. Who are We.
Texxi is Eric Masaba and Matthew Burden: 2 entrepreneurs who are engineers with a background in
investment banking and computer programming. We have both been involved with computers since
1981/1982 and have grown up programming a variety of languages. We remember when Assemblers
were not readily available and programming in Machine Code, meant just that.
Following University we moved into investment banking, first meeting on the Foreign Exchange
Trading Floor at Swiss Bank Corporation's IFD Division which merged with S.G. Warburg in 1995.
The bank is now called UBS. We were involved in both Trading Operations and Front Office IT and
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2. 3/3/2014
Google Desktop: VC Pitch | How to value Texxi | Sales Partners?
have garnered even more experience in many other investment banks, hedge funds and large
corporations. We have 40+ investors, primarily drawn from the investment banking world (but they
are all ok - they're not like the other lot and they don't act like investment bankers), who contribute
spot money, network access and expertise.
3. Competitive Advantage.
Texxi has developed a combination of a certain operational concepts coupled with a unique
technology for real-time ridesharing via SMS (on which Eric Masaba has a US/Global patent
pending since July 2006 dating to July 2005). The system itself uses ideas obtained from finance
and Aeronautical Engineering to create a semi-predicitve transit demand management software
application which can route transport resources to transport users and also act as an exchange for
longer term contracts for repeat trips (commuter, school run, holiday travel).
The cost base for Texxi has been kept low to avoid the need to take on large amounts of capital at
punitive rates or punitive valuations. Thus, we can survive almost indefinitely and Texxi has already
survived for 6 years in harsh environments.
4. Milestones.
Mar 8th 2005 : Inception of the Company.
Mar 8th 2006 - Sep 8th 2006: First live deployment in a UK City, Liverpool.
July 2006 Patent on real-time SMS based Ridesharing filed.
July 2008 to Dec 2008: First large deployment on the Isle of Wight.
5. Milestones II.
GBP3.5m in cash and effort invested since March 2005.
1 Patent Pending, at least 3 more in development.
6. Management Highlights.
Eric Masaba and Matthew Burden. Two committed guys.
Revenue Model
Texxi makes revenue for its shareholders using the broker model, much like Expedia, Hotwire or
even offline Travel Agents.
It makes its money from creating trip solutions which maximise the revenue for Transit Service
Providers while simultaneously minimising cost for the customers.
Texxi tales a percentage of the gross trip fare for every brokered trip.
Average Sales Price
Sales prices are negotiated at the local level with Transit Service Providers. There is thus no useful
average price that can be quoted initially. A very popular destination and it associated routes may
have a very low sales price per customer, but similarly, a very sparse route may have to offer initially
low promotional fares to stimulate demand. Thus any attempt to define an average will be a simple
rule-of-thumb for illustrative purposes only. It is not useful as an operational concept since so much
will depend on negotiation.
Revenue Streams
Licence Sales - As a rule of thumb, the base price will be set as equal to the population in a
catchment area - defined by local government subdivisions.
Recurring
Annual Licence Fee per mode
Per trip Revenue - 25% of gross brokered fare.
Software Licensing for white label applications using many of the same ideas as for grouped travel
(subject to approval by us)
Sales to Hedge Funds / Investment Banks / Pension Funds of use of our algorithms (black box)
Licence sales of contagion mapper (black box) to humanitarian relief organisations.
One Time
Consultancy Fees to set up areas
Marketing
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3. 3/3/2014
Google Desktop: VC Pitch | How to value Texxi | Sales Partners?
The service itself requires judicious use of consilient effects. The key lessons learned from previous
deployments are that single mode marketing endeavours are largely ineffective/ The value of the
lessons learned is that the management now know how to deploy a system in a virgin area, starting
from the initial conditions, through the transient phase and culminating in a steady state pattern.
Thus the marketing strategy has to be an eclectic mix of pre-launch activity, target market
education, identification of key inhibiting factors such as hostile incumbents who will engage in
disruption, deception, denial, degradation, destruction (of reputation) and exploitation (D5E)
operations in addition to all the usual marketing activities. (We have now experienced the fully fury
of corporate D5E teams in the field, during 4 years of field operations)
Flyers in themselves, are a wasteful approach as are in-store/in-club displays. Thus "street teams",
indulging in non-intrusive brand theatre and experiential field marketing, are an essential and
necessary, though not of themselves sufficient, element of ultimate success.
Sales Channels
Taxi Marketing Firms.
Other Rideshare Organisations that wish to licence our combination system (technologyprocesses).
Large Corporations.
Social Clubs.
Universities.
Governments (National, Regional, Local).
Sales Partners
Looking for New York based people to help us. We want to pay in equity options and shares.
"Texxi is a revolutionary transport scheme available in 7 modes or applications: Evening & Night,
Shopping, Commuter, Corporate, Big Event, Tourist and School Run"
Texxi was conceived in 2004 as a solution to market conditions of high oil prices, constrained
consumer spending and a collapse of the credit system.
The films of the scheme are available online here: http://uk.texxi.com/pro/texxi.nsf/uk/films.
Please visit our website at http://www.texxi.com
Eric Masaba
Chief Executive Officer
Texxi Limited
37 Warren Street,
London W1T 6AD
UNITED KINGDOM
Tel: +44 203 372 8550 | Fax: +44 845 127 5037
DDI: +44 203 372 8554 | Mob: +44 7921 570 154
eric.masaba@texxi.com
Registered in England and Wales:Company Number 05386215
VAT Reg. Number: GB862 1921 27
Trading Terms and Conditions
Please note that without a valid purchase order number, no work has been authorised by Texxi
Limited and as such Texxi is not liable for any claims for whichever services by any counterparty in
whichever specie. Any work being undertaken without a Purchase Order is deemed to be solely at
the counterparty's own risk. A valid, current Purchase Order number from Texxi is the only
authorisation to do work for which the counterparty has an expectation of being paid as per the
contract drafted. If you are unaware if you have received a Purchase Order number from Texxi,
please request clarification in writing before undertaking any work. In all cases the Purchase Order
itself will detail the contracted amount, specific work, payment terms and specie of payment.
CONFIDENTIALITY NOTICE
This message and its attachments (if any) may contain confidential, proprietary or legally privileged
information and it is intended only for the use of the addressee named above. No confidentiality or
privilege is waived or lost by any mistransmission. If you are not the intended recipient of this
message you are hereby notified that you must not use, disseminate, copy it in any form or take
any action in reliance on it. If you have received this message in error, please, delete it (and any
copies of it) and kindly inform the sender, of this e-mail, by replying or go to www.texxi.com on
"contact us".
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