copyright © 2010 taxipass — confidential taxi technology deployment best practices copyright ©...
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Copyright © 2010 TaxiPass — Confidential
Taxi Technology DeploymentTaxi Technology DeploymentBest PracticesBest Practices
Copyright © 2010 by Frontier Payments, LLC.No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means —
electronic, mechanical, photocopying, recording, or otherwise — without the permission of Frontier Payments LLCThis document provides an outline of a presentation and is incomplete without the accompanying oral commentary and discussion.
1500 Broadway 14th Floor New York NY 10036 1-800-Cab-Ride.com
Create the Right Eco System to ensure Success.
Copyright © 2010 TaxiPass — Confidential 2
I. Who is TaxiPass
II. Technology deployment challenges with taxi industry
III. Typical outcomes for when passengers asks to charge ride
IV. The 4 Ingredients for Successful Card Acceptance in Taxis
(1) User Experience (technology)
(2) Operating Model
(3) System Aggregation
(4) Funding Model
V. Implementation Options
TaxiPass Executive SummaryTaxiPass Executive Summary
Copyright © 2010 TaxiPass — Confidential 3
Who is TaxiPass?Who is TaxiPass?
What we are:•End-to-end, full service, turn-key cashless payment solution provider
What we are NOT:•We are not a cab company, credit card processing company or hardware provider
What industries do we work with:•Taxi, limo, black car, shuttle and livery companies
Why we exist:•Enhance ground transportation quality and service in fleets, cities & airports
Where is TaxiPass:•TaxiPass processes more cashless payments in taxis in more cities in the US than anyone else
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Technology deployment challenges with taxi industryTechnology deployment challenges with taxi industry
• Capped [regulated] Pricing of fares
• Credit card transactions are an expensive payment option
• Drivers live day by day and don’t have bank accounts or credit history
• Fragmented, “mom & pop” independent contractors
• Limited repeat customers
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Typical Outcome #1: Typical Outcome #1: Driver ResistanceDriver Resistance
• “Can you please pay by cash instead [I need to pay a bill]”
• “My credit card machine isn’t working”
• “Can I take you to an ATM?”
• “It is going to take a long time to get approval to charge the card”
• “Can you pay me by filling up my gas tank instead [by using card]?
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Typical Outcome #2: Typical Outcome #2: High Cost Manual Driver AcceptanceHigh Cost Manual Driver Acceptance
• How card approved
• How card processed
• How card charged
• Cost of the above
Cashes credit card slips
Does who knows what with cc #s
The guy with gold chains at airport
or
Driver pays 5% - 10%
Passenger experiences slow unaccountable transaction and risks identity/card theft
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The 4 Ingredients for Successful Card Acceptance in TaxisThe 4 Ingredients for Successful Card Acceptance in Taxis
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(1) User Experience: Defined tech specs (vs. no standards)(1) User Experience: Defined tech specs (vs. no standards)
Ideal User / Technology Specifications• Security:
– PCI Compliance– Passenger does not hand over card to driver– Passengers controls transaction (not reliant on cabdriver)– Full credit card number not printed
• Ease: Touch Screen• Accountability: GPS tracking• Speed: No slow manual (voice based) charges
Kiosk Point of Sale Cell PhoneRear Seat Terminal
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(2) Operating Model: Expert Administrator (vs. individuals)(2) Operating Model: Expert Administrator (vs. individuals)
Issue Individual Expert Administrator
Driver Involvement High Low
Time to receive funds Slow Immediate
Accountability Limited Strong
Customer Service Spotty Dedicated
Paperwork Cumbersome Automated
Cost High Low
Expert Administrators let a cabbie be just that, a cabbie!
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(3) System Aggregation: Centralized platform (vs. none) (3) System Aggregation: Centralized platform (vs. none)
Expert administrators can also aggregate the technology in taxis to provide
Airports with aggregated:
• reporting
• analytics
• messaging
• GPS tracking
• data
• revenue collection
Note: Some markets prefer to provide this tech integration and management on their own.
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(4) Funding Model: Consumer (vs. driver)(4) Funding Model: Consumer (vs. driver)
Relative # of Cashless Transactions per vehicle in Miami-Dade
Re
lativ
eC
ard
Usa
ge
Source: 300 TaxiPass & Verifone only taxis
Cabs withNo Tech
(Driver Funded)
Cabs withDriver
FundedTechnology
Cabs withConsumer
FundedTechnology 7 x2 x
Deploying this solution is expensive (NYC taxis pay ~$5k / year), In smaller markets, a consumer funded approach has performed best
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Implementation OptionsImplementation Options
• Organic Adoption– How drivers get paid is not regulated by cities and airports– For example, drivers could accept traveler’s cheques as a form of payment– Therefore, 3rd party processors can offer services like TaxiPass without any rule
changes
• Promote Adoption– Other cities/airports want to promote card acceptance and they have provided
TaxiPass with cashiering booth at airport(simply rent a parking spot or offer same permit as other mobile vendors)
• Mandate & Standardize– After mass adoption, cities have standardized consumer funded model &
technology– Or airports mandated solution / offering for all drivers/passengers