RedCab Monetization Model

Coming closer to our ICO excites us and our investors alike, but it also raises questions about RedCab’s monetization model and how are we going to utilize blockchain technologies to remove our cut from the trips, yet drive profits as a company.

The main idea behind moving our business model into a complete decentralized model, is to give something back to our communities in the way of an affordable, transparent, and useful service that people can use on daily basis. Yet we’re running a company, and we have to generate profits to sustain such a roadmap.

The revenue model is based on maintaining our on-ground operations within the cities we currently operate-in, and expand carefully to more coastal cities to guarantee that we are providing our growing network of customers with seamless transportation solution. Revenues will remain to be generated from our current 15% commission scheme on completed trips till we gradually shift our operations from a centralized model to a completely decentralized model. The revenue model gradually ramps down the commission percentage and in parallel ramps up the monetization model by selling targeted geo ads as our network grows, data accumulates and consequently analyzed to tailor our ads according to our customers’ preferences.

Shifting our business model will require us to develop an infrastructure capable of sustaining our growth to offer a concrete business model that is bringing revenues and generates profits solely from our marketing stream while moving people.
We expect our EBITDA (Earnings before interest, taxes, depreciation and amortization) to be within the 25–40% range annually based on our OPEX model, productivity, recurring revenue, niche, and RedCab’s growing team experience.

We have 2 plans in our revenue generation streams.

Plan A is to continue the revenue generation stream from drivers’ commission until the revenue stream generated from Geo ads matures to ensure that cash is flowing uninterrupted into the company year over year.

While plan B is to ramp down the commission percentage as soon the revenue generation from the Geo Ads stream starts picking up.

The determination between both plans depends on product development progress, customer base growth and the availability of collated data for our deep learning analysis.

Because Proof of driving cuts the majority of our operational costs, and Proof of marketing eliminates most of the marketing costs, our operating expenses will be lower than our competitors as a consequence, thus reflecting consistent profits in Redcab’s annual P&L statement.
Productivity is governed through our network dominance model, while the same model ensures recurring revenues because as the network grows, demand grows and supply matches it. By niche we improve revenues while keeping our costs low through dominating a small market, which in turn translates into lower customer acquisition costs and better consequent business. RedCab’s team will grow as the company grows, and as talented and experienced calibers get aboard, we grow stronger.

By gradually ramping down the current revenue stream while in-parallel ramping up our more profitable revenue stream, we ensure sustainability, and future growth of RedCab.

Photo by Francesco Gallarotti on Unsplash

RedCab LLC. offers a decentralized peer-to-peer transportation solution to individuals. Utilizing the power of Blockchain technologies and a unique business model for a transparent, affordable, and innovative future. Founded in 2016, and launched in 2017 with a concrete roadmap unto the future of peer-to-peer transportation services. Proof of Driving and Proof of Marketing Concepts, AI Powered road assistant, Geo Ads for monetization, and a strong portfolio of on-ground operations in a very short time.

https://redcab.co

Our products are available on the App Store and Google Play for both clients.

Google Play

RedCab Passenger App — https://play.google.com/store/apps/details?id=com.redcab.passenger

RedCab Driver App — https://play.google.com/store/apps/details?id=com.app.redcabdriver

App Store

RedCab on the App Store — https://itunes.apple.com/us/app/redcab/id1330160835?mt=8itunes.apple.com

RedCab Driver on the App Store — https://itunes.apple.com/us/app/redcab-partner/id1330176815?mt=8

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