Questions

Thinking of a social roadside assistance company. For minor things like needing a car boost or locked out from vehicle. Or you ran out of gas etc.. What would be the obstacles for such a thing?

Ian's answer is great. He outlines how you can begin determining the potential customer interest in this which is very helpful. But even if customers respond favourably to this idea, I think you have to be really confident in the economics of the business which, just thinking quickly, I'm not. The measure of a healthy business like this this is a much higher LTV (life time value of the customer) then your CAC (customer acquisition cost).

Uber has the advantage of knowing that once they acquire a customer, that person is likely to use their service many many times over the course of years. By contrast, how many people will need your service more than a handful of times over the course of 3 years?

There are other even more practical concerns around the marketplace economics and behaviours that I'd be happy to address in a call.

I think that social roadside assistance is likely a feature of a bigger opportunity.


Answered 10 years ago

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