Impactful Startups V.004
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This series provides weekly insights into my top startups (Pre-Seed // Seed) that are striving to make an impact across the globe.
Today we are discussing Dollaride an awesome startup that is help tackle a big problem. Dollaride offers a technology platform that connects people living in transit deserts to private ride-sharing networks. For context, in 1980, when a transit strike halted buses and subway trains throughout New York’s five boroughs, residents in some of the most marooned parts of the city started using their own cars and vans to pick people up, charging a dollar to shuttle them to their destinations. Eleven days later, the strike ended, but the cars and vans drove on, finding huge demand in neighborhoods that weren’t well served by public transit even when buses and trains were running. The drivers eventually expanded their businesses, using thirteen-seat vans to create routes in places like Flatbush, Jamaica, Far Rockaway, and downtown Brooklyn.
Dollar vans have played an integral part in NYC’s transportation system for over 30 years. As the primary source of fast, reliable travel, thousands of New Yorkers currently use this commuter van network in their daily commutes.
In Brooklyn, Queens and the Bronx, where public transportation is most scarce, dollar vans have served a loyal customer base relying solely on word of mouth and delivering superior transportation service for $2.
Since 1983, the road to free enterprise and prosperity has been very bumpy for van drivers and business owners. However, Dollaride delivers a cashless solution and opportunity to grow this already vibrant commuter van network throughout NYC and beyond.
The product:
As mentioned, Dollaride offers a technology platform that connects people living in transit deserts to private ride-sharing networks called dollar vans. Its cashless platform offers operator business dashboard, fleet management system, automated fee collection, and territory expansion features, technical resources, web assistance for operators so that they can manage their fleets with transparency and legal compliance, insurance brokerage, scheduling, and dispatch services, enabling drivers to earn more and keep a track of their daily earnings from their phone and passengers to hail a van instantly and save time.
KPI Analysis: Since inception in 2018, Dollaride transports over 100k people per day and has over 500 vans out on the road. Some other impressive KPIs can be seen below.
Management: Sulaiman Su Sanni, is a social entrepreneur and tech executive hailing from Brooklyn, NY. He’s the founder of Dollaride, a new mobility company for communities that are underserved by public transit. In past ventures, he’s helped more than 2000 nonprofit organizations raise over $50M using WeDidIt, an online fundraising platform. Su led WeDidIt to its acquisition by the Allegiance fundraising Group in June 2019.
Prior to founding WeDidIt, Su was responsible for investing over $2B per day in the country’s oldest investment bank — Brown Brothers Harriman. He graduated with degrees in Psychology and Business Management from Boston College and is a product of NYC public schools.
Funding History: New Age Capital
Currently Raising: Crowdfunding
So who is the right investor for this opportunity? Well to answer that we can quickly narrow the investment to funds & angels that heavily participate in social impact investing.
Exit Strategy: Funds that specifically focus on the Tri-State market would be a logical partner. Also, funds with a thesis geared towards ride share companies can have an instant value add perspective. Undoubtedly Dollaride has gained a fair amount of traction and is making a big difference in the process, it’s a logical investment for a wide range of funds in all honesty.
Modeling out case scenarios based on the ultimate goals and progress thus far will allow for some clarity on a potential exit horizon. Next, calculating the impact multiple of money (IMM) will put pre-deal impact evaluation on par with financial evaluation. To calculate IMM, simply take social benefit ($) / invested capital ($) = IMM. Be sure to account for partial ownership depending on ownership within the cap table. At a high level successful investors within impact investing can expect investment performance to be inline or even stronger than traditional venture investments. Cambridge Associates in 2015 published its first impact investing benchmark. Their study shows just how attractive the returns can be.
