Technology Ventures - from Idea to Execution

Fanzone

Technology Ventures- From Idea to Execution

Andra Weissberger

24.03.2018

Business Concept Summary

Fanzone founded in 2014 is a social networking app and service that optimizes tailor-made transportation management packages. They offer technology to plan, control, and executive, transportation use cases including for bus companies, live events, corporations, and organizations.^[1] By creating a 360° solution Fanzone’s platform connects operators, drivers, and riders to solve everyday commuter challenges using easy-to use technology. The platform us a self-service interface with operation and monitoring capabilities. It enables users mainly in the United States as well as worldwide to plan, control and execute according to their transportation demand. Fanzone’s vision is to contribute to its partners with a “simple plug & play” service that uses cutting edge technology to support their daily routines.  Fanzone targets three main areas on the platform: riders reservations, route planning & optimization, and real-time command and control.

The market for ride platforms is saturated and highly competitive. However, Fanzone has an advantage of offering something in a new space looking at commuters and supporting companies to get employees to and from work as well as targeting big stadium and arena events. Fazone appears to be the first to target both these segments at the same time. There are many other apps that target one or the other.

The problem Fanzone is trying to answer is a more streamlined and optimized system for transportation and the need it answers it double sided. It supports riders to have an easy commute to work, live events and travel, while providing services like bus companies to improve their operations and develop new business channels.^[2] 

Fanzone has four distinct customers, end users “riders,” bus companies, organizations, and live events.  The company uses a B2B2C model. The end users are looking for an optimized and simple way to get from point A to point B effectively and efficiently. The bus companies are looking to build their business while strengthening their planning and operations. Organizations can use Fanzone in two ways, first by mapping a fixed route for its commuter shuttles or daily route optimization for employees who do shift work. Live events have a new revenue stream by using Fanzone they can offer attendees tailored transportation to and from their events.

The product Fanzone offers is a platform in the form of a mobile and web-based platform along with live customer support. Originally Fanzone was intended to be an online platform for music and sports event attendees to plan their trip to and from the event with various transportation solutions including public transports like buses, private rides like taxis and vehicles, shared taxis, and official event transportation along with location-based services. In 2017 Fanzone pivoted to make the platform more inclusive recognizing a need for commuters getting to and from work and not just those attending leisure activities.

The company has not disclosed their revenue model. However, since they want business such as bus companies, organizations and big companies to use their platform, we can assume they plan to make money through several revenue options, premium access, added features, subscriptions and pay per service. Additionally, it seems that similar to other platforms it makes sense for Fanzone to generate revenue through advertising displayed in the application which users would see while engaging in the trip planning process.

Competitive Landscape and Context

The competitive landscape in which Fanzone is positioned is highly saturated. They are aiming to disrupt a market that already has a wide variety of solution and countless players. There appear to be no other companies trying to corner the market for event transportation platforms. There are however, several that are marketing towards commuter ease and optimization. In order to compete Fanzone needs to have strong differentiation and value proposition. There are at least half a dozen carpool apps that help riders get where they need to go without public transportation including, Waze Carpool, Uber, and Gett. Uber and Gett have also offered their solution for events, partnering with companies and having event promotions to direct traffic to their application for a specific event. There are also car rental services including ZipCar, Car2Go, and AutoTel which are app based. There are also industry specific competitors such as travel agents who arrange transportation for events, tour buses and shuttles that are hired by the event, in house solutions for companies and corporations may include private buses and shuttles.

Fanzone’s platform that targets event goers must compete with event transportation companies including Event Transport Solutions,^[3] First Travel Solutions,^[4] and Ricky Rides^[5] all of which focus start-to-finish transportation, from booking, to parking, to real-time updates. These competitors are working in the same space as Fanzone and there is little difference between the three. This is a limited market that require high volume in order to make high margins. These three would be direct competitors for event transport solutions.

In addition to these new platforms and applications Fanzone needs to compete with social media like Facebook, who filed a patent to enable them to enter the ride sharing market using its event feature.^[6] Facebook has a significant advantage over the new comers in the market because it is already well known, has high volume users and can target potential users who already own and use the application for other purposes.

The other side of what Fanzone does is target commuters. There are also transportation platforms including Comovee^[7] and TripSpark^[8] who specialize in ridesharing software to support companies and municipalities to support commuters. They are both B2B companies that do not directly target the end users, riders but rather their employers. Their main objectives are to provide alternative commuting services. Comovee has recently also begun to work in the event space as well as commuters, further crowding the market. TripSpark’s added value comes from offering services to non-emergency medical transportation as well as K-12 and higher education institutions. Another company that is targeting companies is WeDriveU which is an event transportation service for companies which handles transportation management and logistics.^[9] The competitors would also be direct competition for Fanzone.