Professional Documents
Culture Documents
Final Business Plan
Final Business Plan
December 9, 2021
Team Airports:
Executive Summary -
Goal
Need
Product
Strategy
Company
Background - Tanner
Product - Charlie
Evolution of Product
User Feedback
as a food (and other retail purchase) delivery and pickup system within an airport. The
funding of this project will be used to further continue our research and in the development
of prototypes. Because this is meant to be a product in an airport we have to take
permission to test our product within an airport and hence the funding will be used for the
license and other manufacturing required.
1.2 The Need
After interviewing many users, the team understood that there is a need to improve the
convenience of obtaining food within airports; addressing this need, in turn, can assist in
reducing a distinct source of stress frequently experienced within airports. Many travelers
end up in airports at a very odd time when most of the restaurants will be closed and they
cant have food and should wait to board their flight to get some food. And also sometimes
the time between the connection flights is too less to get food as the line in the restaurants
will be too long to order food and then board the flight, many people experience stress
related to food in the airport and for this reason the team decided to address the following
need: There is a need to increase convenience and decrease stress related to food access
for travelers within an airport.
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program is initiated, we plan on expanding into many or all major US airports to become the
go-to name in airport convenience. Once this becomes established, we hope to expand to
similar settings such as college campuses, large business offices/buildings, and other forms
of travel hubs. We have identified these as other areas that would benefit from increased
convenience and often have people with cramped time schedules. At this point we hope to
have a large enough company to either go public, create a partnership, or look at getting
acquired for purposes of growth and outreach.
2. Background
After our initial interviews, we came to understand as a team that airports and their
corresponding operations are inherently stressful to our users. Therefore, we came to
understand that our team may be most beneficial to the world by determining a product or
service that can reduce stress for airport users. Thus, our identified (broad) need was to reduce
stress for users within airports. The team then worked on different ways to tackle different
stresses.
Initially, our team included all of the stresses users brought up to us, and brainstormed and
included every stress we had experienced ourselves within airports. The results of these efforts
can be seen in Figure 1. The next step for us as a group was to find as many different methods as
we could to tackle these identified stresses. From user feedback, as well as through multiple
brainstorming sessions, we determined a vast myriad of concepts/potential solutions that might
become products for our users. The results of these efforts are seen in Figure 2-Figure 4.
After several discussions/iterations of receiving user feedback, the team decided to narrow our
choices of potential products to six different ways to tackle the stress at an airport.
The team then developed sell sheets for the six different ideas which are
1. Open Concert Stage
2. Airport Gyms with Showers
3. Airport Yard Games
4. Luggage Hotel
5. ZenPort
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6. GateDash
Figure 1: Unification of Stresses from User Input, as well as Our Stresses within Airports
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Figure 2: Brainstormed Ideas Surrounding Fixing Identified Stresses
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Figure 4: Combining of Potential Solutions to Identified Stresses
This concept was abandoned based on user feedback that overall, music is a very subjective
experience, and therefore it could actually cause stress to some users, while relieving stress for
others. Therefore, it was desired by our group to locate a product/design that would not create
stress for users.
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Figure 5: Open Concert Stage “Sell Sheet”
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However, upon user interviews with over 10 users, it was found that none of them would
personally utilize the concept. It’s notable that our group of user testing included both
individuals that exercise regularly, and those who do not exercise regularly. Most notably, the
users who exercise regularly, such as Emily Arnold, noted that missing exercise due to traveling
was not a large stressor to them. They also felt that they generally desire to move through the
airport quickly and efficiently, and this concept would only be used if they changed that
ideology. Therefore, this idea was abandoned because it was deemed that not enough of our
users would be willing/desiring to utilize it.
This new concept involved users coming to our location within the airport and checking their
luggage (or some similar form of collateral) with us. Once a staff member stored their
luggage/items with us, they would be provided with game pieces. They would also be able to
purchase drinks/snacks from us, and have a fulfilling experience (or so we imagined).
However, upon user interviews surrounding the updated idea, it was seen that a smaller portion
of our interviewed users would be willing to utilize Airport Yard Games. Some individuals felt
that they would not want additional interaction with more strangers than they need to within
airports. Other individuals simply do not like to play yard games, or felt that using yard games
would not fit into the common social interactions that they experience with individuals that
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they usually travel with. For the users that said they would use the product, however, they
seemed very interested in using it within airports.
With all of this culminated information we as a group decided that Airport Yard Games was not
our most idealistic concept to go further with.
Luggage Hotel
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The Luggage Hotel idea (or as it was originally referred to by our group, the “Stuff Motel”) was
based around some initial user suggestions when we were originally locating our general need
statement. Many users communicated with us about stress brought about by situations where
they don’t have an easily accessible location to store their luggage. The concept was that users
could locate a Luggage Hotel, pay a small fee, and stash their luggage for a small time duration.
Conceptually, one of the main locations we saw this being utilized was near restrooms within
the airport.
However, our users brought up many issues they had with this concept. To start, users would be
unwilling to pay for the service. In addition to this, and especially with the scenario of
restrooms, users mentioned how they often need to wait in lines for a restroom in airports.
They also mentioned that they found it unlikely that these lockers would be large enough to
hold any significant portion of willing users’ luggage at any given time. Thus, they thought that
waiting to put luggage in the Luggage Hotel could lead to yet another line of the many lines
within airports. In addition to this, a significant portion of our users interviewed (near 50%)
communicated to us that they wouldn’t want to use the Luggage Hotel, and like keeping their
items with them throughout their time in the airport, no matter how secure it may be in
another location.
All of this information contributed to the decision for our group not to move forward with the
Luggage Hotel.
ZenPort
ZenPort was a concept that our group originated after many of our users, as well as Dr. Brita
Fosse, described lack of control as a main stressor for our users. ZenPort was our attempt to
give the user the utmost control within airports. The idea behind ZenPort was that it was an app
which would provide users with a much higher amount of information than they are capable of
receiving, currently. The concept was to help users in any scenario, starting from any point that
they desired. By entering their flight number, users would be able to see the following:
● Time to get to the airport (if they are not already at it)
● Methods to get to the airport (if they choose to utilize some form other than personal
transportation)
● Time to get through TSA (at the current moment, utilizing a rolling average from user
data)
● Time to get to Gate
○ Current Boarding Time
■ Including any posted delays
● A map showing each restaurant and stores/services in the airport
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○ Would include filters to allow users to see more/less information
● On the other side of the airport experience, upon landing:
○ Directions to get to baggage claim
○ Current baggage claim time estimate (rolling average from user/historical data)
○ Directions to vehicle rentals/passenger pickup/public transportation locations
In addition to these items, the app would have services that would allow users to contact
different help services for the airport that they are currently in.
Initially in our interviews with users, users seemed very interested in this concept. They were
excited to use this service, and they believed it would help them (and if they thought they
wouldn’t use it, they thought it would help a vast amount of people).
However, as time went on, and after describing our last design (GateDash, shown in the next
section), we realized that users seemed at first equally as interested in both ZenPort and
GateDash. Therefore, concentrated efforts were made to specifically decide between these two
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concepts. In the end, more of our users communicated that they would be interested in and
wanting to use GateDash, and some of them, such as Kirsten Pelkey, worried that people may
initially download and want to use the app, but after a few initial uses, they may forget about it
being in their phone (this is especially important because we selected non-business/infrequent
flyers as part of our target market). In addition to this, ZenPort is not a completely novel
concept, and research showed that previous products that were similar had failed. With these
things in mind, we decided to also abandon ZenPort.
GateDash
The concept of GateDash, yet again, was brought about to our group through user feedback. A
common recurring story from our users was that they had an experience in an airport where
they were incapable of getting/eating food. This experience took multiple forms. Sometimes, it
involved users landing in airports late at night, right after restaurants had closed. For some of
these users, such as Nick Saylor, there was the added negative experience of having his
connecting flight canceled. Therefore, in Nick’s case, he was unable to eat, and had to stay
within the airport for hours. Other users, such as Jack Groupe, experienced having very little
time between connecting flights. Jack, as well as multiple other users, specifically mentioned
this circumstance happening within the Dallas Airport. In this instance, Jack and other users had
to literally run through the airport to make their connecting flight, and therefore went well past
a comfortable time duration without being able to eat.
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Figure 11: Maslow’s Hierarchy of Needs [Maslow’s Hierarchy...Citation]
From this user information, our group wanted to find a solution to this particular food related
stress. When we were initially discussing stresses for users, we initially decided that Maslow’s
Hierarchy of Needs would be a relevant tool for us.
We decided as a group that if we decided to help with one specific need, a need located within
the Basic needs portion, as seen in Figure 7, would be more important to our users than helping
with a higher level need. Specifically, we noted how many users communicated stress related to
a lack of food within airports, and we noted that that is one of the basest needs for individuals
(a Physiological need, seen in Figure 7). Through this, it seemed vastly important that if we
could decrease stress related to food within airports, it would rank very highly among our
selected ideas.
Thus, one of our members came up with the idea of GateDash (originally Gate-Dash, as seen in
Figure 6). The concept of GateDash is a food delivery system that is delivered to lockers (close or
at users’ flight gates). Users order a specific food item through a phone app, and when they
arrive at their gate, the food they ordered is waiting for them inside the locker. Upon ordering,
users are sent an update including a QR code image and a code. When arriving at the locker,
they either scan the QR code under a scanner or enter the code sent to them via a monitor
screen (touchpad). Upon completion of this, the specific locker designated for the user opens
up, and they can retrieve their food item.
Nearly every interview concluded with users stating that they desired for GateDash to exist, and
they stated they would utilize it. Of course, many of our interviewed users have different
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experiences with airports. One recurring concept, for users that take public transportation/take
paid rides to get to airports, is that they can utilize their time on public transportation/paid
rides to order food for themselves. One notable example of a user sharing this story with us was
with the user, Dr. Janet Tsai. Dr. Tsai detailed how she often has left very little time for herself
within airports. She believed that GateDash would be beneficial to her by allowing her to order
food while she’s on the bus from Boulder, CO to DIA (the Denver International Airport). Thus,
even when users such as Dr. Tsai “cut it close” with their time allocation for getting through
airports, they can still have a full meal (or multiple meals) throughout their day of travel.
Other users communicated the benefit they would experience through being able to order food
for themselves during a flight. One interviewed user, Vaishali Villuri, noted multiple times where
for her traveling to the US, she was left without a full meal after an entire day of traveling. She
noted that if she could have food waiting for her, even if it wasn’t heated food from a restaurant
(such as convenience store food), it would have been massively beneficial to herself. This
viewpoint was mirrored by all of our interviewees.
Thus, we as a group narrowed down our ideas to GateDash. We felt that it as a product would
provide one more degree of control and convenience within their traveling lives, and therefore
would be very beneficial to the world.
3. Product
GateDash is a service that provides food and some non-food items to customers within
airports using a locker system. Users start by ordering food, travel necessities, electronics,
and more on a mobile app. They enter their flight information, which gives them options for
locker selection. Once users have selected the items they want, they will select their locker
and time of pickup. After that the user pays and the code for the locker will display. Finally,
GateDash will navigate them from their current location to the locker, or from an arrival gate
to the locker. The user requirements for the locker are that it needed to be close to their
gate, have temperature regulation, on time delivery, handicap accessibility, and the ability to
store non food items. For the app design, users needed to be able to see all their options,
select their pickup time, have some sort of locker selection option, and navigation to their
locker. Users also desired an app that is intuitive to use, has simplified options, pleasant
backgrounds that match the airport they are in, and has a night mode. This section will show
the evolution of the prototypes and the product itself, as well as the user feedback that
drove the changes.
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space for some amount of time and had little time to go between classes, almost simulating
a fast connection between flights in the airport. For the physical design, we purchased a
used IKEA shelf and repurposed it into a locker as shown in Figure D. We also developed a
mockup app using Adobe XD that we called Campus-Dash. The screens for selecting the
campus, the locker, and which category of food/non-food the user wants is shown in Figure
D below.
Figure D: The earliest prototype of GateDash, focused around a college campus version of the
locker and ordering system. From left to right there is the locker system, campus selection
screen, locker selection screen, and which category of food or non-food the user could select.
We started off with a few different iterations of things right from the start. We had an app
that was blue and had an app that was red. The blue app was supposed to be calming but
the red app was supposed to engage the user, so we wanted to see which one our user
preferred. We also had a version of the app that had a map and a version of the app that did
not have a map for navigation at the end. This was to test whether or not users needed a
map or if they just needed a locker code and general area the locker was in. We also varied
the height of the lockers to see what height able bodied users would be okay using. We
raised the locker system using a cart and had people vary between using low, high, and
middle level lockers as shown in Figure E.
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Figure E: Two different iterations of the original app and physical prototype. On the left there is
a red screen vs a blue screen, in the middle is a system with no map vs a system with a map, and
on the right is the levels at which deliveries were placed to test retrieval height.
After user testing the Campus-Dash version with college age students and with families, we
found that blue would be the best color option for the app. The purpose of the app is to
reduce stress within the airport so it was more important to go with a calming color than an
attention grabbing one. We also found that users liked having a map, but wanted one that
was much bigger and easier to navigate. This led us to transitioning the map to a complete
separate page with a larger area as shown in Figure Fa below. We also received feedback
that a virtual shopping cart was needed so the users could make sure their order was
correct and potentially get items from multiple locations or orders for multiple people.
Through this testing we also noticed some non-verbal feedback as well. We saw users
struggling to click on the back buttons due to the small size of the arrow and some users
were confused on some of the categories of food/non-food items. We made the categories
clearer by adding extra words such as “Travel Accessories” instead of just “Travel,” and
making the background darker so the wording was easier to read as shown in Figure Fb. We
also added a clear button surrounding the small back arrow to make it easier to press back
as shown in Figure Fc. After iterating the height, we also found that most users were okay
with bending down but didn’t want to reach high above their head, so the height of the
locker will be limited so no one will be pulling down the food from too high up. The height
will also be limited for those in wheelchairs. There will be a specific option so that those
who are in a wheelchair will only receive food in the lockers they can safely reach.
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Figure F: Part A shows the transition from a small map to a larger map, part B shows making
clearer categories and darker backgrounds, and part C shows the addition of an invisible box
that made the back button larger.
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Figure G: This shows the process of selecting a locker. It starts on the left by selecting an airport,
then entering the flight information, the system will understand the information and find your
arrival and departure gate if you have a connection. Then it will give the user an option of arrival
or departure gate, and then finally show a map going from the arrival gate to the locker.
We received a final round of feedback on this prototype and learned a few more things
about what users want. Users liked the beep and light on the lockers. They didn’t find the
beeping annoying and actually enjoyed getting feedback from the unit that they successfully
unlocked a locker. The tested users said that they would also definitely want some sort of
insulation or heating and cooling. More research will be required to understand the full cost
of heating and cooling individual units, but the plan for the next step is to insulate every
locker and then place heat packs or cold packs depending on if the food needs to be warm
or cold. This way every unit can just be insulated without having specialty cold only or heat
only locker options. This also allows for any product to go in any locker, so it is not limiting
the use of one. The final locker prototype is shown below in Figure H.
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Figure H: GateDash locker renderings in an airport with the main base and an extension shown
in orange.
The final design of the lockers is shown above in Figure H. The main locker system consists
of 8 lockers with one screen and scanner. There will be auditions that can easily be added on
or removed from a locker system depending on how popular the locker location is. All the
units are insulated and have a light that lights up when the user scans their code. There is
also a satisfying beep to let the user know the scan successfully went through. The final app
design looks similar to Figure G with the updated locker selection through flight #, and has
all airport restaurants and some non-food items listed as well. The final app will also easily
link to Google or Apple Maps so travellers can navigate with their preferred map. The app
will also feature a night mode for those looking for a darker background. GateDash lets users
order while on the bus, in security, on a flight, or anywhere else travellers can think of. We
hope this product helps those stressed at airports by making food one thing that travellers
don’t need to worry about.
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changes that needed to be made. We modified the prototype by adding some features that
users wanted and did a final round of interviews with family and friends over Thanksgiving.
This answered some of our final questions and helped create the final deliverable design
shown in the product evolution section. We would like to thank our friends, family, and
everyone who allowed us to interview them along the way.
4. MarketAnalysis
4.1 Addressable Market & Growth Trend
The global airline industry has had a rough few years with Covid hitting around the world.
Many flights and services have been reduced to limit the spread of the virus and has caused
a reduction of travellers in airports. In 2019, there were 253 million US Airline passengers
that travelled, but that drastically decreased to 67 million in 2020. This number is already
rebounding to 106 million passengers so far in 2021 [1]. While this is much smaller than
2019, it shows that flying is still an attractive way to travel for many Americans and the
airline industry won’t be going away with this virus. A different industry grew rapidly during
the pandemic, delivery services. US food delivery app revenue jumped from $22 billion in
2019 to $26.5 billion in 2020, and users grew from 95 to 111 million [2]. As more Americans
use food delivery services, they will become more familiar with it and be comfortable using
it in airports. With the airline industry recovering and the food delivery industry taking off,
GateDash is perfectly positioned to enter the market when it is still low but rapidly growing.
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day. Each of these presents a different challenge and knowing which one is which will help
tailor the user’s experience. In all of these situations users are looking at every restaurant
available in the airport before landing or going through security. Customers will see what
they want before they realize if it is on the way to their gate or not. GateDash doesn’t simply
rely on foot traffic and the chance that someone is going past a restaurant, the restaurant is
chosen, meaning that people can get whatever they want. Airports are a confusing
marketplace, but GateDash hopes to simplify it and give users the best options available.
Citations:
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[1] E. B. Salas, “Total air traffic passengers traveling to/from the U.S. 2021,” Statista,
05-Oct-2021. [Online]. Available:
https://www.statista.com/statistics/193590/total-air-traffic-passengers-travelling-to-or-from-th
e-us/. [Accessed: 06-Dec-2021].
[2] D. Curry, “Food delivery app revenue and Usage Statistics (2021),” Business of Apps,
04-Nov-2021. [Online]. Available:
https://www.businessofapps.com/data/food-delivery-app-market/. [Accessed: 06-Dec-2021].
[3] “Grab airport mobile ordering,” Grab. [Online]. Available: https://getgrab.com/. [Accessed:
07-Dec-2021].
[4] “AtYourGate - order food for delivery at the Airport,” At Your Gate, 08-Oct-2021. [Online].
Available: https://www.atyourgate.com/. [Accessed: 07-Dec-2021].
5. IntellectualProperty
We hope to patent our locker and delivery combined system so that no one can duplicate our
product, which will give us an advantage while competitors spend time developing locker
systems.
5.1 Closest IP
Many patents exist for food delivery lockers. Most of the patents are more like a delivery locker
which in which the goods will be delivered but not at a commercial place. There is one patents
which actually allows to order food and other accessories beforehand and have them delivered
to a locker and the user can collect from the locker. The United States patent US20150356664A1
was applied on 2015-06-05 is currently abandoned.
It summarizes A system and method for preordering and delivery of concession items is disclosed
that enables users to pre-order food and other concessions either prior to arriving to a venue or
in real time from the venue itself. The system allows for the installation of hardware having
software loaded thereon for organizing fulfillment of orders and assigning storage locations and
in some aspects, the system enables users to pick up orders from lockers or kiosks in a
self-service scenario.
5.2 Ip Strategy
Gatedash is just not limited to the above patent as we also have an app which actually allows our
users to order the food from the restaurants available and then the food goes to the locker. Our
unique locker design and the app are superior to the patents' basic claims, and gatedash will
proceed with production. There are various patented characteristics on the Gatedash. Scanning
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QR codes and delivery methods and too use this service in an airport are examples of this. It will
be in Gatedash's best interests to seek patents for gatedash in order to safeguard our creative
idea from prospective rivals in the future.
6. Operating Plan
While our company is still in the very early stages, we have decided on a rough timeline we have
as a goal for our company. Our first item we would complete would be to apply for a provisional
patent before disclosing it. Our next goal is to obtain an initial round of investments. Our plan is
to have these investments come from the 3F’s (friends, family, and fools). Included in these 3F’s
are Angel Investors. Our goal will be to obtain smaller investments from our friends and
families, and to be able to earn a larger investment from at least one Angel Investor (more on
specific values in Section 7. Financial Analysis).
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○ Finalize design of both modular locker system and app
○ Hire a marketing coordinator
■ Marketing Material to be finalized and placed in airports by the end of
Year Zero (starts in Phase 1, ends in Phase 2)
○ Apply for Seed Funding at the end of Phase 1
● Phase 2 (Gantt Chart seen in Figure XXXX):
○ File for a Utility Patent
○ Coordinate with the manufacturing firm to begin initial manufacturing iterations
○ Hire hourly employees (internal airport team used to deliver food/items to
lockers)
○ Have hourly employees be badged and ready for operating within airports
These two phases together encompass our time to launch. After initial funding, it is seen that
we hope to have the capability of launching within five airports within a timeframe of one year.
We fully believe that this is an ambitious goal, but an achievable one. The estimate was
performed with the assumption that we would start Phase 1 on January 1, 2022. However, the
phase durations could be pushed back to any start date (they are not season-dependent). The
actual start date would be fully based on having funding to kickoff as a company.
6.2 Approach
It is our goal as GateDash to establish ourselves as a success within our first two years of
operating within airports. In Section 7, our financial estimates display that we believe we would
be successful within these two years. With our plan of continuing to grow our size each year (by
adding airports that we operate within), we believe that we could grow the company to be
deemed a massive success. Our current plan would be to add five airports that we operate
within each year, up to Year Six, and then to start attempting to add 10 airports per year. This
number of years is far beyond what we believe we could accurately estimate, however, we
believe it’s important to have longer term projections as a company, even if their start dates
have some flexibility to them.
For the first two years of operating within airports, all of the business will be aimed towards
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Figure XXX: Phase 1 Gantt Chart
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Figure XXXX: Phase 2 Gantt Chart
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making a profit as a company, and improving our user experience. We will put great efforts into
taking user/vendor/airport feedback very seriously. We will allow users to guide our experiential
efforts, with it being anticipated that the app portion of this experience will have the most to
improve upon. We will allow our vendors (restaurants/stores) to provide us feedback that will
be molded into improving our algorithms/order methodologies, as well as improving our
relationships with those vendors. Lastly, our airport feedback will be imperative to us as a
business going forward from the initial two years. We will seek to understand as a company
exactly what will make our acceptance into other airports as quick/efficient as possible, and we
will embody this information.
It is noted that as our company continues to grow operations wise, we will of course have to
have more lockers manufactured, as well as adding more employees to our company. With this
added uptake of cost from the added employees and added locker manufacturing, our company
will see greater paths for revenue.
Our main goal as a company is to operate alone for two years, and then upon proving ourselves
successful, we will look to form a partnership with a larger entity within the same avenue of
business. Such examples of companies that we believe we could benefit, and that could benefit
from a partnership with our company would be:
● DoorDash
● Uber Eats
● Grubhub
● Drizzly (In airports where alcohol is allowed at/near gates)
○ Alcohol is currently allowed to be enjoyed by travelers at gates in the following
airports:
■ Nashville International
■ Chicago’s Midway and O’hare
■ Each of the two Houston airports
■ Fort Lauderdale International
■ Las Vegas McCarran International
■ Miami International
■ Tampa International [Alcohol at Gates Citation]
In addition to one of these partnerships being formed, our group would also look to form a
partnership with one of the largest airlines in the US (currently, American Airlines is the largest
airline in the world [American Airlines citation]).
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We believe that with one or (hopefully both) of these partnerships, GateDash would be able to
go global as a business. Also upon this merger, we believe that GateDash would be able to
increase the number of airports entered on a yearly basis, and thus drive profitability for the
company even further.
Eventually, and projections for this are beyond the scope of this initial document, GateDash
aims to look to further avenues for the product (outside of airports). Such examples include
college campuses, and places of business. Users interviewed (inclusive of those not attending a
college institution) noted that they believed GateDash, or as it would be named within a college
campus setting, CampusDash, would be massively successful and beneficial to college students,
professors, and all staff/faculty. With even more avenues for profitability, we believe that
GateDash would become a massive business and competitor within the food delivery industry.
7. FinancialAnalysis
GateDash’s financial analysis stems from two main angles, one from the physical creation of
the products themselves (locker banks and application) and the operation costs to run the
service within airports around the United States. The primary expenses will be seen upfront
in the development stage, prior to finalized manufacturing processes. Due to the nature of
the GateDash service, the locker systems will be suited for large-scale manufacturing, but
will likely reach market demand to warrant thousands of units to be made annually like
smaller items for the average consumer. The development and production of GateDash will
require a leg up in the form of one or more small loans and venture capital in the forms of
Seed Funding and Series A to fully launch as a company and service to many airports. With
the goal of starting in a select, carefully-chosen metro airports, there will be many travelers
exposed to the concept of GateDash in a relatively short span of time, helping GateDash
launch towards expansion and market establishment.
Prior to the onset of the COVID-19 Pandemic in 2020, food delivery services were just
starting to become popular through the likes of DoorDash, GrubHub, Uber Eats, Postmates,
and more. However, according to McKinsey & Company, the utilization of these types of
food delivery services has practically doubled in large part because of the pandemic and its
associated lockdowns, social distancing, and other new changes to our everyday lives.
(https://www.mckinsey.com/industries/technology-media-and-telecommunications/our-insi
ghts/ordering-in-the-rapid-evolution-of-food-delivery). For many, this pandemic was the
introduction to such services, and as such will now become more commonplace in times of
inconvenience or time constraints at mealtimes even with added costs to these meals for
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the sake of having the meals delivered to one’s door. With the growing familiarity and
comfort in using (and paying the premiums for) such food delivery services, it’s no wonder
that this market is currently booming. According to McKinsey, travel rates in late 2021 are
nearing pre-pandemic levels and nearing two million passengers per day in the United
States, with projections of air travel to keep climbing in numbers as people want to visit
family and friends they could not see during the pandemic lockdowns as vaccinations
continue to roll out
(https://www.mckinsey.com/industries/travel-logistics-and-infrastructure/our-insights/a-tra
vel-boom-is-looming-but-is-the-industry-ready). These statistics, combined with the
common complaints by air travelers when it comes to access to food within airports, such as
lines being too long or far away to be able to grab a meal or snack between flights or
restaurants being closed before the last flights of the night arrive. GO Airport Express has
conducted surveys that found about 55% of airline passengers who choose to eat during
their journey opt for eating post-security, but not on the flight itself.
(https://airportexpress.com/travelers-prefer-dining-at-airports-instead-of-on-the-plane/) All
this information combined leads us here at GateDash to believe that there is a growing
market and interest in food being more accessible in times of time constraints, thanks to
both the recovery of post-lockdown travel and increased awareness of food delivery
services. Our vision is to start with a deployment of locker banks (variations, such as
expansion with modular add-ons or the smaller standalone units are generally being
grouped under “locker banks” for this sales projection and analysis) to five major airports
within the United States, with intent to set up in locations such as Denver (DEN), Seattle
(SEA), Los Angeles (LAX), San Francisco (SFO), New York (JFK), Chicago (ORD) or other
similar-scale locations. Further rollout to an additional five locations each year
GateDash projects to begin the market share within the first six months after official launch,
which is estimated to take place roughly after a year and a half of R&D and initial testing
operation. The major target users for the market would be the passengers who have
connecting flights and those who arrive in their destination airport at an odd time, such as
late evenings or very early mornings. According to research 46% of the air travelers have
connection flights. (SOURCE?) GateDash hopes to have at least 1% of these passengers to
have as potential users willing to pay the premium for the convenience of having meals or
other necessities ordered ahead of time and waiting in convenient pickup locations. These
premium charges will be subject to change with various airport and regional/local taxes and
fee policies.
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In order to bring GateDash to life, there are few different categories of costs that we expect
to be a large determining factor for our financial requirements and funding plans. These
categories consist of, but are not limited to: R&D, manufacturing, certifications, and
employment.
In producing these locker banks, there will be several stages involved, including but not
limited to: R&D fabrication, early prototype and early production manufacturing, and finally
final production runs for our finalized hardware of the product. These stages will involve the
following costs at a minimum:
With similar finished hardware from the likes of Amazon (Amazon Hub) estimated to cost
facility owners approximately $10,000-20,000 per unit, depending on the size of the locker
bank configured (source:
https://www.wsj.com/articles/amazon-and-big-apartment-landlords-strike-deals-on-packag
e-delivery-1508261759), while also not implementing any sort of temperature control
features. Until further design development can provide exact figures, such as all mechanical
components and amount of sheet metal necessary per locker unit, the rough estimate per
finished standard 9-unit central locker would be approximately $14,000 cost for a
temperature-controlled unit utilizing anti-microbial and insulating surfaces within each
locker unit per locker bank, to start at $15,000 each in sale price. Smaller, standalone units
will likely run closer to $8,000-10,000 each upon installation, and modular expansions for
the standard until is estimated at around $5,000-8,000 each upon installation.
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According to the cost and revenue forecasts (see abbreviated table in Figure X), GateDash's
cash flow will be negative for the first year during the R&D and prototype development,
where tooling and engineering expenses will play major roles, with the company's revenue
will turn net positive within the first six months after launch, post-testing operation.
7.3 Breakeven
Due to significant upfront expenses for manufacturing and application development to
reach market testing capabilities, with notable income not being anticipated until the first
six months after service and product launch, GateDash aims to break even within its first
year of operation. See Figure X for the cost estimation breakdown versus anticipated income
over the first 5 years of R&D development and operation. An expanded and extended
version of this abbreviated table can be found in Appendix X.
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GateDash is looking for three installments of funding, with the goal of utilizing early income
to put the company beyond the need for additional investment after the second year of
operation. These initial funds for product development are expected to be sourced via
smaller loan(s) of approximately $1 million to $1.5 million to pay for raw materials and
low-production volume dies for sheet metal formation and injection molding. Once we have
produced one or more satisfactorily complete prototypes, we intend to seek a round of
venture capital Seed Funding in amounts of an additional $1-1.5 million to bridge the chasm
between prototype manufacturing and polished production for our first sets of
customer-facing locker banks to be installed in the initial five or more airports, pay for
service employees to run and maintain the show at each location, and to cover the costs for
crucial fees such as retail floorspace rent within these airports. Pending success with this
initial launch, GateDash will potentially seek a Series A round of funding of a
yet-undetermined amount to truly bring the hardware manufacturing to a professional level
and produce and install enough operational systems, catered to each location’s demands, to
be a self-sustaining, profitable enterprise. This Series A funding amount is undetermined at
this time, as it is not yet known if Series A funding will even be necessary, pending
post-launch performance for GateDash.
8. Team
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8.1.2 Kelli Wildman
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