Starting GMB

Question 1

Demand Side: Value Proposition & Segments

Answer 1

1. No efficient way to rent online a water experience (only ask friends, join boat club, talk to concierge, call marinas) - like having to go to a travel agent
2. No mechanism to do price comparisons
3. No source of reviews
4. No photos/videos

Question 2

Origins of Idea for GMB

Answer 2

1. Noticed boats not being used in crazy volume.
2. Huge underutilized asset. (And, knew about AirBnB/ Uber) - Use boats 8% of the time. Sunken cost.
3. Is there a more efficient system?
4. Is there a marketplace? (boat clubs not enough)
5. Boats expensive to buy and maintain.

Question 3

Supply Side: Value Proposition & Segments

Answer 3

1. Monetary. Boating is middle class activity. Boatowners happiest day is the day they buy and sell their boat. Financial pain.

Question 4

Boundaries of Service

Answer 4

1. Water experience: broad - canoes, stand up paddle boats.
2. Not Bill Gates level

Question 5

Stimuli

Answer 5

1. No efficient marketplace (a) peer-to-peer or (b) charter companies. Not just peer-to-peer.
2. Aggregate all supply.

Question 6

Core Interaction

Answer 6

1. Owner - listing - price - description (BASIC)
2. Renter - search locations - product - price points - description - form or message the owner directly

Question 7

Facilitation

Answer 7

1. All on you. We facilitate but that is it. We do not vouch for anyone.
2. Originally - did not track success of a rental. We were not charging. Very rudimentary and bare bones.

Question 8

Startup Costs

Answer 8

1. AWS - Startup Costs
2. Costs on Sales
3. Gnerated listings for owners
4. Minimal cost initially

Question 9

Chapter 2: Challenges

Answer 9

1. Early resistance
2. Boat manufacturers have relationships with moorings.
3. Entire industry, boat manufacturers, insurers, etc. against it. As an insurance c. I do not want to underwrite this.
4. Not fear of the competition b/c they did not think it was a real threat

Question 10

Chapter 2: Getting the Momentum

Answer 10

1. Not charging at the time. We did the listing. We will make money on the insurance later. Still had the door slammed in our face at the beginning 50% of the time.

Question 11

Chapter 2; Proving the Value

Answer 11

1. Boat owners skeptical of value. But, believed they would ultimately have pricing power if they provided value.

Question 12

Chapter 2: Resources Restrained

Answer 12

1. Funded by partners. Not eager to take VC funding. Both had done IPOs and had never taken money/funding. Did not have a $10M/$20M budget.
2. Resource constraint really focuses the mind. Consolidate supply. Felt the demand was strong and would be there but getting the supply was going to be the challenge. No global database of owners.
3. Looking for boats, marinas. Boat owner by boat owner.

Question 13

Chapter 2: Attempt to Monetize

Answer 13

1. But, HAD TO HAVE INSURANCE!
2. Did dabble in insurance 2013 - 2016.
3. Felt opportunity to offer a new insurance product. Typically annual. Most insurance does not allow rentals. Hole in the market. Opportunity to offer by the day, by the hour. Like car rental insurance.
4. A lot of claims came through. Did not want to be in the insurance business. Expensive, headache. Did not want to be in the middle.
5. Moved away from this.

Question 14

Chapter 2: Doubts About Insurance

Answer 14

1. Did not lose customer when they dropped insurance. There are other sources of insurance.
2. Competitor does offer insurance. Each boat has to be underwritten and inspected. They underwrite the entire policy. All boats come under the policy. Not scalable. Limited in the # of boats they have.
3. Rental companies all have insurance.

Question 15

Chapter 2: Local v Global

Answer 15

1. They decided to go global. Demand side - felt they would drive away demand if we had a limited supply. Expected great success or great failure.

Question 16

Chapter 3: Initial Revenue Model

Answer 16

1. Always planned to change the revenue model.
2. They took a cut on each side
3. Hold the transaction until the water experience is completed.

Question 17

Chapter 3: Translating New Revenue Model

Answer 17

1. Take 6 months to a year to be ready for the transition.
2. Back end for global payments.
3. Wanted a seamless experience for both sides.

Question 18

Chapter 4: Taxes Regulations & Licenses

Answer 18

1. Do we know all the boating regulations in all jurisdictions?
2. Do we know all the licensing in every jurisdiction?
3. Diff everywhere and change constantly.
4. Open platform - responsibility of the owner and the renter to know the rules and regs. Was a bridge too far for us to know everything. Originally did VAT for EU but no longer do.