Originally Posted by
Panzon
Actually, they have only accepted 150 applicants, but they have 5,000 on a wait list. This per their CEO.
150 initial members X $1,650/month = $247,500/month gross revenue, not $6MM. Subtract operating costs, salaries, sales and marketing, and debt service and there won't be much left over.
In a number of interviews their CEO has said they will run the four planes, gather data, and adjust the model. He has identified 52 cities where he thinks the model will work. Given the math above, they will be under tremendous pressure to add members and adjust routes, pricing, frequencies, and rules just to cover their fixed and operating costs.
They are launching service in California for the moment, and hope to expand within the state, but have not announced firm expansion dates.
They have posted several interviews and a recruiting video on YouTube.
Well that is just the thought that the waitlisted already paid their deposit to be on the waitlist. But obviously wouldn't make sense because Paying permonth for something you aren't getting is pretty much a rip off.
Though i do believe they got another round of $7M in funding.
But yes, it would be pretty tight with money right now.