Photo by rawpixel on Unsplash

Coming closer to our ICO excites us and our investors alike, but it also raises questions about RedCab’s monetization model and how are we going to utilize blockchain technologies to remove our cut from the trips, yet drive profits as a company.

The main idea behind moving our business model into a complete decentralized model, is to give something back to our communities in the way of an affordable, transparent, and useful service that people can use on daily basis. Yet we’re running a company, and we have to generate profits to sustain such a roadmap.

The revenue model is based on maintaining our on-ground operations within the cities we currently operate-in, and expand carefully to more coastal cities to guarantee that we are providing our growing network of customers with seamless transportation solution. Revenues will remain to be generated from our current 15% commission scheme on completed trips till we gradually shift our operations from a centralized model to a completely decentralized model. The revenue model gradually ramps down the commission percentage and in parallel ramps up the monetization model by selling targeted geo ads as our network grows, data accumulates and consequently analyzed to tailor our ads according to our customers’ preferences.

Shifting our business model will require us to develop an infrastructure capable of sustaining our growth to offer a concrete business model that is bringing revenues and generates profits solely from our marketing stream while moving people.

We expect our EBITDA (Earnings before interest, taxes, depreciation and amortization) to be within the 25–40% range annually based on our OPEX model, productivity, recurring revenue, niche, and RedCab’s growing team experience.