Hubber is a first-of-its-kind car sharing company that serves Los Angeles International Airport.
In the previous post, I describe how co-founder Paul Davis got his business idea and how he and Jim Meyers are developing the business model.
Strategic Relationships One of the reasons Hubber is able to operate efficiently is because of its relationship with a major player in the parking industry, Standard Parking.
Hubber works from the Standard Parking garage 898 North Sepulveda Boulevard in El Segundo, about a 5-minute drive south of the airport.
Why was Standard Parking receptive to your business?
Jim Meyers Their model is largely based on airport parking and so is ours. Of all the vendor relationships we need to develop, parking is the top. Because of their size, they're forward looking and they tend to get a head of markets [trends].
They integrate technology and they're sophisticated.
Some operators looked at us and ran away and wanted to just be the guys who parked cars for a living. They have the appetite to look at innovation and we have the ability to grow margin for them.
As long as the system works with their system so that you have a clean interface, they're glad to look at companies that make it possible for them to unlock greater margin.
If you're in a commoditized business like parking then how do you do that? How do you come up with innovative approaches? That's why they were receptive to us and they looked at us and said, 'if it works here then it can work anywhere.'
We've been very excited about what they've done for us so far.
Reduced Vendor Costs as Financing Paul and Jim told me about how important vendor relationships are to a new business. Standard Parking is a strategic relationship.
Vendors may help a start-up company by offering services at a reduced rate--that's a form of financing.
The two men have been able to leverage relationships with other vendors who believe in the business model and provide key services at lower costs until the company begins generating greater cash flow.
In the next post, I ask Paul and Jim about the daily operations and if they expected the amount of work needed to get a business launched and running.