Setting up a provider network in Dallas, TX. February 9 th , 2018 Alvin Chitena
Factors to consider. • Cost. • User Experience. • Balancing Cost and User Experience.
Average Cost per Event
Event type distribution Door Unlock Flat tire Jump Start Tow
Event type distribution Tow
Event type distribution Tow
Event frequency vs Base Cost Scatter Plot
Event frequency vs Base Cost Scatter Plot % of Total Base cost of events y-axis Cost efficiency ratio = x-axis % of Total number of events
Event frequency vs Base Cost Scatter Plot 1.53 1.50 1.45 1.27 1.39
Event frequency vs Base Cost Scatter Plot 1.53 1.50 1.45 1.27 1.39
Event frequency vs Base Cost Scatter Plot
Event frequency vs Base Cost Scatter Plot 1.49 1.47 1.47 1.34 1.27
Average Cost per Event
Recommendations to lower costs. • Network: Mimic Miami’s structure • ~ 85% providers should be cost efficient PAs. • As many tows as possible should be given to PAs. • Miami also has relatively cost efficient PA01s and PA2s. The competition likely pushed PAs to be more cost efficient. Decrease D providers and increase PA01 and PA2s to drive up PA tow cost efficiency.
User Experience
Recommendations to improve user experience. • User experience does not vary much in the different markets. • This means that we can minimize cost and not expect a significant change in user experience. • In fact, increasing the number of PAs will benefit both bottom lines because PAs are cost efficient and they get the best reviews of any providers.
Dallas, TX? • GDP • Population • Market size • Minimum wage
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