In 2019, I used to be working as an fairness analysis analyst at UBS. I’m an avid ping pong participant, however after I moved to New York Metropolis I discovered how troublesome it was to search out locations to play. That’s after I had the concept for PingPod: 24/7 on-demand ping pong amenities that would function with out the necessity for full-time staff on-site.
We reside in a world the place experiences are valued over items—aka “the expertise economic system.” At this time nearly all of People prioritize experiences over items and merchandise. However it may be costly and sophisticated to ship experiences to individuals, particularly in city areas. Our autonomous working mannequin presents the technological key to creating extra ping pong provide in city markets—and it really works for different sports activities, as nicely.
We began with a single PingPod location within the Decrease East Aspect of Manhattan—the template for the 18 (and counting) U.S. PingPod retailers that might comply with.
Right here’s how they work: Relatively than having employees man a location, every part on-site is automated. Customers e book the area with an app, and so they can solely unlock the door through a code on their smartphone. (For safety we faucet into one other pattern: outsourcing. See under.) The autonomous mannequin not solely cuts down on price, but additionally expands the instances of day a venue can be utilized.
Our focus was to create the most effective client expertise doable. We constructed from scratch the software program stack that powers PingPod. We at all times believed that at some point we may license our system to outdoors venue operators. Final yr, we bundled our know-how belongings into a completely owned software-as-a-service (SaaS) subsidiary known as PodPlay Applied sciences.
At this time, PodPlay has over 70 venues (together with the 18 PingPod retailers) signed up on the system throughout desk tennis, billiards, baseball batting cages, pickleball, padel, soccer, golf simulators, racing simulators, and extra. Any venue that sells reservation time slots is a possible PodPlay shopper. Because it occurs, there are a lot of like-minded entrepreneurs within the sports activities and recreation area who’re all for working their venues in a labor-light trend.
What began out as a single automated ping pong facility has reworked right into a sports-tech firm wherein we’re franchising the PingPod model and licensing the PodPlay system.
In March 2022, we obtained $10 million in VC funding to assist with our enlargement. Final yr, we reached $3.6 million in income, and this yr we anticipate to hit about $6 million. Based mostly on the newest spherical of financing accomplished final yr, our valuation is round $50 million.
Right here’s how we’ve confirmed success and maintained the magic within the expertise as we’ve scaled:
Modernize tech in city areas
PingPod has “Pods” in New York Metropolis, New Jersey, Philadelphia, Miami, Boston, and Chicago, with satellite tv for pc areas within the U.Ok. and the Philippines. The autonomous operations powered by PodPlay enabled that fast scale.
The will for experiences mixed with the truth that millennials, Gen Z , and Gen Alpha reside in a digital-first world means we will anticipate extra retail areas in city environments turning into experience-focused venues.
Earlier than PingPod, the desk tennis market in NYC provided two choices: your big “eatertainment” facility designed for F&B consumption, or your basement-style “dojo”—a specialised place for desk tennis—that hasn’t been renovated because the ’90s.
PingPod is an avenue in between—a snug place to play ping pong that’s reasonably priced, accessible, and handy. Relatively than an enormous vacation spot facility with 30 tables, we provide a dozen smaller-format areas bodily dispersed all through a metropolis.
Cut back working prices
Working autonomously or semi-autonomously is a sport changer for enterprise homeowners. Along with lowering labor prices, autonomous fashions additionally reduce the necessity for bodily labor and subsequently cut back capability constraints. Most PingPods are open 24/7, one year a yr.
The basic drawback that the autonomous working mannequin solves is location unit economics. Lease is pricey in city areas, however variable labor prices are sometimes a good bigger part of the associated fee stack. Autonomous fashions assist to restrict labor prices and permit the enterprise to run with minimal staffing necessities.
What it boils all the way down to is the double-whammy of decreased working prices and higher capability, which yields over 40% working margins in our highest-performing Pods.
Preserve buyer security
Autonomous venues are designed to be as easy to function as doable. The PodPlay system allows small amenities to be run by a single, devoted owner-operator.
After we first began PingPod, there have been legitimate issues round security and safety. The security of our clients is at all times our utmost precedence, and we’ve got devised a number of methods to make sure it. First, all PingPod doorways are locked by default. The one manner one can entry the area is by having a reservation. Second, having a reservation signifies that you paid and that we’ve got your bank card on file to account for any ancillary prices. Third, the PodPlay system features a devoted video-monitoring crew based mostly within the Philippines. The crew in Manila continuously retains eyes on all PodPlay autonomous areas and alerts native crew members when needed. 5 years in, with dozens of areas and tons of of 1000’s of reservation hours underneath our belt, we really feel comfy saying that the working mannequin works as meant.
Create a seamless buyer expertise and foster group
The autonomous Pods permit gamers to set the tone of their outing. By together with absolutely built-in audio and visible elements, the participant expertise could be “gamified.” PodPlay equips venues with instantaneous replay and rating monitoring capabilities that create an elevated expertise for professionals and informal gamers alike.
The moment replay function specifically is transformative for each the client and venue operator. It’s designed to let gamers seize nice moments with out taking them out of the circulate of their sport. They now not need to arrange a tripod, mount a cellphone, and so on. With the contact of a button within the Pod, a replay is projected onto the desk monitor and is emailed to the client and in addition lives of their account.
How usually do clients make the most of the replay performance? Loads. At PingPod, clients are on tempo to press the button greater than 100,000 instances in 2024. The attractive factor for the venue proprietor is that many of those movies find yourself on social media as gamers share their experiences with extra potential customers.
Since we launched PingPod, greater than 100,000 clients have signed up and greater than 260,000 hours of ping pong have been performed at our Pods, connecting gamers with pals each new and previous in their very own communities.
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