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Jayride putting its foot down to boost business efficiency

The airport transfer aggregator has been in reverse gear recently but now plans to put the pedal to the metal and get its business back on the road, as MATT LENNON finds.

Global airport transfer and shuttle aggregator Jayride is making some serious changes to its business model to eliminate excess costs, execute on new business efficiencies and scale the business through strategic acquisitions.

The company’s strategic review comes in the wake of two recent ‘cap in hand’ pleas for investors to shore up the bottom line through two rounds of capital raising that injected $3.5 million into the business.

According to its published strategy, the company will look to slash fixed costs by as much as 44% across the business while targeting higher margins to improve its bottom line.

In doing so, Jayride will seek to renegotiate its net rates by working closely with its network of transport partners on technology and process improvements.

At the same time, an end to complex discounting models designed to chase volume despite low yields will be discontinued, in favour of a ‘net plus’ pricing model marking up net rates and factoring in agent commissions and other variable costs.

The company says it has found and executed $3.75 million in annualised cost savings, all of which are not expected to affect efficiency or hamper future growth prospects.

It will also abandon one of its original mantras of ‘anyone, anywhere’ which the Australian-based business introduced at launch when it pledged to offer transport between virtually any two accessible locations on the map.

Travel agents will become a key focus for the company, with the review labelling advisors as “creatures of habit” and saying “once they adopt Jayride, they’re inclined to remain loyal”.

Further opportunities for Jayride include developing a wider range of luxury transport products to suit higher-yielding travellers will also be developed, along with new people-moving options for families and groups.

The company will also seek to build relationships with specialist transport suppliers in major markets to ensure confidence among the travelling public.

These will include Alps2Alps for ski transport, Go Airport Shuttle in the USA, Blacklane and Talixo to ensure agent trust and other major European transfer operators.

The company will also evaluate the value each booking partner provides to cut loss-making initiatives and poorly performing channels.

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