Analysis of ICO AirPod
AirPod Sleeping Pod (AirPod) is a single-person sleeping capsule designed to be installed at the airports, railway stations, shopping center and other public spaces. The capsule will include the following features: Wi-Fi, touch screen monitor, air conditioning, sound reduction technology, smart-glass privacy, mood lightning and scent machine. Pre-sale should start in May 2018, according to company’s website.
The company decided to implement blockchain technology to simplify a business model. Blockchain will enable AirPod to:
- Automate auditing, agreements and contract enforcement
- Have a transparent transaction tracking and permissions
- Host hussle-free cross border payments
- Automate sale and trade rights on airpod unit profits.
The core business of the company is AirPod capsule renting. The plan is to install 1000 AirPods across international airports in the next three years. Prices will vary depending on locations due to different airport commissions, cleaning services and internet connection costs etc. Price will expressed as a price per renting hour, customers will be able to pay with APOD tokens or credit card. Remote reservation of the capsule is another possibility. Holders of APOD tokens will be able to use them on any AirPod regardless its location.
61% of funds raised will be transferred to production and distribution.
The project has several development stages: 0) AirPod product development, 1) grow distribution and customer base + DApp on blockchain, 2) transition to sponsorship* program model, 3) self-expanding** real business economy model.
*Sponsorship Program model: a user can become a sponsor of a particular AirPod capsule and earn upto 80% profits generated by this capsule every month (so-called “passive” income).
**Implementation of Placement On Demand: it enables the setup of the AirPod and plugs it in to the network for all potential location submetters (owners or leaseholders of a specific location).
Marketing plan is built on three components: airdrop, referral and loyalty program, building the community around the project. Referral programs will reward agencies and companies helping to promote AirPod services or contributing to specific marketing campaigns. Loyalty program will be set up in later phases and will reward regular customers with additional tokens. Community building will me made via forums, social media and advertising.
The team is very active on social media and numbers of followers are rather high. It should be noted that the project is very actively discussed on specific platform like Reddit (1.2K subscribers) and Bitcointalk.
Team members have extensive experience in entrepreneurship and startup launching, robotics, marketing and communication, product and software development, design. Advisors provide expertise in business consulting, blockchain and ICO, legal, air travel and crypto analytics. Blockchain and smart contract development is provided by Spartan Solutions (technical partnerships). There are also three marketing partners.
The Vision of the Market
The project targets global airport sleeping pods market. This market is expected to surpass $75M by 2021. The main drivers of the growth are:
- Growing numbers of transfer and transit passengers
- Emergence of smart airport concept
- No frill services to passengers at the airports.
Therefore, the timing for entering this niche market is right and AirPod offers solutions to real-life problems of the industry.
Understanding of the Target Audience
The WP offers an extensive analysis of target audience. Analysis starts with TAM (total available market), narrows it down to SAM (serviceable available market) and identifies SOM (serviceable obtainable market). There is a 4-years forecast of SOM from 2018 to 2021: from 20.6M passengers per year to 91.9M. Key target market is identified as all transit and transfer passengers waiting at airports for more than 3 hours.
The WP has a detailed competitor analysis. There are two types of competitors: direct (companies offering sleeping capsules) and indirect (services at the airport).
AirPod is compared to 6 other companies. Main competitive advantages are:
- Better overall functionality of the capsule (more features available)
- Affordable prices
- Cutting-edge technology
- No need for a pre-ready-made space for installing
- Fast-expanding business model.
Airport services include business lounge programs and simple catering (drinks, snacks, wifi). Cost comparison analysis is presented.
The product itself - an AirPod capsule - has big potential since the concept of smart airports is gaining supporters. Sleeping pods are starting to make an appearance. The use of blockchain for AirPod ecosystem is explained, but the necessity of internal tokens is not clear, according to analysts of Expert Coin rating. Competitive advantage will be more evident once an product will be available on the market.
Strengths: well-structured WP with all components presented (including financial projections, SWOT analysis and use cases). Detailed competitor analysis. Solid team with prominent advisors. Signed partnerships.
Weaknesses: team members don’t have experience in finance. No 100% clear reasons to utilize an internal token (therefore, a business plan got 3 points).