Momentex LLC was founded to exploit retailing opportunities by creating new distribution channels that enable the sale of beverage, snack and entertainment items to a previously under-served audience: automobile drivers.
Momentex is a marketing and service company that strives to provide Ultimate Conveniencesm for drivers. Momentex accomplishes this goal by understanding customer needs, identifying and creating new convenience oriented distribution channels, and thus, advancing the evolution of driver services. The first channel that Momentex has developed for driver-interface retailing is at tollbooths, under the service mark "Gulp & Go."
Gulp & Go. Momentex's cornerstone service, Gulp & Gosm, enables drivers to purchase canned beverages at locations where the driver is already engaged in a monetary transaction, such as paying a toll. Momentex anticipates Gulp & Go will provide a basic platform for driver-interface retailing and significant additional opportunities will stem from this business model.
Investment Benefits. The Gulp & Go business will provide significant value appreciation to shareholders.
Strategy and Objectives. Momentex strives to be first-to-market with its core Gulp & Go service, control the point-of-sale retailing space at the tollbooth, and leverage existing relationships to facilitate a national service roll out. In the short term, Momentex will roll out Gulp & Go service on commercially attractive toll road locations throughout the United States. In the medium term, Momentex will expand its service range by developing other platforms for its Gulp & Go service, such as at the gas pump and parking garage. In addition, Momentex will look to further develop its relationship with beverage suppliers and extend its product range beyond beverages. Momentex's long-term objectives are to develop additional driver-interface retailing opportunities by anticipating the advent of innovative wireless technologies.
Origin and History
The Gulp & Go concept was conceived by Zafar Khan, CEO, in 1996 while driving from Washington, D.C. to Philadelphia, rushed to make a 9:00 a.m. class at The Wharton School. Hungry and thirsty, with no time to stop for a refreshment, Khan pulled into a toll plaza on Route 95. While stopped at the tollbooth to pay the toll, wallet in hand, Khan thought, "wouldn't it be great if I could get my refreshments right here ... with no time delay."
After describing the scenario to classmates and friends familiar with road trips in the Northeast, each seemed to remark, "if Gulp & Go was there, sure, I would use it every time!" People spoke of impulse buying, purchasing out of boredom, planning ahead to buy at the tollbooth... "it would definitely get me at least once ... possibly many times in one trip."2 Khan was convinced that there was a segment of drivers who would value such a service ... but would the toll roads accept such an innovation?
Wharton classmates Zafar Khan and Melissa Chadwick wanted to test the bureaucratic reputation of the senior executives at the major toll roads. To accomplish this, they decided to set out on a month-long, 5,000 mile "road show," from Massachusetts to Florida and as far west as Iowa ... with one key prop, a hand-made, cardboard and balsa wood model, depicting Gulp & Go service at a toll plaza.
The response was energizing..."I really like the concept. It is so clear, yet no one has ever considered it ... I can imagine in the future that it will be everywhere and no one will think twice about using it," exclaimed Bill Thorp, Director of Finance at the Florida Turnpike. "It's a 'no brainer' - high volume potential ... and it could integrate right into our electronic toll system," Leonard Fornier, a Director at the Massachusetts Turnpike claimed after walking through a toll plaza envisioning Gulp & Go in place. Khan and Chadwick could see the demand by drivers and acceptance by the toll roads ... but was it possible to build it?
By year-end 1998, they determined that Gulp & Go service could be successfully installed at the tollbooth and had incorporated the Company, refined operations, automated the service process, developed hardware designs, and protected key intellectual property. Currently, the team is working with David Smith, an MBA at Wharton, to revise the business plan for funding opportunities, prepare operations for pilot programs, and prepare for alliance negotiations. To date, Chadwick and Khan have self-funded the business.
Momentex is developing a working prototype and seeks capital to fund the research and development expenses associated with the prototype and pilot operation. Momentex LLC has filed in the state of Massachusetts as a limited liability corporation (LLC) and its fiscal year is based upon the calendar year. Headquarters are located at 34 Lee Street, Cambridge, MA 02139 (877-868-4857).2 Focus Group, Wharton Graduates, 1998
|Table of Contents||Appendices|
1. Executive Summary|
2. Company Overview
3. Service Description
4. Market & Strategy
5. Business Model
9. Risk Factors
Market Research Survey|
Traffic Flow Analysis
Cash Flow Statement
|All information herein is confidential and belongs to Momentex|