In 2019, I worked as an equity research analyst at UBS. I’m an avid table tennis player, but when I moved to New York City, I realized how difficult it was to find a place to play. That’s when I came up with the idea for PingPod. This is a 24/7 on-demand table tennis facility that can operate without the need for full-time employees.
We live in a world where experiences are valued over things, or the “experience economy.” Today, the majority of Americans prioritize experiences over goods and products. But delivering experiences to people, especially in urban areas, can be expensive and complex. Our autonomous operating model provides the technical key to creating more supply for table tennis in urban markets, and works for other sports as well.
We started with one PingPod location on Manhattan’s Lower East Side. This later became the template for 18 (and growing) PingPod locations across the United States.
Here’s how it works: Rather than having staff manage locations, everything onsite is automated. Users can reserve a space on the app and unlock the door only via a code on their smartphone. (When it comes to security, take advantage of another trend: outsourcing, see below.) Autonomous models not only reduce costs, but also expand the hours a venue can be used.
Our focus was on creating the best possible consumer experience. We built the software stack that powers PingPod from scratch. We always believed that one day we would be able to license our system to external venue operators. Last year, we consolidated our technology assets into a wholly owned Software-as-a-Service (SaaS) subsidiary called PodPlay Technologies.
Currently, PodPlay has more than 70 venues (including 18 PingPod stores) registered in its system for table tennis, billiards, baseball batting cages, pickleball, padel, soccer, golf simulators, racing simulators, and more. Venues that sell reservation time slots are potential PodPlay clients. Coincidentally, the sports and recreation sector is full of like-minded entrepreneurs interested in running venues in a low-effort manner.
What started as a single automated table tennis facility has transformed into a sports technology company that franchises the PingPod brand and licenses the PodPlay system.
In March 2022, we received $10 million in VC funding to support our expansion. Revenue reached $3.6 million last year and is expected to reach about $6 million this year. Based on our most recent funding round completed last year, our valuation is approximately $50 million.
Here’s how we’ve proven our success and maintained the magic of our experiences even as we scale.
Modernizing technology in urban spaces
PingPod has “pods” in New York City, New Jersey, Philadelphia, Miami, Boston, and Chicago, as well as satellite locations in the United Kingdom and the Philippines. Autonomous operations powered by PodPlay have enabled rapid expansion.
The desire for experiences and the fact that Millennials, Gen Z and Gen Alpha live in a digital-first world means more retail spaces in cities are expected to transform into experience-focused venues. I will.
Before PingPod, there were two options in the New York City table tennis market. Either it’s a huge “Etatainment” facility designed for food and beverages, or it’s a basement-style “dojo” (an area dedicated to table tennis) that hasn’t been renovated since the ’90s. .
PingPod is a middle path, a comfortable place to play table tennis that’s affordable, accessible, and convenient. Rather than a huge destination facility with 30 tables, we offer 12 smaller locations physically distributed throughout the city.
reduce operating cost
Operating autonomously or semi-autonomously is a game-changer for business owners. In addition to reducing labor costs, autonomous models also reduce the need for physical labor, thereby reducing production capacity constraints. Most PingPods run 24/7, 365 days a year.
The fundamental problem that the autonomous operating model solves is location unit economics. Rent is higher in urban areas, but variable labor costs are often an even bigger component of costs. Autonomous models limit labor costs and allow businesses to operate with minimal staffing.
This means you have the dual benefit of lowering operating costs and increasing capacity, with the best-performing pods achieving operating margins of 40% or more.
Protect your safety
Autonomous venues are designed to be as easy to operate as possible. The PodPlay system allows small facilities to be operated by one dedicated owner-operator.
When we first launched PingPod, there were legitimate concerns about safety and security. Your safety is always our top priority and we have devised many ways to ensure it. First, all PingPod doors are locked by default. The only way you can access the space is by making a reservation. Second, having a reservation means that you have paid and your credit card is on file for incidentals. Third, the PodPlay system includes a dedicated video surveillance team based in the Philippines. Our team in Manila constantly monitors all of PodPlay’s autonomous locations and alerts local team members when necessary. Five years, dozens of locations and hundreds of thousands of hours of booking time later, we can safely say that our operating model is working as intended.
Create seamless customer experiences and foster community
Autonomous pods allow players to set the tone of their outing. You can “gamify” the player experience by including fully integrated audio and visual components. PodPlay provides instant replay functionality and score tracking capabilities to venues, creating an elevated experience for both professional and casual players.
The instant replay feature in particular is transformative for both customers and venue operators. Designed to allow players to capture amazing moments without getting thrown out of the flow of the game. No more setting up a tripod or mounting your phone. With the push of a button on the pod, a replay is projected onto the table monitor, emailed to the customer, and also saved to the customer’s account.
How often do customers use the replay feature?A lot. PingPod is on pace for customers to press the button more than 100,000 times in 2024. The great thing for venue owners is that many of these videos are posted to social media as players share their experiences with more potential users.
Since launching PingPod, more than 100,000 customers have signed up, more than 260,000 hours of table tennis have been played on the Pod, and players have connected with friends old and new in their respective communities.
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