Business executives and other travelers exhausted from their daily commute to and from the Dallas-Houston-Austin triangle may find relief in a new startup company founded by University of Texas students.
ElecTrip evolved out of an idea mechanical engineering student Mandeep Patel had to offer city-to-city drivers and riders an alternative to driving, flying or taking a bus via the Tesla Model X.
Patel came up with the idea while interning on the floor of global energy trading giant BP. He happened to be situated near the COO and overheard that a lack of a safe and cost-effective travel option for his team was an issue.
“If he wanted to send his team to Dallas to meet with a client, his options were pretty limited,” Patel said.
Employees would be faced with long drives back and forth between major cities, or the company had to book costly and time-consuming flights; or face a third, more rigid option of taking an E-bus that is on a set schedule between specific pick-up and drop-off points.
Patel was taken aback by the high-cost of operations for internal combustion engine vehicles, including mileage and maintenance.
“At the same time, I was looking at electric vehicles. At this time, Tesla was making cars that could do 300 miles on one charge,” he said, adding that Tesla’s Supercharger locations were an added benefit.
In January 2018, convinced Tesla cars could be the solution to business travel challenges, Patel poured his life’s savings into purchasing one of his own.
It was an unconventional route for the entrepreneur, but he had tax credits and the fact that Tesla vehicles depreciate slowly was on his side. He was so confident in the potential behind his startup idea, that he turned down a full-time job offer at BP to serve as ElecTrip’s CEO.
“We chose Tesla because the operational margins of our company with an internal combustion engine vehicle would drop from 70 percent to 40 percent, so we would almost be halving our revenue,” Patel said.
Since its launch in March, ElecTrip’s founders have adopted four more Teslas by negotiating borrowing terms with local owners in exchange for benefits, such as tire replacement and car detailing. The startup has also expanded by adding three professional drivers and operating across any major Texas city.
He compares the way ElecTrip operates to private jets, only at a substantially lower rate.
Co-founders include UT student Eliott Lee, who also studies mechanical engineering. He is ElecTrip’s COO and handles customer acquisition.
Harvard University graduate Sashi Dasika also joined the team full-time as head of strategy after seeing ElecTrip’s potential.
“He’s a huge asset,” Patel said.
Currently, users can book a ride for an average cost of $225. On average, ElecTrip completes 10 to 15 rides per month. The company completed its 100th trip in mid-October.
“ElecTrip is helping people travel in between cities each day, and, in a state as big as Texas, which has over 200,000 people commuting in between cities per week, we know that our business can grow and scale the way we envision it,” Lee said. “We trust our business model and each other and we know we can provide the best, no-compromise travel in between cities.”
Market research pointed to Austin as the ideal city to launch the startup. Patel factored in his own experience in the Austin market, high number of people traveling among the Dallas, Houston and Austin corridors, and the fact that Austin was a prime location to service different companies, including oil and gas.
“We’re discovering there’s a huge customer market for this service,” Patel said, adding that ElecTrip may offer subscription-based services to businesses with employees who travel regularly, but it’s open to all types of travelers.
ElecTrip has raised $25,000 through student competitions. Over the holidays, the team will be in talks with potential strategic investors in large oil companies, as well as pushing for another $50,000 fundraiser. Together, that could bring the total investment to $100,000.
“It’s a full-service company," Patel said. "The way we operate is you book a ride to your location of choice at your time of departure and your driver picks you up and drops off you exactly where you need to go in the other city."
He compares the way ElecTrip operates to private jets, only at a substantially lower rate. Professional drivers ensure riders’ safety. There are also complimentary Wi-Fi and beverages available.
After learning all the ways in which electric vehicles are safer, more cost-effective over the long run, and better for the environment, Patel said he would not want his family driving any other cars.
The founders are also invested in this company because they believe it can help reduce the level of carbon dioxide created every day, and thus help improve environmental conditions.
“Using electric cars to not only get cars off the road, but commercial cars off the road, can reduce that by 40 percent,” Patel said.
