EZER is still looking to turn a profit

The Pomona business based on Uber – only it moves items instead of people – is approaching investors and is performing better now than it has since it was founded four years ago, according to Glenn Todd, its founder and president.

(Note: This is the latest in a series of reports with Todd updating EZER’s progress since its first days in operation).

QUESTION: You’ve been in business for four years now, since early 2016. How would you assess Ezer’s performance to date?

ANSWER: On the overall, I’d say it’s been good. Just not as good as I’d hoped it would be.

Q: So you still aren’t profitable? You’re original goal was to be in the black at the end of two years. At the time, you were confident you could hit that mark.

A: No, we aren’t profitable yet. I’d say we’re getting closer, and we’re closer now than we were a year ago, but we aren’t there yet. I don’t know why. It could be that we’re still a new company that’s trying to do something new. 

Q: If that’s the case, what are you going to do about it? It’s not like you haven’t had to time to explain who you are and what you’re doing.

A: We’re taking a look at the entire company, and we’re getting ready to launch more advertising and marketing. And we’ve starting to talk to possible investors.

Q: When did that start?

A: About one month ago. We’ve met with a couple of large investors, one in particular that I can’t talk about specifically. All I can tell you is that it’s a venture capital firm and it’s not based in Southern California. They might be interested in working with us.

Q: What kind of investor are you looking for?

A: Just a simple equity investor. Somebody that we can partner with and help us expand. We’ve put together a 13-page pitch that outlines where we are and where we’re going as a company and why we believe we’re a good investment. Beyond that, I really can’t say anything.

Q: Are investors crucial to the future of the company?

A: Maybe not crucial, but we do need them. We have to have them if we’re going advertise and market the way we need to.

Q: What is your financial goal? How much do you hope to raise?

A: We’re looking to raise $5 million to $10 million in the next 90 days.  We think that’s a realistic goal. We just have to convince enough people that Ezer is a great business opportunity, even though there are some things happening in Sacramento that we all need to be concerned about.

Q: Assembly Bill 5? 

A: That has the potential to do serious damage to Uber and Lyft, because it will change the definition of an independent contractor.

Q: Would it put you out of business?

A. It would put us out of business in California. There’s no way we could afford that. We would be under immediate pressure to find business outside of California, maybe sooner than we would like. It’s being fought, but if it stays the way it is it will completely change the way we do business. 

[Note: AB 5 will require companies that rely on temporary workers to treat them as full-time employees. Independent contractors could only be hired for work that is not normally part of the company’s regular business. Newsom signed it last year despite strong opposition, and since then multiple bills have been introduced that seek to modify the legislation or dismiss it].

Q:  Do you think people are more familiar with your business model, i.e., “Uber is for stuff instead of people,” or are they still trying to figure out what you do?

A: No, I think they know who we are and what we do.  We just have to keep trying to get the word out to reach more people.

Q: Besides Southern California, what markets are you in?

A: Phoenix, Las Vegas, Houston, Chicago, Miami and Minneapolis. All told, we have about 175 drivers.

Q: You plan to do more marketing. So far, most of your marketing has been on social media; the internet, Facebook and Instagram. Are you going to increase that or maybe try a different approach?

A: We’re going to keep working with social media, but we’re also going to hire sales people. Some “boots on the ground” who will go out and work the market.

Q: If you could go back and start the business all over again, knowing what you know now, would you do anything differently?

A: No, I don’t think I would. The business model is still solid.

Q: So you would start Ezer again?

A: Absolutely. It’s going to be a good company, and it will make money, because businesses will always need things moved around. And we’re easy to get. All you need is a smart phone app. People move stuff with FedEx and UPS every day. Why would they not want to work with us?