StearClear operates a mobile-app-based designated-driver service that sends teams of two drivers to drive customers home in the customers' own vehicles while a second driver follows behind. The company sells franchises to local operators, charging $30,000 for a block of ~70,000 people and letting franchisees keep 80% of revenue while StearClear supplies the apps, payroll, compliance, insurance and other infrastructure. Drivers earn $8/hour while on call and $12/hour while working, plus tips; customers pay a $20 flat pickup fee plus $2 per mile and can pay by card, Square or cash. StearClear ran a closed beta in two New Jersey franchises from April to June, soft-launched in July, and planned a hard launch in October. Early traction includes 1,500 customer registrations, 3,000 app downloads, and an average of 6–10 rides per week per franchise; half of customers are repeat users and 25% learned about the service by word-of-mouth. The company received 450 franchise inquiries with 30 in active negotiations and planned to phase in 2–3 franchises per month, targeting 13–50 franchises by April 2013. Much of the company’s funding so far has come from its founders, and it is preparing to raise a venture round later in the fall. StearClear offers a turnkey designated-driver service built around a suite of three mobile apps: an iOS/Android app for customers, a driver app for two-person drive teams, and an iPad app for franchise owners with heatmaps and management reporting. The company operates via local franchises: StearClear handles back-office functions, driver vetting, insurance and software while franchisees run day-to-day operations. Franchisees buy a block of roughly 70,000 people for $30,000, keep 80% of revenue, and handle local marketing, hiring and customer service. Drivers are W-2 employees paid $8/hour waiting, $12/hour working, plus 55 cents per mile for chasers; tips are split. Customers pay $20 per pickup plus $2.50/mile (premium members pay $5/month for $15/pickup and $2.25/mile). The founders—Craig Sher, Ken Schwartz and Harjinder Sidhu—leveraged prior software and consulting IP to build the product and are running a three-month public beta in parts of New Jersey after being live for about a month.

Total raised

$1M

Funding rounds

2

Latest round

Equity

Latest activity

Sep 2012