“We’re more like NetJets than a water taxi,” says Float co-founder Jean-Jacques Boude, drawing a comparison between his start-up and the Berkshire Hathaway- owned pioneer for fractional private jet ownership, which took a hit during the recession but is stable and growing after 53 years of operation. Airbnb and Uber, he says, have also inspired his approach. “We sell day charters by the seat or by the cabins for a few days on board, all through a fully digital app,” he says. The model compares best with NetJets’ jet card programme, which lets you buy “flight hours” on an à la carte basis. Indeed, the service is more experiential than a water taxi. Though Float will shuttle you to a buzzy beach club in Pampelonne or La Mala for the day, the appeal is more about being on the water than getting from Point A to Point B. You sail, you clink glasses, you swim in the Med, and maybe even go fishing or take out some jet skis. Eventually, you make your way to the destination port for a few hours before turning back around to the place where you first started. Booking takes two to three minutes: You sign up on the app or website, pick your origin and destination, select the number of seats you want to book and input your credit card details. Moments later, a boarding pass is sent to your Apple Wallet. No contracts, no surcharges and no hidden costs. (That is a distinguishing factor, says Boude, noting that traditional charter companies liberally pile on fuel and food charges during rounds of contract negotiations.) The experience
Despite the slimmed-down cost — which mostly cuts out overhead — you do not get a particularly slimmed-down service. Ruinart Champagne and canapés are included, as well as a full crew. A concierge service will also book you dinner at the hot new restaurant of your choice, or help you bring a DJ on board for private dance parties.
Sort of like Bolt Bus or MegaBus, Float is built on the principle of dynamic pricing: If demand is high, the €99 rates might climb. (Boude expects the prices to hit a maximum of €199.) And that price point does imply certain limitations. While there is hot food to go with those fabulous drinks, it is pre-prepared and then heated by a basic onboard crew — you are not splurging on a private chef. If you want to add an experience like jet skiing or fishing, that is an extra cost. “Most of our clients, about 90%, never eat on board anyway — they go to restaurants instead,” says Boude, adding that so far the service has been especially popular with Formula One drivers such as Max Verstappen. What remains to be seen is the size of Float’s margins, which may be the point of scrutiny as the startup enters its second round of funding. “This is a demanding business in terms of cash flow — we may be doing fundraising every three months,” Boude jokes. But he says the company’s wide appeal has investors knocking. “For people who have never been on a yacht or could never afford it, it will allow them to do that.” — Bloomberg LP This article appeared in Issue 800 (Oct 9) of The Edge Singapore.
