In 2019, I was working as an equity research analyst at UBS. I’m an avid ping pong player, but when I moved to New York City I learned how hard it was to find places to play. That’s when I got the idea for PingPod: 24/7 on-demand ping pong facilities that could operate without the need for full-time on-site employees.
We live in a world where experiences are valued over goods, called the “experience economy.” Today, most Americans prioritize experiences over goods and products. But it can be expensive and complex to deliver experiences to people, especially in urban areas. Our autonomous operating model provides the technological key to create more ping pong offerings in urban markets and works for other sports as well.
We started with a single PingPod location in Manhattan’s Lower East Side – the template for the 18 (and counting) PingPod outlets across the US that would follow.
Here’s how it works: Instead of having staff manning a location, everything on site is automated. Users reserve the space with an app and can unlock the door with just a code on their smartphone. (For security, we’re tapping into another trend: outsourcing. See below.) The stand-alone model not only cuts costs, but also increases the hours of the day a site can be used.
Our goal was to create the best possible consumer experience. We built the software stack that powers PingPod from scratch. We always believed that one day we could license our system to third party venue operators. Last year, we pooled our technology assets into a wholly owned software-as-a-service (SaaS) subsidiary called PodPlay Technologies.
Today, PodPlay has over 70 locations (including the 18 PingPod outlets) enrolled in the system through table tennis, pool, baseball batting cages, pickleball, padel, soccer, golf simulators, racing simulators and more. Any venue that sells time slots for booking is a potential PodPlay customer. As it happens, there are many like-minded entrepreneurs in the sports and recreation space who are interested in running their venues the easy way.
What started as a single automated ping pong unit has grown into a sports technology company where you franchise the PingPod brand and license the PodPlay system.
In March 2022, we received $10 million in VC funding to help us scale. Last year, we reached $3.6 million in revenue, and this year we expect to reach about $6 million. Based on our most recent funding round completed last year, our valuation is around $50 million.
Here’s how we’ve proven our success and maintained the magic of the experience as we scale:
Modernize technology in urban spaces
PingPod has “Pods” in New York City, New Jersey, Philadelphia, Miami, Boston and Chicago, with satellite locations in the UK and the Philippines. Autonomous operations powered by PodPlay enabled this rapid scale.
The desire for experiences combined with the fact that Millennials, Generation Z and Generation Alpha live in a digital world means that we can anticipate more retail spaces in urban environments transforming into experience-focused locations.
Before PingPod, the table tennis market in NYC offered two options: your giant “eatertainment” designed for F&B consumption, or the basement-style “dojo”—a specialty table tennis venue—that hasn’t been renovated since the 90s . .
The PingPod is a middle ground — a comfortable place to play ping pong that’s affordable, accessible, and convenient. Rather than one huge destination with 30 tables, we offer a dozen smaller venues physically dispersed throughout the city.
Reduce oPERATION costs
Autonomous or semi-autonomous operation is a game changer for business owners. In addition to reducing labor costs, autonomous models also reduce the need for physical labor and therefore reduce capacity constraints. Most PingPods are open 24/7, 365 days a year.
The fundamental problem that the autonomous operating model solves is the economics of the location unit. Rent is expensive in urban locations, but variable labor costs are often an even bigger component of the cost stack. Self-contained models help limit labor costs and allow the business to operate with minimal staffing requirements.
What it boils down to is the double whammy of lower operating costs and higher capacity, which generates operating margins of over 40% in our best performing pods.
Maintain customer safety
Autonomous seats are designed to be as simple as possible to operate. The PodPlay system allows small installations to be managed by a single dedicated owner-operator.
When we first started PingPod, there were valid concerns about safety and security. The safety of our customers is always our highest priority and we have devised several ways to ensure it. First, all PingPod doors are locked by default. The only way to access the space is by reservation. Second, having a reservation means you’ve paid and we have your credit card on file to account for any ancillary charges. Third, the PodPlay system includes a dedicated video monitoring team based in the Philippines. The Manila team constantly keeps an eye on all PodPlay standalone locations and alerts local team members when needed. After five years, with dozens of locations and hundreds of thousands of booking hours under our belts, we feel comfortable saying that the operating model is working as intended.
Create a seamless customer experience and foster community
Standalone pods allow players to set the tone of their output. By including fully integrated audio and visual components, the player experience can be “gamified”. PodPlay equips venues with instant replay and score tracking capabilities that create an elevated experience for both professionals and casual players.
The instant playback feature in particular is transformative for both the customer and the venue operator. It is designed to allow players to capture great moments without taking them out of the flow of their game. No more having to set up a tripod, mount a phone, etc. At the touch of a button in the Pod, a rendering is projected onto the table monitor and emailed to the customer and also resides in their account.
How often do customers use the replay functionality? many. At PingPod, customers are on track to press the button more than 100,000 times in 2024. The nice thing for the venue owner is that many of these videos end up on social media as players share their experiences with more potential users.
Since we launched PingPod, over 100,000 customers have signed up and over 260,000 hours of ping pong have been played on our Pods, connecting players with friends, both new and old, in their own communities.
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