Plainsboro firm wins top prize for time-saving, cashless technology.
By: Gwen McNamara
Tired of waiting for what seems like an eternity in those long lines at the amusement park or stadium?
Well the recent winner of the 6th annual Princeton University Business Plan Contest has a solution that is speeding things up.
Proximities, a Plainsboro-based company developed by two Princeton University students, has created "Go solutions," which gives event patrons the ability to make quick, cashless purchases with wristbands or cards using radio frequency identification (RFID) technology.
Like E-ZPass or ExxonMobil’s Speedpass, the customer’s card or wristband is linked to a monetary account and need only be waved in front of a sensor to make a purchase.
"Whether it’s at a concert, in a stadium, at an amusement park, really any entertainment venue can benefit," said Josh Girvin, chief operating officer at Proximities. "’Go solutions’ enhances the customer’s experience, increases the revenue potential for entertainment venues and can even enhance security or allow businesses to tap into the buying habits of a previously untraceable market cash purchases."
Eric Cuthbertson, spokesman for Sovereign Bank Arena in Trenton, where Proximities has been testing its "Go" system at concession stands during Trenton Titans ice hockey games, agrees.
"So far the comments from our fans have been very positive," he said. "We think these guys are on the fast track to revolutionizing the food and beverage industry."
At Sovereign Bank Arena, season Trenton Titan ticket holders have been trying out Proximities’ "Go" cards.
"We don’t have credit card options on the concourse, so patrons have to pay with cash," Mr. Cuthbertson said. "That means coming with enough money beforehand or stopping at the ATM. With the ‘Go’ card, they don’t have to worry about carrying around cash. It also limits cashier error."
As the trial winds down, Mr. Cuthbertson said the arena plans to take a close look at whether the cards had any affect on the time customers spent in line.
"Transaction time is absolutely faster, but as for standing in line we’ll have to see," he said. "Overall, it’s really an exciting product."
In addition, Proximities recently took its technology on the road for a trial at the Homestead Miami Speedway in Florida. There, VIP attendees of the Toyota 300, an Indy Racing League event, got to use Proximities’ "Go" wristbands.
"The demonstration went well, people enjoyed the fast service," Mr. Girvin said. "Later we plan to follow up with the owner of the track and the concession folks to see if they’d be interested in our service."
Proximities, founded in 2002, came about after Mr. Girvin, a junior at Princeton University at the time, got sick of waiting in line while at Hershey Park, in Hershey, Pa.
"My friend had tickets to the park for a company picnic and while we were waiting in line for an hour or two for a 30-second ride, I began to think about how inefficient it was," he said.
"The customers were frustrated and hot standing in line and the park was not making any money, since we weren’t buying anything while stuck in line," he continued. "I thought that if there was a system that could identify the patron and electronically recognize their cue in line, then they could walk around the park and come back to ride the ride."
A similar experience later that summer at a concert solidified Mr. Girvin’s convictions that he could develop something to improve the situation.
"I realized that some form of cashless payment technology would be applicable to any crowded venue or restricted location where sales depend on how quickly customers are served," he said.
In September 2002, he teamed up with 2001 Princeton University graduate John Lerch, registered Proximities as a limited liability company and set up a Web site. The next month the pair began raising money through family and friends for research and set up a business plan.
In May of 2003, the company got its first investors and began to hire employees for product development.
The first real test of the Proximities "Go" system came at the end of the summer in 2003 when a bar in New York City used the system.
"Our friends and the bar’s clients used our wristband system to purchase drinks and food," Mr. Girvin said. "It was very successful, the venue owner was enthused too and it could have led to a full-on sale, but the place burned in a large fire five days after the test."
After closing another round of financing in January of this year, Proximities began testing at Sovereign Bank Arena.
Since its inception, Proximities has grown to include eight full-time employees. The company recently hired Ron Carney as CEO. Mr. Carney, an engineer by degree, has built and scaled several successful companies similar to Proximities, Mr. Girvin said.
Proximities outsources manufacturing of the "Go" cards and wristbands. "We develop all the systems, the hardware and software, but don’t manufacture them," Mr. Girvin said.
The group decided to enter the Princeton University Business Plan Contest, because it was "too good an opportunity to pass up," said Mr. Girvin, who has been on leave from studying at Princeton for the past two years.
The contest, sponsored by the university’s Entrepreneurship Club, seeks to educate participants in the process of creating and evaluating new business ventures.
The yearlong contest ended Feb. 22, when teams had to make a three-minute pitch to a panel of judges. The "Super Saturday" event concluded with break-out sessions in which each team was reviewed and questioned by one or two judges.
The judges included professionals from a wide range of backgrounds, including some entrepreneurs and venture capitalists.
Proximities beat out 10 other contestants to win a $5,000 cash prize.
"The experience was very beneficial for us," Mr. Girvin said. "Every pair of eyes that looks on our plan and strategy helps to make us better. We’re confident we’ll find success in the many markets available to us within our niche of the entertainment industry."
For more information on Proximities, visit www.proximities.com.