Written in Partnership with Amir Bakian
Every parent with a child on the road or driving soon will want this solution. Distracted driving, often dubbed the “new drunk driving,” poses a significant threat to road safety. Even more alarming, smartphone usage accounts for 57% of those accidents. Additionally, 28% of all reported car claims payouts involve teenagers, representing only 6% of all drivers, thus presenting an excellent opportunity for a billion-dollar business.
In response to these alarming issues, KarChing emerges as the app of the future, uniquely designed to bring parents, teens and insurance companies together and make the roads safer. Founded by Ramsey Gouda and built with CTO Mark Hahs, KarChing not only addresses the distracted driving issue but also revolutionizes driver education and makes accessing insurance easier and more affordable for teens and parents of responsible drivers.
Gouda searched for a solution when a friend’s daughter got in a car accident. His concern for her, his own children’s welfare and the texting and driving crisis inspired KarChing. The KarChing platform and apps aim to incentivize safe driving by teens and foster collaboration among parents, teens and insurance companies. KarChing’s exclusive driving ecosystem rewards safe, distraction-free driving behaviors. It operates as an “embedded insurance sales platform, where they capture teen driving data pre-license and will change how insurance is priced, scored and sold.
A colorful journey
It’s no surprise that KarChing’s successes are piling up. They received a Finalist Award in the Volkswagen In-car Dashboard Insurance Accelerator program. Also, this spring, KarChing completed another accelerator at Softeq Ventures out of Houston – both garnering cash and business consulting, which truly “upped their game” and solidified their position in the US marketplace. They have also filed 70+ patent claims through the Devlin Law Group, focusing on the KarChing Ca$h app and KarChing Drivers Ed app. They closed the first KarChing Channel Partnership Deal with Travelers-owned InsureMatch, enabling them to sell multiple insurance carriers in all 50 states. In addition, they are starting pilots in over 18 states at 23 partner schools and public school systems, with a particular focus on Illinois, Florida and Michigan-(home of partner/investor Courtesy Driving School with 50k drivers annually). These big wins, along with others, recently put KarChing at a $10 million valuation.
It’s unsurprising when you look at Gouda and Hahs’ prolific and dynamic resumes. They met through a mutual friend, Mike Radel, while working on a wireless networking project related to health insurance discounts at a gym lab. Gouda had approached several software professionals about KarChing, but it was Hahs who resonated with the vision. “Mark was the one who saw all the potential in the idea and expressed enthusiasm to collaborate,” Gouda shares.
Gouda has spent his career building network infrastructure, and he is an avid musician and music enthusiast. He is also a serial entrepreneur. He founded Jetrock Music Studio and Q3 Media Services/Facebooth.TV, an interactive social media technology and marketing services company specializing in live activations from events. He also happens to be a great storyteller.
He had just finished creating the KarChing app, when he landed a dream job at Snapchat. “My friend said, ‘Hey, this job looks cool. I don’t know who Snapchat is, but it’s everything you seem to do already. I emailed them in the middle of the night. The CEO called me the next day, and I interviewed a week later. I’m in line with 45 dudes. It felt like a movie cattle call. I went into the interview, and the head guy wasn’t available, so three young kids interviewed me. They’re all very nervous, and it is clear that someone is making them do these interviews.”
“The first kid is like, ‘So why do you think you’re right for Snapchat?’ I go, ‘Well, son, I’ve been doing all this stuff in my sleep since before you were born, and I know how to do all of it and more.’ The next young guy showed me the Snapchat videos and music and asked how I could contribute. And I’m like, ‘I do music and media and have a fun recording studio.’ I showed them my recording studio, and he goes, ‘Oh my God, that’s cool. My dad was in a band. My dad does music.’”
“The third kid steps up, a young gal, maybe 23. And I’m like, all right, I’m dropping the atomic bomb now. ‘So, sir, why do you think you’d be a good fit at Snapchat?’ And I’m like, ‘Well, you want the real answer? And she goes, ‘Yeah.’ I go, ‘I don’t know if you’re ready for this, but I’ll tell you. Do you like DJs?’ She goes, ‘Definitely.’ I share, ‘A few years back, I recorded my DJ beats from inside the pyramids in Egypt. So I have pyramid reverb on every song on my new album.’ I play it for her, and she’s like, ‘Oh, my God. That’s the coolest thing I have ever heard.’ I got the gig running the Spectacles program for Snapchat. I was right on Venice Beach at the Old American Apparel’s flagship store. It was a dream job.”
As luck would have it, that dream job was vital to the development of KarChing. “At Snapchat, I was immersed in data on how teens think, act, live and socially interact. It gave me a clear picture of what was required to get and keep their attention.”
His partner, Mark Hahs’ has brought a lot of experience to the endeavor as well. Gouda shares, “Mark is the guy who brought this idea to life. I’m the dreamer; he’s the builder.” Hahs has led global creative and software development teams and has hands-on experience in design and coding. His extensive background also includes successful management of numerous technical projects across mobile, Internet, and network platforms, and most importantly, he has some good stories as well.
“I’ve been an entrepreneur all my life, and it started right out of college. I got my degree in mathematics. All my friends were getting a job at IBM, and I just knew I would too. I interviewed with them, and they said, ‘Wow, you’re great! The last thing we need you to do is take a personality test. I did that. After two weeks, I hadn’t heard anything. I call her up, and she goes, ‘I’m glad you called. Your profile doesn’t fit. At IBM, we’re looking for people who will be here 10, 20, 30 years. And your profile indicates that you’re an entrepreneur. Entrepreneurs are free spirits, and that won’t work for us.’”
A little disappointed but also inspired, Mark went to work for a computer company focused primarily on law firms. He then founded one of the first wide area networking companies and pioneered a web development firm in Los Angeles called Online Labs that worked with Oracle and major pharmaceutical companies.
In 1996-97, he founded a company called True Interactive. “I had 50 employees on the beach in Malibu, and we were building Fortune 500 streams, building their products and being innovative for Tribune companies, Motorola, and Warner Brothers. I registered a domain with friends of mine called the Black Eyed Peas. My colleague Mark Leroy and I did all their album packaging.” He worked with another star, Marshall Mathers, in 1998. “My friend said, ‘He’s gonna blow up!’ So my creative director and I designed that album cover, the Slim Shady LP with the Vicodin pill.”
Seven years ago, he thought, “’Why am I bringing in all this money, living through all the heartache of building things for all these Fortune companies? Why don’t I do that myself?’ So, that was my slow evolution into serial entrepreneurship.”
Today, Hahs acts as CTO for a number of different start-ups. He is strategic in their overall operations. “I have focused most of my efforts on KarChing because of Ramsey. He’ll go and do anything. Between the two of us, there is the fearless nature that we have to build something and do something different, to make all the contacts and do all that is needed to make this work. He’s my brother in that realm.”
Together, Gouda and Hahs fearlessly navigate entrepreneurship while tackling the texting and driving issue as well as today’s current insurance crisis. The pair’s vast technology experience, Gouda’s passion and Hahs’s entrepreneurial leadership make a formidable and triumphant partnership with an impactful solution.
Visit KarChing, the only cash-based incentives and social-driving platform app built for teens, their parents and insurance companies.
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