How an idea transformed into a revolutionary new way to learn driving theory.
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When walking into a VR Drive branch in Israel, you will think you have just entered some kind of fun-filled video game arcade. You will see young teenagers (and some elder folk as well) sitting in a row of driving simulators in bucket seats branded by Red Bull, their hands-on sporty steering wheels, changing gears with sporty-looking gear sticks, and wearing VR (virtual reality) headsets.
The décor looks and feels like you are in a gaming arcade, and the last thing you would expect is to learn that you have just entered a school. Yes, a school where the students are having fun while learning and preparing themselves to pass their driving theory tests and learning how to be better drivers at the same time. This is the brainchild of Adiel and Shalev Cohen – two twin brothers (and business partners) from the city of Beer Sheva, one of Israel’s high-tech hubs and the cyber capital of “The Start-up Nation”.
A FAMILY-DRIVEN CONCEPT
Their passion for teaching driving began with their father, Nissim Cohen, who for the past 30 years has been a “car and truck” driving instructor. Shalev followed in his father’s footsteps five years ago by becoming a driving teacher himself.
One of their major ongoing frustrations was the time they wasted on having to help their students understand the road signs and the importance of road safety, which should be taught at the driving theory stage. Not just knowing the road signs, but the reason behind why every sign was created, how to instantly identify them, and more importantly, how to react on the road when seeing the various signs coming towards you.
To help solve this problem, Adiel came up with an interesting solution. A solution that has now taken Israel by storm. He and Shalev developed a VR driving program that involved the ability for Israeli driving students to learn their driving theory using state-of-the-art Israeli VR technology in driving simulators.
“The success of their first VR Drive business in Beer Sheva was so quick and sensational, the brothers decided to franchise their business almost immediately”
The brothers created a whole virtual reality city with streets, buildings, pedestrians, cars, and of course, all the road signs. A virtual reality driving instructor, by the name of Shalev (I wonder why?), actually sits in the seat next to you and guides you through a course of seven lessons, teaching you everything you need to learn about driving, explaining all the road signs, how to drive at night, and how to drive in wet weather.
During the lessons, the student is challenged with having to answer questions before they are allowed to proceed. The learning process is so well done, that even though the driving teacher, Shalev, is a virtual avatar in the computerized program, the Israeli education department has approved, recommended, and endorsed VR Drive as a fully accepted educational platform for teaching.
The two brothers, after working on the VR program for more than two years and spending a few million dollars on their start-up idea, eventually opened their first facility in Beer Sheva in September 2018. And bingo – their vision worked. Their first branch was an instant success.
MINIMAL STAFF MODEL
Adiel and Shalev’s genius went on to the way their business model works. Typically, in every educational business, one needs to employ teachers… right? Well not at VR Drive, because there are no teachers – or at least, no real human teachers.
Shalev, the VR instructor, is the VR teacher in the program, so there is no need to hire and train driving instructors. Your location can be full of students and all you need is just one employee on a shift to manage the whole business. There is no “cost of goods” since the product you sell is a computer program stored on a cloud. So once you have set up your location, pay the rent, and a very small payroll, the rest is profit. Some of their branches even reach a net profit of over 40 per cent.
The success of their first VR Drive business in Beer Sheva was so quick and sensational, the brothers decided to franchise their business almost immediately. Their first franchise agreement was signed within six months of them opening their first location, which was open and trading in less than one year since they launched their first branch, and within a few months, their franchise grew to 10 locations.
Their phenomenal growth was paused by the COVID-19 pandemic, but now that Israel is the first country back to business (due to Israel being the first country to vaccinate its entire population), all the VR Drive branches are back in full swing.
Let’s to go back to the vision of not only this brilliant business format, but the vision of Adiel and Shalev to share what they have created towards changing the way people drive on the road. Passionate about safety on the road, their start-up not only focuses on teaching their students how to memorize the many traffic signs and signals, but it also teaches the students about the potential dangers of driving and how to be considerate to other drivers on the road.
Their vision is all about changing the culture and ethics of driving; not only in Israel, but all over the world. How to drive at night or on wet roads. How to measure and keep distance between vehicles, change lanes, or even how to pull over correctly. There are even lessons about how the engine works and how to change a flat tire.
So what is the opportunity here? A deal has already been signed with the United Arab Emirates (U.A.E.) and the rest of the Middle East region which will see 200 locations open within the next 10 years. VR Drive is now looking for master franchisees to expand this amazing brand and their Israeli VR technology to the rest of the world.
You can become the master franchisee of your country and not only create a fantastic business for yourself, but help driving students to drive safer using the best VR driving theory technology available in the world today. The extra value of getting into this business is that it’s also very profitable with a quick return on your investment. Get in now on the ground floor and reach out to me to learn more about this great business opportunity.
THE AUTHOR
Steven Wolfson, CEO and founder of the Israel Franchise Institute, chairman of the franchise regulation and ethics committee for LAHAV in Israel, and franchise mediator and arbitrator (Israel Arbitration and Mediation Centre).
AT A GLANCE
Established: 2018
Number of franchised outlets: 13
Location of units: Israel
Investment range: €120,000 – €180,000
Minimum required capital: €150,000
Contact:
Israel Office: info@ifi.co.il +972 544 327 658
International desk: steven@franed.com
