Mosaic Global CEO Maurice Brewster has acquired VIP Airport Shuttle, which serves the three major San Francisco Bay Area airports. He did not buy the vehicles, since he plans to change the business model to orient it to a more corporate clientele, which includes the Caltrain account.
SAN FRANCISCO — Mosaic Global Transportation of Redwood City completed a deal July 30 to buy VIP Airport Shuttle, giving Mosaic a roster of major corporate clients needing high-end group transportation.
Mosaic Global started the sales transaction May 25 and finished all due diligence on July 30 for the five-year part-cash, part-financing deal. Under the terms, Mosaic buys the client base, brand and website of the company but not its vehicles.
VIP Airport Shuttle, founded in 1990, runs a fleet of 15 shuttle-style vans that are colored red and blue serving the San Francisco, Oakland and San Jose international airports. That vehicle theme is not the right fit for Mosaic Global’s 20-vehicle black vehicle luxury fleet, CEO Maurice Brewster told LCT. Former VIP owner and CEO Edgar Miguel, who stayed on for two months to help with the transition, sold his vans.
Mosaic will handle the VIP clients with its 15-passenger Ford vans and Tuscany executive vans. The company will continue operating the VIP Airport Shuttle brand until it eventually absorbs it into the company.
The first order of business for Brewster is to change VIP’s business model from mostly business-to-consumer to exclusively business-to-business. Brewster bought the company to gain the eight major corporate clients of VIP, which include Caltrain and Johnson & Johnson. Mosaic will phase out the B2C airport shuttles which pick up customers from their homes for as little as $29 per ride. Some of those customers may be upsold to Mosaic’s chauffeured vehicle service.
“Their business model is similar to Super Shuttle, where they pick up three, four five people from home and take them to the airport,” Brewster said. “We are shifting the business model and moving away from that but will do pick-ups in conjunction with corporations and hotels.”
Brewster learned of this acquisition almost by accident. “We reached out to VIP to farm some airport transfers to their vans and when an employee [called] they said they were not accepting any orders,” Brewster recalled. “When he asked why, they said they were in the process of selling the business. One thing led to another from a conversation between two reservation agents and then got escalated to the owner of VIP and me. It was an accidental occurrence, not by any intention on my or Edgar’s part.”
Miguel sold his business because he and his family are moving to the East Coast to support an 11-year-old daughter who is an academic genius and will be enrolling in a college there, Brewster said.
VIP Airport Shuttle had annual revenues of $2 million. With Mosaic Global’s $4 million annual revenue stream, the combined operations are projected to draw $6 million to $8 million in revenues this year as Brewster expects to leverage the VIP brand to further Mosaic’s corporate client base.
Mosaic Global Transportation Service is a family-owned, certified minority-owned and operated business that offers service in more than 440 cities worldwide. Based in Redwood City, between San Francisco and San Jose, it has been serving the Bay Area since 2002. Its fleet of 20 vehicles includes sedans, Lincoln MKT Town Cars, vans, SUVs, executive vans, mini-coaches, motorcoaches, and classics.
Information: www.mosaicglobaltransportation; (800) 398-7881
— Martin Romjue, LCT editor