Presentation on theme: "We Share. We Care.. Background Providing students with a faster and more accessible way of travelling. Make our service easily accessible throughout the."— Presentation transcript:
We Share. We Care.
Background Providing students with a faster and more accessible way of travelling. Make our service easily accessible throughout the city of Waterloo. Service accessed by using smartphones
Target Market WinterSpringFall Approx. number of students 48,74520,22051,686 Students without license (12%) 5,8492,4266,202 Students with car (19%) 9,2623,8429,855 Target Market (students with license and no car) 33,63413,95235,629 Willing to pay the price (50%*) 16,8176,97617,815
Demand 17.3% -daily users 12.0% -3-6 times/week 10.7% -1-2 times/week Weekly (40%) Peopl e Time (20 min x7) Peopl e Time (20 min x 4) Peopl e Time (20 min x 1) PeopleMinut es per week Winte r 2,909407,30 7 2,018161,44 0 1,79935,9806,727604,72 7 Sprin g 1,207168, , ,9202,790250,86 0 Fall3,082431,48 0 2,138171,04 0 1,90638,1207,126640,64 0
Advertising/Promotion Car Wrap - $900/car ($45,000) Campus Visits – We will visit (no additional costs) – Posters and Flyers ($ ) Facebook Page and Website
Development We will require a team of 10 programmers to build our app (about 5 months). App will include a legal document making customers liable for any damages to the vehicle or accidents they may have while driving the car. Negotiate with the city of Waterloo to gain access to public parking spaces. Negotiate with the Universities to acquire on campus parking. Acquiring Parking Spaces App Development
Development We’ll start with a fleet of 50 cars, using the automatic 2013 Chevrolet Spark. Chevrolet offers discounts to fleet buyers and 0% APR. Car Fleet Acquisition OnStar Installation: Our cars will have the “Safe & Sound” OnStar plan.
Service Performance 2 full-time programmers will maintain and upgrade our app (assisted by two co-op students) 4 part-time employees will be responsible for inspecting the cars, filling the gas tanks and ensuring that the cars stay scattered throughout the city. Employees Car Maintenance We will use Sullivan Automotive for any maintenance needs we may have for our car fleet.
Location We will start our business in the city of Waterloo in order to take advantage of its heavy concentration of University students. By maintaining our cars scattered around the city (our employees ensure this), we will maximize the chances of our customers having access to our cars wherever they are. We will not have a physical location to store the cars, thus lowering our fixed costs.
Revenue Streams Sales - $3,670,000 / year Reselling Cars - $460,000 / two years $230,000 / year Total : $3,900,000 / year
Expenses (in $1000s) Total: $1,810,000
Annual Profit Revenue: $3,900,000 / year Expenses: $1,810,000 / year Total Annual Profit: $2,090,000
Cash Builds In $1000s
Breakeven Fixed Costs: $1,311,000 Fixed Revenue: $231,000 Net Fixed Costs: $1,080,000 Contribution Margin: %86.32 Break Even Sales: $1,252,000 Each car must be used 2.04 hours per day.
The Ask: $500,000 for 25% Equity $2 million evaluation based on expected annual profit. The managers have already contributed $80,000 Ask for additional $500,000 to cover: – First month’s net cash burn of $319,000 – Minimum cash desired of $260,000
Harvest and Exit Strategy Allow company to reach early maturity stage Selling to companies that want to expand into the Waterloo market Zipcar recently sold for half a billion dollar using same strategy
Management Team NameTitle Jordan HobbsCFO Maricarla UribazoCOO Kathleen BaxterCMO Neil SunCHRO BOD Ernesto Uirbazo – Computer Developer Morris Lang – Chartered Accountant
Milestones January 2014 : hire programmers to get started in the app development. February - March 2014: begin negotiations with the city and the Universities to reach an agreement about gaining access to parking spaces. July 2014: Order the car fleet (50 cars) from Chevrolet September 2014: Officially launch the service and start renting cars. December 2015: Company will completely recover all start up expenses August 2014: finish app development, hire programmers and service crew, rent office space.