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We Share. We Care.. Background Providing students with a faster and more accessible way of travelling. Make our service easily accessible throughout the.

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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:

1 We Share. We Care.

2 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

3 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

4 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

5 Advertising/Promotion Car Wrap - $900/car ($45,000) Campus Visits – We will visit (no additional costs) – Posters and Flyers ($ ) Facebook Page and Website

6 Perceptual Map

7 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

8 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.

9 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.

10 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.

11 Revenue Streams Sales - $3,670,000 / year Reselling Cars - $460,000 / two years $230,000 / year Total : $3,900,000 / year

12 Expenses (in $1000s) Total: $1,810,000

13 Annual Profit Revenue: $3,900,000 / year Expenses: $1,810,000 / year Total Annual Profit: $2,090,000

14 Cash Builds In $1000s

15 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.

16 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

17 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

18 Management Team NameTitle Jordan HobbsCFO Maricarla UribazoCOO Kathleen BaxterCMO Neil SunCHRO BOD Ernesto Uirbazo – Computer Developer Morris Lang – Chartered Accountant

19 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.

20 Thank You!


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