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
Advertising/Promotion • Car Wrap - $900/car ($45,000) • Campus Visits • We will visit (no additional costs) • Posters and Flyers ($2109.96) • Facebook Page and Website
Development AppDevelopment • 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. Acquiring Parking Spaces • Negotiatewiththecity of Waterloo togainaccesstopublic parking spaces. • Negotiate with the Universities to acquire on campus parking.
Development Car FleetAcquisition • We’ll start with a fleet of 50 cars, using the automatic 2013 Chevrolet Spark. • Chevroletoffersdiscountstofleetbuyers and 0% APR. OnStar Installation: • Our cars will have the “Safe & Sound” OnStar plan.
Service Performance Employees • 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. 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.
RevenueStreams • 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 • BOD • Ernesto Uirbazo – Computer Developer • Morris Lang – Chartered Accountant
Milestones • September 2014: Officially launch the service and start renting cars. December 2015: Company will completely recover all start up expenses • July 2014: Order the car fleet (50 cars) from Chevrolet August 2014: finish app development, hire programmers and service crew, rent office space.