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ObjectivePublic transport very often does not take a person to theexact destinationMaintenance costs with owning a car are eliminatedOnce in a while a second car is needed

Some people like to dress for the occasion; maybe they need a car for the occasion too!For organizations: In stead of providing employees withtheir own cars, a tie up with ROADSTER will proveadvantageousEnvironmental Consideration: In countries where thisservice is already available, stats show that each such cartakes 15-20 privately owned cars off the road

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Market Opportunity

India has a very low car ownership percentage As far as the BRIC goes, India is on par with China but

lags behind both Brazil and Russia with regard to carownershipThe city in India with the highest car ownership isChandigarh and it too has a car ownership of only 82

per 1000 peopleIndia ranks 114 in car ownership per capita; Only 12people per 1000 own a car in India

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Market Opportunity

If cars are made available whenever needed andhowever people need to use them, people wouldlike to go for this option

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Technology Involved

RFID(Radio Frequency Identification) TranspondersThese are located on the windshield of the carThey communicate with the car to open and close thedoorsRecord hours of usage and mileage and are wirelessly linked to a central computerThis technology enables traceability of the vehicle

A function named kill is also installed activating which stops the car and does not allow the user to startit

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Technology InvolvedTransponder- Transmitter + Responder Transmitsand receives radio frequency

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Cost

Installation of the technology(in US Dollars)RFID tags = 15 to 20 cents

RFID Readers = $ 1500=> Installation on a car will require around $ 1750

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CostCars

Car Segmentation in India

Small/MiddleHeavy Sports

Luxury

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CostCarsSmall/Medium sized cars are priced at an average of Rs 4.5lakhSmall/Medium Cars Hyundai Santro, Skoda Fabia,Chevrolet Aveo, etc.

Assuming that the people who will be using the Roadster will be basically middle class people it is safe to think thatonly having small medium cars will be enough to supply

the demand of the users

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CostInitial Startup:Setting up 4 centres in Delhi alone50 cars in total for the city 50 x 4.5 lacs = Rs 2.25 crore

Staff to maintain the cars4 people per centre=>16 people in total

@Rs 5000 per month=>16 x 5000 = Rs 80000=Rs 80000 x 12 per year= Rs 9,60,000 per year

Centre

Each centre might occupy a space of about 100 sq. m.The land prices in Delhi are about Rs 15 lac per 100 sq. m.=>4 x 15 lac = Rs 60 lacThis is for the land required to build the centre

Add another 35 lac for the amenities for the staff at the centres

=> Around 1 crore for the 4 centres

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Total Cost

Initial Cost = Rs 2.25 crore + Rs 1 crore= Rs 3.25 crore

Advertising Cost= Rs 20,000( through newspaper and

through the internet)Recurring Cost = Rs 9,60,000 per year= Rs 50 lac for 5 years

Maintenance Costs = Rs 2 crore( Includes buying new cars)

Total cost for 5 years for this setup = Rs 5.75 crore

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Tariffs

Charged Rs 80 per hourFuel to be paid for by user

On taking possession of the car, the user agrees to theterms and conditions of ROADSTER; these conditionsinclude a clause which states that in case of anaccident, the user has to bear all costs which are not

covered under the insurance of the car

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The Business PlanTo cover the initial cost, the cars need to be on the road for15 lachours. This means if we can have a user base of 2000, then eachuser must use the car for at least 750 hours.These 750 hours are spaced across 5 years.=> 150 hours per user per year=> 0.4 hours per day in a year.There are 52 weekends in an year. Even if a person out of our userbase takes the car out every alternate weekend.He will take the car out for a minimum of 5 hours.

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The Business PlanThe 0.4 hours per day gets covered in these

weekends.

This is just to regain what we have invested.

Anything, even a second over this is our PROFIT!!!!

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The Bottom Line

Year CostIncurred(c)

UserBase

No of Hours peruser

TotalHours

RevenueGenerated(r)

r-c

1 3.50 crore 200 110 22000 17.60 lac -3.24

crore2 10 lac 500 125 62500 50 lac + 40

lac3 25 lac 1000 135 135000 1.08 crore +75.08

lac

4 25 lac 1800 140 252000 2.01 crore +1.75lac

5 30 lac 2400 150 360000 2.88 crore +2.58crore

4.40 lac 6.64 crore +2.24

crore

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The Bottom Line

Thus , the plan starts generating revenue by the end of the 4 th year!!!!

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Possible Expansion Plans

ROADSTER can be expanded to other cities in Indiafinally leading to an inter-state ROADSTER

Special plans for college going students can beinculcated with lower tariffs as the young people mightuse the service more frequently than the adults!