Sask Bikes

Runólfur SigmundssonMartin Westin

Sask Bikes offer a healthy and convenient way to travel around the city with the environment in mind

“Convenient and smart”

“For a healthier city and people”

Positioning Statement

Benefits

Users• Cheap• Independent• Healthy• Environmentally friendly

City of Saskatoon• Less pollution• Increased public health• Image

Capital cost

Initial investment Cost

Equipment (Stations & Bikes) 1,292,700

Leasehold Improvements 10,000

Automobile 20,000

Furniture, Fixtures and Tools 15,000

Total 1,337,700

Financing

Equity $400,000Grants $500,000Debt $500,000

Locations

Year 120 stations

• Downtown• University• Campus

Residences• Broadway• 8th street

Locations

Year 540 stations

• Suburbs

Target Market

Population of Saskatoon: 254,000• Students• Commuters• Other citizens

Tourists• 2.1 million each year

Promotion• Facebook• Twitter• App• Posters:– Bus stops– Bike stations

• Brochures – Airport– Hotels

• Tours around the city

Service and Price

• Rent a bicycle with a personal card• Leave it at any station

Usage Fees

0 – 30 minutes (24h) $6Every additional half hour $10Annual subscription $65

Competitors

• Direct competitors– Any store that sells bikes:• Canadian tire• Sport Chek

• Indirect competitors– Any other way to travel:• Bus• Own car• Taxi

Break-even for advertisement

• Without bike rental revenue– Base case Advertisement revenues:• $3000 per station/month

Break-even for bike rentals

• Without advertisement revenue– Base case number of customers:• 260 customers/day

Revenue model

• IRR 55.6%

• Net income– Break even in the first year

2015 2016 2017 2018 2019 -

50 000

100 000

150 000

200 000

250 000

300 000

350 000

400 000

450 000

2 879 9 182

140 382

278 359

387 193

Feasibility

• Non-for profit

• Government-owned

Questions?

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Price

Cost per day• Sask Bikes:

$0,30 per day• Own bike:

$0,93 per day• Bus pass:

$2,44 per day• Own car:

$ 24,32 per day

Bike Rentals21%

Advertisement Sales79%

Revenue Split