Description
This is document describes about mypool.com report on business plan.
MyPool.com
E-Business Venture
Our Idea Carpooling is the shared use of a car by the driver and one or more passengers, usually for commuting. These practices are quite common in the western countries but when we talk about it in India it is not that much prevalent. Currently the company arranges for transportation for the employees and charges lump sum monthly fees of around Rs. 1000 to Rs. 3000. In addition to this the company also provides private service for employees working overtime or on odd times. The company pays for the fuel, vehicle and driver to the car service provider in terms of per Km charges. The idea of Car pooling came to our mind by analyzing the life of a modern Indian working professional in a Metro or a Tier I city. Many of these professionals with their high income and contemporary lifestyle own a car and use it for their professional use. These professionals usually travel alone from their home to their office which gave us an idea that we can have service where professionals who have same/similar route from home to office can travel together. Our idea is to provide the working professionals a platform where they can share their car with their colleagues or people from other organization. As these professionals working hours are very flexible it is not possible to have same pool all the time. Our service will provide with the option of selecting the time and place of destination and accordingly a pool will be created for them. Opportunity The car pooling service is not very common in India with very few platforms available for such services. Usually people travel alone, with their friends or with member of family. Our service comes handy when people usually travel alone. The scope of opportunity for such service is high because of the following reasons: 1. Offices at same places: Usually in a big city like Bangalore, most of the offices are located in four or five areas. With ever increasing size of workforce of IT companies in such cities also tells us that most of these young professionals travel to same destination. Considering this situation many professionals will be available for car pooling.
2. No service offered: At present there is no such service that is offered to the daily commuter. There are only few blog website that just provide the users a platform to meet. 3. Dedicated service for Professionals: By only having this service for Professionals we ensure security for the users as they can trust a fellow more that any random person. 4. Fewer Headaches for Organization: As it would be fewer headaches for the organization to worry about their clients’ travelling requirement. They can outsource it to our venture and we will provide them a better cost effective solution. Value Proposition to Customers Benefits for Client organization 1. Less expenditure in managing a fleet of cars – All big corporate companies maintain a fleet of cars / outsource cabs for use of employees for emergency travel and late night traveling. 2. Less fuel bill/cab bill – The fuel expenditure of companies on these cabs/ office shuttles would reduce if people use car pool service. 3. As a CSR (carbon conscious) – Car pooling service would be taken as a CSR initiative as it shows how carbon conscious a company is. Also every company has to spend a %age amount in CSR initiatives. Benefit for end users 1. Less travel bill – The individuals will spend less as they would not have to bring their own private vehicles daily and can do it on rotational basis. 2. Opportunity to interact with a host of colleagues – The individuals will have the option of limiting carpooling service only to their own colleagues. This carpooling service would help in users to interact with various colleagues of theirs on an informal basis. 3. Less headache of driving through the dusty and polluted roads of the cities- Carpool service would provide users to commute daily in comfortable cars at affordable cost. 4. High sense of safety as they traveling with their own colleagues (organization specific)
5. Redeeming points for using carpool service – The end users get to redeem points at end of month for the usage of their cars. Revenue Model There are 3 sources of revenue for the service 1. Service fees from organization Our company would charge an initial on board price for the Business client and then a regular subscription for monthly period depending on the employee strength using the service.
2. Revenue through advertisements The site would be able to get revenue by attracting traffic from corporate clients and thus attracting companies. The advertisements would be targeted at working professionals. E.g. Car companies, mutual funds etc.
3. Revenue from commissions If a cluster of people do not have cars and would like to go to destinations on same route so we can provide them meru etc. cars (having a tie up). In return we earn a commission for the same. Competitor Analysis There are 2 types of competitors for our venture: o Other online ventures like carpool.in, carcabpool.in which offers similar services to the B2C market. o Third party rideshare agency providing services to enable one off or regular carpooling in defined areas. Companies or local authorities introduce facilities to encourage private carpooling, often as part of wider transport programs. These can include central listing facilities, defined pick-up points, preferential parking and general advice. A third party rideshare agency may also provide
services to enable one off or regular carpooling in defined areas. In the "dynamic ridesharing" concept, a separate system performs a carpool match automatically for approval by the travellers. We have the first mover advantage in the B2B marketplace. Many online ventures which provide services of a similar nature cater only to the B2C market. Our venture caters specifically to the B2B market which includes company employees.
Porter’s Framework Porter’s five force model is used to help develop an edge over rival firm by understanding the industry context in which the firm operates. The five forces with their relevance in our venture are given below: ? Threat of new entrants – Moderate o Proprietary Learning Curve – Since no firm has yet started this model of serving corporate, we will have the learning curve increasing at a faster pace. o First Mover Advantage - First mover advantage will be gained since we will be the ones contacting the organizations at the earliest. o Brand Identity – Since ours will be the first firm in the following venture, brand building will be easier. ? Supplier Power – Low o Software Vendor – The supplier power will be low, since we just need software for running the business and getting a firm developing software for us will be easier in this tech-savvy world. ? Threat of substitutes – High o Switching cost low – Since a lot of substitutes are available like public transport, cabs, personal vehicles, switching cost is low. ? Customer Power – Low o Number of substitutes – Lot of substitutes is available like public transport, cabs, personal vehicles are available. o Highly price sensitive – Since many substitutes are available, the customer segment will be highly price sensitive.
o Low brand identity – Initially the brand identity will below and hence corporate will be skeptical in using our service fearing reliability and dependability. ? Degree of competition – Low o Industry Concentration is low – No carpool firm provided pooling services to corporate in India. Hence the degree of competition is low. o High Industry growth rate – With high growth rate of IT sector and organizations providing transport facilities, growth opportunities are quite high. VRIO Analysis
The software that would be used by our firm would be valuable and rare as other firm’s software would be customized for the B2C marketplace. Our firm’s software would exploit the functionalities of Web 2.0 as well. Since the software is not difficult to be replicated by other firms, we’ve mentioned in the table that it’s imitable. The human resources that our company would be employing also form a valuable resource for our organization. But it’s not rare and neither imitable. The business model proposed by our firm is valuable and rare since we are the only firm providing car pool services to the B2B marketplace. But the model is imitable by other firms. Financials We will be using the private cars of the employees for carpool. If not available, outsourcing will be done to other cab service providers at some commission. So we don’t have any of capital expenditure in this case. The main expenditure is in terms of IT infrastructure like the servers,
computers, software etc and office space which we will take on rent. The breakup of capital expenditure is given below:
Expecting each owner to invest around Rs 1, 65,000 and taking the remaining amount as bank loan, we plan to cover the capital expenditure. The operating cost break up is below. We will have 2 employees @Rs. 10000 per month for marketing, office rent will be paid @ Rs 25000 per month and two employees with technical expertise @ Rs 8000 p. m. No compensation is paid to the owner for the initial period.
The expected future cash flow is given below. We are expecting 10,000 employees in total in the first year to use our service paying a nominal charge of Rs. 500 per year. The growth in the number of employees availing the service is 30% per year. Revenue from commissions is expected to be 10% of total revenue from service in that particular year. We are assuming no revenue is generated because of point redemption in the initial years. Revenue projections
Cash Flow The cash flow is given below. Operational cost is expected to increase at 20% per annum. The loan will be paid in 5 years with interest rate being 10%. Tax @ 33.99% is paid.
From the cash flows we can see that we are breaking even in the first year itself. STP The segments identified for mypool.com are: ? ? ? ? Individuals who travel frequently Parents who drive their children to school College students who use their car to go to college Corporate employees
Our primary target would be corporate employees because of the following reasons. ? In India security is a major problem and thus individuals might find it unsecure in travelling with completely unknown people. Although they are targeted in many developed nations, India is not yet mature enough. ? The school children can be targeted but the school buses and the extremely stable time table minimizes the value addition to the users. Thus we would not target them initially. However, in future we are likely to target them. ? ? College students with valid Identity cards are welcome to use our services. Our main target segment is the corporate, which are in abundant numbers and clustered in most of the developed cities of India. The value addition will be the maximum for this segment as they travel regularly at irregular times. Our product will be positioned as a car pool service which creates value for all. Marketing Mix: 4 Ps ? Product: The service would include the following features which will help us position it away from existing substitutes. o Car pool service through e-platform o Coordination between car owner and commuters o Point based reward and compensation
?
Price: The price is purposely kept low to penetrate the market in the initial phases. The main source of revenues would be the commission from the purchase and redemption of points. o Rs. 500/employee/year service charges
o 5% commission on purchase or redemption of points ? Place: The distribution of our services will be direct and there will be no intermediaries. Actually the suppliers are the customers in this business model. o Direct communication : Bangalore in first phase ? Promotion: Our main objective of promotions is to interact face to face with as many corporate as possible. This is to get primary feedback about the product features, needs and gaps. This will help us deliver best services continuously. o 12 Conferences at Companies and IT parks in first year o In-bound promotion through SNS’s Sustainability • The recession is over and the GDP is expected to grow from this year at a good rate. The corporate hiring will catch up with this growth and salaries on offer will also be higher than before. With the increase in tax slabs, the saving and hence the disposable income will be higher, giving people higher spending power. With this we see a increase in the number of cars and hence strengthen our network. • Increase in awareness towards environment and pollution on both individual and corporate basis. Hence more and more people will choose for this option in coming times. • With the increase in traffic on road and the pollution levels, people will prefer travelling by pool as it helps reduce traffic and hence pollution.
Scalability • Scalable to any size within a city once the model is up and running. The operations do not change with increase in size. Only the computing and data storing capabilities have to be improves. • • The model can be copied to other cities. The operations remain the same. Replicable with further ease in other cities where companies tied up with us are present. For example, if we have a tie-up with Infosys-Bangalore, then tying up with InfosysHyderabad and Pune is very easy. • Tie with Cab service providers to join the cluster as cab pools as it will do value addition to both the parties.
doc_914140106.docx
This is document describes about mypool.com report on business plan.
MyPool.com
E-Business Venture
Our Idea Carpooling is the shared use of a car by the driver and one or more passengers, usually for commuting. These practices are quite common in the western countries but when we talk about it in India it is not that much prevalent. Currently the company arranges for transportation for the employees and charges lump sum monthly fees of around Rs. 1000 to Rs. 3000. In addition to this the company also provides private service for employees working overtime or on odd times. The company pays for the fuel, vehicle and driver to the car service provider in terms of per Km charges. The idea of Car pooling came to our mind by analyzing the life of a modern Indian working professional in a Metro or a Tier I city. Many of these professionals with their high income and contemporary lifestyle own a car and use it for their professional use. These professionals usually travel alone from their home to their office which gave us an idea that we can have service where professionals who have same/similar route from home to office can travel together. Our idea is to provide the working professionals a platform where they can share their car with their colleagues or people from other organization. As these professionals working hours are very flexible it is not possible to have same pool all the time. Our service will provide with the option of selecting the time and place of destination and accordingly a pool will be created for them. Opportunity The car pooling service is not very common in India with very few platforms available for such services. Usually people travel alone, with their friends or with member of family. Our service comes handy when people usually travel alone. The scope of opportunity for such service is high because of the following reasons: 1. Offices at same places: Usually in a big city like Bangalore, most of the offices are located in four or five areas. With ever increasing size of workforce of IT companies in such cities also tells us that most of these young professionals travel to same destination. Considering this situation many professionals will be available for car pooling.
2. No service offered: At present there is no such service that is offered to the daily commuter. There are only few blog website that just provide the users a platform to meet. 3. Dedicated service for Professionals: By only having this service for Professionals we ensure security for the users as they can trust a fellow more that any random person. 4. Fewer Headaches for Organization: As it would be fewer headaches for the organization to worry about their clients’ travelling requirement. They can outsource it to our venture and we will provide them a better cost effective solution. Value Proposition to Customers Benefits for Client organization 1. Less expenditure in managing a fleet of cars – All big corporate companies maintain a fleet of cars / outsource cabs for use of employees for emergency travel and late night traveling. 2. Less fuel bill/cab bill – The fuel expenditure of companies on these cabs/ office shuttles would reduce if people use car pool service. 3. As a CSR (carbon conscious) – Car pooling service would be taken as a CSR initiative as it shows how carbon conscious a company is. Also every company has to spend a %age amount in CSR initiatives. Benefit for end users 1. Less travel bill – The individuals will spend less as they would not have to bring their own private vehicles daily and can do it on rotational basis. 2. Opportunity to interact with a host of colleagues – The individuals will have the option of limiting carpooling service only to their own colleagues. This carpooling service would help in users to interact with various colleagues of theirs on an informal basis. 3. Less headache of driving through the dusty and polluted roads of the cities- Carpool service would provide users to commute daily in comfortable cars at affordable cost. 4. High sense of safety as they traveling with their own colleagues (organization specific)
5. Redeeming points for using carpool service – The end users get to redeem points at end of month for the usage of their cars. Revenue Model There are 3 sources of revenue for the service 1. Service fees from organization Our company would charge an initial on board price for the Business client and then a regular subscription for monthly period depending on the employee strength using the service.
2. Revenue through advertisements The site would be able to get revenue by attracting traffic from corporate clients and thus attracting companies. The advertisements would be targeted at working professionals. E.g. Car companies, mutual funds etc.
3. Revenue from commissions If a cluster of people do not have cars and would like to go to destinations on same route so we can provide them meru etc. cars (having a tie up). In return we earn a commission for the same. Competitor Analysis There are 2 types of competitors for our venture: o Other online ventures like carpool.in, carcabpool.in which offers similar services to the B2C market. o Third party rideshare agency providing services to enable one off or regular carpooling in defined areas. Companies or local authorities introduce facilities to encourage private carpooling, often as part of wider transport programs. These can include central listing facilities, defined pick-up points, preferential parking and general advice. A third party rideshare agency may also provide
services to enable one off or regular carpooling in defined areas. In the "dynamic ridesharing" concept, a separate system performs a carpool match automatically for approval by the travellers. We have the first mover advantage in the B2B marketplace. Many online ventures which provide services of a similar nature cater only to the B2C market. Our venture caters specifically to the B2B market which includes company employees.
Porter’s Framework Porter’s five force model is used to help develop an edge over rival firm by understanding the industry context in which the firm operates. The five forces with their relevance in our venture are given below: ? Threat of new entrants – Moderate o Proprietary Learning Curve – Since no firm has yet started this model of serving corporate, we will have the learning curve increasing at a faster pace. o First Mover Advantage - First mover advantage will be gained since we will be the ones contacting the organizations at the earliest. o Brand Identity – Since ours will be the first firm in the following venture, brand building will be easier. ? Supplier Power – Low o Software Vendor – The supplier power will be low, since we just need software for running the business and getting a firm developing software for us will be easier in this tech-savvy world. ? Threat of substitutes – High o Switching cost low – Since a lot of substitutes are available like public transport, cabs, personal vehicles, switching cost is low. ? Customer Power – Low o Number of substitutes – Lot of substitutes is available like public transport, cabs, personal vehicles are available. o Highly price sensitive – Since many substitutes are available, the customer segment will be highly price sensitive.
o Low brand identity – Initially the brand identity will below and hence corporate will be skeptical in using our service fearing reliability and dependability. ? Degree of competition – Low o Industry Concentration is low – No carpool firm provided pooling services to corporate in India. Hence the degree of competition is low. o High Industry growth rate – With high growth rate of IT sector and organizations providing transport facilities, growth opportunities are quite high. VRIO Analysis
The software that would be used by our firm would be valuable and rare as other firm’s software would be customized for the B2C marketplace. Our firm’s software would exploit the functionalities of Web 2.0 as well. Since the software is not difficult to be replicated by other firms, we’ve mentioned in the table that it’s imitable. The human resources that our company would be employing also form a valuable resource for our organization. But it’s not rare and neither imitable. The business model proposed by our firm is valuable and rare since we are the only firm providing car pool services to the B2B marketplace. But the model is imitable by other firms. Financials We will be using the private cars of the employees for carpool. If not available, outsourcing will be done to other cab service providers at some commission. So we don’t have any of capital expenditure in this case. The main expenditure is in terms of IT infrastructure like the servers,
computers, software etc and office space which we will take on rent. The breakup of capital expenditure is given below:
Expecting each owner to invest around Rs 1, 65,000 and taking the remaining amount as bank loan, we plan to cover the capital expenditure. The operating cost break up is below. We will have 2 employees @Rs. 10000 per month for marketing, office rent will be paid @ Rs 25000 per month and two employees with technical expertise @ Rs 8000 p. m. No compensation is paid to the owner for the initial period.
The expected future cash flow is given below. We are expecting 10,000 employees in total in the first year to use our service paying a nominal charge of Rs. 500 per year. The growth in the number of employees availing the service is 30% per year. Revenue from commissions is expected to be 10% of total revenue from service in that particular year. We are assuming no revenue is generated because of point redemption in the initial years. Revenue projections
Cash Flow The cash flow is given below. Operational cost is expected to increase at 20% per annum. The loan will be paid in 5 years with interest rate being 10%. Tax @ 33.99% is paid.
From the cash flows we can see that we are breaking even in the first year itself. STP The segments identified for mypool.com are: ? ? ? ? Individuals who travel frequently Parents who drive their children to school College students who use their car to go to college Corporate employees
Our primary target would be corporate employees because of the following reasons. ? In India security is a major problem and thus individuals might find it unsecure in travelling with completely unknown people. Although they are targeted in many developed nations, India is not yet mature enough. ? The school children can be targeted but the school buses and the extremely stable time table minimizes the value addition to the users. Thus we would not target them initially. However, in future we are likely to target them. ? ? College students with valid Identity cards are welcome to use our services. Our main target segment is the corporate, which are in abundant numbers and clustered in most of the developed cities of India. The value addition will be the maximum for this segment as they travel regularly at irregular times. Our product will be positioned as a car pool service which creates value for all. Marketing Mix: 4 Ps ? Product: The service would include the following features which will help us position it away from existing substitutes. o Car pool service through e-platform o Coordination between car owner and commuters o Point based reward and compensation
?
Price: The price is purposely kept low to penetrate the market in the initial phases. The main source of revenues would be the commission from the purchase and redemption of points. o Rs. 500/employee/year service charges
o 5% commission on purchase or redemption of points ? Place: The distribution of our services will be direct and there will be no intermediaries. Actually the suppliers are the customers in this business model. o Direct communication : Bangalore in first phase ? Promotion: Our main objective of promotions is to interact face to face with as many corporate as possible. This is to get primary feedback about the product features, needs and gaps. This will help us deliver best services continuously. o 12 Conferences at Companies and IT parks in first year o In-bound promotion through SNS’s Sustainability • The recession is over and the GDP is expected to grow from this year at a good rate. The corporate hiring will catch up with this growth and salaries on offer will also be higher than before. With the increase in tax slabs, the saving and hence the disposable income will be higher, giving people higher spending power. With this we see a increase in the number of cars and hence strengthen our network. • Increase in awareness towards environment and pollution on both individual and corporate basis. Hence more and more people will choose for this option in coming times. • With the increase in traffic on road and the pollution levels, people will prefer travelling by pool as it helps reduce traffic and hence pollution.
Scalability • Scalable to any size within a city once the model is up and running. The operations do not change with increase in size. Only the computing and data storing capabilities have to be improves. • • The model can be copied to other cities. The operations remain the same. Replicable with further ease in other cities where companies tied up with us are present. For example, if we have a tie-up with Infosys-Bangalore, then tying up with InfosysHyderabad and Pune is very easy. • Tie with Cab service providers to join the cluster as cab pools as it will do value addition to both the parties.
doc_914140106.docx