Electric Bike sharing in India

1Company Proprietary and Confidential

ENVIRO“Go Green”


Contents

1. Idea Generation2. Idea Screening3. Concept Development4. Marketing Strategy5. Business Analysis6. Pricing



Idea Generation



Indian roads are getting..

• Crowded

• Over-crowded

• Über-crowded





Unless a drastic change happens..

• The roads will be choked

• Mobility might become a huge social issue

• Pollution levels will touch unprecedented levels

So, what do we do?

• Use and propagate the usage of public transport



• It doesn’t usually connect origin with the destination

• The dreaded ‘first mile’ and ‘last mile’ are often unconnected

• That’s where personal vehicles score

Why isn’t public transport preferred?

What if a sustainable mode of ‘first & last mile connectivity’

is established?



Idea Screening



Some ‘first & last mile connectivity’ options are..

• Segway personal mobility solutions

• Bicycle sharing

• Electric bike sharing

• Canopied walkways

• Motorized shoes



Concept Development



• Objective is to solve the ‘First & Last Mile Connectivity’ problems

• In the initial phase, limited corridors in metropolitan cities would be covered

• Expansion into suburbs and Tier-II cities would follow later

This is how it works..



Marketing Strategy

Target Market, Retailing Model, Pricing


HardwareBike Fleet, Stations,

Operations

Institutional DesignService Model


• Demographics reflect favorably

• Residential population growingUrban Population

Density

• Universities & colleges nearbyUniversities/Colleges Quarter Pop. Density

• IT/Business park

• Major companies officesJob Density

• Sports, events, festival, artsTourist/trip attractors

• Increasing number of personal vehicles, infrastructure development in process

Regional transit system plans

• Many potential program partners & sponsors

• Hospitals, universities

Healthy corporate & non-profit community


Market



Target Market

Variable Methodology

25-50 years old

The largest share of this age range is

typically 25-34, but usage in age groups

such as 35-50 accounts one fourth of

ridership.

Above median income Generally they use their own vehicle.

Healthy No pollution with these vehicles.

Typically walk or bike to normal

destinations

People prefer to walk or bike due to the

connectivity issues/fare issues for short

travel. Will not be affected much with

rising fuel prices.

Use other modes of public transport

This will sync well with the available

public transport like Bus/Train with end to

end connectivity.

IT parks/Residential

Colleges/Universities/HospitalsSpecial projects based on the business case.




Business Process Alternatives

Administration~ Fully owned & operated~ Owned with public partnership

Station Infrastructure~ Fully owned~ Franchise

Bike Fleet~ Fully owned~ Franchise

Retail model objectives:• Maximize revenue through sponsorship (advertisements)• Ownership of flagship brand & product / service DNA• Risk mitigation through public / municipal ownership• Service excellence through privately operated bike fleet• Control station design & service specifications via franchises







Promotional Tools Notes

Advertising

~ Banner and bill board advertisements in key infrastructures (railway stations, bus stops, offices) in and around the bike stations~ Advertisements in public transport infrastructures (trains, buses)~ Advertisements in city street infrastructure

Sales Promotion~ Coupons for corporates~ Coupons attached to public transit options~ City biking events

Public Relations~ Leverage public partnership (municipality / corporation) to improve visibility

Pull Strategy:Strategy is to make the product (service) available near key public transport infrastructures so that curiosity is generated among prospective customers



Hero E-SprintPlug in.. Plug out.. Ride..



GPS Tracking

Smart Card Access

Efficient Bike Locks

Advertising space

Smart Phone Apps

Plug in.. Plug out.. Ride..

Model Station


Budgeted Capital Investment : 1.36 Cr

• Budget estimated for two stations and 10 bikes ineach station considering the life of each bike as5 years.

• Major costs include land on hire cost, ITinfrastructure and truck on hire cost to begin thebusiness.

• Expenses include Battery charging, man power costand maintenance cost.



Return on investment

• By considering life of each bike as 5 years and cost worked out for 5 years, the objective of the company should be to meet profit from the beginning of the business year

• The profit projection company targets is : 15% per annum

• In order to achieve company targets, each bike should be rented at min of Rs10 per hour to a max of Rs.20 based on the package we fix with customers



Revenue sources

Sponsorships - Advertisements on bike fleet &stations

Fleet operations – revenue from membershipsand rides

Company aims to meet its business objectivesthrough above sources of revenue



E-Bike is a bike share system that provides an easy, affordable option for short, quick tripsaround Chennai. Before you ride, you have to purchase a pass to the system.

There are four options: 1. Hourly basis2. 24-Hour Pass, 3. 30-Day Pass 4. Annual Membership. You can ride as many times as you want during your pass period. All short rides are includedin the base price - rides up to 60 minutes (for Hour and 24-Day Passes) or 60 minutes(for 30- day pass and Annual Memberships). Overtime fees are charged for longer trips. See below for more details.


Hourly pass: INR 20/HourAnnual Membership fee: INR 10000

24-Hour Access Pass: INR 200

Monthly Access Pass: INR 2000 Unlimited 60 minute trips -

Unlimited 60 minute trips - no additional charges

no additional charges (Timer resets whenever you dock a bike.)

(Timer resets whenever you dock a bike.)

Avoid incurring overtime fees by returning your

bike to any Enviro Bike station within 60 minutes.Avoid incurring overtime fees by returning your

bike to any Enviro Bike station within 45

minutes.

n


Overtime fee:

• Hourly and Weekly User would need to produce their valid original

ID card as a security hold.

• Annual members would need to produce their valid original ID as

well as deposit of INR 5,000 as security hold.



Annual Membership Overtime Fees

up to 60:00 min Nil

60 - 90 min INR 10

90 - 120 min INR 20

Every additional 30 minutes INR 20

Hour and 24-Day Access Pass Overtime Fees

up to 60:00 min Nil

60 - 90 min INR 10

90 - 120 min INR 20

Every additional 30 minutes INR 20




VehicleTotal cost

(Rs/Km)

Bike (Fuelled by Gasoline) ~3

Share Auto ~2

Auto >10

Car >5

ENVIRO Bike <1




Automotive

Electric Bike sharing in India