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PeaKSolution
PeaKSolution 2
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Population Growth
roughly 20% of Mexico’s population in 1% of nation’s land mass
PeaKSolution 3
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Urban Sprawl
PeaKSolution 4
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Urban Sprawl
Congestion
Major Issues Caused by Overpopulation
Inefficient Transportation
Air Pollution
PeaKSolution 5
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Health
Climate Change
Nutrient Pollution
Major Problems Caused by Air Pollution
Air Pollution
Water Quality
Photochemical Reactions
Nitrogen and
Phosphorous
Eutrophication
Algal BloomsToxins and Deoxygenation
Contaminated Food Supply
PeaKSolution 6
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Improvements Across Two Decades1992 – 8 Days scoring over 502012 – 248 Days scoring over 50
Appendix (pp. _-_) for additional graphical information
PeaKSolution 7
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Transportation Methods
21,200,000 Residents
Private Transportation
Public Transportation
PeaKSolution 8
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Transportation Methods
1) Private Vehicles- Cause 80% of transport-related GHG emissions- Cause 90% of street traffic- Few reap benefits; All share costs
Colectivos Other Private Automobiles
PeaKSolution 9
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Transportation Methods2) Public Transportation - Covers only half of the Federal District - Metro System: Railways and Subways - Over 200 km/125 miles of track - Line 12 completed in 2012
Cost: $2,000,000,000 for Line 12195 stations – 115 of which are underground
PeaKSolution 10
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1989 – “Hoy No Circular”
Steps in the Right Direction
Setback #1: decreased overall utilization of existing vehiclesSetback #2: many residents purchased additional (used) cars to use on different days
Program: prohibited use of 20% of vehicles each day; based on last digit of license plate #
PeaKSolution 11
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PeaKSolution 12
Cuauhtémoc
Benito Juárez
• 75 miles per charge• 5 feet folded• Spin move for
convenient parallel parking
• 23 sq. miles• 7 million workers• 10 % of roads and
registered vehicles
Slim Car
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PeaKSolution 13
• Least expensive car in the world• ~ 60 mpg | 75mph
NANO
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PeaKSolution 14
• Since 2008, bikes in heart of the district
• 4 mile radius to Metro stations
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PeaKSolution 16
Financials
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PeaKSolution 17
Budget Origin
• $2 billion to fund a new
project in 2008
• Metro Line 12 Rail
• Reallocate 5%
• $100 million budget
• Car & Bike Sharing
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PeaKSolution 18
Cost Structure
Buyback Program ($10 million)
Car & Bike Sharing ($70 million)
Installation / Operational
($20 million)
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PeaKSolution 19
Cost Structure
30% Hiriko Fold
60% Tata Nano
10% BikeCar & Bike Sharing
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PeaKSolution 20
Purchasing CostCar/Bike Sharing Budget $ 70,000,000.00 %
Hiriko Fold $ 21,000,000.00 30%
Tata Nano $ 42,000,000.00 60%
Bikes $ 7,000,000.00 10%
Hiriko Fold $ 21,000,000.00
Retail Price/Car $ 16,000.00
Retail Quantity 1,313
Tata Nano $ 42,000,000.00
Retail Price/Car $ 2,000.00
Retail Quantity 21,000
Bikes $ 7,000,000.00
Retail Price/Bike $ 300.00
Retail Quantity 23,333
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PeaKSolution 21
Installation
COSTS
Charging Stations
Parking Setup (Hiriko)Security
Parking Setup (Nano)
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PeaKSolution 22
Operations
COSTS
Electricity (Hiriko)
Gas (Nano)Insurance (Nano)
Insurance (Hiriko)
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PeaKSolution 23
Installation & Operational Budget $ 20,000,000.00
A. Parking Setup Costs (Hiriko) $ (98,718.75)
A. Parking Setup Costs (Nano) $ (2,613,302.00)
B. Ubitricity Charging Station Costs $ (367,500.00)
C. Insurance Costs (Combined) $ (2,500,000.00)
D. Gas Costs (Nano) $ (9,703,200.00)
E. Electricity Costs (Hiriko) $ (342,187.50)
Security
$ (4,000,000.00)
Leftover $ 375,091.75
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PeaKSolution 24
Timeline
Project Launch
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24
# of Elapsed Months After Project Launch
Implement
250Launch 250Slim Cars
Charge toll using License Plate Toll Zone system
Launch 22,000 Bikes
Launch 1,000 Tata Nanos
Add more Nanos on a monthly basis to maintain a ratio of 10 bought back cars : 1 Tata Nano.
Initiate Buy Back Program @ $100 50,000 75,000 100,000
Evaluate every six months, if 25% of the target is not met in each period, then increase the buy back rate.
We will launch all 22,000 bikes at the beginning of the project.
We will implement a license plate monitoring system to create a toll zone in the Cuauhtemoc district.
213 200 100 100 100 100We will launch an initial fleet of 250 Slim Cars and use a decreasing quarterly schedule to expand to capacity.
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PeaKSolution 25
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PeaKSolution 26
Goal: Remove 100,000 cars from circulation (1.67%)
$100 equates to ~ 21 days of income at the minimum daily wage of $4.75
This compare to ~ $1,218 in the United States
We hope to attract cars in the worst condition with this offer.
>These are the cars causing the most pollution.
We can conserve natural resources by recycling reusable materials from the used cars.
We can sell the recycled materials back to the manufacturers of our vehicles to offset costs.
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PeaKSolution 27
Project Value Drivers
Revenue Structure• Membership• Usage Fees
• License Plate Congestion Toll Zone– Charge $2/car/day – Currently 800K cars pass
through daily
• Advertising
Prevented Costs (Savings)• “The results suggest that
the benefits of a 10 percent reduction in ozone and PM10 in 2010 are about $760 million (in 1999 U.S. dollars).”– 20% -> $1.49B
• Each microgram per cm3 reduction in PM10 worth about $100 million per year.
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PeaKSolution 28
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PeaKSolution 29
High Population Density
Low Population Density
LowQuality of Life
HighQuality of Life
Mexico City
New York
TokyoAustin
College Station
?
PeaKSolution 30
QUESTIONS AND ANSWERSThank you for your time…
PeaKSolution 31
Appendix
Background Information……………………….. A1- A
Financials…………………………………………….. B1 – B
Additional Information………………………….. C1 - C
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Appendix A: Air Quality #1
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Appendix A: Air Quality #2
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Appendix C: Smog
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Appendix C:Registration Requirements
A. Parking Setup CostsA. Hiriko Folding Car 250
Regular-sized Parkings Spaces 63
Cost of Parking Space $ 1,500.00
Total Cost $ 93,750.00
Admin time per week
Weeks per year 52
Admin Cost $ 2,343.75
Annual software cost $ 750.00
Annual incentive cost $ 937.50
Annual marketing material cost $ 937.50
Total $ 98,718.75
A. Tata Nano 5000
Regular-sized Parkings Spaces 1667
Cost of Parking Space $ 1,500.00
Total Cost $ 2,500,000.00
Admin time per week
Weeks per year 52
Admin Cost $ 62,500.00
Car parking spaces saved
Annual software cost $ 750.00
Annual incentive cost 25000
Annual marketing material cost 25000
Total $ 2,613,302.00
B. Ubitricity Charging Station Costs
Number of charging stations (Q) 250
Charging stations renting price (P) $ 90.00 per car/per month
Total cost per year $ 270,000.00
Mobile metering equipment 325 per car
Total metering equipment (50 cars) $ 81,250.00
Installation fee 65 per car
Total installation fee (50 cars) $ 16,250.00
Total Costs $ 367,500.00
C. Insurance Costs (combined)
C. Insurance Costs (Combined)
Number of Hiriko Folding Car 250
Cost of Insurance/Hiriko $ 1,500.00
Total Cost of Insurance $ 375,000.00
Number of Nanos 5000
Cost of Insurance/Nano $ 500.00
Total Cost of Insurance $ 2,500,000.00
D. Gas Costs (Nano)
D. Gas Costs (Nano)
Cost per Gallon $ 3.11
Number of gallons 12
Total Cost/Car $ 37.32
Total Cost/Fill $ 186,600.00
Number of Fills/Year 52
Total Gas Cost $ 9,703,200.00
E. Electricity Costs (Hiriko)
E. Electricity Costs (Hiriko)
Cost per Charge $ 3.75
Charges per day 365
Charge per year $ 1,368.75
Number of Cars 250
Total Electricity Cost $ 342,187.50
Toll Zone Installation Budget $ 4,000,000.00
Buyback Practicality
Minimum Wage (Mexico City) 4.6 (63 pesos per day)
Buyback - Flate Rate 100
Value: # Days of Free Cash Flow 21.7391304 business days
30.4347826 1 month of income
Backup Slide (Min Wage - USA) 7.25 (per hour)
58 per day
Value 1260.86957(valuation of minimum wage job
in USA)
ZOPAHiriko Fold $ 21,000,000.00 Hiriko Fold Purhase Cost
Retail Price/Car $ 16,000.00 Selling Price $ 16,000.00
Retail Quantity 1313 Markup % 25%
S1 Price/Car $ 14,000.00 C.O.G.S. $ 12,000.00
S1 Quantity 1500 Profit Margin $ 4,000.00 ZOPA
50% $ 2,000.00
Tata Nano $ 42,000,000.00 Tata Nano Purchase Cost
Retail Price/Car $ 2,000.00 Selling Price $ 2,000.00
Retail Quantity 21000 Markup % 25%
S1 Price/Car $ 1,750.00 C.O.G.S. $ 1,500.00
S1 Quantity 24000 Profit Margin $ 500.00 ZOPA
50% $ 250.00
HOW DOES MEXICO CITY COMPARE?
2011 IBM Global Commuter Pain Survey
Appendix C
Mexico City Experiences the Greatest Commuter Pain
