Are you about starting a bike taxi company? If YES, here is a complete sample bike taxi business plan template & feasibility report you can use for FREE.
Okay, so we have considered all the requirements for starting a bike taxi business. We also took it further by analyzing and drafting a sample bike taxi marketing plan template backed up by actionable guerrilla marketing ideas for bike taxi businesses. So let’s proceed to the business planning section.
The bike taxi business is in our world is a business that can fetch you a substantial income. This business simply involves conveying a passenger between locations of their choice.
This business is not like most of the modes of public transport that are available to us, in this type of transportation business the service provider does not determine the pick-up and drop-off locations rather the passenger decides where he or she wants to be dropped off.
But before starting this business, it is very important that you understand and research this industry. As we already know no business is easy to start; but only a focused mind with the heart of an entrepreneur will be able to take charge of the opportunity in the industry.
In this modern world, traffic in our cities are increasing day by day and it actually takes about double time to get to a destination with car as compared to a bike.
With the problem of traffic and transport problem the idea of starting a bike taxi business is very important. In most cities and countries of the world this idea is running drastically. This idea will help the commuter to ride earlier and cost effective.
A Sample Bike Taxi Business Plan Template
Table of Content
- 2. Executive Summary
- 5. Job Roles and Responsibilities
- 6. SWOT Analysis
- 7. MARKET ANALYSIS
- 13. Startup Expenditure (Budget)
1. Industry Overview
The revenue and income of the general taxi industry is moved by business and leisure travel. The success of individual businesses relies solely on innovation and good marketing, which means that small businesses can favourably compete with the large ones because there are few economies of scale in operations.
The taxi industry in the united states alone is made up of about 7000 establishments with about billion in combined annual revenue. But the industry is not dominated by any company.
Major services in the taxi industry strictly includes moving of passengers in taxis; renting of limousines, luxury cars, vans, and other automobiles with drivers; and hearse rentals with drivers. The major fund of industry comes from local passenger transportation services.
They are known to move individuals after being dispatched per customer request or reservation; but they most times also pick customers that hail or flag them down while driving on city streets or at taxi stands.
The biggest taxi market in the world today is in Europe which has 450,000+ taxis, USA has 300,000+ and China has 500,000+. Transportation or the taxi business without doubt has been around for 100+ years and it’s now about to experience a radical shake up like it has never experienced before.
The internet has also affected it just like other industries. The internet is now the fire that burns up or decides the life of an industry just like a Phoenix.
But the industry is raising steadily due to innovation, mortality rate, urbanization and internet access but reducing slowly due to the high discontent complains of customers and the advent of technology which have given way for the production of environmental friendly cars at cheap rate which almost everyone can afford and, also Driverless cars are going to be a reality in the mid-term future, which will be a market disrupter.
2. Executive Summary
Riding Emirates Inc. Is a reliable, timely, safe and standard bike taxi company that will be using Call centres, networking, and easy money platforms to make our bikes easy and ever ready for the individuals or people of San Francisco, California.
We plan to start this business with an already existing business that has a unique presence in the industry by buying an existing taxi association, Peoples cab, a well known taxi business that was formed21 years ago by a renowned family in the United States.
We hope to produce bike taxi services making use of the latest equipment and technology to facilitate the movement of individuals in and around the San Francisco area. Our plan is to build an innovative, forward thinking company that understands the need to move with ever-changing customer needs.
We believe that our philosophy will emphasize the service, and the effective communication we hope to use to take over the industry. The business has riders and employees that we know that are helpful, courteous, and fully trained. We also plan to fit all our bikes with Global Positioning Systems (GPS) to protect our riders and customers, which will enable the bikes to be tracked or located in an emergency. We will also make sure that all our bikes are clean, well maintained, and inspected regularly for safety and comfort.
We also plan to build reputation and market share by making our business offering as a viable alternative to existing taxi cab services in San Francisco, California. Our goal at Riding Emirates Inc. in the next year is to use an aggressive marketing campaign and penetrate at least 65% of the market share. Our long time goal is to be the leading bike business in the United States.
We hope to provide adequate communication paths to our driver. As such, Riding Emirates will use the KDT 5000 system. The KDT 5000 system design gives multiple levels of reliability to assure communications will be maintained under the most rigorous condition. We will also run a state of the art call centre that will be provided by Nicklaus Communications.
Riding Emirates Inc. is owned, financed and managed by Daniel Ferry and his immediate family members. Daniel Ferry is known as the king of automobile repairs in San Francisco, California. He started Daniel Ferry repair shops in 1994 and grew the business to become the leading figure in the automobile repairs market.
3. Our Products and Services
We at Riding Emirates Inc. Hope to offer a wide range of services that flows around the bike industry and the taxi industry joined together. We hope to give our customers every reason to go, ask and request for our bikes. We hope to bring innovation and excellent customer service culture to the industry and we hope and have seen that it is a rare trait in the industry.
Our aim in the industry is to make profits and create a new platform that must have been taken over before people will realize, and we will do all these within the first two years of launching. Our business offering may include;
- Emergency bike services
- Leisure bike rental services
- Maintenance and repair services
- Business bike rental services
- Exotic bike rental
- Bike leasing services
- Bike sharing services
4. Our Mission and Vision Statement
- Our Vision at Riding Emirates Inc. is to become the best bike taxi company in the whole of the United States, and also expand more from the boundaries and shores of the United States. We have the vision to compete without losing with the cab sector of the taxi industry.
- Our mission at Riding Emirates Inc. is to provide a reliable, timely, safe and standard bike taxi services by using the best technologies in the market and also create a landmark that will make us the king of the Bike taxi industry.
Our Business Structure
We at Riding Emirates Inc. Understand that the foundation of a structure determines the strength and it’s life span, which is why we have decided to put everything into consideration and make Riding Emirates Inc. The very best of its kind. We are also keen on building a business that will even encroach and compete with the cab taxi industry.
We hope to use our speed and uniqueness in taking over the market. We also hope to build a dedicated workforce who will make sure that they satisfy our customers. Our services we believe will be exemplary and our employees will be well trained and coordinated to cope and provide good communication skills to our customers. Riding Emirates Inc. will employ professionals and skilled people to occupy the following position;
- Chief Executive Officer
- Company Cashier
- Marketing and Sales Manager
- Customer Service Executive
- Bike Washer and Auto Detailers
- Standby drivers
5. Job Roles and Responsibilities
Chief Executive Officer
- He will oversee all other executives and staff within the organization.
- Charged with meeting with board of directors and other executives to determine if company is in accordance with goals and policies.
- He should encourage business investment.
- He will be changing promoting economic development within communities.
- Tasked with directing the organization’s financial goals, objectives, and budgets.
- Responsible for implicating the organization’s guidelines on a day-to-day basis.
- Will preside over quality control.
- Hire, train, and terminate employees.
- In charge of developing and implementing strategies and set the overall direction of a certain area of the company or organization.
- Charged with providing visionary and strategic leadership for the organization.
- Tasked with collaborating with the board of directors to develop the policies and direction of the organization.
- Will make sure that the members of the Board of Directors have the information necessary to perform their fiduciary duties and other governance responsibilities.
- Will provide adequate and timely information to the Board to enable it to effectively execute its oversight role.
- Direct staff, including organizational structure, professional development, motivation, performance evaluation, discipline, compensation, personnel policies, and procedures.
- Tasked with preparing financial reports, budgets, and financial statements for the organization
- Tasked with financial forecasting and risks analysis.
- Tasked with developing and managing financial systems and policies
- Tasked with administering payrolls
- Ensures compliance with taxation legislation
- Tasked with all financial transactions for the company
- Is the internal auditor for the company
Marketing and Sales Manager
- Charged with meeting the sales targets of the organization through effective planning and budgeting.
- In charge of deciding strategies and techniques necessary for achieving the sales targets. He is the one who decides the future course of action for his team members.
- In charge of mapping potential customers and generate leads for the organization. He should look forward to generating new opportunities for the organization.
- In charge of brand promotion.
- Tasked with motivating team members is one of the most important duties of a sales manager.
- It’s the duty of the sales manager to ensure his team is delivering desired results.
- In charge of not only selling but also maintaining and improving relationships with the client.
- In charge of keeping the necessary data and records for future reference.
Customer Service Executive
- Tasked with monitoring the locations of bikes rented by clients with our tracker software apps
- Tasked with welcoming clients and visitors by greeting them in person or on the telephone; answering or directing inquiries.
- Makes sure that all contacts with clients (e-mail, walk-In centre, SMS or phone) provides the client with a personalized customer service experience of the highest level
- Through interaction with clients on the phone, uses every opportunity to build client’s interest in the company’s products and services
- Charged with managing administrative duties assigned by the manager in an effective and timely manner
- Consistently stays abreast of any new information on the organizations’ products and, promotional campaigns etc. to ensure accurate and helpful information is supplied to clients when they make enquiries
Bike Washer and Auto Detailers
- In charge of cleaning, restoration, and finishing of all our bikes and to produce a pristine level of detail
- Tasked with handling services that involves cleaning and restoring or exceeding the original condition of the surface of the bike’s finish (usually a paint with a glossy finish), mirrors, wheels, and tires, as well as other visible components on the motorcycle
- Tasked with cleaning up after customers and clean work area.
- Also maintains a clean working area by sweeping, vacuuming, dusting, cleaning of glass doors and windows, etc. if required.
- Tasked with making sure that toiletries and supplies don’t run out of stock
- Handles any other duty as assigned by the manager.
Standby Professional Drivers
- In charge of driving, parking and re – parking of cars as required
- Runs errand for the organization
- Handles any other duty as assigned by the manager.
6. SWOT Analysis
As we all know by now, the taxi businesses is a business that can easily generate sales with little stress as long as the taxis are well positioned and equipped to carry out their services. Riding Emirates is hoping to change that perception of the industry by bring innovation and good advertising strategies to the table.
It wouldn’t hurt us to start our business without a business plan or the vibe to conduct a SWOT Analysis, but we have plans to build a successful business that will not only maximize profits but shut out the car taxi sector.
We at Riding Emirates Inc. hired the services of Maryland Consultancy and the Nicklaus Communications to aid us with a SWOT Analysis that will describe in very explicit words our chances in the industry. Below is the summary of the said SWOT Analysis conducted for Riding Emirates Inc.?
Our SWOT Analysis simply projected that apart from our innovative bikes, our strength rest on our Innovative mind set and the location of our business. San Francisco without much explanation is the home of a little of everything, a place filled with honey and the will of success. We have chosen a facility close to the Financial District’s Transamerica Pyramid which is the most inspiring and distinctive skyscraper in San Francisco.
Our major weakness according to the SWOT Analysis is simply the fact that it will take people time to elude the comfort they get from the cab taxi and patronage the two wheel taxi we provide. Also being a new business will also count as a disadvantage to us but just like it is meant to be, we are taking over and we won’t be letting anything stop us.
According to the SWOT Analysis, the taxi industry has not seen a well managed and innovative bike taxi business like what we are offering in the whole of the United States. This is vast sector of the taxi industry is now ours for the taking and we hope to do that before other entrepreneurs will be aware of the nature and expected trends in the industry.
The threat facing us is the unfavourable government policies, economic downturn and the competitive taxi business. But all these are stepping stones to our presumed greatness. Nothing good cones easy but what more can we do than to create more opportunities for our success and greatness.
7. MARKET ANALYSIS
- Market Trend
Most businesses in the taxi industry are defensively fighting to regulate ridesharing services. This is a bad idea and won’t work because more competition leads to deregulation. Just like what happened a few years ago, AT&T once had a monopoly on long distance service and was effectively regulated by the government, but when Sprint and MCI entered the market with innovative products, regulation vanished and competition in the industry ensured good service and fair prices.
This exact scenario is occurring in the taxi market. It is also important to emphasize that price is only a small component of profitability. Companies on the general taxi company hold creatively use price to focus on per trip profitability. Riders can input their origin and destination into an app and receive a customized quote that takes into account the profitability derived from longer distances (i.e., discounted prices for longer trips).
Businesses in the taxi industry also need to understand that people enjoy using their smartphones. You need to offer convenience or lose your customers. For example, Uber heightened through a combination of innovation, excellent execution, and an anaemic response from the taxi industry. We have considered this and a few more trends and we hope to do the best.
8. Our Target Market
We at Riding Emirates Inc. have conducted our extensive feasibility studies and we already know those who will benefit greatly from our service offerings and help us generate adequate profits. The demographics and psychographics of those who will enjoy the services we will be providing at Riding Emirates Inc. Cuts across all phases of life.
Taxis are major or rather daily amenities needed by all individuals ranging from the high and mighty down to school kids. Indeed all average earning families have car(s) but do the cars see to all their mobility needs all at the same time? It is a known fact that all adults and most teenagers have boarded taxis in their lifetime not putting into consideration the many times, intervals or frequency. Our targeted audience cuts across the following;
- Corporate Executives
- Business People
Our Competitive Advantage
A man standing along any Road in San Francisco, with the leg traffic and the constant passing of cabs will concur with me that the taxi industry is booming, and with success and profits comes competition. The taxi business is a competitive industry just like any known business industry in the world, it is not a business idea for an individual who is not ready to work his/her hands and get paid. Outlined below is our competitive advantage as the Uber of the bike taxi industry;
- Technology-: Riding Emirates Inc. has a unique Global Positioning System (GPS) that pinpoints the nearest driver, thus allowing the driver to give an accurate ETA.
- Credit/debit card system-: Our unique payment system will be the first of its kind in San Francisco and is convenient for both the passenger and driver because approval is given instantly. The swipe machine will be located between the speedometers of the bikes.
- Trademarks-: Riding Emirates Inc. Is very cautious of its intellectual property rights and we hope to use it against the businesses in the taxi industry.
- Advertising-: We at Riding Emirates Inc. are already in advanced talks with Access business services to provide advertising services and market research.
- Seasoned management-: Our management at Riding Emirates Inc. is highly experienced and qualified and has extensive experience in the industry.
- Strategic relationships-: Riding Emirates Inc. Ha, and will continue to build relationships with ventures that will enhance professional growth. These relationships are very important to Riding Emirates Inc. because they allow us to get updates on technology, added tech support, and a strong presence in the market.
- Exclusive rights to software-: We at Riding Emirates Inc. have the exclusive rights to the latest taxi software in San Francisco.
9. SALES AND MARKETING STRATEGY
- Sources of Income
Riding Emirates Inc. We believe is the only best venture that has what we will be offering to the state of California. We plan to build or carve out a substantial sector from the taxi industry and also dominate the taxi cab sector by offering quick and easy to access bikes. We at Riding Emirates Inc. Plan to offer the following services to generate income;
- Emergency bike services
- Leisure bike rental services
- Maintenance and repair services
- Business bike rental services
- Exotic bike rental
- Bike leasing services
- Bike sharing services
10. Sales Forecast
Riding Emirates Inc. has been well positioned right from foundation to disrupt the taxi industry. We plan to bring innovation and services that they have never seen. We are positive that in no time other businesses will want to adopt our services, but before then we must have taken over the entire industry.
We at Riding Emirates Inc. having without delay examined the taxi and rental business market and we have analysed our chances in the industry and have been able to come up with the following sales forecast. Our sales forecast was pinpointed on a three years plan and after extensive discussion with our marketing partners; we believe this goal is achievable based on what is obtainable in the industry.
We believe that our location is the best there is in the whole state of California, and our workforce and the services we will be rendering will make all these possible. Our sales forecast is outlined below;
- First Fiscal Year-: $1,000,000
- Second Fiscal Year-: $3,000,000
- Third Fiscal Year-: $9,000,000
Note: Our sales forecast at Riding Emirates Inc. was done solely based on what is obtainable in the industry and with the belief that we will overcome any possible threat that comes our way. We believe we have what it takes to drive on without much issues and complications.
- Marketing Strategy and Sales Strategy
We at Riding Emirates Inc. Believe our products and services will solve transportation needs in the city of San Francisco. We plan to even create a platform that will incorporate customers in the low to mid income range. We hope to use mailings and television advertising as our main sales and marketing concept.
These channels we believe will make sure that our target customers are reached repeatedly and effectively. We at Riding Emirates Inc. will monitor our market position through constant tracking by Accessbusiness services and Nicklaus Communications.
Access Business services and Nicklaus Communications who are our sales and marketing partners will collaborate extensive to make our business the best with a protocol we have all agreed to call ‘operation nightingale’. We have agreed that we will do the following to boost Riding Emirates Inc.;
- Make sure we introduce our bike taxi service business by sending introductory letters alongside our brochure to corporate organizations, travelling agencies, hotels, households and key stake holders in San Francisco, California.
- We will also print our fliers and business cards and strategically drop them in offices, libraries, public facilities, airports and train stations et al.
- Use friends and family to spread word about our business
- We all also Post information about our venture and the services we offer on bulletin boards in places like schools, libraries, and local coffee shops et al
- Placing a small or classified advertisement in the newspaper, or local publication about our company and the services we offer
- 900 6 a.m. – 12 a.m. commercials on a minimum of 5 networks
- Ads on the TV guide channel
- Leverage on referral networks such as agencies that will attract clients who would need our customized services
- Make sure we advertise our bike taxi company in relevant magazines, newspapers, TV stations, and radio station.
- We will also engage in relevant expos, seminars, and business fairs et al to market our services
- Engage in direct marketing approach
- Make use of referrals
- Join local chambers of commerce and industry to market our services
- One commercial in every regular season NBA game for the 2016/2017 season
One commercial in 2017/2019 regular season games at Electronic Arts
11. Publicity and Advertising Strategy
Just like we stated above, we at Riding Emirates Inc. Hope to use direct mail and television advertising to generate sales. We have employed Access business services and Nicklaus Communications to spearhead our marketing and publicity strategies which will be our ticket to the industry.
The message we propose about our products and services is cleaner, efficient, flexible, and convenient means of transportation. We also have additional promotional plans apart from letting Access Business services and Nicklaus Communications do their job, which are diverse and include a range of marketing communications described below:
- We will attend and participate in several trade shows to keep up with changes in the industry.
- We will also print our advertising program which will include advertisements in local newspapers and local journal publications like the San Francisco Magazine. Riding Emirates Inc. will feature articles on services provided in these publications.
- We also plan to have a distinctive colour that can only be attributed to our bike taxi business alone.
12. Our Pricing Strategy
Our business strategy at Riding Emirates Inc. is to build reputation and market share in our target market by building our business offering as a viable alternative to existing taxi cab services. We also plan to get the confidence of customers and create our business to be known the superior customer service they provide by using up to date technology to provide timely and reliable services.
Our pricing system at Riding Emirates Inc. is going to be based on what we know and believe is obtainable in the industry. We do not plan to keep our prices way below what is obtainable in the industry; we also plan to offer special services that will have a unique price.
We at Riding Emirates Inc. are also putting plans in place to offer discount services once in a while and also to reward our loyal customers. We will be much known in the United States as a business that has taken over without much delay.
- Payment Options
Having done our research and studies, we understand that payment options are the forces that bring a taxi or rental business closer to the heart of the people, and we hope to make use of that extensively. We will be bringing payment options that are unique and will make the payment for the service we offer very easy for our customers.
- Payment by via bank transfer
- Payment via POS machine
- Payment via online bank transfer
- Payment via mobile money
- Payment with cash
To provide all these outstanding services, we have partnered with a renowned bank in the country and we hope to make use of that relationship. Our bank account numbers will be made available on our website and promotional materials so that it will be easier for clients to make payments when necessary.
13. Startup Expenditure (Budget)
No matter how outstanding your ideas and goals might be or how attractive your business plan might be, without proper and enough financing your ideas are just like water poured on a rock. In every business enterprise fund is a big ingredient that can move a business to the limelight and without a detailed business plan; a company won’t be able to land sufficient funds from prospective investors. We have analysed the market and have decided on how we plan to spend our start up fund.
These are the key areas where we will spend our start – up capital on;
- The Total Fee for Registering the Business in Fort Lauderdale – Florida – $750.
- Legal expenses for obtaining licenses and permits – $3,000
- Marketing promotion budget for Access business services and Nicklaus Communications – $500,000
- Cost for hiring Business Consultant – $20,000
- Insurance (general liability, workers’ compensation and property casualty) coverage at a total premium – $254,000
- Cost of accounting software, tracker software apps, CRM software and Payroll Software – $6,000
- Cost for leasing standard office facility with large space for parking our bikes- $250,000.
- Cost for facility remodelling the facility- $70,000.
- Other start-up expenses including stationery – $1000
- Phone and utility deposits – $3,500
- Operational cost for the first 3 months (salaries of employees, fuelling, maintenance, payments of bills et al) – $250, 000
- The cost for Start-up inventory – $15,000
- Cost for store equipment (cash register, security, ventilation, signage) – $13,750
- The cost for the purchase of furniture and gadgets (Computers, Printers, Telephone, TVs, Credit card machine, POS, tables and chairs et al): $4,000.
- The cost of Launching an official website: $600
- The cost for our grand opening party: $5,500
- Miscellaneous: $10,000
From our detailed analysis above, we will need an estimated $1,500,000 to start Riding Emirates Inc. Successfully. It is worthwhile to note that this analysis does not include the fund need to buy or acquire Peoples cab.
Generating Funding/Start up capital for Riding Emirates Inc.
Riding Emirates Inc. is currently seeking $2.5 million of financing to fund the acquisition of Peoples cab and its initial operations. This funding will cover the purchase of peoples cab, marketing, and purchase of extra bike, software, and hardware, or rather to make it easier the above financial protection. Riding Emirates Inc. indeed is a business owned by one person and his immediate family but we expect to open a lot of doors to encouraging funding.
These are the areas we intend generating our start – up capital;
- Generate part of the start – up capital from personal savings and sale of his stocks
- Generate part of the start – up capital from friends and other extended family members
- Generate funding from angel investors
- Generate funding from Venture capitalists
Note: Riding Emirates Inc. has been able to raise $1,000,000 from the personal savings and family soft loans of Mr Donald Benjamin. We are at the final stages of acquiring a substantial $1,500,000 from our bank, and we believe that aside from our services that will generate fund, we will be attracting investors in no time.
14. Sustainability and Expansion Strategy
We also know that a taxi is often the first contact that a visitor has with San Francisco and as such, we also understand how relevant a first impression is in a business and we hope to make it worthwhile. Our customer-oriented philosophy and our commitment to service are reflected in the careful selection of drivers and the comprehensive training program.
Customers can expect the following high standards when they move with us; Clean bikes, Friendly and polite drivers, Careful driving, and Most practical route taken. The problem with most entrepreneurs in the taxi business is that they work to be like others.
Being like just another taxi company will not make you successfully and we at Riding Emirates Inc. understand that perfectly, which is why we have chosen to create a distinctive business. We at Riding Emirates Inc. have created strategic alliances with Access business services, Nicklaus Communications, Facebook, Channel E, and the NBA.
These alliances are valuable to us because they allow us to get updates on technology and added tech support, and also added advertising. All agreements come with a stipulation that if new innovation becomes available, Riding Emirates Inc. will be notified and provided with it to expand on current technology, helping us maintain a competitive edge in the industry. We at Riding Emirates Inc. Believe that our products and services will offer the following advantages to customers:
We plan to provide our driver and the customer with the convenience of a credit/debit card system that gives instant approval.
- State-of-the-art Call Centre
Our well equipped facility allows us to provide a timely service by picking up the closest bike when a call comes in. Our service process will start when a call comes in, it is put into the system, the system sends a message to dispatcher, the system then tags the closest bike in the zone, neighbouring zone, on the way to the zone, or the dispatcher can call.
- Business Name Availability Check: Completed
- Business Incorporation: Completed
- Opening of Corporate Bank Accounts various banks in the United States: Completed
- Opening Online Payment Platforms: Completed
- Application and Obtaining Tax Payer’s ID: In Progress
- Application for business license and permit: Completed
- Purchase of All form of Insurance for the Business: Completed
- Conducting Feasibility Studies: Completed
- Leasing, renovating and equipping our facility: Completed
- Generating part of the start – up capital from the founder: Completed
- Applications for Loan from our Bankers: In Progress
- writing of business plan: Completed
- Drafting of Employee’s Handbook: Completed
- Drafting of Contract Documents: In Progress
- Design of The Company’s Logo: Completed
- Graphic Designs and Printing of Packaging Marketing / Promotional Materials: Completed
- Recruitment of employees: In Progress
- Purchase of the Needed software applications, furniture, office equipment, electronic appliances and facility facelift: In progress
- Creating Official Website for the Company: In Progress
- Creating Awareness for the business (Business PR): In Progress
- Health and Safety and Fire Safety Arrangement: In Progress
- Establishing business relationship with banks, financial lending institutions, vendors and key players in the industry: In Progress