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A ride for HER GRP#5

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Management of SME & Entrepreneurial Activity
Group No. 5
Group Members
Um e Laila
Hina Naveed
Business Name: A ride for HER
Class Section: A
Semester: (Spring/fall)
Submission Date:
10th May, 2020
Submitted To:
Ms. Tania Hasan
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Table of Contents
Executive summary......................................................................................................................... 5
Industry Analysis: ........................................................................................................................... 7
Industry size, growth rate and sales projection: .......................................................................... 7
Growth rate and sales projection............................................................................................. 7
Industry structure: ....................................................................................................................... 7
Threats of substitute: ............................................................................................................... 7
Threats of New entrants: ......................................................................................................... 8
The Bargaining power of suppliers: ........................................................................................ 8
Bargaining powers of the buyer: ............................................................................................. 8
Rivalry among Existing Firms: ............................................................................................... 8
Nature of participants:............................................................................................................. 9
Industry trends ............................................................................................................................ 9
Environment trends ................................................................................................................. 9
Business trends: .................................................................................................................... 10
Long-Term Prospects ................................................................................................................ 10
Company history and Description ................................................................................................ 11
Mission statement ..................................................................................................................... 11
Products and services ................................................................................................................ 12
Current status ............................................................................................................................ 12
Legal status, ownership & key partners .................................................................................... 12
Market analysis ............................................................................................................................. 12
Market segmentation and target market selection .................................................................... 12
Buyer Behavior ..................................................................................................................... 13
Competitor Analysis ............................................................................................................. 13
Estimates of annual sales: ......................................................................................................... 14
The economics of the business ..................................................................................................... 14
Revenue drivers and profit margins .......................................................................................... 14
Fixed Cost and variable cost & Start- up cost........................................................................... 15
Fixed Cost ............................................................................................................................. 15
Variable Cost ........................................................................................................................ 15
Operating leverage and its implications:................................................................................... 16
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Break-Even Chart and calculation ............................................................................................ 16
Marketing plan .............................................................................................................................. 16
Overall marketing strategy ........................................................................................................ 16
4 Ps of marketing .......................................................................................................................... 17
Product, price, promotion and distribution ............................................................................... 17
Sales Tactics.................................................................................................................................. 17
Design & Development plan. ........................................................................................................ 18
Development status and tasks: .................................................................................................. 18
Tasks: .................................................................................................................................... 19
Challenges and Risks ................................................................................................................ 19
Product improvement and new products................................................................................... 20
Projected Development costs .................................................................................................... 20
Proprietary issues ...................................................................................................................... 20
PATENT: .............................................................................................................................. 20
TRADE MARKS: ................................................................................................................. 21
Licenses: ............................................................................................................................... 21
Brand name ........................................................................................................................... 21
Management team and company structure ................................................................................... 21
Management teams ................................................................................................................... 21
Company structure ........................................................................................................................ 23
Operation plan ............................................................................................................................... 23
General approach to Operations................................................................................................ 23
Behind the scene activities ........................................................................................................ 24
Front stage (what the /riders experience) .................................................................................. 24
Business locations ..................................................................................................................... 24
Facilities and Equipment........................................................................................................... 25
OVERALL STRUCTURE............................................................................................................ 26
Financial projections ..................................................................................................................... 27
Sources and uses of funds statement ............................................................................................. 27
ASSUMPTION SHEETS ......................................................................................................... 27
LIST OF ASSUMPTIONS: .................................................................................................. 27
Pro forma financial statements.................................................................................................. 28
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Income statement .................................................................................................................. 28
Balance sheet ........................................................................................................................ 29
Statement of CASH FLOWS ................................................................................................ 30
APPENDICES .......................................................................................................................... 31
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Executive summary
This business plan details about the launch of a ride hailing App Company, especially designed
for women. The purpose for launching a ride service exclusive for women is that women faces
my challenges while using transport services whether it be local transport service; where women
has to stand long hours at bus terminal waiting for the bus, or if it is on-demand other car ride
services available they have to pay heavy bills for their journey and problem surges if there is
rush hours and fares spike due to peak-hours extra surges.
To curtail all these problem, I and my 50% business partner came up with an idea of A scotty
ride service for women and its unique point will be that scotty riders will be female also keeping
in mind the eastern culture of our society. These rides can be called by any girl from anywhere in
Lahore, where we initially plan to launch our service, through her phone via an APP- A ride for
her- this App could easily be downloaded from IOS and play store. Further for women those
who can afford car ride services but are reluctant to share a ride with make drivers, for them we
will provide car ride services drive by women driver.
The market we chose to launch our services is Lahore city which is highly attractive market,
because of large No. of young women those who are college, university and office going.
Operating in this market is also beneficial as there are large no. of women who has developed the
trend of riding bike and Scotty, hence we would not be in-short of contract rider.
Investments for these online business are minimal, mainly expenses goes into developing an app
and advertising the business. If these fixed cost are efficiently covered, variable cost of operating
a business is less; majority of the rides will be not fueled by company but riders themselves as
company will only provide the platform for riders and customer to connect and company will
deduct 30% commission for every ride taken. This plan mentions the detail analysis of how
company will break-even its investments with minimal time of 7-8 months if things goes
according to forecasted assumptions.
All the cost are covered by two partners equally. Later when business flourishes and we plan to
expand to other locations we may call for creditors and inventors to put capital in our business.
As a start-up. We estimate that company require $22620 for the launch of the company before
the first year cash flows are generated. Out of which $19070 will spend during the set-up of the
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business and reset $3550 will be kept in account to spend throughout the year for marketing and
other expenses. We forecast that sales revenue for the first year will be around $332464 and after
deduction of all expenses company would earn the net income $254107.6.
Our forecast project Net worth is $254107.6 during first year and $279857.424 in the second
year.
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Industry Analysis:
Industry size, growth rate and sales projection:
“A ride for HER” is a ride-hailing app service business idea. To have a hint of how successful
this idea will be and its future growth we have to study how other similar business are running in
same market. A glimpse at competitors: Careem was started by Sheikh and Olsson with an initial
investment of $100,000 – equally shared between the two partners. Later, it raised to $1.7
million worth project was funded by many investors including Mercedes Benz. So here we can
have an idea that initial investment for a ride-hailing app service cost around 15million. But
careem was a project on very large scale initiating in Dubai. So our business plan will start from
small scale covering Lahore market initially. So an estimate of around ¼ of last quoted value
would be needed; that is 3 million. Initial startup cost will be high due to marketing expenses,
office set-up, and app creation expenses. Soon after we would be able to capture good number of
riders and vehicle, we would be earing service charges without any resource expenses. We would
be paying just maintenance and regular wages expenses.
Growth rate and sales projection
The average pay of drivers associate with Careem/ UBER is 25000 to 35000 which has
increased twice from previous years which reflects that each year market of ride-hailing apps is
being increased tow-times. This is a good sign to initiate a business in growing industry rather
than saturated industry. As looking at these figures we also expects the growth rate of 2 times
annually after a market of this changed trends establishes.
Loss in these e-cab business is pretty less since they doesn’t own any of the cars and the drivers
are not employees. They just offer them a platform. The whole business model is based on the
concept of asset-utilization. Most of the budget goes in the fleet of drivers and on vendors. By
fleet, it means fleet acquisition, onboarding, and training, optimizing captain-earnings, building
captain-support, and building captain-loyalty. To provide unparalleled transparency to the
captains; to have a 24/7 active team dedicated to solving issues of drivers and customers.
Industry structure:
Analysis of competitive market of local and public transport involves a deep look at Porter’s five
forces Model. A successful porter’s analysis let us determine the profitability of business in this
industry. A general approach to determine the industry profitability is to find our “Average rate
of return” on investment we make in business.
Average rate of return= Net-income/ Total assets
A business which uses the minimum resources and make good net-income is earning good net on
investments.
Threats of substitute:
An industry where many firms are providing same services / product is inevitable to threat of
substitute. A substitute firm is one when customer can switch from one firm to other very easily.
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If he finds one firm’s service/ product is not available or one price is high he easily switches to
other firm without a second thought. Our chosen public conveyance industry is already
concentrate with incumbents like; Uber, Careem, Shahsawari which are direct competitors. There
are many indirect competitors like; Airlift, SWVL and government provided local transport
service (HOV, LOV). Surviving in the concentrate industry like that require unique competitive
advantages, which limit customers from switching to competitors. The competitive advantage in
transport industry can be lower unit cost, quality of service and safety of the service. The
competitive advantage of “HER” service is female bike, sooty and car drivers, which allows
female customers to enjoy cheap and safe bike rides.
Threats of New entrants:
An industry where new firms can easily come in and open up their business is not very much
attractive industry. There must be moderate barriers to restrict the entry of new entrant .A high
barrier industry have incumbents that operate on economies of scale, can give unit cost of
service/ product very low , which make survival of new firms very hard. In Lahore, transport
industry is inevitable to threats of new entrants, every other day new firms appears. The
profitability of industry is high dependent upon government taxes, petroleum rates. Incumbents
are earning good profits because of cost advantage they have, so new entrants must come up with
different and unique idea so that customer are ready to pay comparatively little more. As “Her”
service sooty and bike rides can cost little more than bike rides of Uber but those rides are solely
for male; Female are helpless but to travel through expensive car ride.
The Bargaining power of suppliers:
Suppliers includes all the intermediaries and resource providers that make it possible for the
firms to successfully do their business. Our suppliers are drivers, vehicles lend by people to be
used. Since there are many potential female drivers and bike riders in Lahore and changed
culture of our society. Possibly we will have potential suppliers so that our business will not be
exploited by limited suppliers. Business those have limited suppliers can get easily exploited by
their suppliers and resultantly loss their profitability.
Bargaining powers of the buyer:
Buyers are the main source of the firm profitability. The firms with limited number of buyers,
customers can easily stop using the service of the firm and rather themselves enter into supplier
industry. An industry with standardized product/ services which customer cannot find elsewhere
have less bargaining power of the buyers. Possibly customer cannot find cheap female bike ride
service elsewhere, so bargaining power of the buyers is fairly less.
Rivalry among Existing Firms:
An industry where there are many competitors, no balance between competitors, less
differentiation between firm’s services and slow growth rate in an industry. Rivalry among firms
is not for profitability in the industry. Differentiation and low fixed cost firms are less inevitable
to involve in firm’s rivalry.
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Nature of participants:
One should know who else sells in your market .You can’t easily describe a type of business
without describing the nature of the participants. Some industry have few big firms serving in
that industry, these big giant consolidate the small new entrants appear in that industry. So an
industry with big leaders serving is hard for firms to survive unless they come up with some
unique features to it. Transport industry in Pakistan is very concentrate, as mentioned before.
Following are participants serving in Lahore transport industry:



Local private transporters; Auto-Rickshaw, Taxes, Vans
Government local transport: Speedo buses, LOV, HOV, metro buses
Transport companies serving: UBER, CAREEM, DAEWO-CABS, SHAHsawari
Key success factors:
Transport industry is overall very attractive industry in Lahore division. Possible reasons are:
1. Lahore have high number of migrants those who have come for studies, job purposes.
This has considerable increase the demand for transport service
2. Increase in petroleum rates that people find it expensive to use their own vehicles
3. Increase in female migrants to Lahore for studies and job purposes, resultantly
increase the demand for safe transport service by women
4. Women have recently become more independent , increase trend of women towards
driving and surprisingly towards bike riding
5. Increase use of smart phone and easy excess of people to mobile apps to call the
conveyance rather than to hail a taxi.
6. Internet-linked transport services have bills calculated through fixed standards rather
than self-employed driver those charge fair of their choice unless they face close
competitor near-by
7. Public buses and Mini-buses have their fixed stops, so one who has to go further
away from that fixed stop would call for a ride to drop them to doorstep
Industry trends
Another aspect to examine carefully before opening up a firm in an industry is to deep study its
Environmental Trends and Business trends.
Environment trends
The strength of an industry often surges because of environmental trends shift in favor of product
and service sold by firms in the industry. Transport industry have favorable social trends,
especially if we talk about giving transport facility particularly to women. Women in Pakistan
society were reluctant to use taxi and other local transport previously and especially if they have
to try alone. But ride-sharing app services was the promise of empowerment for many women –
predominantly those working long hours outside the home – who tended to avoid public
transport over security concerns. Women are more comfortable and feel secure to travel alone
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thanks to these app-rides. So we come up with business idea to exploit the change social trend of
women and indeed increase demand of the women for cheap transport service. Technology
trends also favors the business idea of “Her” transport service. As everyone has excess to smart
phone and they can easily use their mobile phone to call a ride anywhere anytime. Lack of a
respectful public transport system, growth in smartphone penetration with the arrival of 3G/4G
services, and a young population increasingly moving towards ‘on-demand services’ such as
Netflix and Airbnb meant there was more than enough room for ride-hailing apps .Political and
regulatory changes must be seen before entering an industry, Government has imposed 5%
taxes on app-ride services which is a drawback. Scotty and bikes for women are new product in
Pakistan market, so currently these are not charged much. Even government are giving Scotty to
women on low installment rates to encourage women to use cheap alternative source of
conveyance. Hence economic and political trends favor business idea of “a ride for HER”
transport services.
Business trends:
Ride-sharing app services are dependent on multiple resources that are particularly outsource,
owner and managing team of the company act as intermediaries connecting driver with
passenger. Hence recently firms in this industry have increasing profits trends because more and
more people are connecting themselves with these ride-sharing app to earn themselves
alternative to job good amount of income. Drivers earn good amount of income while
intermediates (owner of the services provide) earn services charges without any resource (fuel,
car) cost of its own. Online business requires limited need of big offices and not too many
employees except good IT-teams so business trends are always in favor of these online app
businesses.
Long-Term Prospects
Many ride-haling apps are emerging every other day to call for rider to provide pick and drop
services and all delivery services. This industry has still some space but soon it will be
concentrated and be no more an attractive market to invest it. As competition will rise and
distribution of profit will be spread out between different services providers, each earning
minimal earnings. Our business idea though serve in this same ride-app industry but has
competitive advantage that is unique to “a ride for Her” services. That in particularly focus on
the niche market of women, who are still unable to avail the advantage of cheap bike rides for
daily travelling. Bike/scotty rides cost comparatively half the price of the mini car services.
To sum it up, long term prospectus of our business idea is to exploit new markets in different
cities of Pakistan; big cities like Karachi Islamabad where there is high ratio of working and
college going women. Also in future, we aim to train our own women drivers and bike riders so
we are not in-short of resources we need for our service. This idea will open up job opportunities
for many women who want to support themselves and work shoulder-to-shoulder to men; hence
a socially and economically beneficial idea
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Company history and Description
In the modern world with the changing trends each day the mindsets of the people have also
altered. We live in a world where people especially females go through a lot of hardships every
day. I being a girl myself have experienced some serious transportation and security issues as
well. We hear a lot of cases of girls being harassed by the uber/ careem drivers every other day,
my friend’s sister being one of the victim. He reported that his sister was travelling in an uber
and the driver harassed her and to avoid any hassle with the police they did not file a report
either. Recently I faced a transportation issue due to the lack of budget, men these days are
offered a motor bike option by Uber and for the same route the car service charges triple as
compared to the bike service. And due to the similar issue I had to walk home. After a fruitful
conversation with a bunch of my friends’ one of my friend; Umme Laila reported that she has
faced similar issues. We conducted surveys through questionnaires and personally interviewed
different categories of females. By doing so we discovered a new market gap in the
transportation industry. Targeting this niche was something that would benefit a lot of female
citizens in our country. To terminate the fear factor we decided that are unique selling point
would be “females being the drivers”. But for that this service being in our country; Pakistan
there would have been a lot of security issues. To overcome this problem we had something in
mind e.g. introducing the help line a tracking system and mini headquarters near every offices
and also for the physical security we will provide the Scotty drivers a helmet which also
overcome the problem of “hijab” in our country. We sale the share in stock market to earn the
capital. Surprisingly we got handsome amount of money to start this business. My sister being in
a transport business. She offered us a range of customized Scotties that also became our unique
selling point. However initially buying only 20 cars on lease by the capital and started the trail
of our company and took the feedback of the campaign “a Female driver for a female rider”. We
got good response hence we decided to dwell an app and marketed through with social media
and hired a celebrity as our company ambassador as took an initiative to support to this new
project. In a modern day female drivers driving a Scotty or a car is not consider a big deal hence
many women took an initiative and joined the training session for this business. And after all this
our company “Her” came in to being.
Mission statement
“To bring the transportation for her everywhere & to build a secure organization that inspires”
As our mission statement also states that our main purpose is to provide a safe transportation
service to all those women in need out there and also to provide a new employment opportunities
for them. Moreover this in order to be successful this our motto is to provide a saver working
environment that would set an example for all other companies operation out there and also to
encourage women empowerment.
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Products and services
Our service is a service that provides all the females out there to enjoy a safe and friendly ride.
“A ride for HER” is a service that involves downloading an app “Her” that connects a female
rider with a female driver, also this service requires all the details of the ones who signs in into
this app. The scotty service being the unique selling point is the service that provides a ride on
the low prices as compared to the car service which is similar to the bike service provided by the
well-developed companies ie. Uber. Our services will also include calling security at one call and
a helpline that would connect the passengers and the driver in need to the security.
Current status
This project has currently started on a small scale and is still in progress. Currently marketing
campaigns have being held and in order to expand and also to progress and expand into
international market we’re seeking more investors to invest within our country.
Legal status, ownership & key partners
 Legal status: private limited company
 Owner ship: owned by both the partners with a ratio of 1:1
 Key partners: Umme Laila & Hina Naveed
All the profits and losses are shared by both of the partner along with all the responsibilities and
all the management and other expenses.
Market analysis
The taxi market is expected to show an annual growth of 9.22% and it is a highly competitive
market. In Pakistan in recent years there have been up to more than 50% online ride bookings
among the taxi users. Uber and careem has already captured a big share of Pakistani market.
Though there are many small players in the market swvl and airlift concentrating on specialized
market segment. Increasing the market share and providing more specialized and customer
focused services.
Market segmentation and target market selection
Interesting fact is that almost 35% of the passengers using the online taxi service are females and
since there are no specialized bike service for females and due to our social customs females
cannot use motor cycle rides which are less than half the price of the car rides due to the male
drivers.
“A ride for HER” will focus on this market segment with an aim of providing low cost
specialized rides for females with female drivers. The trend in females for bike riding is
increasing in Pakistan. Government is also promoting female bike riders and many bike
manufacturers are also making exclusively designed bikes for females with a wide range of
colors, designs and technological features.
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Transportation is a major problem for many females especially in big cities kike Karachi. Where
government has not provided enough public transport facilities exclusively design facilities for
females. 50% of Pakistan’s population consists of females and therefore focusing this neglected
market share would be a great opportunity to explore this market gap.
Female riders seems to be very excited about launch of such an online service that not only give
them opportunity for extra earning while going to their own destinations with a very little or no
extra cost of providing this type of service. But this type of service would only focus three major
cities in the beginning that are Karachi Islamabad and Lahore only.
Buyer Behavior
Female would 100% prefer a female rider than travelling with a male riders as starting analysis
shows. The would also be more interested in this service because it would cost them 40% less
than a car ride to ride a bike with a female driver along with trust safety and confidence.
Not only female travelers would prefer such female bike rides but also their families would be
more relaxed and confident while they would be using such a ride.
Competitor Analysis
Competitor Name
Strengths
Weaknesses
UBER
A long established
business with a
wide experience of
this type of market.
Operating as a
multinational
business.
Very strong
advertising on
social media
Part of a large
international
business venture
Large amount of
finance is available
Threats to Us:
Competitors are
well established in
terms of availability
No focus on market
segmentation and
providing
specialized services
to particular market
segments
Careem
Ride for HER
No market
segmentation
Opportunities for
Us:
Can be successful
as being the pioneer
Unique Selling
Point
Friendly and well
established app
Market leader
Strong Brand name
and brand loyalty
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of finance and
market experience
and exposure and
can jump into our
market segment
for providing
exclusive cab
service for females
being managed and
operated by females
Estimates of annual sales:
Company would charge 10% from the rider per kilometer and a fix charge of Rs 20 per
ride. There is an estimate that in first year there would be 100,000 kms of ride and a total
100,000 rides per year.
10% of 100,000 [email protected] PKR5/Km
100,000rides @ PKR 20 /ride
Earnings for In-app adds
Total Revenue
PKR 50, 000
PKR 2,000,000.
PKR 50, 000
PKR 2, 000, 0000.
Thus business would have a market share of 2% in first year of its operations.
The economics of the business
Revenue drivers and profit margins
This ridesharing mobile app connects riders with drivers in just a couple of clicks and charges
the rider’s credit card automatically. No cash or currency is exchanged in the vehicle.
This business model is a more convenient and affordable way to get around than a traditional taxi
cab. Plus, it’s a way for drivers to earn some extra money on the side, while driving their own
vehicles. “A ride for HER” connect riders with drivers and take a percentage of all transactions.
But at the end of the day, “HER” is just a mobile app. Users download it from the Apple App
Store and Google play store.
App will connect the rider with the customer. Once the trip has been done, software will credit
the rider account with 75-80% of the fare amount and rest 20% will go the account “HER”
business account.
Base driver revenue is determined by a fare structure similar to that of a taxi, with a fixed
minimum fare and variable pricing based on time and distance. However, at least three other
factors may change what a driver earns: A) fare multipliers which raise prices in real time based
on supply and demand of drivers, B) pooled rides in which a driver makes multiple pickups and
drop-offs in a single route, and C) elaborate bonus structures which offer drivers either reduced
commission or cash bonuses for driving longer hours. On the cost side, drivers must bear all
expenses associated with vehicle operation including depreciation, insurance, maintenance,
repairs and fuel, which may vary widely from driver to driver or vehicle to vehicle.
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Hence, there are high profit margin as company is not consuming any asset (petrol, vehicles) but
just earning service charges to be an intermediary.
Transportation network company operators know exactly what they pay each driver, but they do
not know whether drivers earn additional wages from a competitor and they know nothing about
what drivers actually spend to operate their vehicles.
If the App gets popular, company may earn extra money through app by running paid
advertisement on the App.
Main revenue drivers:


Encouraging rider to cover a set number of ride target per day. More rides are taken by
the rider more profit does the company earn. Offer bonuses for the riders who fulfil the
set target of ride.
Revenue earned by running advertisements on the app.
Fixed Cost and variable cost & Start- up cost
The business’s initial set-up cost is high in comparison to running cost.
Set-up cost comprises of:




Fixed Cost
Building a simple App for the business= $2000 to $5000
Setting Up an office in commercial plaza rest = $700/ month
Initially to encourage the female to join us as drivers we may have to give them bike/
scotty on rent
6 Scotty/ bike cost= $700*6 = $4200
Employees’ wages cost (Call center representative, for maintenance) = $260/ month
Legal cost to set up partnership business= $350
Total fixed cost = $19070



Variable Cost
Marketing of the business (Advertisements, online marketing) = $1400
Annual 5% sales taxes paid= $2500/ year
Total Variable cost = $3900/ year



It is important to note that these variable cost are depictive of 1 or 2 year of running the business.
Later when our business will be strongly established our


Marketing expenses will be less to be three- fourth = ($1400*3)/4 = $1050
Total variable cost will be= $3550
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Operating leverage and its implications:
Operating leverage is a cost-accounting formula that measures the degree to which a firm or
project can increase operating income by increasing revenue. A business that generates sales
with a high gross margin and low variable costs has high operating leverage.

Operating leverage = Fixed cost/ Total cost.
= 19070/ 3550+19070 =84.3%
Our business has high operating leverage, as we have initial high fixed cost but as business
continues to grow variable cost increase but that is very small in comparison to fixed cost.
It means we can cover our fixed cost by increasing our sales of services without increasing too
much of the variable cost.
Break-Even Chart and calculation
Break Even Analysis in economics, business, and cost accounting refers to the point in which
total cost and total revenue are equal. A breakeven point analysis is used to determine the
number of units or dollars of revenue needed to cover total costs (fixed and variable costs).
Formula for Break Even Analysis
The formula for break-even analysis is as follows:
 Break even quantity = Fixed costs / (Sales price per unit – Variable cost per unit)
If we apply this formula to our business model.








Total number of vehicle in Lahore city= 50
Each vehicle cover target rides of= 7/ day
Estimate Earnings per ride by driver= Pkr 200= $1.32
Total revenue earn by driver= 1.32*7 = $ 9.24
Total revenue earn by Company= $9.24 *0.20 = $ 1.848/ day
Total revenue earn by company per month= 1.848*30*50= $ 2772/ month
Total revenue per year= 2772*12= $332464
Break Even Quantity= 19070/332464-3550= 0.65 year= 7.7 month (8 months)
Marketing plan
Overall marketing strategy
In order to be successful in the market by earning sufficient revenue and by gaining competitive
advantage over the competitors it is important to see who are the customers that we are trying to
cater are and what is the target market. After conducting an industry analysis using helpful
framework of analysis an efficient marketing plan needs to be developed. Not only wisely
selecting the target market is important in-fact it is important to keep in mind that what will
actually attract the target customers both in the short run and the long run.
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The segment that we are targeting are basically women and mostly the students and the working
women. We already have strong internationally developed competitors in the market such as
Uber and Careem. However the target market that we are targeting is the niche within the car
service industry. As a successful strategy in order to attract the target customers be it the females
we have introduced the female drivers as after the research we found out that woman drivers
being our unique selling point will target a lot of customers as so many females don’t get the
similar benefits as the men. Scotty rides are also one of the USP as men are offered bike services
in the 3X cheaper price but now onwards there will be no such discrimination.
The success of the business depends on the position that the product or service occupies in the
minds of their consumers.
Marketing tactics we are planning to follow:




Advertisement: Extensive advertisement on YouTube, Facebook and Instagram pages.
Also pamphlet in newspapers will be distributed
Colleges and universities promotion will be done by conducting shows and direct
marketing to students. Especially in only girls colleges and universities e.g. Kinnard
World-of-mouth marketing:
Cobranding with multiple brands can be done, especially brand relevant to girls ; pads
brand, make-up brand
4 Ps of marketing
Product, price, promotion and distribution
Our product is the car service, a ride hailing app that connects the rider and the passenger
everywhere and anywhere. Female drivers and scooty rides being the unique selling points offers
great advantages for the females such as the cheaper rides on the scooties which was not
previously available for the females whereas men enjoyed the advantage of the cheaper bike
rides and females restricted themselves due to the male drivers.
The promotional strategy that we are catering is advertising through the social media E.g.
Instagram, Facebook, snapchat and YouTube. Word-of-mouth would be our key asset for
marketing service, as satisfied customers would convey positives review of our services to their
friends and family.
There is not such distribution channel as the location depends on the need of the service need
wise. Lahore is the destined location where we plan to operate initially.
Sales Tactics
A sales tactic is any action you take to put your sales strategy into action. It is how you deliver
your message to consumers. For example, creating business brochures or a website and
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generating leads are tactics. Whereas strategy explains your purpose, tactics show the process
you use to move forward.
Our strategy is too have 35% of customers in our target market of Lahore within one year. To
achieve this strategic goal with need to develop certain sales tactics and work on it to accomplish
them
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Firstly we need to appoint large number of riders on contract so that there is minimum
weight time and customer spread positive views about our brand compare to other
competitors
Resolve customer complaints as quickly as possible, and make sure their problems don’t
arise in future, in this way we can improve our services and attract more customers
Listen patiently and calmly to sometime aggressive customer complaints, this helps in
growth of company
Offer discount on routes where there are minimum no. of rides are called.
Loyal member cards, coupons are offered to customers those who often use the service
Offer option so they may pay on cash as well on the card and can add balances in their
accounts,
Update your app as new ideas comes into mind, and promote innovative culture in your
company so that employees good ideas could be put-in the business
Design & Development plan.
The purpose of the design and development plan section is to provide investors with a
description of the service/product's design, chart its development within the context of
production, marketing, and the company itself, and create a development budget that will enable
the company to reach its goals
Development status and tasks:
A ride for HER is in its beginning development phase. After we have finalized the target market ,
customers we are going to serve , competitor analysis have been done and possible economics of
the business ( profits, breakeven cost) has been found out, next step is to take initial steps to put
the plan into action.
Following bullet points need to be covered in development status and tasks
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What is the current status of your product, and what needs to be done before it is
market ready?
o Current status of service is that its idea has been properly grasped by the founders
and their employees. Target market and customers have been found out. An
application to be downloaded from IOS and android app store is in its completion
stage
o We have to now attract the female contractors those who will be registered under
our brand name and provide ride service to our customers. A complete data base
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of our contractors needs to be developed so that we can share that information
with our customer as they call a ride for their safety and comfort.
o Extensive marketing and promotion of our service needs to be done so that it
becomes a house hold name in ride hailing app industry
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1.
2.
3.
4.
What is the estimated amount of time to complete each phase or task? (State the
time in hours, days, or months, not elapsed time.)
o If ever thing goes fine, no uncertain mishaps occur e.g. corona-Virus Lockdown,
political unrest, it would take around 1 month and 10 days to be exact to complete
the above mention tasks and make the service available for the customers.
o Marketing of the service would be continuous process and will done on side-byside to reinforce the brand in the minds of the customer.
Will you need any special engineering facilities or capital expenditures to complete
your product?
o We will be needing IT-engineers expertise to develop a user friendly app for our
business. And train our employees to troubleshoot any technical issues if occur
and to update the app to add-in new features according to the need and advances
in the company.
Tasks:
Develop an user-friendly app and make it available for customer to download from IOS
& google-play store
Advertise for female riders contractors to offer their vehicle and ride services for our
company customer. And sign contract with them
Marketing of the business
Start the business by acting as intermediator party connecting the customer and riders
Challenges and Risks
Any business when comes into operations it has to face multiple challenges and risks which
includes threats from competitors, new entrants, risk of getting default bankrupts, what if
expenses exceed than predicted sales. So a successful business need to anticipate the possible
future threats and how to overcome those risks.
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Do you anticipate any problems in the design and development of your
product? How will you overcome these?
o First hurdle that needs to be overcome is to get our business marketed as soon as
possible before the business idea is copied but big fishes in the market like uber
careem. For that we need to extensively publicize our company on YouTube,
Facebook pages, through word-of-mouth and in the future look to buy mega-tags
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from google to appear on the top of search results of google if someone types for
a ride service.
Have you looked into patents, licenses, trademarks, or copyrights for your
product?
o Other Possible difficulties in the design and development of the plan is looking
for the trademarks, logo for the app, name of the service that is unique and cannot
be claimed to be copied from another brand. For that we need an extensive
research on the google to check for unique name. After we have finalized the
name we have to get it registered as partnership in SECP and get company name
registered. “A ride for HER” was unique name that we have chosen for our
business
o Since it’s a unique idea in the history of Pakistan, we can also claim for a patent
to protect our business from being copied for some years if possible.
Product improvement and new products
As it will take time to influence the psyche of the Pakistan society. Our target market of Lahore
is advance in a way that we see many women riding the bikes on the roads. But leveraging on
this change by utilizing it in a business ideas needs further influencing the target customers.
Once the market becomes established, our next step will be to further enhance the business.
From serving sooty ride to our customers we will serve them car service with female riders.
Further if the business goes smoothly we may provide luxury car ride services to our customer.
Projected Development costs
Development cost of our business idea mainly comprise of 1) App development cost 3) renting
out an office 2) marketing our business 3) salary cost of IT employees, employees for
maintenance of offices.
o As has been mentioned in economic analysis of the business initial fixed cost for
development of the business is around Total fixed cost = $19070
o With added on marketing cost for the service before the launch of the service = $ 600
o Total cost for the product development equals to $19670
o But at the beginning founder (us) has to have the cash more than required amount
with contingency of 20-30% to avoid any trouble in cash flow.
Proprietary issues
PATENT:
Since our business idea is a unique in the history for Pakistan we are planning to apply
for patent in the near future, so that we can solely work on this business idea and earn
reasonable profit before “big fishes” like UBER. CAREEM take-on our idea.
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TRADE MARKS:
This is the logo and trade mark that will be reserved for our
business. This logo will appear on the ride hailing Application of our company. We have
to get our trade mark registered under The Trade Marks Registry (TMR) which is
subsidiary of IPO (Intellectual property organization of Pakistan)
Licenses:
We must take license from the government and SECP to practice our business smoothly.
Further we have to issue licenses for the drivers, who can work under our business name.
To capture the license:
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Rider must be trained and have 2 to 3 years riding experience
Must be female of age more than 21 years or so but less than 55.
Rider must be properly weight not too much fat so that there are enough
space for the customer to sit and bike doesn’t lose its balance, however
there will not be such condition for the car drivers.
Brand name
We will register our company as partnership with brand name “A ride for HER” under
partnership registration firm. We will sign a partnership deed, with 50-50% profit and loss
sharing between partners
Management team and company structure
Management teams
A management team plays an important role in the success of the business as it consists of a
group of people who deal with the different departments within the company each one with a
specific skill required for a specific requirements. The management teams vary from business to
business. As for our business which is a transport service run through a car hailing app which
connects the passengers with the riders would have a completely different set of management
teams most important being the IT team as our business majorly depends on the technology.
HER does not consist of Board of directors as it comprises of a partnership.
A ride for HER was funded by the two partners which are as follows:
1)
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Hina Naveed (Founder)
Current status: Masters of Business administration
BSc. Business Administration with marketing
Experience in dealing with business projects in family business
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2)
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-Deals with the marketing department in HER
Ume Laila jatoi (Founder)
Current status: Masters of business administration
Chemical Engineer
Previously experienced in this field
Dealt with marketing projects with Shaukat Khanam
-Deals with operations department in HER
The management team also includes:
3)
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Ibrahim Rauf
Current status: BSc business administration with economics and finance
Studied IT subjects in Alevels
Experienced in graphic designing
Dealt with marketing project with HR consultant PAK
Has sufficient knowledge for app and web development
-Deals with the App development which is the main component of our business, also
deals with the customer feedback and queries.
4) Saanya Tanveer
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Current status: Master of business administration
BSc. Business administration in finance
Experienced in working with bank Al Falah and State Bank of Pakistan
-Deals with the finance department in HER
5) Nasrum Nisar
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BSc. Business administration with Human resources
Has experience in this field
-Deals with the HR department in HER. Recruiting selection and signing the contract
with the drivers comes under his duty.
Our business majorly revolves around the availability of the drivers especially the signing
contracts with female drivers. He will make sure that the females who volunteer as drivers as
safe and do not face any difficulties.
We have different headquarters located I different corners of the city and helplines are provides
to both the drivers and the passengers booking the ride as their security matters for our business
to be successful. Trackers are installed in every vehicle that we allow to enter the business as it is
our top priority to make this business a safe platform for both employees and the customers
The major decisions are made by Ms. Jatoi md Ms. Naveed such as those related to budgets,
finalizing the new advertising strategies, Marketing campaigns, sponsorship, hiring hew drivers
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and signing contracts with them. We personally deal with training of the drivers and taking
driving tests and checking their licenses. We make sure that there are no legal barriers in the
future. On the second level of the hierarchy come the heads of human resources, finance
departments and the IT department run by Mr. Rauf, Ms. Tanker and Mr. Nisar respectively.
They make sure that that the departments under them are running properly. There are no heads
for operations and the marketing department as they are under the founders themselves. Then
after all the heads come the supervisors that deal with different things that come under their
departments. Human resource department deals with the drivers, their salaries, healthcare, shifts
and long term or short term contracts. And finally at the bottom of the hierarchy come the
maintenance workers e.g. sweepers, guards etc.
Company structure
Structure tells briefly who report to whom.
Operation plan
The operations section of your business plan is where you explain – in detail – you company's
objectives, goals, procedures, and timeline. An operations plan is helpful for investors, but it's
also helpful for you and employees because it pushes you to think about tactics and deadlines.
The strategy plan deals with the mission of the business, what is your business plan to achieve,
while an operational plan outlines the steps you'll take to complete your business mission.
General approach to Operations
Operation plan can be divided into two portions, “backstage” or behind the scene activities and
‘front stage” or what the customer see and experience.
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Key back stage and key front-stage activities of our business idea are as follows.
Behind the scene activities
1. Selecting our riders on contract
2. Developing and upgrading “ridehailing APP”
3. Relationship with our contractors and
division of rides-charges between
contractors and company
4. Relationship with our if-any future
investors and government
5. Marketing of the business and to
achieve goals of target no. rides
6. Relationship with suppliers of rides
which company own and give to riders
on contract
Front stage (what the /riders experience)
 Experience of comfortable and inexpensive rides
 Customer service and 18 hours call
center service to help solve the
customer query
 Access to application: to call the ride,
keep track of rider location, see driver
profile and choose the driver and ride
 Head-offices visit
 Brochures, pamphlets and all
advertisements published for
marketing
 Feedback and ratings
Business locations
Deciding of the business location is very crucial for any business. Many business earn a great
deal of the profits because of the prime location they had chosen and on the other hand many
good business ideas couldn’t do well because of the location and target markets they have chosen
are not appropriate.
Prime reason for choosing the Lahore as first business location to operate business are as
follows:
 Availability of the riders:
Lahore is one of the major and busiest cities of the Pakistan.
Mentality of Lahori people are broad compared to other cities as
later have people with conserve mentality. We see many women
riding bike and Scotties on roads, hence we believe we will not be
in-short of riders if we operate our venture here.
 Availability of Customers:
In Lahore, there are many universities, colleges and employment
opportunities. Students and employees especially female comes
from all over the Pakistan come to Lahore to pursue their studies
and majority of them are hostelite and feel and immense need for
an in-expensive and safe on demand transport services. I can claim
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this with 100% percentage certainty because I can relate this being
a hostelite for 6 years and counting.
 GPS services
Lahore enjoys fast 3g and 4G internet services hence GPS runs
smoothly and connection between rider and customers can be
easily made and locations can be easily tracked.
 Concept of the business
The ride-hailing app is already working in Lahore under many
competitors e.g. uber careem. So launching this business would be
easy in Lahore compare to other locations since marketing cost
would be less.
We plan to expand the business to other locations with similar facilities available like Karachi,
Islamabad and Faisalabad as business grows.
Facilities and Equipment
This section of business plan is important as it tells about what are facilities and equipment
needed for your business and how will you obtain these facilities , either buy it or lease it .
Among the most crucial facilities needed for the business are
1) Space rented out to make the head-office of the company. Head-office must be located in the
commercial area of the business.
2) Company owned Scotties bought from the suppliers are equipment’s
3) User friendly application is the most important weapon of the company, on the basis on it
whole concept of the business has been established on. So company must develop the app and
obtain the license of it to work smoothly without any legal issues.
4) As mentioned above, our riders will be outsourced, they will provide ride services to the
customers and they will earn around 70% of the ride and 30% of the charges will be earned by
the company. Hence our riders are not our employees, we are not bound to pay them salaries.
They will earn more if they have more no. of rides per day and this will profit the business
proportionally.
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OVERALL STRUCTURE
The Idea of a ride service solely for women conceived in the mind of Hina Naveed when she
attended a cycling race in her old college. She conveyed the idea as a business concept to me and
we formed a 50% partnership business. Following are important steps in establishing of business
1. Idea conceived
2. Formation of partnership in one month time
3. First and foremost important step was taken to give a contract of establishing of the app
to an IT-tower Lahore.
4. Next step is to look for sponsors those can provide us scotty on discounted rates for that
we contacted a friend of our who does business in imported scotty
5. Finally some vital step of advertisement for the female riders would be given
6. This will take us 4 months period to finalize the appropriate riders and to sign contract
with them.
7. Company will start to launch business on Aug-2020 with a mega event organized. We
plan an event of bike riding race for women. And girls will be given invitation through
Facebook event page, colleges and school. Winner will be some prize. We will look for
sponsors from brand like Always, make-up city to conduct the event. This will play the
major role in company publicity
8. Finally hopefully company will provide its first ride service through APP on September.
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Financial projections
Financial projections use existing or estimated financial data to forecast your business’s future
income and expenses. They often include different scenarios so you can see how changes to one
aspect of your finances (such as higher sales or lower operating expenses) might affect your
profitability.
If you’re starting a business, financial projections help you plan your startup budget, assess when
you can expect the business to become profitable, and set benchmarks for achieving financial
goals.
Startup business owners often wonder how to create financial projections for a business that
doesn’t exist yet. Financial projections are always educated guesses. To make yours as accurate
as possible, do your homework and get help. Use the information you unearthed in researching
your business plan, such as statistics from industry associations, data from government sources,
and financials from similar businesses. An accountant with experience in your industry can be
useful in fine-tuning your financial projections. So can business advisors such as SCORE
mentors.
Sources and uses of funds statement
Our business idea is being with small investments and main source of funding is done by
founders themselves.
Capital is being used in
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Making of the App
Renting out an office
Advertising the business ( looking for riders and customers both)
Hiring management team and their salaries.
Estimate cost for all these expenses is around $ 22620 for first year. Each of two partners will
pull in 50% of total expense required.
ASSUMPTION SHEETS
All financial projections are based on business plan assumptions. It is important to consider
some assumptions that might affect our financial statements in future and their number vary from
what we have stated in the business plan.
LIST OF ASSUMPTIONS:
Sales and marketing
 Demand for the ride will rise with the changing mind-set of Lahore society
 More number of female riders
 Economy of the country remain stable
 No political unrest or any martial law
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Increase in No. of college going and university going female students
These above mentioned forecasted assumptions will have a very positive effect on the sales of
our services hence increase company profitability.
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Inflation and foreign exchange
No drastic change in inflation rate
No pandemic disease will spread out
Improvement in Pakistan economy is expected
No recession is excepted , people will spend money
Tax rates will stay constant, no too much taxation on transport industry
Pro forma financial statements
We prepared the financial statements of our future business using the data from the financial
statements of our competitor brand.
Income statement
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Balance sheet
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Statement of CASH FLOWS
Ratio Analysis
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APPENDICES
https://propakistani.pk/2018/05/24/uber-is-raising-600-million-at-a-62-billion-valuation/
https://www.uber.com/en-PK/newsroom/uber-in-the-economy/
https://www.geo.tv/latest/232303-pakistan-is-one-of-ubers-fastest-growing-markets-ceo
https://shopsy.pk/scooty
http://www.incorporation.pk/partnership.html
https://propakistani.pk/2019/06/28/sindh-adds-a-5-tax-on-careem-uber-and-other-ride-hailingservices/
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