AMERICAN COLLEGE OF
TECHNOLOGY
Rideshare company proposal
Prepared By
1.Akililu Shiferaw
RMBA294/21A
2. Abel Ehdego
RMBA399/21A
3. Birhan Girma
RMBA301/21A1A BA
4.Sifen Dinkesa
RMBA315/21A
5.Yordanos Amsalu RMBA 406/21A
Submitted to Dr Temesgen
April 2023
Table of Contents
Part II .............................................................................................................. 1
Body ................................................................................................................ 1
1.
Background of the Project ............................................................................. 2
2.
Project justification....................................................................................... 3
3.
Project activities ......................................................................................... 3
4.
Project Goals and objectives ........................................................................... 4
5.
Intended beneficiaries/target groups ................................................................. 4
6.
Outputs/outcomes of the project ...................................................................... 5
7.
Finance and its sources .................................................................................. 5
8.
Human Resources Deployment ........................................................................ 5
9.
Project feasibility ( financial, economic, political, ) .............................................. 6
10.
Overall project value ................................................................................. 6
11.
Anticipated phase, milestone ........................................................................ 7
12.
Potential partners or collaborators ................................................................ 8
13.
Source of information and expertise .............................................................. 8
14.
Required system and Equipment .................................................................. 9
15.
Review and approval Processes .................................................................... 9
16.
Method of managing changes and derivatives ................................................ 10
17.
Project organization ................................................................................. 11
18.
Assumptions and Risks of the project .......................................................... 11
19.
Project Procurement and Contract Administration ........................................ 12
20.
Implementing strategies ............................................................................ 13
21.
Project performance indicators .................................................................. 14
22.
Monitoring and Evaluation Plan ................................................................. 14
23.
Time Schedule (Implementation Plan) using Network technique ....................... 15
24.
Budget Schedule .................................................................................. 16
1.
Stakeholders Analysis .................................................................................. 18
2.
SWOT analysis .......................................................................................... 21
3.
Problem analysis ........................................................................................ 23
4.
Objective Analysis ...................................................................................... 24
5.
Alternative Tree Analysis ............................................................................. 25
6.
Logical Frame Work Approach for Ride share ................................................. 26
Part II
Body
1
1. Background of the Project
Rapid urbanization in Addis Ababa has led to a rise demand for transportation. The high
unfulfilled demand for transportation creates an opportunity to involve in transportation business.
Among the best option in investing in transportation is sharing private vehicles or Rideshare.
Rideshare means the transportation of passengers in a private vehicle from point to point in
return for payment where such transportation is undertaken on behalf of or facilitated by a
transportation network company operating via a website or mobile app which is not a licensed
taxi operator.
Rideshare opened opportunities to unemployed and offered options to underemployed and
employees who wish to have extra income. Rideshare may provide extra income to employees
and underemployed individuals. Also Rideshare avoided traffic jam, enhance transport
accessibility and reduce fuel expense at the national level. Effective usage of empty car seats by
ride-sharing may represent an important opportunity to increase occupancy rates, and could
substantially increase the efficiency of urban transportation systems, potentially reducing traffic
congestion, fuel consumption, and pollution. Moreover, ride-sharing allows users to share carrelated expenses, which can be substantial..
Ridesharing platforms can have several economic benefits. These platforms increase the
transportation options available to consumers and businesses and are therefore likely to
significantly increase consumer welfare. These ridesharing platforms may also encourage higher
utilization of the existing vehicle stock.
2
2. Project justification
The Rideshare companies have a high growth projection rate because of inadequate public
transportation service. Lack of transportation may prevent from applying for opportunities
especially job opportunities, also results late arrivals, absentee rates, and fatigue. There are
always challenges for employees who do not own a car and reside where public transport
mobility is not accessible or with multiple connections.
Many of the night shift workers’ pay makes it difficult to afford a car and likely to be under
transportation cost burden, making them rely on public transport. On average traveling, car
owners have around 2- 3 seats empty, and utilizing them in exchange for money or other
incentives is where the ridesharing industry thrives. The potential advantages of increased
ridesharing are substantial and create an impact on a wide range of companies. Also, the mobile
application will impact drivers and passengers to save travel costs, potential travel time, and
share parking costs. It affects congestion reduction and reduces greenhouse gas.
The goal of Rideshare is to connect people to travel together to the same or similar destinations
and reduce travel costs, traffic, and parking demand. Also the project has a goal of increasing the
income of car owners.
3. Project activities
The main activities of the project are
•
•
•
•
•
Recruit project staff officers.
Organizing project office.
System and application development.
Register private vehicle.
Recruit operational staff.
3
4. Project Goals and objectives

Ride share’s ultimate objective is to provide transportation service in every corner in
Addis Ababa and the area.

To provide monthly travel package at a discount rate lower pricing of fares as compared
to RIDE and FERES.

To give an opportunity to customers to stay loyal by offering discounted monthly service.

To expand globally and bring its service to numerous cities to allow riders and drivers to
connect.

The goal of Rideshare is to connect people to travel together to the same or similar
destinations and reduce travel costs, traffic, and parking demand. Also the project has a
goal of increasing the income of car owners.
5. Intended beneficiaries/target groups
There are two types of target group for rideshare:
 Riders, who order ride-sharing services
 Drivers, who provide the rides.
While each part of the target market has its own characteristics, they also overlap in many ways.
The target audience of riders is enormous and covers a wide demographic, behavioral and
psychographic spectrum.
The driver segment is smaller and has more definitive features. A deeper analysis of the
customer segments of Rideshare will outline the similarities and differences.

The target group of riders spans 16 to 65 year olds, although it is most popular among
the younger age segment of 18 to 35 years. It includes both males and females. Anyone
who might have used a taxi service in the past is a potential rideshare user, which
includes just about everyone, from young singles to families with small kids and
teenagers, all the way to empty nesters, retirees and people who have physical
disabilities.
4

Rideshare planned to start working in Addis Ababa and the area and will expand its
service in others cities in Ethiopia.

The target group of drivers includes people looking for a part-time to earn extra cash.
6. Outputs/outcomes of the project
Rideshare project has the potential to reduce automobile traffic with no investment other than in
information technology. Enhance Productivity through reducing waste time. Also increase the
business or personal value of that time and reduce the emissions that come from vehicles,
7. Finance and its sources
The source for our company will depend on the shareholders contribution plus we will get fund
from banks that are ready to work with us in this big investment.
8. Human Resources Deployment
The recruitment of employee is made in two major sections on: the recruitment of drivers and
hiring of office employees. The first staffs are drivers who will operate the main job of the
company. The second is recruitment of office employees such as operation department, finance
department and call center.
8.1. Operation department: the main responsibility of these department members is to follow and
support day to day activity of each driver.
8.2. Finance Department: the man responsibility of this department is to control and monitor the
overall financial activity of the company.
5
8.3. Call center: in this department there are call agents who will receive/answer calls from
customers and drivers for any request. This department is the backbone of the company because
any customer orders will be received from center.
9. Project feasibility ( financial, economic, political, )
The estimated market demand for transportation service will be very high since there is no such
delivery service provider and the importance of the service is very high to reduce burden for an
individual who have a busy schedule.
Ridesharing can succeed only if there are enough riders and drivers. The density of users
traveling similar routes must be high for matching to occur. If there is no tipping point at which a
service attracts a self-sustaining critical mass, it is not going to succeed. The feasibility for
ridesharing can be estimated using information from planning data maintained by the
government transport office, organizations or employers. Their databases are based on household
activity and travel surveys. The information includes origin/destination flows by time of day by
various modes, distributions of trip purposes, as well as demographic information. This will
allow us to obtain upper limits of potential ride sharers, by age groups or other demographics, as
well as origin/destination areas.
10. Overall project value
Ride-sharing is an innovative on-demand transport service that aims to promote sustainable
transport, reduce car utilization, increase vehicle occupancy and public transport ridership and
also it is a place where users can earn money without wasting anytime and without hurting their
pockets.
6
11. Anticipated phase, milestone
The idea of
this project came from the disruption caused by the transportation problem and
the existing population is not proportional to the transportation and the vehicle road.
Making a plan: The owner of the car to pick up people on his way to the workplace or to
another place, making it a source of income for him, is to save many people from being harassed.
Implementation: This app is a little different from other ride apps that the driver may have used
for business purposes. For example: - If a person wants to do this, he should use this application,
then he can make the address as the starting point and destination, so anyone who wants to go
higher can be 1 person or 4 people can add the goal. His income and transportation opportunities
are decreasing
In a way, delivering people where they want when they want is the biggest goal.
The main goals of SUCCESS are :

To demonstrate that vehicles using clean and alternative fuels can be an efficient choice
for transport.

To demonstrate that, with an ambitious package of mobility and traffic management
measures, significant results can be seen regarding sustainable transport and energy
policy.

To contribute deeply to many different related research and assessment activities such as
new, all-inclusive training and communication initiatives supporting the project
objectives.

A project to facilitate transportation is a very focused and useful starting point to explore
social-physical systems.
7
12. Potential partners or collaborators
The Rideshare service matches proposing drivers and riders for time and location Feasibility and
offers various partnerships to them, making them a Decider. Also our Rideshare company
closely work with RIDE an FERES companies in network and application development
activities.
13. Source of information and expertise
The source of information for rideshare company is by reviewing ride-sharing studies around the
world, this project aims to map major aspects of ride-sharing, including online platforms, a
flexible platform to help improve mobility through ridesharing system. This project proposes a
flexible platform to help improve mobility through ridesharing applications. Since ridesharing is
a familiar adopted but complex taxonomy. From point A to point B via shared rides. Some areas
lack frequent public transportation, which means that the time interval between transports is very
high or varies. It results in long waiting hours, long traveling time, and higher cost. Ride-sharing
may be one of the most useful solutions when there are no other means of transportation to a
specific location but generally, it is not the only option.
This project was carried out using Action research methodology to develop solutions to a
problem.to the development of the actual ride sharing service and mobile application. As part of
feres / walif / taxiye / shufer 's transition from crowd sourced delivery to ridesharing, the
software team performed a comprehensive code update. The outcome of the project is a tested,
sustainable ride-sharing system with backend servers for users to access the ride-sharing service
through their smartphones or computers.
Additionally, the system includes some characteristics that are essential to the service. Using
Web Development Tools solutions that were developed to make the application simple and easy
to use. The solution tested in this project on a trial basis opens up an alley to further elaboration,
refining the service design, and a real-life service that will most likely be launched in the near
future.
8
14. Required system and Equipment
A project to facilitate surface transportation is a very focused and useful starting point to explore
social-physical systems. We try to think most of the tasks and features introduced in our project
proposal.
We created a web application for matching users who want to participate in we propose an
incentive-based dynamic ride-sharing system in the form of cooperative transportation depending
on mobile.
Ride-sharing platforms are supported by a mobile application or/and website to match potential
drivers with passengers. The level of sophistication of the matching algorithm affects the ridesharing participation either for existing or potential users. Also, even if drivers and passengers
can be successfully matched, little is known about each individual participant regarding their
driving history, annoying habits to co-passengers while ride-sharing (e.g., eating, smoking),
criminal record, etc. People are significantly less willing to share a ride with strangers than with
direct or indirect friends. So our company allows drivers to install and use video cameras, dash
cams, or other recording devices to record riders for purpose of fulfilling transportation service
and enhance security.
15. Review and approval Processes
Findings from this study provide insights and aspire to provide a comprehensive understanding
of barriers and factors in decision-making process about ride-sharing. These findings could have
important implications for urban and transport planners and policy makers to implement tailored
solutions to users’ needs and socio-demographic characteristics. The results can be used as input
to transport planning, policy-making and ride-sharing providers: revealing the potential barriers,
enabling user-centered design environment, and providing recommendations for a successful
ride-sharing service.
9
The project approval process takes the following steps:

Project manager Drafts the project management plan and displays it for all the approved
stakeholders. He/she oversees all the processes of the project throughout its life to the
completion Internal
High
Oversees all the project procedures and gives reports to the
overall management in the milestones of the project.

The top management team approves all the decisions of the company’s project.
16. Method of managing changes and derivatives
Rideshare did not want to enter into the lengthy process of seeking to change existing regulation
before launching, a process unlikely to occur quickly. Also manage changes using the following
techniques

Offer particular goals to the employees.

Built up a flexible work place

Prohibit and create a zone of intolerance for any kind of harassment within and outside
the workplace

Built an culturally diverse workforce

Develop new technology for the safety of the customers or travelers.
10
17. Project organization
General
Manager
_______
Project
Manager
Project
management
specialist
System
Development
Marketing &
operation
18. Assumptions and Risks of the project
Assumption: One major assumption of ride sharing is that there will be enough riders who are
willing to share a ride with others going in the same direction. If the demand for shared rides is
not high enough, then drivers may spend more time waiting for additional passengers than
actually driving, resulting in lower earnings for drivers and longer wait times for riders.
Risk: One of the biggest risks for ride sharing is safety, especially during the ongoing COVID19 pandemic. Riders who share a vehicle with strangers may face an increased risk of contracting
the virus. Additionally, since the riders do not know each other, there is a risk of confrontations
or incidents that could turn violent. Finally, there is also the risk of increased traffic and delays
due to additional pickups and drop-offs, which could lead to missed appointments or late
arrivals.
11
19. Project Procurement and Contract Administration
In the case of ride sharing, project procurement and contract administration is an important
aspect since it is a service that requires partnership with drivers and other third-party service
providers. It is important to ensure smooth partnership and coordination to ensure the quality of
service to their clients.
Project Procurement:
Key steps in the Project Procurement process:
1. Identify the required goods, services and contracts needed to fulfill project
requirements.
2. Determine the procurement method to be used, such as competitive bidding or solesource procurement.
3. Develop procurement documentation, such as the request for proposal or invitation for
bid.
4. Evaluate proposals and select suppliers or vendors.
5. Negotiate terms and conditions of contracts.
6. Award contracts to selected suppliers or vendors.
7. Manage and administer contracts throughout the project life cycle.
Contract Administration
1. Monitoring the vendor's performance against the terms of the contract.
2. Maintaining records of all communications between the vendor and the project team.
3. Resolving disputes between the project team and vendor.
4. Ensuring that all deliverables are completed as required by the contract.
5. Monitoring the budget to ensure that the project does not exceed the contract amount.
6. Conducting regular meetings with the vendor to discuss progress and any issues that need to
be addressed.
12
20. Implementing strategies
1. Increasing User Awareness: The first step in implementing ride sharing is to make sure that
customers are aware of the service. To achieve this, the company could launch a PR campaign
that explains what this service is, its advantages, and its pricing structure.
2. Providing Easy Access: It is important that the ride sharing service is easily accessible to
customers. This could be achieved by integrating it with the existing Ride sharing app, making it
available in all of the cities in which ride sharing operates, and ensuring that it is easily found on
the app's interface.
3. Incentivizing Users: Since ride sharing relies on multiple customers using the same vehicle, it
may be helpful to incentivize users to choose this option. This could be done by offering
discounts or other perks to those who opt for Pool rides.
4. Improving Routing Algorithms: To make sure that ride sharing is efficient and cost-effective,
ride could invest in improving their routing algorithms. This would ensure that routes are
optimized to accommodate multiple riders, reducing wait times and increasing the efficiency of
the service.
5. Offering Quality Customer Service: It's important that ride customers who choose ride sharing
receive the same high-quality customer service that ride sharing is known for. This could be
achieved by ensuring that drivers are trained to handle the unique needs of riders and by
providing easy access to customer service representatives who can address any issues that may
arise.
13
21. Project performance indicators
1. Ridership: This is a key performance indicator that measures the number of riders using ride
sharing. This metric helps gauge the popularity of the service and how it's trending over time.
2. Trip Frequency: The number of trips per user per day or week provides insights into how.
often users are utilizing the service, and which days or times are most popular.
3. Conversion Rate: This measures the percentage of users who book an ride sharing ride after
seeing it as an option. A higher conversion rate indicates effective marketing strategies and
indicates high demand for the service.
4. Customer Satisfaction: Measuring customer satisfaction can provide valuable insights into the
overall quality of service, and can help identify areas for improvement. Feedback from users can
be gathered using surveys or by analyzing social media activity.
5. Revenue and Profitability: Measuring revenue generated from ride sharing and comparing it
against operational costs provides an insight into the overall profitability of the service.
6. Operational Efficiency: This metric measures the average wait time for riders, the time it takes
for drivers to reach the pickup location, and other efficiency measures. Ride sharing can optimize
the service by reducing wait times for riders and increasing driver efficiency which can result in
improved service quality and customer satisfaction.
22. Monitoring and Evaluation Plan
Ride sharing is a ridesharing service provided by which allows riders heading in the same
direction to share rides and split the cost. To monitor and evaluate the success of ride sharing the
following measures can be taken:
14
1. Ridership: Monitor the number of riders signed up for ride sharing and the frequency of their
usage over time. This can be done by analyzing data provided by ride.
2. Cost Analysis: Calculate the cost savings for riders using ride sharing as compared to other
transportation alternatives. This will help in understanding the appeal of the service for potential
users.
3. Customer Satisfaction: Conduct surveys to evaluate the experience of customers using the ride
sharing service. Feedback can be collected from riders on aspects such as comfort, safety, and
overall satisfaction.
4. Driver Feedback: Gather feedback from drivers who provide ride sharing rides to understand
their experience with this service. This feedback can be used to identify any gaps or areas that
need improvement.
5. Performance Metrics: Analyze performance metrics such as wait times, pickup and drop-off
times, and route optimization to identify areas where the service can be improved.
By monitoring and evaluating these key metrics, Ride sharing can continuously improve its
service and ensure that it meets the needs of its customers while remaining profitable.
23. Time Schedule (Implementation Plan) using Network technique
Activity
A
B
C
D
E
F
G
H
I
J
Setup project office
License and registration
Recruit software engineers and supporting office staff.
Develop the system
Test the system
Promotion
Register cars and drivers
Train the drivers
Promote to customers
Launch the product
Prerequisite Duration
in days
15
A
7
A
10
C
60
D
10
B,E
15
F
30
G
5
F
10
G,I
8
15
15
A
7
15
30
5
B
F
G
H
10
60
C
D
10
10
8
J
I
E
The critical path is A-C-D-E-F-G-H-J
= 15+10+60+10+15+30+5+8= 153 days
24.

Budget Schedule
Project budget for 153 days
No
1
2
3
4
5
Name
Qty
Office Rent
System development
Staff salary
Office equipment
Utility
Total
price
Total Amount
300,000
200,000
100,000
300,000
60,000
960,000
16
Part III
Appendices and /or Annexes
17
1. Stakeholders Analysis
Stakeholder
Name
Impact
How much does
the project
impact them?
(Low, Medium,
High)
Influence
How much
influence do they
have over the
project? (Low,
Medium, High)
What is
important to
the
stakeholder?
How could the
stakeholder contribute
to the project?
Driver's/
service
providers
High
High
They can
make money
without
wasting any
fuel and
time
Car owners and
drivers are
participating in this
system
Passengers
High
High
They will
reach their
desired
place on
time
Use this system
Policy
makers
Medium
High
May want
to evaluate
policies that
support the
use of ride
hailing
Establishing a
payment rate that
involves all sections of
the community
High
High
It will
reduce the
disruption
caused by
transportati
on
Sharing with each
other to make
everyone fit, and
block areas with more
transportation
problems
General
public
Contact Person
Phone, Email,
Website, Address
www.ethiopia.gov.
et/ministries/minis
try-of-transport/
18
Company
owner /
Employers
High
Medium
Employees
who are
interrupted
due to
transportati
on will
arrive
during their
working
hours
To give their
employees enough
understanding about
the system and they
become partners of
ride sharing
Ethio
https://www.ethiot
telecom/Safa elecom.et/
ricom
https://www.safari
com.co.ke
High
High
It is a new
part of
communicat
ion and
users can do
direct and
indirect
promotion
when they
are
customers of
Safaricom.
By creating
communication
system and preparing
packages
Software
developers
High
High
will get a
job
opportunity
By developing
software system and
application
Bank system
High
High
Allowing
By active the system
users to
make
payments
through
their phone
using the
banking
system like
CBE , Mbirr
High
High
they have a
Sharing customers
posetive
when not active
computation
Ride
company
(fares hello
taxi ,
https://ride8294.co
m/
19
Wallin)
Entertainme
nt
High
High
When they
Processing and
do
releasing
promotion
advertisements
artist will
get a job
opportunity
and Tv /
radio / social
medias get
income
20
2. SWOT analysis
Ride-Haling is defined as the process in which a rider hires a personal driver to convey
them to their desired location at a particular location at a particular price. It is a ridehailing service that can be said to be the prototype of the industry, and certainly, one that
has changes the way we view transportation .the company achieved this by offering users
the option of choosing mobility as a service.
A. Strength

Cashless payment makes journey convenient for customers

High standards for services

Operational cost is low.

Adaptive Nature.

Unique Pricing System.

Convenient to use app and service.
B. Weakness

There is bunch of competitors in the industry.

Unpredictable business model as it depends on customer-to driver interaction.

The relation between the company and the drivers is ethically questionable.

Privacy and safety concern for both the customer and the driver is
questionable.

Dependency on the workforce.

Easy to Imitate.
C. Opportunity

Can start business at those places where normal taxi services is not available.

Can hire more drivers to decrease the waiting time.

Fast growing in large metropolitan areas.

Utilize Digitalization.
21

Improving the Company Reputation through Greater Accountability and
Performance.
D. Threat

Lack of regulation

Possible Competition

Customer and Employee Retention

Lawsuits

Fraudulent Activities By Drivers.
22
3. Problem analysis
Decrease
productivity
Decrease social and
family time
Economic
effect
Lying
Environment Pollution
Environmental
Ethical
Social effect
Transportation shortage
Shortage of
transport
vehicle
Cost of
Vehicle
Unstable
car Market
Lack of
infrastructure
Shortage of
foreign
currency
supply
Lack of
transporta
tion
system
Traffic Jam
Shortage of
parking
facility
Population
increment
Migration
Fuel price
Increasing
maternity rate
Unbalanced
urban
settlement
International
market
23
4. Objective Analysis
Access to transportation
Import
additional
Transport
vehicles
Allocate
enough
budget
Increase Mas
transport
facility
Allocate
enough foreign
currency
Improve
availability of
parking facility
Provide
additional
spaces
Improve road
Infrastructure
Sustainabl
e peace
and
security
Reduce the
number of
migrants
Sharing of
private
vehicles
Register
private
vehicles
Create work
opportunity
on rural
areas
24
5. Alternative Tree Analysis
Increasing
Vehicle
supply
Reduce fuel
cost
Reduce
transportation
shortage
Reduce traffic
Jam
Access to transport
Import
additional
Vehicle
Improve
Road
infrastructu
re
Reduce the
number of
immigrant
Encourage
mass
transportati
on facility
Sharing
private
vehicle
25
6. Logical Frame Work Approach for Ride share
Narrative summary
Goal
To promote sustainable transport,
reduce car utilization, increase vehicle
occupancy and public transport
ridership.
Objectively
verifiable indicator
Reduce transport
shortage, increasing
the income of car
owners
Purpose
To establish standard for ride sharing
service and enhance accessibility of
service
Standard Waiting
time.
Provide service in
various location of
the city.
Result
Maintain a qualified rider ,employee
and system
Rider and employee
profile , system
verification
Activities
Register vehicles, system
development, organize project
office, prepare promotional
activities.
Means of
verification
Conduct a timely
report of the
number of
passengers ,
passengers &
drivers
information and
income report
Short waiting time.
Car owners
address
Employee cv,
Rider profile
search , system
test.
Private car
Register 500 car
owners, IT
owners in the
specialist, office
beginning ,
equipment,
employee 5 IT
Digital marketing, personnel, using
internet access
social media
Important Assumption
Make sure the waiting time
is standard and the customer
need is satisfied.
Assuring the quality of the
system, skill of the riders and
increasing the awareness
level
26