Eco Bicycle Services

Type: Rental Services

Key Product/s for Sale:

1. Electric Bicycle Rentals
2. Ancillary services such as helmets, locks, and maintenance

Technology Considerations:

1. Electric bicycles with efficient battery technology (lithium-ion batteries)
2. GPS tracking for monitoring bicycles
3. Mobile app for rental services and payments
4. Charging stations for battery recharging

Market for the Product/s:

1. Urban commuters seeking eco-friendly transport options
2. Tourists exploring cities and attractions
3. Delivery services looking for efficient urban mobility
4. University students and staff on large campuses

Key Inputs into the Business:

1. Materials: Electric bicycles, charging stations, GPS tracking devices, helmets, locks
2. Labor: Technicians for maintenance, customer service representatives, app developers, and administrative staff
3. Equipment: Repair tools, mobile app infrastructure, office supplies
4. Location: Rental stations in strategic locations such as city centers, tourist hotspots, and universities

Product Preparation Process:

1. Acquisition: Purchase electric bicycles and necessary equipment from reputable suppliers.
2. Customization: Install GPS tracking devices and brand the bicycles with company logos.
3. Testing: Conduct thorough testing of bicycles and charging stations to ensure reliability and safety.
4. Deployment: Distribute bicycles to rental stations and set up charging points.

Quality Considerations:

1. Regular maintenance and safety checks of bicycles
2. High-quality, durable bicycles to withstand frequent use
3. Efficient and user-friendly mobile app
4. Responsive customer service

Cost of Investment:

1. Electric Bicycles:
   Average cost per unit: Ksh 80,000
   Initial fleet (10 units): Ksh 800,000
2. Charging Stations:
   Cost per station: Ksh 150,000
   Initial stations (5 units): Ksh 750,000
3. GPS Tracking System:
   Cost per unit: Ksh 5,000
   Total for 10 units: Ksh 50,000
4. Other Equipment and Supplies: Ksh 100,000
5. Operational Costs (first year): Ksh 100,000
   Salaries, rent, utilities, marketing, and miscellaneous expenses

Required Operational Infrastructure:

1. Rental stations with secure parking and charging facilities
2. Office space for administrative and technical staff
3. Maintenance workshop for repairs and servicing

Most Suitable or Viable Location of the Business:

1. Nairobi city center and major suburbs
2. Mombasa’s tourist areas
3. University campuses
4. Business districts and tech hubs

Potential Sources of Investment Capital:

1. Personal savings
2. Bank loans
3. Venture capital
4. Government grants for green initiatives
5. Crowdfunding platforms

Requirements for Effective Management:

1. Skilled technicians for maintenance and repairs
2. Efficient and friendly customer service team
3. Strong marketing strategy to attract users
4. Data analytics to monitor usage patterns and optimize operations
5. Regular training programs for staff

Role of Mobile Phone and ICT in the Business:

1. Mobile app for booking, payment, and unlocking bicycles
2. Real-time GPS tracking for fleet management and security
3. Online customer service and support
4. Data collection for performance analysis and improvement

Statutory Regulations and Licences:

1. Business registration with the Registrar of Companies
2. Licensing from the National Transport and Safety Authority (NTSA – 3500 KSh on E Citizen
3. Compliance with the Kenya Bureau of Standards (KEBS) for bicycle safety
4. Local county permits for rental stations

Pricing:
Hourly rental: Ksh 200
Daily rental: Ksh 1,000
Monthly membership: Ksh 10,000
Ancillary services (helmet rental, etc.): Ksh 100 per item

Profitability:

1. Monthly revenue potential (assuming 50% utilization):
2. 25 bicycles rented daily for 8 hours: 25 x 8 x 200 = Ksh 40,000
3. Monthly: Ksh 40,000 x 30 = Ksh 1,200,000

Additional income from memberships and ancillary services: Ksh 200,000

1. Total monthly revenue: Ksh 1,400,000
2. Monthly operational expenses: Ksh 500,000
3. Monthly profit: Ksh 900,000
4. Annual profit: Ksh 10,800,000
   Break-even point: Approximately 11 months

Next Steps to Take:

1. Finalize business plan and secure funding.
2. Procure electric bicycles and necessary equipment.
3. Develop and launch the mobile app.
4. Set up rental stations and charging infrastructure.
5. Hire and train staff.
6. Launch a marketing campaign to attract users.
7. Monitor operations and adjust strategies based on feedback and data analysis