Bike with us

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Bike with us

  1. 1. • Matthew Rotolo• Itzhak Klein• Agnes Belka
  2. 2. BUSINESS MODEL• Bike with us for free• Registration fees $2• Overuse fees• Our revenue is generated from sponsors
  3. 3. BIKE WITH US VS. CITI BIKELOCATIONS
  4. 4. SEGMENTATION• USERS (RIDERS)• According to the 2010 Census in Upper Manhattan there are 525,649 between theages of 20 and 40• Students of City College, John Jay, Hunter, Columbia and Fordham• SPONSORS• Every company that wants to have its name on the streets of UpperNYC, Maximum exposure for drivers and pedestrians
  5. 5. VALUE PROPOSITIONWhy biking with us?• Save on average $112 X 12 months = $1,344 yearly• General health benefitsWhy advertising with us?• Advertisement exposure• 10 ads X 4 weeks = 3,500,000 viewers• $3,000 = 3,500,000 viewers
  6. 6. KEY PARTNERS: SPONSORS• Partner with sponsors insurance companies, travel agencies and health food stores• Political support from John Lhota, former chairman of MTA
  7. 7. KEY PARTNERS: SUPPLIERS• Sunlight Bicycles• World Dynamics International Development Limited
  8. 8. KEY ACTIVITIES• Social Media is cheap and effective• Advertising ourselves on the bikes• Promotional events and contests• Sales personnel
  9. 9. KEY RESOURCES• Investment money• Political influence
  10. 10. CUSTOMER RELATIONSHIPS•At Bike With Us our customer relationships will be based upon the quality ofservice that we provide.• It will be up to us to place a high level of importance on reliability in order tocontinually attract members as well as sponsors.•As far as sponsors are concerned, we envision establishing long-termrelationships based upon the level of exposure that we provide as well as thereturns seen by said sponsors after their initial ad purchases.
  11. 11. Cost Structure• Start-up costs - deal with the initial capital needed in order toget the company off the ground with its planned 1,500 bikesand 150 stations located in designated areas around UptownManhattan and Harlem. Also involves the pre-launchmarketing that will be done.• Operating costs - deal with the day-to day costs that will comewith running the company after the initial stage is completeand will better forecast what it will cost to run the companyon a yearly basis. Includes
  12. 12. Cost Structure• Start-up costs• Bicycles (1,500) – $58,500 ($39 each)• Stations (150) - $750,000 ($5,000 each)• Maintenance Vans (2) - $55,000• Maintenance Equipment - $2,000• Marketing/Promotions - $10,000• Website setup - $25,000
  13. 13. Cost Structure• Operating costs• Rent - $3,500/month• Insurance - $5,000/month• Website upkeep - $7,000/month• Bike maintenance - $4,500/month• Employee Salaries - $10,000/month
  14. 14. Revenue Streams - CompetitionCitibike (NYC)• Annual Membership - $95• Overtime Fees• 45 - 75 min - $2.50• 75 - 105 min - $9.00• Every additional 30 min - $9.00• 24 hour pass - $9.95• 7 day pass - $25• Overtime Fees• 30 - 60 min - $4.00• 60 - 90 min - $13.00• Every additional 30 min - $12.00Capital Bikeshare (D.C.)• 24 hour - $7.00• 3-day - $15.00• Overtime Fees• 30 - 60 min - $2.00• 60 - 90 min - $6.00• 90 min + - $14.00 +• Daily Key - $10.00 + $7.00/day• Monthly - $25.00• Annual - $75.00• Annual with MonthlyInstallments - $84.00• Overtime Fees• 30 - 60 min - $1.50• 60 - 90 min - $4.50• 90 min + - $10.50 +
  15. 15. Revenue Streams – Bike With Us• One time sign-up membership – $2.00• Overtime Fees• 30 - 60 min - $8.00• 60 - 90 min - $15.00• Every additional 30 min - $20.00
  16. 16. Revenue Streams – Bike With UsAdvertising Revenues• Ad off the back - $350 per ad per 4 week period.• Ad in frame - $200 per ad per 4 week period• Package deal - $450 per ad per 4 week periodMinimum Purchase – 10 bike advertisements
  17. 17. ADVERTISMENTSAdvertisements will be the main sourceof revenue which will allow members ofBike With Us to ride for free
  18. 18. Revenue Streams – Bike With UsSponsor - a – Station• Price - $1000 per station per 4 week period• Provides exposure to large number of potential customers as wellas establishes goodwill for sponsoring company• Bike With Us will work with nearest high schools in order toprovide community service opportunities to students. Studentswill be asked to clean and clear the station of litter and graffiti, aswell as provide snow removal during the winter months.
  19. 19. Revenue Streams – The Numbers• Advertising Revenues• Assumptions• 60% sold at any given time• 50% split between single ad and package deals• Yearly Revenues• Ad off back = $1,890,000• Ad between frame = $1,080,000• Package deal = $2,430,000• Adopt-a-station = $1,080,000• Registration fees = TBD• Overtime fees = TBD

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