Live Better Mexico City


Published on

Published in: Automotive, Business
  • Be the first to comment

  • Be the first to like this

No Downloads
Total views
On SlideShare
From Embeds
Number of Embeds
Embeds 0
No embeds

No notes for slide
  • “Mexico City’s woes have been compounded by geography, because it’s in a trapped high-altitude valley that concentrates pollution.” -
  • AQI Logo - Graph -
  • Black and White Image -
  • “Private cars and taxis provide only 20 percent of daily trips in the city, but they make up almost 90 percent of street traffic. […] This imbalance of transportation modes means that a few reap the benefits, but all share the costs.” - See more at:érrez.jpg -Colectivo Image2) -Other Private Automobiles Image
  •ón1121.jpg -Metro Line 12 Image Metro Image
  • Benito Juarez y Cuauhtemoc Reduce space occupied by cars on road London Bridges Electric
  • Surrounding Areas Can hold 5 peopleCan be parked at metro and stations around greater area
  • For Federal DistrictCan be parked in respective districtPlaced within 4 mile radius of metro stops
  • Expansionary
  • Expansionary
  • There are 6 million cars in circulation in the Mexico City Metro Area. (Embarq)The Minimum Daily Wage in Mexico : $4.75$100 / $4.75 daily wage ~ 21 days of incomeTo understand what this means to the Mexican citizen, we will compute the value of 21 days of minimum wage income in the US.The minimum wage in the US is $7.25. If the average workday is 8 hours long, then the minimum daily wage is:8 hours/day x $7.25/hour = $58/day21 days of minimum wage income would thus equate to $1,218Thus the offer of $100
  • “The results suggest that the benefits of a 10 percent reduction in ozone and PM10 in 2010 are about $760 million (in 1999 U.S. dollars).”“Reducing PM10 has larger estimated health benefits than reducing ozone, with each microgram per cubic centimeter reduction in PM10 worth about $100 million per year.”The Mexico Air Quality Management Team, . The World Bank. Improving Air Quality in Metropolitan Mexico City: An Economic Valuation. Print. <>.
  • Adequate Healthcare ServicesWater / Sewage InfrastructureAcceptable Housing InfrastructureSustainable Consumption of Environmental ResourcesConsistent and Economic Food SupplyAccess to EnergyDemand in Labor MarketSocial Services (i.e. education, welfare, etc.)Efficient Utilization of SpaceEfficient Utilization of Space: Less CarsSocial Services (i.e. education, welfare, etc.):Sustainable Consumption of Environmental Resources:Adequate Healthcare Services:Water / Sewage Infrastructure:Demand in Labor Market:Consistent and Economic Food SupplyAccess to Energy
  • “Commuting doesn’t occur in a vacuum,” said Naveen Lamba, IBM’s global intelligent transportation expert. “A person’s emotional response to the daily commute is colored by many factors – pertaining both to traffic congestion as well as to other, unrelated, issues. This year’s Global Commuter Pain survey indicates that drivers in cities around the world are much more unsettled and anxious compared with 2010.” "IBM Global Commuter Pain Survey: Traffic Congestion Down, Pain Way Up." IBM Newsroom. IBM, 08 Sep 2011. Web. 27 Feb 2013. <>
  • IBM Commuter Pain SurveyIBM compiled the results of the survey into its Commuter Pain Index that ranks the emotional and economic toll of commuting in each city, with the highest number being the most onerous. The Index reveals a tremendous disparity in the pain of the daily commute from city to city. The index is comprised of 10 issues: Commuting time, Time stuck in trafficAgreement that:3) price of gas is already too high4) traffic has gotten worse5) start-stop traffic is a problem6) driving causes stress 7) driving causes anger 8) traffic affects work9) traffic so bad driving stopped10) decided not to make trip due to trafficThe cities scored as follows: Mexico City: 108; Shenzhen 95; Beijing 95; Nairobi 88; Johannesburg 83; Bangalore 75; New Delhi 72; Moscow 65; Milan 53; Singapore 44; Buenos Aires 42; Los Angeles 34; Paris 31; Madrid 28; New York City 28; Toronto 27; Stockholm 26; Chicago 25; London 23; and Montreal 21."IBM Global Commuter Pain Survey: Traffic Congestion Down, Pain Way Up." IBM Newsroom. IBM, 08 Sep 2011. Web. 27 Feb 2013. <>Image Source:
  • Live Better Mexico City

    1. 1. PeaKSolution
    2. 2. Identify Innovate Implement RecommendPopulation Growthroughly 20% of Mexico’s population in 1% of nation’s land mass 2PeaKSolution
    3. 3. Identify Innovate Implement RecommendUrbanSprawlCongestionMajor Issues Caused by OverpopulationInefficientTransportationAir Pollution4PeaKSolution
    4. 4. Identify Innovate Implement RecommendHealthClimateChangeNutrientPollutionMajor Problems Caused by Air PollutionAir PollutionWaterQualityPhotochemicalReactionsNitrogenandPhosphorousEutrophicationAlgal BloomsToxins andDeoxygenationContaminatedFood Supply5PeaKSolution
    5. 5. Identify Innovate Implement RecommendImprovements Across Two Decades1992 – 8 Days scoring over 502012 – 248 Days scoring over 50Appendix (pp. _-_) for additional graphical information 6PeaKSolution
    6. 6. Identify Innovate Implement RecommendTransportation Methods21,200,000 ResidentsPrivateTransportationPublicTransportation7PeaKSolution
    7. 7. Identify Innovate Implement RecommendTransportation Methods1) Private Vehicles- Cause 80% of transport-related GHG emissions- Cause 90% of street traffic- Few reap benefits; All share costsColectivos Other Private Automobiles8PeaKSolution
    8. 8. Identify Innovate Implement RecommendTransportation Methods2) Public Transportation- Covers only half of the Federal District- Metro System: Railways and Subways- Over 200 km/125 miles of track- Line 12 completed in 2012Cost: $2,000,000,000 for Line 12195 stations – 115 of which are underground 9PeaKSolution
    9. 9. Identify Innovate Implement Recommend1989 – “Hoy No Circular”Steps in the Right DirectionSetback #1: decreased overall utilization of existing vehiclesSetback #2: many residents purchased additional (used) cars to use on different daysProgram: prohibited use of 20% of vehicles each day; based on last digit of license plate #10PeaKSolution
    10. 10. PeaKSolution 11Identify Innovate Implement Recommend
    11. 11. CuauhtémocBenito Juárez• 75 miles per charge• 5 feet folded• Spin move forconvenient parallelparking• 23 sq. miles• 7 million workers• 10 % of roads andregistered vehiclesIdentify Innovate Implement Recommend12PeaKSolution
    12. 12. • Least expensive car in the world• ~ 60 mpg | 75mphIdentify Innovate Implement Recommend13PeaKSolution
    13. 13. • Since 2008,bikes in heartof the district• 4 mile radiusto MetrostationsIdentify Innovate Implement Recommend14PeaKSolution
    14. 14. Identify Innovate Implement Recommend15PeaKSolution
    15. 15. FinancialsIdentify Innovate Implement Recommend16PeaKSolution
    16. 16. Budget Origin• $2 billion to fund a newproject in 2008• Metro Line 12 Rail• Reallocate 5%• $100 million budget• Car & Bike SharingIdentify Innovate Implement Recommend17PeaKSolution
    17. 17. Cost StructureBuyback Program($10 million)Car & Bike Sharing($70 million)Installation /Operational($20 million)Identify Innovate Implement Recommend18PeaKSolution
    18. 18. Cost Structure30% Hiriko Fold60% Tata Nano10% BikeCar & Bike SharingIdentify Innovate Implement Recommend19PeaKSolution
    19. 19. Purchasing CostCar/Bike Sharing Budget $ 70,000,000.00 %Hiriko Fold $ 21,000,000.00 30%Tata Nano $ 42,000,000.00 60%Bikes $ 7,000,000.00 10%Hiriko Fold $ 21,000,000.00Retail Price/Car $ 16,000.00Retail Quantity 1,313Tata Nano $ 42,000,000.00Retail Price/Car $ 2,000.00Retail Quantity 21,000Bikes $ 7,000,000.00Retail Price/Bike $ 300.00Retail Quantity 23,333Identify Innovate Implement Recommend20PeaKSolution
    20. 20. InstallationCOSTSChargingStationsParking Setup(Hiriko)SecurityParking Setup(Nano)Identify Innovate Implement Recommend21PeaKSolution
    21. 21. OperationsCOSTSElectricity(Hiriko)Gas (Nano)Insurance(Nano)Insurance(Hiriko)Identify Innovate Implement Recommend22PeaKSolution
    22. 22. Installation & Operational Budget $ 20,000,000.00A. Parking Setup Costs (Hiriko) $ (98,718.75)A. Parking Setup Costs (Nano) $ (2,613,302.00)B. Ubitricity Charging Station Costs $ (367,500.00)C. Insurance Costs (Combined) $ (2,500,000.00)D. Gas Costs (Nano) $ (9,703,200.00)E. Electricity Costs (Hiriko) $ (342,187.50)Security$ (4,000,000.00)Leftover $ 375,091.75Installation & Operational Total CostsIdentify Innovate Implement Recommend23PeaKSolution
    23. 23. TimelineProjectLaunch1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24# of Elapsed Months After Project LaunchImplement250Launch 250Slim CarsCharge toll using License Plate Toll Zone systemLaunch 22,000 BikesLaunch 1,000 Tata NanosAdd more Nanoson a monthly basis to maintain a ratio of 10 bought back cars : 1 Tata Nano.Initiate Buy Back Program@ $10050,000 75,000 100,000Evaluate every six months, if 25% of the target is not met in each period, then increase the buy back rate.We will launch all 22,000 bikes at the beginning of the project.We will implement a license plate monitoring system to create a toll zone in the Cuauhtemoc district.213 200 100 100 100 100We will launch an initial fleet of 250 Slim Cars and use a decreasing quarterly schedule to expand to capacity.Identify Innovate Implement Recommend24PeaKSolution
    24. 24. Identify Innovate Implement Recommend25PeaKSolution
    25. 25. Car Buy BackProgram(Offer $100 flatrate per used car)RecyclingProgram(Salvage glassand metals)RebateProgram(Sell materials tomanufacturers)Goal: Remove 100,000 cars fromcirculation (1.67%)$100 equates to ~ 21 days ofincome at the minimum daily wageof $4.75This compare to ~ $1,218 in theUnited StatesWe hope to attract cars in theworst condition with this offer.>These are the cars causing themost pollution.We can conserve naturalresources by recyclingreusable materials from theused cars.We can sell the recycledmaterials back to themanufacturers of our vehiclesto offset costs.Identify Innovate Implement Recommend26PeaKSolution
    26. 26. Project Value DriversRevenue Structure• Membership• Usage Fees• License Plate CongestionToll Zone– Charge $2/car/day– Currently 800K cars passthrough daily• AdvertisingPrevented Costs (Savings)• “The results suggest thatthe benefits of a 10 percentreduction in ozone andPM10 in 2010 are about$760 million (in 1999 U.S.dollars).”– 20% -> $1.49B• Each microgram percm3reduction in PM10worth about $100 millionper year.Identify Innovate Implement Recommend27PeaKSolution
    27. 27. (9) Efficient Utilization of Space(8) Social Services (i.e. education,welfare, etc.)(1) AdequateHealthcareServices(6) Access toEnergy(7) Demandin LaborMarket(4) SustainableConsumption ofEnvironmentalResources(5) Consistentand EconomicFood Supply(2) Water /SewageInfrastructureIdentify Innovate Implement Recommend28PeaKSolution
    28. 28. PeaKSolution 29HighPopulation DensityLowPopulation DensityLowQuality of LifeHighQuality of LifeMexico CityNew YorkTokyoAustinCollegeStation?
    29. 29. QUESTIONS AND ANSWERSThank you for your time…30PeaKSolution
    30. 30. AppendixBackground Information……………………….. A1- AFinancials…………………………………………….. B1 – BAdditional Information………………………….. C1 - C31PeaKSolution
    31. 31. Appendix A: Air Quality #132PeaKSolution
    32. 32. Appendix A: Air Quality #233PeaKSolution
    33. 33. Appendix C: Smog34PeaKSolution
    34. 34. Appendix C:Registration Requirements35PeaKSolution
    35. 35. A. Parking Setup CostsA. Hiriko Folding Car 250Regular-sized Parkings Spaces 63Cost of Parking Space $ 1,500.00Total Cost $ 93,750.00Admin time per weekWeeks per year 52Admin Cost $ 2,343.75Annual software cost $ 750.00Annual incentive cost $ 937.50Annual marketing material cost $ 937.50Total $ 98,718.75A. Tata Nano 5000Regular-sized Parkings Spaces 1667Cost of Parking Space $ 1,500.00Total Cost $ 2,500,000.00Admin time per weekWeeks per year 52Admin Cost $ 62,500.00Car parking spaces savedAnnual software cost $ 750.00Annual incentive cost 25000Annual marketing material cost 25000Total $ 2,613,302.00
    36. 36. B. Ubitricity Charging Station CostsNumber of charging stations (Q) 250Charging stations renting price (P) $ 90.00 per car/per monthTotal cost per year $ 270,000.00Mobile metering equipment 325 per carTotal metering equipment (50 cars) $ 81,250.00Installation fee 65 per carTotal installation fee (50 cars) $ 16,250.00Total Costs $ 367,500.00
    37. 37. C. Insurance Costs (combined)C. Insurance Costs (Combined)Number of Hiriko Folding Car 250Cost of Insurance/Hiriko $ 1,500.00Total Cost of Insurance $ 375,000.00Number of Nanos 5000Cost of Insurance/Nano $ 500.00Total Cost of Insurance $ 2,500,000.00
    38. 38. D. Gas Costs (Nano)D. Gas Costs (Nano)Cost per Gallon $ 3.11Number of gallons 12Total Cost/Car $ 37.32Total Cost/Fill $ 186,600.00Number of Fills/Year 52Total Gas Cost $ 9,703,200.00
    39. 39. E. Electricity Costs (Hiriko)E. Electricity Costs (Hiriko)Cost per Charge $ 3.75Charges per day 365Charge per year $ 1,368.75Number of Cars 250Total Electricity Cost $ 342,187.50Toll Zone Installation Budget $ 4,000,000.00
    40. 40. Buyback PracticalityMinimum Wage (Mexico City) 4.6 (63 pesos per day)Buyback - Flate Rate 100Value: # Days of Free Cash Flow 21.7391304 business days30.4347826 1 month of incomeBackup Slide (Min Wage - USA) 7.25 (per hour)58 per dayValue 1260.86957(valuation of minimum wage jobin USA)
    41. 41. ZOPAHiriko Fold $ 21,000,000.00 Hiriko Fold Purhase CostRetail Price/Car $ 16,000.00 Selling Price $ 16,000.00Retail Quantity 1313 Markup % 25%S1 Price/Car $ 14,000.00 C.O.G.S. $ 12,000.00S1 Quantity 1500 Profit Margin $ 4,000.00 ZOPA50% $ 2,000.00Tata Nano $ 42,000,000.00 Tata Nano Purchase CostRetail Price/Car $ 2,000.00 Selling Price $ 2,000.00Retail Quantity 21000 Markup % 25%S1 Price/Car $ 1,750.00 C.O.G.S. $ 1,500.00S1 Quantity 24000 Profit Margin $ 500.00 ZOPA50% $ 250.00
    42. 42. HOW DOES MEXICO CITYCOMPARE?2011 IBM Global Commuter Pain SurveyAppendix C
    43. 43. Mexico City Experiences theGreatest Commuter Pain