Business Plan for Electric Bike Rental Company in London

(First electric bicycles with GPS installed
to rent in London)
Business Plan
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Table of Contents
1. Executive Summary.................................................................................................④
2. The problem............................................................................................................④
3. The solution – company description.........................................................................⑤
3.1. Geographic location....................................................................................................⑤
3.2. How it works?..............................................................................................................⑤
3.3. Starting date................................................................................................................⑥
4. Current Situation....................................................................................................⑥
4.1 Mission...............................................................................................................................⑥
4.1.1 GPS as innovation.......................................................................................................................⑦
4.2 Vision..................................................................................................................................⑦
4.3 Values.................................................................................................................................⑧
5. SWOT analysis........................................................................................................⑧
5.1 Force:.................................................................................................................................⑧
5.2 Weakness:..........................................................................................................................⑨
5.3 Opportunities:....................................................................................................................⑨
6. Market analysis.......................................................................................................⑨
6.1 Market trends....................................................................................................................⑨
6.2 Macro Environment - PESTEL Analysis..........................................................................⑨
6.3 Potential customers.............................................................................................................⑫
6.4 Competence.........................................................................................................................⑫
7. Sales and Marketing.................................................................................................
⑬
7.1 Sources of income................................................................................................................⑬
7.2 Advertising and publicity strategy......................................................................................⑬
7.2.1. Sales Promotion................................................................................................................................⑭
7.3. Price....................................................................................................................................⑭
7.4. Logo....................................................................................................................................⑭
7.5. Website...............................................................................................................................⑮
7.6. Social media........................................................................................................................⑮
8. Business Organization..............................................................................................
⑮
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9. Financial Plan..........................................................................................................
⑯
9.1. Start Up Costs...............................................................................................................⑯
9.2. Financial resources.......................................................................................................⑯
9.3. Cash flow......................................................................................................................⑯
9.4. Break-Even point..........................................................................................................⑯
9.5. Profit and loss Forecast................................................................................................⑯
9.6. Balance sheet................................................................................................................⑯
10. Conclusion............................................................................................................
⑯
Reference list...................................................................................................................
⑰
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1. Executive Summary
Cycling has become more common around the world in recent years, thanks to a rise in the
number of cyclists. For this reason and many more, we have decided to open a new company
of electric bikes for rent in the city of London called Bicy-G and we are optimistic about its
opening. Moreover, our business is unique since we want to use technologies to reinvent and
exceed what our competitors are offering. This new company wants to help London with its
pollution problem by taking London to a more sustainable city. We believe that this company
will reach very high.
Bicy-G main mission is to be able to give a different experience when renting a bike in
London. This company is different from the others because of its innovation in including a
GPS on the bicycles. Our location is in London, undoubtedly London is a busy city where
more and more people use the bicycle as a means of transport. This new bike rental company
is expected to grow very rapidly throughout the UK and future cities. In addition, this
business plan shows the information you need to know about Bicy-G.
2. The problem
The city of London has a very serious traffic problem. It is a city with many people and
consequently it is a very polluted city. For this reason, many people want to use bicycles to
help with the pollution of the city and avoid traffic jams (Noardo F. 2017). In addition,
according to data from the London National Police, they claim that the city suffers from a
major problem of bicycle theft. Many cyclists in London cannot afford to buy new bikes
every time they have been stolen. For this reason, bike rental increases every year (Saunders,
2020).
In the same way, considering the mobility and climate change problems facing today's
society, transportation from one place to another is becoming more and more expensive. The
resulting negative environmental impact make us to look for different transport options that
are more efficient and at the same time respecting the environment (Teletov, O.S).
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3. The solution – company description
This bicycle company goes beyond the conventional, creating a new way of renting electric
bikes that will have GPS installed. Bicy-G wants to reduce problems such as traffic or bicycle
theft. For this reason, Bicy-G company was created, an electric bicycle company for the city
of London. With the purpose of helping London and the cyclists.
(Sustainability for All)
3.1. Geographic location
This company will have its headquarters in London and will provide its services from the
streets of this city. People will not need to go to a specific place to rent these bikes. These
bikes will be available to rent on the streets of London. The key is that they are "station-less"
rental bikes: they can be taken and left wherever the user decides. Bicy-G will start leaving
the bicycles on 3 busy streets in London and will put more bikes on other streets after the
company gains popularity. The first streets chosen for leaving these bikes are in Canary
Wharf, Shoreditch and Soho. These are the best locations due to tourism and their popularity
(Destination London).
3.2. How it works?
The first step is to unlock the bike through the app and then the user makes his route. The
person will be able to use the GPS that is installed on the bicycle, they will only have to put
the address of the destination. The GPS will show the best route for the cyclist. Finally, when
the person is done, only needs to lock it back up (through the app) and leave the bike in a
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public place, rather than having to take it to a special storage area or "dock" as other services
require.
- GPS tracker: Our company will use a GPS tracker on the bikes. Every time a cyclist
finishes using the bicycle, our specialists will place the bikes on the streets that we
have mentioned before. Also, the electric batteries of the bicycles will be recharged
often. Our clients have to leave their bikes without causing an obstruction.
- Charging the electric batteries is economical. The cost of each recharge would be only
£ 15 cents. From this simple calculation we conclude that recharging an electric bike
will cost us about £ 12.5 per year
- Judicial Implications.
To run a bike hire scheme on the highway, a cycle hire operator would need the Council's
approval as the highway authority.
3.3. Starting date
The installations of these bicycles are ready for the summer of 2021. We believe and have
faith that by early summer, the pandemic restrictions will be less stringent. This summer will
be great for this business.
4. Current Situation
4.1 Mission
The company's goal is to deliver excellent support in the cycling industry, ensuring customer
loyalty and the innovation of the installation of GPS in the bicycles. With the installation of
GPS on bikes, we want to ensure the safety of cyclists in London. We must also highlight that
we have a great ecological conscience, and the bicycle is a great means of sustainable
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