Quantitative Methods for Business- Quber

Quantitative Methods for Business- Quber
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Introduction
The report is prepared to include various aspects in relation to quantitative analysis. In this
various problems are to be considered and on that basis the performance evaluation, analysis of a
new system and break even analysis will be performed. There will be coverage of all the
important aspects and formulas in this respect.
The evaluation will be made and for the better understanding there will be graphical
representation of the important outcomes which helps in decision making process. The
calculations will be made in such manner that all the requirements are adhered to in the best
possible manner.
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Info graphics
Clustered column chart:
Clustered bar chart
representing cash flows from the
system:
2015 2016 2017 2018
0
200000
400000
600000
800000
1000000
1200000
1400000
1600000
1200000
1100000
1250000
1356000
950000900000
1000000
1100000
Total revenue and
cost
Revenue
cost
1
3
5
7
9
11
13
-1000000 -500000 0 500000
Clustered bar chart
Cash flow
Month

Financial aspects:
In the appendix 1 there is the representation of the total revenue and cost which has been
incurred. To understand the data in better manner there is the clustered graph which has been
prepared and in that both the aspects have been represented. The highest revenue is made in 2018
amounting to $1356000and with that cost of $1100000 has been made. The ratio of the cost to
revenue has been calculated and it is determined that highest cost is incurred in 2016.
The number of rides is highest in 2017 with 75000 rides and minimum in 2016 with 55000 rides.
All of the trends have been represented with the help of Sparkline. The highest amount earned by
company is $256000 in 2018. With the change in rides the total profits is also changing at high
rate. The negative spark line is due to the decline in the profits in 2016 because of decline in
number of rides (Aparicio et al., 2015).
From this data it can be said that profitability of Quber will be maintained and it will be attaining
the growth in coming period.
New system development for drivers
The drivers will be providing $95133.6 to the company at the rate of 5% compounded monthly.
This will be the amount that will be paid by the drivers to the company for the earnings made by
them (Harding, Kandlikar and Gulati, 2016).
The original cut for the drivers is 70% but in order to maintain the value of the business at
identified value there will be 75.89% which will be provided to the drivers by which the company
will be maintaining the required amount of gains.
With the cut that is present in the initial stage there is the amount of $95400 which will be
received by Quber every month. The change in the model is made and now the company will be
receiving the amount of $76664.07. This is the amount which will be received by the new driver
cut of 75.89%. The total outflow made by the company is $800000 with total inflows amounting
to $318000 each month. The value of the business today with the new cut is $95133.6.
Break even rides with Quber
Quber is providing the rides at the rate of $25 and out of that 72% share is of the driver and rest
comes to the company. Both the company and drivers are incurring some costs in this respect
which gives them the remaining profits of $5.75 and $17 respectively. This is the amount which
will be earned on per ride without considering the fixed cost.
It has been identified from the calculation that there will be 13921 and 22 rides which will be
provided by the Quber and drivers respectively to attain the breakeven (Nicholls et al., 2014).
This is the point at which there will be no profits or losses which will be made and the graph also
represents the breakeven point at zero profits.
In order to earn the profits of $5000 there will be 316 rides which will be provided by the drivers.
At this the driver will be making the profits after bearing the petrol cost of $1 per ride.
For making the profits of $5000 with the 308 rides there will be reduction in the cost of petrol
and the new petrol cost will be $0.53 which will be charged from the drivers. With this there will
be increase the amount of profit that will be made on each ride to $ 17.47 and the breakeven point
will also be reducing as the recovery of the cost will be made earlier.
With the adoption of the new petrol cost there will be more profits which will be made and that
will be beneficial in long run (Batkovskiy et al., 2017). Drivers want to provide the less rides and
this is done by reducing the petro charges. It is required that there shall be proper performance
measures which shall be set and then the ones achieving the targets shall be offered the reduced
charges.
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