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Bike Sharing – Colombo

A greener business with sustainability and profitability. Not only, a CSR act with its own profits, helping Covid recovery too. The value delivered to stakeholders and society will be immense, which has been well quantified.

Business in a Nutshell

  • A 50 eBike sharing program in Colombo 1/2/3/4 zones as a pilot project.
  • Toal Investment less than LKR 10M for year 1, including 6 month OPEX.
  • A revenue of LKR 11 M (52,000 USD) in Year 1. (1 USD = 210 LKR)
  • An operating profit of 4.2 M LKR and a Net Profit of 2.5 M LKR (12,000 USD) in year 1.
  • User cash saving of LKR 16 M on Tuk tuk fares.
  • Car users will save 36,000 Liters of fuel during year 1.
  • Saving 64,000 Kgs of CO2 during year 1, and grow.

Global calls

e-bike sales are in the range of 40 million units now. It’s been observed that world cities are taking advantage of the massive drop in air pollution by slashing car use.

E-bikes, which use a battery-powered motor to provide riders with a pedal- or throttle-assisted boost, make it easier for more people with varying fitness abilities to cycle longer distances with less effort. Studies show that older adults, women, and people who do not consider themselves physically fit are more comfortable riding an e-bike compared to a traditional pedal bicycle. 

Although there are some early failures globally, even companies like UBER and LYFT are newly launching bike-sharing programs. Differing from the prior, it’s e-bikes now.

And, eBikes can be competitive with cars on travel time for trips during peak congestion hours, particularly when comfortable cycle infrastructure is available.

SRI LANKA

Colombo, especially youth is bullish on the need for clean air with the emergence of pandemic.  Policies and incentives to follow through. Not to forget that Sri Lanka does not measure vehicular emissions for PM 2.5 which pollutes the city air most. Click here for further reading.

Micromobility is an unheard measure in local transport planning. In fact, it has not been recognized enough even in the ComTrans study funded by JICA which is been often referred to as an urban master plan. However, measures have been proposed to the Government to act on building 6 cycling paths from all 6 corridors to the city of Colombo. Atop this, a purpose-built bicycle part is in the design and planning stage, which will be completed by 2021 under Urban Development Authority.

The Business

  • Developing a last-mile solution, to minimize the reliance on Tuk Tuks which is a heavy environmental and social barrier in the development of the country.
  • A Mobility solution in managing the urban transportation challenges.
  • Developing a long term sustainable mobility mode, in a country where Micromobility is unheard of.
  • Synergizing Cycling and Walking.
  • A profitable and sustainable venture, with many social, environmental and economic benefits.
  • Minimize the carbon footprint, contribute to minimizie global warming.
  • Cut countries annual health bill of 800 B LKR, especially on NCDs (Non-communicable Diseases)

Market Size

Our challenge is getting 0.01% of the present Colombo city visitors to use eBikes which can be located/tracked by a mobile app.
At present, 2M visitors enter the city daily for work and utility purposes by public and private transport modes. Furthermore, 800,000 people live within the city, moving around for various work, business leisure, and utility purposes.
As indicated in the purpose, this will be a great mobility solution in mitigating Covid-19 and help recovery in several indirect ways by improving fitness, immunity, cleaner air, and minimizing the cost of travel of the users.

Get 0.01% of the Colombo city visitors to use Dockless eBikes within 12 months.

The Objective!

Market studies

We had done the research to get an initial idea about the project’s viability. Atop personal and social media discussions circulated a survey in a car user group on specific questions. This had done only one instance but voluntarily responded by 94 within a couple of days with no incentive offered at all.

Commercial Goals

  • Sell 14,000 bicycle bookings/rides during the pilot project/year 1.
  • A revenue of LKR 11 M (52,000 USD) in Year 1. (1 USD = 210 LKR)
  • An operating profit of 4.2 M LKR and a Net Profit of 2.5 M LKR (12,000 USD) in year 1.
  • User cash saving of LKR 16 M on Tuk tuk fares.
  • Car users will save 36,000 Liters of fuel during year 1.

A Sustainable Business

  • Positive cash flow in 6 months and meeting with profitability within the year 1.
  • Possibility of enchasing the scale as the need increases, within and beyond Colombo.
  • Government plan of building purpose-built cycling highways in and around Colombo.
  • Positive public image and heavy impact as a quantifiable green venture.
  • Co-branding and advertising revenue from the cooperate bodies.
  • Reasonably flat and cyclable cities all around the country.
  • The growth of tourism in most cities and cycle tourism is already a profitable venture.
Zug residents can now ride e-bikes using their uPort-powered Zug Digital  IDs | by Alice Nawfal | uPort | Medium

Deployment and Charging

The bikes can be located/tracked by a mobile app. Also, be docked in a few locations in the selected area for collection and return. The will be signage on these points, with a propaganda point of view.

The bikes will be dockless at the pilot phase. Although Dockless there will be collection and delivery points with easy access and convenience. By having collection and delivery points managed manually we aim to minimize the CAPEX of the pilot phase whilst monitoring the usage patterns. Charging and maintenance are mandatory whilst facilitating security.

Bikes will be located at all leading Hotels, CMC (bus station side), Near Unity Plaza, Along Galle road, Nawam Mawatha, Near Colpetty Station Fort Railway Station,  Crescat, Colombo city center, Odel, Independence arcade, Gold center, WTC, Dutch Hospital, etc, etc. 

Smartphone-based, locate the bikes by using the app and unlocking. There will be different charging provisions based on the location specifics. At times it will be user-managed or assisted by the location personal. Bikes are with geo-fencing. Can unlock by the app if needed to take beyond, and to keep at home overnight, etc. 

Direct Impact on Society

  • Consumers of current Tuk Tuk and taxis will have a novel mode shift.
  • Consumers will be burning Millions of Calories with no special workouts or time waste.
  • Consumers will be gaining multiple health benefits contributing to the reduction of massive annual government expenditure of LKR 800 Billion major on preventing non-communicable diseases.

Wider market Benefits

  • Reduction of city congestion and pollution.
  • Reduction of Tuk Tuks from the city landscape
  • Returning of the younger workforce to more productive and sustainable livelihoods.
  • Better city environment/atmosphere.
  • Reduce the thrust on Government in facilitating city mobility
  • A CSR initiative to the investors/stakeholders

More than CSR – Towards A Greener Economy

  • Car users will save 36,000 Liters of fuel during year 1. 
  • User cash saving of LKR 16 M on Tuk tuk fares.
  • Saving of 64,000 Kgs of CO2 during year 1/pilot ptoject, and grow.
  • Other non-measured/indirect saving of toxic tailpipe emissions and particulate matter.
  • Reduction of urban congestion.
  • The growth will be limitless, the opportunity is wide open for any. There will be followers too on a financially successful venture. So above numbers will multiply in quicklime.

Startup cost – CAPEX & OPEX

We have developed complete business financials with budgeted P&L for the first couple of years, which proves that we have a sustainable business ahead. The estimated CAPEX will be within LKR 10M with the first 6 months OPEX until the business generates its own cash flow to break even.

Challenges, Risks, and Mitigation

We have extensively studied this area. Any can speak of a greener economy but it will not be sustainable unless it delivers both quantitative and qualitative values to all stakeholders. This information shall be made available to prospective partners at stage 2, along with financials.

Scale and Growth

  • Mode shift from motorized to the manual, rather a paradigm shift!
  • Widening the Colombo usage and expanding to other cities.
  • Upcoming and under discussion, purpose build cycle paths in and around Colombo.
  • Lobbying and policy engagement to facilitate non-motorized and no emission transport.
  • Global trends/shift towards micromobility solutions in meeting with environmental targets.

Reach us for your concerns and elaborated business financials.

email: sujeeva@mobility.lk or +94 777 007 139

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