"Vélocation": self-service bicycle system for Nantes (2007)

Résumé du document

Product Vélocation: This project aims to take advantage of a healthy, convenient and fun alternative to other forms of private or public transportation. By using the latest advances in technology to spur anti-theft devices, we believe that we can create an affordable biking network that can be tailored to the specific needs of the customers. Such specific criteria can be in the form of GPS devices, Clélo magnetic strips, baby seats, and multiple methods of payments and subscriptions to fit the demand of the customer. These customers will comprise of workers, students, pedestrians, and tourists. In fact there are 550000 inhabitants of Nantes of which 75000 are students. This creates a huge potential market for bike customers, when we consider the increased numbers of tourists that can now access Nantes from a 2 hour TGV ride from Paris. Owners and Financials: The owners of the company are the six founding members of the company as well as another external shareholder.

Extraits

[...] Competitive Analysis Indirect Competitors: Public Transportation The TAN has served the city of Nantes with a successful network of trams and buses. However, an opportunity exists to integrate a more highly- visible network of bike rental stations in conjunction with this system. The threat perceived for our company would be if the TAN refuses to cooperate to promote our business by allowing us to share office space and include information about our rental stations on their transportation maps. Indirect Competitors: Personal bicycles Another unique challenge we face is to attract users who would ordinarily have their own bike already (or those considering the purchase of one at a sporting goods store like Decathalon). [...]

[...] The transporters would return these bikes to a location outside of the center of Nantes (where the rent is lower). This location would include garage parking for the transporters, miscellaneous warehousing, as well as a workshop for the bikes. Physical requirements Access Convenient to travelers, our plan is designed to integrate itself completely into the current and future public transportation system of Nantes. This is an improvement over current bike rental facilities (Ville à Vélo and Vélocampus). The headquarters will provide easy walk-in access and customer service. [...]

[...] Tous les projets urbains en cours comportent des réseaux dédiés à ces modes de déplacements exempts de toute pollution. Challenges Of course it's not an easy bid to win since our competitors are bigger and have more experience than our start-up. Many barriers are to be overtaken and challenges to be faced: Competitors: We have competitors in the first stage. Before entering the market. JCDecaux and Clear Channel link their offer to the advertising contracts of Nantes for 10 years. We arrive with another business model. [...]

[...] And to reach we have secured a loan of about repayable in 5 years at a rate. The monthly payments of the loan are calculated with the following formula: , resulting in annual reimbursement equal to 5400 Financial Plan Sales Forecasts First of all, we have to make a sales forecast to have an idea of the revenue. The revenue is split in three categories: Subscriptions: Each user will have to pay a yearly fee of The numbers of adherents will increase as time goes since the company will became more and more known. [...]

[...] Fees The first 30 minutes are free! Afterwards, the fee depends on the subscription card and the period of rent. One Year Subscription Card This card is valid one year. The customer can purchase it in our office or online. First 30 minutes: free From 30 minutes to 1 hour: 0.5 Per extra hour: Subscription fees: 12 Tourist Card This card is valid up to 7 days maximum. The customer can purchase it in our office or online. First 30 minutes: free From 30 minutes to 1 hour: 1 Per extra hour: 2 Subscription fees: 5 IMPORTANT: For either subscription, the customer receives a “magnetic strip”, Clélo, whose use is to unlock any bike in any parking spot. [...]