Autocab-Cab Sharing in India B-Plan

1. Autocab
“Showing the Path Ahead-Your Friendly Ride”
By
Saurav Kumar Das

2. Mission Statement:
 The mission of the company is to become pioneers in the domain of
comfortable shared cab services. As reflected in our tag-line, “Showing
the Way Ahead”, the company believes that the novelty and added
value of its services would set the paradigm for the shared cab sector
5-Year Goal:
 Averaging sales between Rs. 100 mm-Rs. 145 mm per year.
 Achieve ~25% return on investment to investors for the first two years
and 35% for the next three years.
 Keeping employee labor cost between 25-30% of revenue.
 Constantly upgrading the service standards & customer validation
systems
 Expand our marketing and advertising in metros & industrial hubs
within a span of 5 years.

3. 3
 Current Market Challenges:
 Though many IT sector firms in the Delhi NCR region do provide their own transportation
facilities, the companies usually charge a hefty amount for the service.
 Lack of uniformity in the locations of the employees and the subsequent fuel costs involved in
such customized pickups and drops.
 To cater to a limited number of employees the Company has to invest a lot in increasing
the number of routes catered to and distance covered in each route
 From the employee’s perspective the current available options are both uneconomical as well
as hassling i.e. cheap private transport like auto-rickshaws, costly private cabsservices- Uber
/Ola and combination of public transport options (Public Buses+ Metro rail+ rick-shaws)
 Opportunity:
 Compelling opportunity owing to strong market demand for a moderately priced cab service
 The profit potential is moderate, but would grow as the company captures markets
 The current competition is not satisfying the need the market sufficiently, so a definite
opportunity is presented here.
 Our Solution:
 Autocab would offer a relaxing, stress free, ride to office goers so that they can turn
up fresh and on-time to work

4. Name Designation Background
Saurav Kumar Das CEO & Co-Founder • MBA from XLRI
• B.Tech (EEE), NIT Warangal
• 6 years of experience in Project
Management & Marketing
Manishankar Biswas COO & Co-Founder • M.Tech IIT Delhi
• Former Head, Uber India Operations
Harsh Soni CIO & Co-Founder • MBA from TISS
• B.Tech (IT)
• 7 years of experience in Information
systems and App. Development
Vishal Singh CMO & Co-Founder • MBA from IMEI, New Delhi
• 7 years of experience of Marketing in
service industry
Sabarinath Warrier CSO & Co-Founder • MBA from XLRI
• B.Tech (ECE), NIT Calicut
• 5 years of experience in Strategy and
Data Mining

5.  Safe and comfortable shared cab services for office-going professionals
 During non-office hours (7:00-9:00 – 12:00-16:00- 21:23:00), 0ur cabs would
transform into shared cab services:
 Select routes with charges of Rs. 5/km vs. Rs. 16/km for Uber/Ola
 Cab routes and movements to be tracked through GPS
 Effective means of leveraging the Autocab corporate service brand as a
synonym of reliability and safety
Value Proposition Our Offering
Convenience Provides hassle-free door-to-door service
Reliability On time pick-up and drop without any delay
Comfort Customized comfort levels even in shared model
Safety Polite and well-behaved riders; more safety in shared cab
Service Experience Air Conditioned car with infotainment avenues during travel
Cost Highly Cost-effective solution
Employee Welfare Effective internal branding & employee engagement

6. 6
 Indian Radio taxi Market: $6-$9 billion dollars
 Forecasted to grow at 17-20% annually
 Organised taxi market: Only 4-5% of the market –unexploited
 95% Market covered by unorganized operators who own fleets of 2-50
cars
 Indian Radio taxi space has a huge headroom for growth and is far from
saturation
 Good scope for expansion in tier 2 cities-metro’s still primary market for
all the players
 Service assurance & quality and convenience will emerge as the long-
term differentiators
 Ride-sharing might come up in the next 3 years
 Has the potential to bring down costs even further
 Reduce costs even further for the taxi players
We have the opportunity take First Mover Advantage
Source: The Evolution Of The Indian Taxi Market - Comparing The Biggies, Inc42

7.  Phase 1: Revenue stream would be three-fold:
 Non-refundable initial annual membership fee: Rs.7,500
 Can invest elsewhere to get returns
 Monthly Service User Fee: Rs. 2,000
 Ongoing payment and source of monthly cash flow
 Rental cab Service Revenue during Non-Office Hours:
 Rental Charges at Rs. 6/ km on shared basis in fixed routes
 Phase 2: New sources of revenues post expansion would include:
 Revenues from companies promoting products through print ads on our cabs
 Major costs incurred:
 Capex:
 Cost of procuring the cars
 Incorporating the company
 Opex:
 Payroll of the drivers as well as office staff.
 Fuel consumption
 Administrative expenses

8. 97.5
125.7
165.8
0
50
100
150
200
2016 2017 2018
Revenue(inrs.Millions)
Years
24.6
32.4
45.2
0
10
20
30
40
50
2016 2017 2018
Profit(inrs.Millions)
Years

9. Value Element Autocab Uber/ Ola
Private Auto
Rickshaws
Combined
Public
Transport
Convenience 7.0 9.0 5.0 4.0
Customer experience 7.0 8.0 5.0 5.0
Value 9.0 6.0 5.0 4.0
Efficiency 8.0 6.0 4.0 3.0
Comfort 7.0 9.0 5.0 4.0
Cost 8.0 4.0 6.0 7.0
Safety 8.0 6.0 4.0 6.0
0.0
2.0
4.0
6.0
8.0
10.0
Scoring
Factors of Competition
Industry Strategy Canvas
Autocab
Uber/ Ola
Private Auto Rickshaws
Combined Public Transport

10.  Customer acquisition strategy would revolve around a well targeted branding
initiative
 Brand ourselves as a reliable and trustworthy transport service provider at an
economical price
 All the cars would be air-conditioned to offer our customers some relief from the
scorching heat-waves and hot winds
 Branding campaign at major malls and corporate offices
 Sponsor RJ shows: Targets majority of office going professionals tuned into the
local radio stations
 Communicate our service proposal to corporate houses
 Engagement events and presentations
 Demo service offerings
 2 distinct customer segments
 Premium: 4 customers to share a sedan- Lesser stopovers, Higher price- more
profitable
 Deluxe: 7 customers to share a SUV –Lower cost, Longer routes.
 Both the customer segments would have a high willingness to pay in the wake of
the higher charges and relative inconvenience of competing services.

11.  Corporate Client Survey:
 Survey successfully identified consumer preferences & ideal price-
points
 Preliminary discussions underway to sign 1 year contracts
 Retention strategy : On-time pick up and drop with minimal delays and
excellent behaviors of the driver
 Partnership with i-Map Technologies:
 Already in talks to develop DBMS and software to track & maintain
ride data
 Buyer-supplier relationship: Strong partnership with fuel companies
 Talks with Reliance Petrochemicals to provide our annual quota of
diesel at discounted rate
 Strong alliance & goodwill with unions of taxi drivers to
 Ensure smooth operations & employee engagement
 Use the travel time for infotainment
 Collaboration with newspaper & magazine vendors for bulk orders

12. Threats:
 Scope for M&A activities with consolidations happening among ridesharing
players
 Big players like Ola & Uber are planning to introduce hatchbacks and low cost
options to cater to the price conscious Indian market
 The new political system in NCR region may invest heavily on Public Transport
system up-gradation and better service quality which may eat into our
customer base
Opportunities:
 Service assurance & quality and convenience will emerge as the long-term
differentiators.
 The demography of NCR is shifting towards a young, urban and value-
conscious population
 Myriad of MNCs are planning to set-up operations in NCR region and
close to 0.2 million new white collared employees would require
transportation services

13. Preliminary Talks
with Corporate
Clients
Duel diligence and
Contract with Cab
Drivers
Signing 1-Year
contracts with first
10 Corporate Clients
Creation of
Brochure & Logo
Incorporation of the
Company & Shifting
to Corporate Office Start of Operations
May, 2015 July, 2015
September,
2015
December,
2015
February,
2016

14. The company does not intend to go public any time soon, as
most of the financing is raised by owners & investors
40%
30%
30%
Autocab-Ownership Summary
Promoters Investor A Investor B

15.  Funding:
 The venture would require ~Rs. 500 million (Post Money) in total
investment from all sources
 In round 1: intend to raise close to Rs. 300 million from external investors
for ~ 60% stake in the firm
 Utilization of Funds:
 Our initial Capex would be close to Rs. 270 million
 Cars: Rs. 160 million
 Office Space: Rs. 40 miilion
 Software Systems Contract: Rs. 30 million
 Miscelleneous: Rs. 40 million
 Annual Opex: Rs. 200 million p.a.
 Personnel Cost: Rs. 80 million
 Fuel Costs: Rs. 70 miilion
 Maintenance of Cars: Rs. 30 million
 Marketing & Branding: Rs. 14 million
 Administrative: Rs. 6 million

16. THANK YOU 