Entrepreneurship Development Project

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Entrepreneurship Development Project

On
Submitted in partial fulfilment of the requirements for the award of the

Degree of Bachelor of Business Administration in Finance and International
Business of Christ University
Under the Guidance of

PROF. DR. SHIKHA BHAGAT
School of Business and Management
Christ University, Bangalore
2020-2021
By
M AMULYA PRASAD – 1923635
VAIBHAV GOLANI – 1923670
VAIBHAV JAIN – 1923671
2020-21 Entrepreneurship Development Project | ELLE CABS

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DECLARATION OF ORIGINALITY
This is to certify that the Entrepreneurship Development Project of subscription box for
ELLE CABS is an original work of the students M Amulya Prasad, Vaibhav Golani,
and Vaibhav Jain declare this project is a record of original research work undertaken
by us for the award of the degree of Bachelor of Business Administration in Finance
and International Business. We have completed this study under the supervision of Prof
Dr Shikha Bhagat, Associate Professor, School of Business and Management.
I also declare that this project has not been submitted for the award of any degree,
diploma, associateship, fellowship or another title to any other Institution/University.
Place: Bengaluru
Date: 15/04/2021

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CERTIFICATE
This is to certify that the entrepreneurship development project submitted by M
Amulya Prasad, Vaibhav Golani, Vaibhav Jain titled ELLE CABS is a record of
research work done by them during the academic year 2020-21 under my
supervision in partial fulfilment for the award of Bachelor of Business
Administration in Finance and International Business.
Place: Bengaluru
Date: 07/03/2020
Prof. Dr. Shikha Bhagat

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ACKNOWLEDGEMENTS
We want to thank the college, the dean Dr Jyothi Kumar and campus director Dr
Fr. Biju KC, for giving us an opportunity to devise this entrepreneurship
development plan. This experience will help us in our future endeavours.
Many thanks to the subject faculties and our mentors to guide us throughout the
process and give us valuable inputs.
A big thank you to Dr Shikha Bhagat for advising us on topics in the project
related to their subjects.
Thanks to our friends, classmates, family members and information providers to

provide valuable insights and critical information for developing this plan.
At last thanking god to keep us safe and secure in our dwellings in these pandemic
times and the era of technology without disturbing any of our daily life routines
in terms of this pandemic.

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PREFACE
More than 80% of Indians travel through the unorganized sector when they
travel inter-city by road. This sector primarily comprises very small taxi
operators with no service standardization and quality.
Where in times of gender equality and women getting employment across any
job sector and as well doing various business, women haven’t been seen in this
sector of cab services and as well the concern of women safety in the society is
as well increasing with the rise in brutal incidents of women violence and
harassment.
There is a need for someone or something to change the way Indians travel
between cities by road especially women. So, someone needs to collect all these
bits & pieces of smalltaxi vendors and bring them under one roof with
passengers' security and empower women drivers in this sector as well.
There is a need for someone to make inter-city cab travel much cheaper,
efficient, & safer than what it is now for everyone, especially women and middle-
class wage earners.
In this Business plan, we have done precisely that. We are presenting you the
bestway to travel between cities through cabs. Much cheaper, safer, more
comfortable than before.
We have addressed one of the most significant issues of travelling in India.

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INDEX
EXECUTIVE SUMMARY
BUSINESS MODEL CANVAS
1. INTRODUCTION
 INTRODUCTION TO MEDIUM SCALE BUSINESSES
o MSME BOARD
o MANUFACTURING SECTOR
o SERVICE SECTOR
 INDUSTRY OVERVIEW
 PORTER’S FIVE FORCES MODEL
 COMPANY OVERVIEW
 VISION & MISSION STATEMENT
 COMPANY GOALS
 LEGALITIES
2. PRODUCT/ SERVICE
 PROBLEM
 SOLUTION
 PRODUCT DESCRIPTION
 PROBLEM SOLVING FEATURES
 VRIO ANALYSIS
 CONSUMER DECISION MAKING PROCESS
3. MARKET RESEARCH
 MARKET OVERVIEW
 COMPETITION SURVEY
 CURRENT SCENARIO AND ISSUES
 CUSTOMER RESEARCH
 PESTLE ANALYSIS
 SWOT ANALYSIS
 5W1H ANALYSIS
 PORTER’S 5 FORCES MODEL FOR COMPETITION ANALYSIS

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4. MARKETING
 7P'S OF MARKETING
 MARKETING PLAN
 SEGMENTING, TARGETING AND POSITIONING
 FLYERS, PRINT ADS AND SOCIAL MEDIA POSTS
 UNIQUE SELLING PROPOSITION (USP)
 CUSTOMER RELATIONSHIP MANAGEMENT
 MARKETING EXPENDITURE AND BREAK UP (IN ‘000)
5. HUMAN RESOURCE
 MANAGEMENT TEAM
 ORGANIZATION STRUCTURE
 MID LEVEL MANAGEMENT STRUCTURE
 FRINGE BENEFITS AND SALARY BREAKUP
 WORKING HOURS AND CONDITIONS
o ATTENDANCE AND PUNCTUALITY
o LEAVE POLICY
o LEAVE OF ABSENCE
o SICK LEAVE POLIC
o VACATION
o TIME OFF
o MONETARY BENEFITS
o MATERNITY BENEFITS TO FEMALE EMPLOYEES
 RECRUITMENT SOURCES
 SELECTION PROCESS
o INDUCTION PROCESS TWO-DAY ORIENTATION
 TRAINING PROCEDURE AND IMPLEMENTATION
o TRAINING NEEDS ASSESSMENT
o TRAINING PROCEDURE
 PERFORMANCE APPRAISAL METHODS
o MBO (MANAGEMENT BY OBJECTIVES)
o CRITICAL INCIDENTS METHOD
o PSYCHOLOGICAL APPRAISAL
o CHECK LIST APPRAISALS

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6. FINANCIAL PLAN
 APPROXIMATE INVESTMENT
 PROFIT & LOSS STATEMENT
 BALANCE SHEET
 CASH FLOW ANALYSIS
 BREAK EVEN ANALYSIS
 FINANCIAL RATIOS
7. IMPLEMENTAION STRATEGIES
 PHASES OF IMPLEMENTATION
 LEGAL LICENSES AND FOMALITIES
 EXPANSION PLAN
 EXIT PLAN
8. CONCLUSION
9. REFERENCES
10. APPENDIX

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EXECUTIVE SUMMARY
Elle Cabs is an intercity transportation cab service whose main aim is to decrease the cost of
intercity transportation and employ women drivers and ensure greater safety of women
passengers. Here we came up with a plan to connect the demand for customer from city A to
City B and vice versa which would help us to reduce the expense of intercity transport. Before
this the customer were charged return fare, but our plan helps to reduce the expenses of
customer. And organize this unorganized sector of intercity transportation.
We are planning to build an app which will help the customer to book their intercity cab through
our platform. On the basis of primary research conducted by us we found out the customer are
charged more for one-way booking then the actual fare. Customer face the problem of safety
and difficulties from driver’s driving skill especially by women. Booking from our platform
will be unique, cheap, safe forthe customer as we conduct a background check on drivers, and
we have skill assessment test for drivers after training the aspiring women drivers.
Our initial plan of action is to cater on the route of Mumbai to Pune, Mumbai toNashik and
vice versa. We will be providing customers both one way and returnjourney on these routes.
We are initially planning to test our model and become market leader on these routes. And we
hope that there is a promising future for our company and our customers especially women and
expand our business to other territories in the short run and become a one stop shop for all the
intercity transport route.

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BUSINESS MODEL CANVAS

Key Partners Key Activities Value Propositions Customer Relation Customer Segments
 Intercity one- way  Smartest way to get  Passengers (those
 Local taxi cab service  Quality who do not own a
around.
service provider  Intercity cab  Women Safety car, Citizens who
 Customers (Taxi on
 Companies who service for return  100% digital need a taxi service,
demand, Case free,
journey experience.
have many taxis Easy to order a cab Party people who go
 Women Safety and  Convenience
and provide and short wait time, to various concert,
Women Drivers  Easy to use app
intercity low price, cab map Business Travelers
 Platform and website.
transportation. tracking) and Tourists and
development and  Review and
 Taxi provider  Experience feedback system Women
maintenance.
who works from  Technology trends  FAQs on website Commuters)
 Customer support
local taxi stand  Offering a one- Chatbot  Drivers and local
 Website and app
 Taxi provider stop-shop for taxi player who do
development
who works from intercity rides not get enough
 Research and
airport for  Cheap price to business, can get
Development competitor but more business,
intercity
transport. offers more value Channels aspiring women
 Affiliate through service drivers
Marketing  Provide  Word of mouth  Helps to organize
 Payment opportunity to  Mobile App the unorganized
Processor. Key Resources unorganized taxi (Android and intercity cab service
 Investors provider to gain iOS)
 Cab Booking more bookings and  Social Media and
 Other Platform
Technologies  Pricing algorithm increase their WOM Marketing
(GPS, Maps,  Routing algorithm earnings  Public Relations
 Website/App
Payment, Cloud  Brand name and and Press
Storage, Data assets Releases
 Human Capital  Various Local
Analytics etc)  Financial capital
 App and of Rs.50,00,000 Advertising
Website Channels like
developer Newsletter,
Radio
 Digital Ads
Cost Structure Revenue Streams

 Salaries to permanent employees
 Platform Development  Revenue from Mumbai to Pune and return.
 Research and Development  Revenue from Mumbai to Nashik and return
 Office rent.
Y1 Y2 Y3
 Legal Revenue (Mumbai –
₹12,81,843 ₹19,11,614 ₹24,70,949
 Website and app development Pune – Mumbai)
Revenue
(Mumbai –
₹10,76,748 ₹15,48,173 ₹20,28,531
Nashik –
Mumbai)
Total Revenue ₹23,58,591 ₹34,59,787 ₹44,99,480

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CHAPTER 1
INTRODUCTION

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INTRODUCTION TO MEDIUM SCALE BUSINESSES

Medium-scale businesses typically result from the slow and steady growth that results from a
successful small business. As a company earns more revenue, it sets aside the capital needed
for buildings, equipment and more employees, eventually bridging the gap between small
business and large corporations. A medium-scale business/industry has an asset of $5 million
or more. It is owned and operated by a single person, two business partners, or a corporation.
It hires a specialized staff to run the business. Examples of this are garment factory and
supermarket and many other businesses employed in any sector of the economy i.e., primary,
secondary, tertiary.
The Office of Development Commissioner (ODC) also known as Small Industries

Development Organization (SIDO) functions as the Nodal Development Agency for small
industries. MSME functions under the Ministry of Micro, Small & Medium Enterprises.
The main services rendered by DC MSME office are:

• Advising the Government in policy formulation for the promotion and development of small-
scale industries.
• Providing techno-economic and managerial consultancy, common facilities and extension

services to small scale units.
• Providing facilities for technology up gradation, modernization, quality improvement and

infrastructure.
• Developing Human Resources through training and skill.

• Providing economic information services.
• Maintaining a close liaison with the Central Ministries, Planning Commission, State
Governments, Financial Institutions and other Organizations concerned with development of
Small-Scale Industries.
• Evolving and coordinating Policies and Programs for development of Small-Scale Industries
as ancillaries to large and medium scale industries.
• Monitoring of PMRY Scheme.
The process of liberalization and market reforms has created wide-ranging opportunities of the
development of small-scale industries. Changing world scenario has thrown up new

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challenges to the very existence of the sector. In order to focus on the issues facing the sector,
the Ministry of Small-Scale Industries & Argo and rural Industries was created on the 14th
October 1999 for overseeing the formulation and implementation of the policies and programs
for the development of the small-scale industries through support agencies and specialized
services.
The Ministry of Small-Scale Industries designs and implements the policies through its field
organizations for promotion and growth of small and tiny enterprises. The Ministry also
coordinates with other Ministers/ Departments on behalf of the Small-Scale Industries (SSI)
sector.
MSME Board:
The Micro, Small and Medium Enterprises Board is the apex advisory body constituted to
render advice to the Government on all issues pertaining to the small-scale sector. The Board
is reconstituted every two years and is headed by the Minister In charge of Small-Scale
Industries in the Government of India. The Board comprises among others State Industry
Ministers, some Members of Parliament, Secretaries of various Departments of Government
of India, financial institutions, public sector undertakings, industry associations and eminent
experts in the field. The Additional Secretary and Development Commissioner (MSME) is the
Member Secretary of the Board. The Board is serviced by the Board and Policy Division in the
office of the DC (MSME).
In accordance with the provision of Micro, Small & Medium Enterprises Development
(MSMED) Act, 2006 the Micro, Small and Medium Enterprises (MSME) are classified in two
Classes:
(A) Manufacturing Enterprises – The enterprises engaged in the manufacture or production of

goods pertaining to any industry specified in the first schedule to the industries (Development
and regulation Act, 1951) or employing plant and machinery in the process of value addition
to the final product having a distinct name or character or use. The Manufacturing Enterprise
are defined in terms of investment in Plant &Machinery.
(B) Service Enterprises – The enterprises engaged in providing or rendering of services and are
defined in terms of investment in equipment.
Manufacturing Sector
Enterprises Investment in equipment

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Micro Enterprises Does not exceed twenty-five lakh rupees.

More than twenty-five lakh rupees but does not exceed five
Small Enterprises
crore rupees.
More than five crore rupees but does not exceed ten crore
Medium Enterprises
rupees.
Service Sector
Enterprises Investment in equipment
Micro Enterprises Does not exceed ten lakh rupees.
More than ten lakh rupees but does not exceed two crore
Small Enterprises rupees.
More than two crore rupees but does not exceed five core
Medium Enterprises
rupees
With the advent of planned economy from 1951 and the subsequent industrial policy followed
by Government of India, both planners and Government earmarked a special role for small-
scale industries and medium scale industries in the Indian economy. Due protection was
accorded to both sectors, and particularly for small scale industries from 1951 to 1991, till the
nation adopted a policy of liberalization and globalization. Certain products were reserved for
medium-scale units for a long time, though this list of products is decreasing due to change in
industrial policies and climate.
It can be observed that by and large, MEs in India met the expectations of the Government in
this respect. MEs developed in a manner, which made it possible for them to achieve the
following objectives:
• High contribution to domestic production
• Significant export earnings
• Low investment requirements
• Operational flexibility
• Location wise mobility
• Low intensive imports
• Capacities to develop appropriate indigenous technology
Medium-scale enterprises (MEs) have been established in almost all-major sectors in the
Indian industry such as:
• Food Processing • Agricultural Inputs

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• Chemicals & Pharmaceuticals • Meat products

• Engineering; Electricals; Electronics • Bio-engineering
• Electro-medical equipment • Sports goods
• Textiles and Garments • Plastics products
• Leather and leather goods • Computer Software, etc.
INDUSTRY OVERVIEW
The taxi industry in India has broadly notified as an organized business and unorganized
business. Unorganized industry basically constitutes of the small travel agencies operating in
smaller cities or in tourist places, Individual car owners who are licensed for commercial
purpose, Car agencies who own small number of cars and provide services to customers based
on the pre-bookings.
Organized industry primarily comes with a label / Brand which will bring in the sense of
security and peace of mind to the customers.
Taxi transportation industry in India is quite unique and diverse when compared to the other
countries. It is the growing industry and attracting many start-ups to join with its huge potential.
Broadly this business historically can be divided into pre-aggregator era and post-aggregator
era. The Cab Aggregators mainly addressed all the major open problems say like the
availability of the cabs at right time, behaviour of the drivers, security with the tracking the
vehicles using the technology.
Cab Aggregators basically do not own the vehicles, the only thing they do is the coordination
between the customers and the drivers using the technology like GPS / GPRS (Global
Positioning System / General Packet Radio Service). Taxi Industry is basically divided into
organized and Un-organized business. Till 2007 almost all the industry is not so formal, as
most of the business is being handled by Individual Car owners.
The Indian taxi market size was estimated at 1.9 million cabs estimated to generate ~$10-$11
Billion revenue in 2019-20. The unorganized small fleet operators account for ~91% market
share in terms of registered taxi fleet. The arrival of on-demand taxi players has helped organize
this market to a great extent.

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The target user-base of on-demand taxis in India is typically urban with an income of >25,000
INR ($350)/ month. Although, with growth in share/pool rides, that income threshold has
further reduced. In India, both Ola and Uber, earn ~78% of their revenue from budget segment
rides. Apart from Meru cabs, the cab aggregators have an asset-light business model and don’t
own any vehicles of their own. They simply charge a 20-25% commission on every ride just
for the match they provide between a rider and a driver.
Revenue is expected to have an annual growth rate of 13.5% CAGR (FY 2019-20) and valued
to be ₹ 61.59 billion market by 2024 from a current value of ₹29.75 billion as of 2019.
PORTER’s 5 FORCE MODEL

Bargaining Power of Buyer - High
• Price sensitive customer base: High competition forces players to give better discounts and
offers that is making all the major players bleed cash.
• Demand better product mix: Customers are forcing the players to give better product mix
such as pool services, prime play that is also increasing the cost.
• Demand Better quality: Highly sensitive customer base is the main reason behind cabs
having feedback system and also when not satisfied customer tend to post on social
platforms about that brand.
Bargaining Power of Suppliers – Different amongst different segments
• Primary suppliers: These are generally the car fleet owners who have some influence
over the aggregators by asking for better commissions especially in tier 2 cities where
there are limited number of players
• But since the aggregators are known brands with high influence, they can’t ask for
commission beyond a point.
• The individual cab owners or drivers have low bargaining power as they will always
get more demand through cab aggregators

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Barriers to entry - Medium
• High Cost of Setting Up: Driver’s sign-up and verification is a time consuming and costly
exercise with multiple third-party services are required.
• Many existing companies have moved from pure aggregation to hybrid model where part
of the car fleet is owned by them. This requires considerable costs for setting up.
• Government Policies: Frequent disagreements between state taxi unions and managed taxi
providers.
• State governments sudden interference like banning sharing cabs services in Karnataka and
surge pricing in Delhi can impact the existing models which they might have successfully
replicated in other markets.
• Resource Crunch: Established players like Ola and Meru are investing heavily in their cab
leasing programs and zero commission for longer periods to ensure loyalty. Demand for
drivers is high and driver’s loyalty is difficult to get.
Threat of substitutes - High
Taxi services provide competitive quality services to each other while another potential
substitute comes from the common transport industry. More often than not, taxi service is
common to most towns and cities with a high ride-sharing operation since it offers lower costs,
efficiency and it is user-friendly. Therefore, their significant numbers in various towns and
cities of operation are enough to limit cab aggregators from increasing their service fees.
Threat of competition - High
• Product differentiation is very low as there is not much differences in cabs and product
offerings, they offer
• There are close to zero switching cost as it’s a free app and there is very low brand loyalty
because of it.
• Very stiff competition as companies is of very similar size and can pump in similar amounts
of fund.

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COMPANY OVERVIEW
Our idea is to make an app or platform that aggregates various local, small, offline cab operators
in different cities and bring them under one roof so as to bring better coordination between
them and bring in economies of scale, increase consumer demand for them, find them return
journey passengers (which is very difficult in many routes). The main idea is to reduce the cost
of intercity taxi services for the consumers and bring in greater demand for the local taxi
operators with women drivers and women passengers safety.
VISION
To provide hassle free and cost affective inter - city taxi services to millions of Indians keeping
safety and suitability as our main attributes and empowering thousands of taxi operators across
the country using our cutting-edge technology.
MISSION
Smarter transportation with fewer cars and greater access. Transportation that’s safer, cheaper,
and more reliable for women; transportation that creates more job opportunities and higher
incomes and demand for drivers and women especially. Transportation in which the consumer
is the king and has the ability to have more choices.
COMPANY GOALS
Short Term Goals:
• Automate as much as possible with women drivers.
• Become operationally profitable
• Become market leaders in the 2 routes

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• Meet the quality standards set and higher women safety.
Long term Goals:

• Expand to other major cities in India
• Improve profitability ratios
• Expand our network of taxi partners
• Implement the business model which helped us to become market leaders in the current
routes to other routes.
LEGALITIES
There has been a clear division of roles and responsibilities of the founders that have been
explained in the Management Team section. The company would be set up as a Private Limited
Company.
A private limited company is a company which is privately held for small businesses. The
liability of the members of a Private Limited Company is limited to the number of shares
respectively held by them. Shares of Private Limited Company cannot be publicly traded.
Requirements: Minimum of two persons for the registration
Costing: Nearby 15,000/-INR with the Government Charges in most of the states except
Punjab, Kerala, and MP.
Advantages: Easily raise the funds from banks, angel investor and VC Firms. It is one of
the most Popular legal entities in India. 50% of the big companies in India started as a Private
Limited Company.
Reason for selection: If a company has the vision to raise the funds and is a growing start-
up and need trustworthiness among the clients with the limited liability in the business then
must go with the private limited.

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CHAPTER 2
PRODUCT / SERVICE

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PROBLEM
One of the major problems that customers and travellers who want to hire a taxi for inter-city
travel face today is that most of the times when they travel on routes which are not frequently
travelled are that they have to pay for the return journey as well even if they don’t want to
travel the return journey. This happens because taxi drivers usually don’t get any return journey
travellers on the same day and have to come back to the origin city without any passenger.
Another problem in India is that there are thousands of small taxi operators in the country who
operate offline and the customers more and more today want online booking as well as, any
company who can guarantee them safety when travelling through these offline cab operators
especially to women. Customers want more information about the cab operators such as ratings
by prior customers before they can choose which operator to go for.
The wider problem is that this industry is very fragmented as there is no one database or proper
communication channel for these thousands of operators and there is a need to bring all of these
operators on one platform for empowering both the customers and the operators and promoting
better competition for cost efficiency.
SOLUTION
The ideal solution to this is create a platform to inter-connect all these offline operators to bring
them online and create a database in which the data of all the vehicles of the taxi operators is
tracked and a certain system is created via technology using pre-determined algorithms to get
customer bookings to these taxis giving priority to return bookings and taxi ratings and women
safety especially.
In this way we can provide better service and information to the customers at a significantly
cheaper price through the use of economies of scale.
The main idea is to bring this fragmented industry of offline cab operators under one roof,
setting quality standards for service and ensuring that there is significantly more footfall of
customers through this platform for them and providing better service, convenience, safety and
reliability to the customers with women drivers as well and higher women passenger safety.

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PRODUCT DESCRIPTION
Our product is a pan-India database or platform of all these offline taxi operators who will be
like our suppliers, the customers can book outstation taxi through us, the price will be regulated
as the taxi operators will be given a range between which they will have to choose the amount
they will charge for the customer depending on the route. The customer will be getting the
option of choosing between different taxi operators based on the price, prior ratings, popularity
and any other add-on service which the operator may wish to provide with option to select a
women driver as well for individual women passengers.
One major characteristic is that the priority will be given to return journey taxis so that no taxi
would return to the origin city without a passenger.
Our model will be somewhat similar to Amazon or Flipkart in which customers can buy the
same product from different sellers based on ratings, price etc. and we will just be the third
party providing them a proper platform through technology.
What we will provide is the convenience of bookings, cheap prices, quality standards on service
which must be maintained by all the taxi operators and safety through live location trackers for
women passenger’s utmost which will be installed in all the vehicles.
We will be getting economies of scale through other complementary firms of the transport
industry due to which we can also provide various services to the cab operators at a cheaper
rate. For example, we can tie up with a garage, spare parts dealer etc. to provide services at a
cheaper price to our cab suppliers because we are acquiring their services in bulk.
PROBLEM SOLVING FEATURES

Cheaper Prices – The cost of the return journey which is usually charged to one-way
customers won’t be levied which will reduce the travelling costs significantly. This will be
beneficial to the taxi operators as well as they will get guaranteed return journey passenger in
a stipulated time frame which would remove the uncertainty. The taxi operators will also get
greater demand if they join us and can create economies of scale as their vehicles would be
constantly moving which would reduce the costs to a great extent.

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Convenience, Reliability & Safety – The customers would get the convenience of booking
the cabs online, they can view the operator’s ratings as well as the prices charged and choose
accordingly. They will have the reliability that the operator would give the services as per the
high-quality standards set by us every time especially totally safe for women.
Bulk Bookings – For customers who need bulk bookings can conveniently book through us as
we have a large inventory of vehicles and can manage bulk bookings very easily.
Higher Demand & Surety for Operators at lower cost – Through our platform the taxi
operators will get significantly higher demand than before which will increase their revenue
and subsequently more drivers will be hired thus increasing jobs in the country.
VRIO ANALYSIS
 Yes.Our service will exploit the market for Intercity cabs, generally targeting one-way trips. We
want to reach every traveller and save them the pains of taking public transport or pay extra for a ride
Valuable
 Yes. There are a few companies in the market right now that specialise in tier 2 cities and one-way
intercity trips. The rarity would majorly lie in our end to end service.
Rare
 Yes.In the short run, the service is difficult to imitate by any company, but we can get competitor for
the service in the long run.
Imitable
 Yes. We will organize our management systems, processes, policies, organizational structure and
culture. The organization would be decentralized but these individual department would be
Organized centralized, giving maximum efficiency and transparency and accountability in the organization.
CONSUMER DECISION MAKING PROCESS

Problem Recognition: Elle offers cab service for passengers who want to travel intercity but
are hesitant to pay the double fare. Hence, the problem of paying double fare which is charged
by the organized as well as unorganized taxi agencies is the crux of our business plan.

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Information Search: People travelling intercity are basically of 2 types: Regular up and down
And One-time Travellers. Regular people already have transportation sorted out i.e., buses and
trains because they are cheap and flexible or even user who would emphasis on comfort then
price. One timers mostly prefer taxis as they would be going for vacation.
Evaluation of Alternatives: Taxi service alternatives are a lot in the market based on the price,
comfort, car type and many more. These agencies offer in city as well as intercity rides to
customers but due to the problem of double fare many people opt for trains and buses services
which are cheap as well as efficient. There are govt buses for intercity leaving every 10mins
from designated station of origin and hence people have a flexibility of time with cheap fares.
Purchase: Person has now decided based on the knowledge gained by him/her in the above
phases. The customer has assessed all the facts and came to a logical conclusion, made a
decision based on experience, emotional connections, and influenced by marketing and
advertising campaign.
Post Purchase: After the decision made by the customer the analysis of the decision is done
based on the services received are above or below expectations, or was it satisfied as portrayed
by marketing and advertising campaigns. If expectations are met and they liked the services as
well as other factors then they will become the potential customer and could also recommend
others to actively use our services by which we can become market leaders and can beat our
competition.

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CHAPTER 3
MARKET RESEARCH

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MARKET OVERVIEW
The taxi market in India is estimated at $9 billion; the organized sector constitutes around
~ 6% revenue share of the overall market
The taxi market in India is highly fragmented and unorganized. The unorganized market is
constituted of individual car owners and agencies which operate in one or few cities especially
intercity cab operators. Owned vehicles segment includes pure-play car rental companies (e.g.,
ZoomCar) and players like Carzonrent and Meru. Affiliates are associated with multiple car
rental agencies and offer various packages/deals and exciting discounts.
Surging demand for taxi services in India can be attributed to changing lifestyles of travellers
and increasing disposable income of consumers, especially in Tier-I and Tier-II cities. The
market is witnessing increasing traction as taxis offer hassle free travel experience to customers
in addition to various other tangible and intangible offerings such as booking convenience
through mobile applications, air conditioning, educated and skilled drivers, multiple payment
options, 24×7 customer support, electronic fare meters, GPS enabled vehicles, etc
Technology has become a key differentiator; players are looking to increase app usage by
making their apps more transparent, convenient and flexible. Planned technology
initiatives of taxi companies
Increasing number of App languages to provide better flexibility to customers/drivers of tier 2

cities and to ultimately increase the app usage. Showing the route being taken on a real time
basis, reducing app lag times and increasing GPS precision, for an enhanced customer
experience overall.
Incorporating traffic status on routes to ensure that the driver selected for a customer is nearest
to the customer on basis on least time to reach the customer. Driver management and
suspension through the usage of technology platforms.
Aggregators have started undertaking innovative initiatives like women-only cabs and panic
buttons to highlight their focus on customer safety.

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COMPETITION SURVEY
Overview of Taxi Aggregation Industry
Taxi transportation industry in India is quite unique and diverse when compared to the other
countries. It is the growing industry attracting many start-ups to join with its huge potential.
Broadly this business historically can be divided into pre-aggregator era and post-aggregator
era. The cab aggregators mainly addressed all the major open problems say like the availability
of the cabs at right time, behavior of the drivers with women especially, security with the
tracking the vehicles using the technology.
Cab aggregators basically do not own the vehicles, the only thing they do is the coordination
between the customers and the drivers using the technology like GPS/ GPRS (global
positioning system / general packet radio service). Taxi industry is basically divided into
organized and un-organized business. Till 2007 almost all the industry is not so formal, as most
of the business is being handled by individual car owners.
Taxi Industry
in India
Organised Unorganised
Business Business
1. Cab Agencies
1. Individual Car Owners
Aggregators 2. Partnership Model
2. Small Travel Agencies
3. Ownership Model
3. Car Agencies
4. Portal/ Web Based
Model 4. Individual Agents
Aggregator app
for cab
aggregators
The taxi industry in India has broadly notified as an unorganized business. Unorganized
industry basically constitutes of the small travel agencies operating in smaller cities or in tourist
places, individual car owners who are licensed for commercial purpose, car agencies who own
small number of cars and provide services to customers based on the pre-bookings and finally

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the individual agents who don’t own any cars but operate in coordination with all the car owners
/ agencies / travel agencies seeking agents who don’t own any cars but operate in coordination
with all the car owners / agencies / travel agencies seeking some certain amount of Commission
per ride booked.
Elle’s aim is to transform the unorganized taxi sector to organized by its technological
development and by taking inspiration from its already existing players like Uber and Hippo
cabs. Elle plan to transform the intercity taxi service experience of customers by bringing the
unorganized players like the traditional taxi drivers and the car agencies which have an offline
booking system and very conserved clientele because they perform their operations between
their city and the neighboring cities. They don’t have a lot of resources to expand themselves
and hence to its difficult to achieve economies of scale.
Elle is providing them to come on board as Elle has a huge clientele base and will give major
opportunity to offline taxi agencies to expand their business and achieve economies of scale.
Organized taxi industry
Organized industry primarily comes with a label / brand which will bring in the sense of
security and peace of mind to the customers. They operate with proper set up like office, trained
supporting staff, call center for bookings, professionally trained drivers and grievance cell to
reach when needed. Largely we can segregate considering the current market into following
categories:
• Cab Agencies – These types of agencies are mostly the established agencies with own
vehicles / either coordinating with individual car owners, operating in bigger cities where
there is a high demand. Also, they survive on the annual contracts at smaller volume from
mid-sized corporate companies. But due to lack of funding and proper strategy they
continue to do their business surviving at a smaller scale.
• Partnership Model – Typically these are companies who work with multiple car/travel
agencies to bridge the demand and supply. They don’t own any cars, but they concentrate
on generating leads to these car agencies registered with them, analyzing the market
conditions. With their strategic abilities they try to create market offering various
schemes/ideas/proposals/discounts to increase the customer base. Revenue generation will

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be through the commissions or the annual contracts. Saavari company works in the similar
mode of operation
• Ownership Model – Agencies / companies formed under this model own all the vehicles
and they manage either lending the cars to the drivers with the pre-specified conditions or
employ them depending upon the profitability in the market. Advantage of this model is
the operational founders will have the freedom and independence to execute their strategy,
as they don’t have the constraint or dependency to secure vehicles based on the demand.
Usually, policy upon this model is the more the demand becomes consistent the more the
addition of vehicles to the fleet. Meru cabs are the suitable example for this model.
• Portal / Web-based model – Companies like these work on the on the lead generation
handling all the customer bookings through a well-designed website. They don’t own any
cars and play a lead generator role in the industry relying on the commissions for the
revenue generation. Most of their strategy is to acquire more car agencies into their
network, in parallel pushing their brand into the market.
• Cab Aggregators – Fundamentally these companies call themselves as technology
companies, as they don’t own any cars / taxis. Their expertise is to utilize the technology
acting as an interface between the customers and the drivers. A mobile application is
developed using the maps to identify the request from the customer and then the nearest
available cab is signaled to accept the request facilitating the transaction.
Unorganized Taxi Sector
The taxi market, which is largely unorganized has many cons. This type of taxi business was
managed by the government where taxi booths were set up outside airports and local taxis
would register to get a trip. Passengers arriving at the airport would have to stand in queue and
pay in advance the fare for their journey, depending upon the distance. The taxi drivers would
get their earnings later or at the same time, depending on the model of that taxi booth. Prepaid
taxis did very well in their initial years of establishment.
Some private taxi player operates on the local basis. They provide service to the local people
who want to travel intercity. They will provide the service, but they charge the customer twice
the fare for one-way journey as they say that they don’t get fare for return trip. People don’t
feel safe while travelling with these operators as they don’t know any detail about the driver

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and cab operators especially individual women passenger. They face the problem because of
the driving skill of drivers as sometimes they can get new drivers or the drivers who don’t have
that good skills and drive carelessly which leads to road accidents. Passenger don’t face safety
while travelling with such drivers.
Apart from a few business models like prepaid taxis, the overall model of taxi cabs faced many
criticisms:
• They were unorganized and there wasn’t appropriate enforcement over them.
• Many drivers wouldn’t agree for price and may charge premium to some passengers.
• Many times, the driver and the passenger would not know the route to reach the destination
which would cost time and money.
• The level of safety was also low and there had been many cases of rape, molestation, etc.
• Often these cabs would go on strike and demand a fare hike.
• Many drivers would manipulate the fare meter which would lead to increased fare.
• Sometimes the usual operator from whom people book cab would not be free which leads
to problem
• These operators sometimes don’t agree to go to some destinations
• Sometimes drivers are rude and don’t listen to instruction of passengers.
CURRENT SCENARIO AND ISSUES

Having understood the potential in the market, many players small and big are entering into
the business. Out of them Ola and Uber have significantly become popular and the rest of them
are trying their best to survive. The major challenge these players are facing the initial customer
acquisition, to achieve this they are playing the game through price reduction, free rides
initially, discounts and referral bonus. Both these companies are trying all the ways to bring
the drivers who own the cars into the network. Drivers are given the extra incentives if they go
beyond the minimum number of rides. Elle plans to acquire market share of customers who
plan to travel intercity. The main incentive of Elle is they are trying to reduce the intercity
transportation as these companies who are working in intercity transport charge customers
twice the fare as they say they don’t get a return journey.

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Car aggregators, both Uber and Ola call themselves are technology companies instead of the
traditional transportation companies which will exclude them from all the regular laws. They
will act as an interface between the customers and the drivers. At the moment they have
restricted booking only through the mobile application but earlier they were taking it through
the call center and online booking via website also.
CUSTOMER RESEARCH
We conducted a primary research to better understand potential customers and their needs.
The online survey has been answered by 50 respondents.
Question 1: Do you travel intercity using a private taxi?
We can see that the major people of sample

are using private taxi for their intercity
commute. Which shows that this
unorganized sector has huge demand.
Question 2: How much extra fare did you pay for a one-way journey?
In the Survey we found out that 67.3% of the

sample are paying 2x fair for their one-way
journey while 26.9% are paying 1.5x of the fair
for one way. While only 5.8% are paying the
exact amount. Thus, we can see that major crowd
is paying more than the amount they were meant
to pay.

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Question 3: Do you feel safe using the private taxi service?
59.6% of the sample felt that they

don’t feel safe while travelling from
private taxi. This is because they don’t
know about the driver and they don’t
feel comfortable and as the number of
road accidents are increasing now a
days they are concerned about their
wellbeing. 32.7% population feel that they are safe in travelling with these private taxi service
providers for intercity commute. While 7.7% population is confused and selected maybe.
Question 4: Do you conduct any background check before choosing the taxi service
provider?
Only 32.7% of the sample conducts a

primary background check on the driver
before travelling with them. These are the
commuters who travel on daily basis.
While the 36.5% population selected
maybe which refers that they select the
recommended taxi providers from their friends and family which makes them confident that
the driver is good. While 30.8% people don’t conduct any survey and select a driver on random
which leads to risk of their safety, privacy.
Question 5: Have you faced any difficulty regarding the driver's driving skills?
Nowadays these private taxi

providers provide job to every new
person who are willing to the job.
They don’t conduct any assessment
or test. 53.8% population felt that
they face difficulty because of

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driving skill of these drivers while 26.9% population selected maybe which means once in two
or three trips, they too face problem. While only 17.3% population do not face any problem on
the basis of drivers driving skill.
Question 6: How do you find an intercity cab service in a new city?
53.8% of the sample population use

Online search as a tool to find private
taxi service provider in new cities. So
instead, if we come up with new
platform which could help to these
crowd would be beneficial. 26.9%
population take recommendation of
their family and 19.2% take recommendation of their friends. Using this new platform, we can
tackle this audience.
Question 7: On average how many times do you booked a cab on Mumbai-Pune or Pune-
Mumbai route in a quarter?
This research shows that the route from

Mumbai to Pune and vice versa has good
demand. 67.3% people travel 1-3 times in
a quarter while 17.3% people travels 4-6
times in a quarter. In the conducted survey
only 15.4% population don’t travel on this
route.

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Question 8: On average how many times do you booked a cab on Mumbai-Nashik or Nashik-
The route from Mumbai to Nashik and vice

versa has an average demand of 46.2%
population travelling 1-3 times in a quarter
while 23.1% population travel 4-6 times in a
quarter. While 30.8% population of
conducted survey do not use this route
Question 9: Will you be willing to book an intercity cab online if it’s cheap and safe with
women drivers?
96.2% population selected that they are

willing to opt for an online platform which
would provide them service as their
preferred option as they are willing to book
a cab from an organized sector which
would provide them cheap and safe option
instead of booking over phone. And paying
twice the fare as they take sometimes one-
way route.
Question 10: Rate the features on the importance for you in an intercity cab. (0-5, 0 being
min and 5 is max)

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The primary research we conducted clearly shows that price is the most important factor for
the customers which is not being met due to Private cab operators charging two-way fair with
safety as another concerning issue as well. Hence, affordability with safety is the main issue
which is associated with Intercity cabs, which is unorganized sector having fragmented in
different car operators. So, if we can provide a safe option with cheaper rates then we would
meet the demands of the customer.
PESTLE ANALYSIS
• Political – There are major discrepancies in government policies amongst different states
as these policies are in the jurisdiction the various State governments which can pose a
major problem. Taxi unions are another problem for us as they enjoy significant political
support and they may increase the barriers to entry for ex. in Goa
• Economical – Our product has major cost advantage through economies of scale which is
passed on to the consumer as well. Being significantly cheaper than other options is our
major USP
• Social – We will be bringing a system in a highly fragmented industry by connecting
thousands of local, small taxi operators. We will be providing a new, highly cost effective
and reliable service to our customers solving a major problem in their lives. This can
become the new way of travel for many people and especially women with utmost safety
with women drivers.
• Technological – Our platform is using high-end, cutting edge technology which uses pre-
determined algorithms to assign taxi orders, live location tracking of the vehicles, great
customer service and experience through our platform, all of this combined will provide a
more convenient and hassle-free service tour customers.
• Environmental – This will not significantly affect our line of business as we are just the
third party to the taxi operators and don’t have our own vehicles or drivers. But in the future
if the need arises, we can be at the forefront to push for lower emission vehicles such as
CNG or electronic vehicles
• Legal – The major legal issues we will face are the different operating laws in different
states as we are majorly outstation taxi service providers, we will have this issue even more.
Another issue which can arise is the fact that if an accident happens then what will be our

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liability on that. Another issue we can face is what will be our legal option if the
counterparty (taxi operators) breaks any term of the contract such as refusal to take a
passenger.
SWOT ANALYSIS
Strengths Weakness Opportunities Threats

•Cheap price is the •Competition from a •Organizing the • Business model
main USP of ours lot of players – unorganized sector
Offline taxis, online of taxi operators
can be copied
•Safety as main
priority especially taxis, luxury busses •Unorganized sector • Difficult to
etc.
individual women doesn’t have make the third
passengers •Acquiring taxi standardized quality
partners is an issue party cab
•User friendly & service
interface •Finding a return •Most of the demand
operators work
•Driver screening
journey customer for of intercity travel with proper
every trip is the
•Trained Women biggest challenge
today is through the quality and
Drivers unorganized sector efficiency.
5W1H ANALYSIS
• What –
o Problem is of organizing the unorganized sector and connecting them to their peers in
other cities
o Problem of operators pricing the customers for return journey even when travelling
one-way
• Where –
o Mumbai, Nashik and Pune
o Initially these 3 cities, will expand to more cities later

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• When –
o This question is not relevant to our company
• Who –
o Luxury bus travelers
o Inter-city travelling corporate executives
o Budget inter-city travelers
• Why –
o Big opportunity to do so
o To provide hassle free, safe and cost-efficient inter-city travel to our customers
• How –
o High use of technology
o Better communication and matching algorithms
o By connecting various small taxi operators between cities
o Standardizing service quality which isn’t done now with higher safety to women
passengers
Porters 5 Forces Model for Competition Analysis

1. The Potential Threat of New Market Entrants:
• A company’ position can be immensely affected by the ability of other organizations to
enter their market. The potential risks that the enterprise face are as follows:
• Setting itself in the technological arena, Elle aims to provide a linking bridge between
customers and transport providers. This market requires a higher amount of initial capital
to start up, and though Elle has to part with a substantial amount of capital, to quickly
penetrate the market.
• Various problems to enter the market and faced by Elle are: operations; legal issues, and
the existing players such as Uber which has a negative press around several areas and even
fines by government authorities such as Germany, France, India, Thailand, Netherlands and
United Kingdom has made the market to be under controversies thereby making new
entrants very cautious stepping into the business. This has at least for a short period,

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reduced the threat of new entrants into the market who must work in overcoming all these
challenges.
2. The Threat of Substitutions:

• A substitute is a well know fear that is experienced in a competitive business environment.
In the transportation industry, there are numerous member organizations that can quickly
provide a replacement for Elle services. With the service quality that Elle provides,
outstation taxi services, for instance, is the closest opponent and a potential substitute
emerging from the traditional transportation industry. Taxi service is traditional to towns
with ride-sharing operations because of both its lower-cost and efficiency, and user-friendly
designing. As such, their abundance is enough to curb Elle from elevating the service fees.
It is noteworthy that due to price sensitivity, a minor rise of Elle rates can result in customer
taking on the services of its closest adversaries and alternatives such as Uber and Ola.
Moreover, due to the presence of other public means of transport like trains, private cars
and even self-driving cars (google cars) that offer similar services can threaten Elle's
existence or operations. A constant threat of substitutes is currently a weak force in the case
of Elle
• As a technology-based company, it is not easy for Elle to stop any form of imitation by any
other transportation firm. This means that it is easy for the concept to be copied by new
ride-sharing companies and other competitors thereby to not only operate in the same way
as Elle but to also charge less for the same distance.
3. Supplier bargaining power

• This is the ability of suppliers to drive up the prices of a company’ inputs. The threat of
supplies to Elle is experienced below:
• One of the leading suppliers of the transportation industry is the availability of drivers. Elle
does not own vehicle among its fleets. As such, the company’s business model is mostly
dependent on drivers owning cars. Regrettably, the concentration of this group of suppliers
to work for Elle is not very high due to the stringent requirements needed to be hired by
Elle. It is also tough to substitute individual drivers as they are given the freedom to choose
between the organization and rivals. This results in drivers negotiating for better attention

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to the company’s expense. Therefore, it is undeniable that the suppliers have a stronger
power in impacting Elle’s performance.
• Oil and gas suppliers are another major provider. The oil price has been plunged since 2015,
and the lowest level has reached less than $30 in the year 2017. Highly fluctuation of the
price of such an essential component to company’s transportation industry brings a high
risk to the market because of the level of uncertainty and non-predictability of oil to powers
vehicles. Suppliers of these components thereby have a high bargaining power in the
operations of Elle.
4. Threat of Buyers: High- Buyer Bargaining Power

• The strength of customers can affect the performance of a firm by lowering the prices
placed on the products and services.
• Elle’s clienteles will be sensitive to price variations due to the existence of alternatives and
rivals. As the market grows bigger, the number of opponents bringing customers more
choice also becomes larger thus makes the switching cost for customers comparatively low.
This is because Elle application software is not only free but just requires a client’
registration. Customers can therefore freely choose between Elle, Uber, Ola or other
emerging ride-sharing entities at no cost.
• The number ownership of private cars has experienced a huge rise during the past few
years, and though the parking problems have been more severe than ever before, this has
not stopped individuals from desiring the status attached to one owning a car. This as an
alternative means that the demand for Elle services is low.
• In light of these factors, the buyers’ bargaining power has limited the amount of income for
the firm.
5. The Degree of Rivalry:

• This is the strength of competition in the industry. The trend of concentration of the industry
appears to be higher than previous years, and the existing companies in the market compete
with both suppliers (car drivers) and customers.
• Though there are some major competitors such as Uber, Ola, Hippo cabs it is considered
the principal competitor of Elle. Hippo cabs has an almost indistinguishable business ideas

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and procedures to that of Elle. A modern business setting demands organizations target a
customer base within a given geographical locations to cut on the operation cost. In essence,
it is a market trail-blazer, but small variation strategies limit the firm’s potential.
Competition is a weakening force given Uber and Ola’s supremacy. Therefore, it is indeed
a dominant force in the ride-sharing industry.

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CHAPTER 4
MARKETING

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7P’S OF MARKETING
Product/Service: Our service is very straightforward. Owing to the steady increase in crime
against women we have come up with a cab service exclusively for women which will entail
female chauffeurs as well as added security features for the women. We saw an untapped
potential in the intercity travel market and hence are providing cab rides to women at affordable
rates and assured safety.
Price: Our revenue model will be very similar to that of cab aggregators like Ola and Uber
hence our pricing will be competitive. In essence, we aim to provide the affordability of
travelling within a city to the intercity travellers. Base price + Distance + surge fee (if any) +
convenience fee+ service fee will decide the prices. The good part is that one-way travel does
not have to be as expensive anymore and so does regular up-down to another city.
Place: We offer our services through an app that can be accessed by customers. They simply
need to login to the app and book a ride at the price disclosed. The driver will reach their
doorstep and drive them to their destination in another city. Currently we have presence in three
cities in India- Mumbai, Pune and Nashik.
Promotion: Our promotion will involve two aspects, one is our direct reach to consumers with
the help of social media, television, newspapers/magazines and the second is through
collaborations and partnerships with NGOs working with and for women as well as the state
government once we expand our operations. Our USP is something we are confident we can
push well through our different channels. Apart from all this, we also use the techniques of
sales promotion to provide vouchers and promo codes to our customers and other such tools.
Physical Evidence: We have a very transparent method of working, our customers can find us
on all social media platforms- Twitter, Instagram, Facebook etc. Our App as well as website is
also available for users. Moreover, every cab ride will generate a log in the customer’s account,
which they can access later and request for an invoice.
People: Our employees are an integral part of the business. All our cab drivers will be women
and for all in-office positions, we would likely consider female employees more than their male
counterparts. We want to make this business as women centric as possible. When we say
‘women’ we also refer to transgender women because we want to provide an equal opportunity
and voice to all the disadvantaged genders.

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Processes: Customers simply need to login to their account, give access to their location, find
a ride by entering all necessary details then book the ride and sit in the cab, relax and enjoy the
ride. It is a very seamless process and any hurdles in this process have been given due time and
have been overcome.
MARKETING PLAN
A marketing plan is a business document outlining the marketing strategy and its key actions.
It covers a specific time period and a variety of marketing related goals such as cost-
effectiveness and sales targets. The aim of marketing plan for the next two years is to define
and segment the market and to craft marketing messages, generating results. It will further help
us not to lose the element.
The brand highly relies on its online presence - since it is an app and hence the major marketing
of the product is going to be online. As soon as the official website and app is live, the
marketing of the product will immediately start.
Sales and Traction
The sales would start coming in through the website/app when people buy our service. The ads
will be shared across among all major social media platforms and would hence generate a lot
of sales. We would also benefit from the fact that people are now comfortable switching
towards online modes of payments and no human interaction for bookings.
How we will establish credibility
We will establish credibility by uploading testimonials and customer experiences constantly

on our website. Apart from that, we will keep a live tracker on our website of the number of
passengers and kilometers travelled, equaling to how much money we saved for people. Apart
from this, we will have agency profiles to display most trips or best rated agency for them to
keep up the work from their end and ensure quality.

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Service Marketing Triangle
For a service to succeed, there are three

types of marketing that need to be
carried out efficiently and in sync with
each other. The three types of
marketing are external marketing,
internal marketing, and interactive
marketing. These activities are based on making and keeping promises to customers. This is
essential for maintaining customer relationships. The key players are the Company, Employees
and Customers.
• External Marketing: Making Promises - External marketing consists of making promises

to the customers about what services and service quality that they can expect. We aim to
do this through a couple of marketing channels which are Speaking Engagement, Referrals,
Email Marketing, Direct Marketing, Phone Marketing and Social Media marketing.
Through this we will reach our customers and give them an idea of the service we would
deliver to them.
• Interactive Marketing: Keeping Promises - The second type of marketing is keeping
these promises to the customers. Under this, the interaction happens between the employees
and the customers. Our customers will get the personal attention from our employees,
which we aim to do to make our customers feel valuable.
• Internal Marketing: Enabling Promises - For our employees to be able to deliver and
keep our customers happy, we believe in taking steps to keep our employees motivated and
satisfied as well. At Elle, we will have a relatively small workforce initially, where we will
strive to maintain a comfortable atmosphere for all our employees and focus on two-way
communication, making every employee feel like a valuable part of the organization.

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First 6 months – Initial Marketing
Email Marketing
Databased emails will be sent to potential and consisting customers building

our digital marketing strategy. They will receive frequent coupons or
customized vouchers, depending on their activity and purchase power of our
products. This database will further include our and their friends, families and college students
and colleagues. Frequent travelers and Corporates are also on our target list, and will create
customizable packages.
Social media marketing
However, also Advertising campaign will be launched and promoted on social media platforms
such as Instagram, Facebook, and YouTube. Promotional messages will be shared through
WhatsApp, LinkedIn, Snapchat through targeting and geo fencing.
Visual tools are very useful ways of explaining and promoting Taxi and
can be used on website, social media marketing and for displays and
exhibitions. The video could be updated annually with each year’s video focusing on recent
developments and target different sectors of the population and uses by customers.
Sales Promotion
The founders will make meetings and appearances in various corporates to bring them on board
and try our services. We encourage them to promote our brand further in order to gain
customers.
Leafleting of car station locations and surrounding areas - focusing on car

station locations and residential and business developments in the
immediate vicinity as well as main gathering points and events.
Local radio is a perfect word of mouth format. Ways of using radio might
be a creative campaign whereby specific relevant content and features are sponsored.

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1st year – Intermediate marketing
Search Engine Optimization
We will make sure that our website is one of the first few hits, when potential
customers search for keywords that related to Intercity Cabs and travelling or even
hiring vehicles for intercity travelling.
Sales Promotion
As already performed in the first couple of months, Promo codes and referrals
will be given or send to customers on subscribing for a longer time and on
special occasions. Special occasions such as Festivals when people go home
and spend time with family, thus having only one way travelling (Like Diwali,
Christmas, Holi)
Become a member of local business networks, such as the Chamber of Commerce, as they
provide the opportunity to promote the service to potential customers, trade with other
organizations; even find potential partners or outside investors.
2nd year – Growth Marketing
The second year will mainly cover marketing activities that have already
been launched before. More Influencers will be asked to share their
experience while also personal referral codes for recruiting friends or family
members are distributed. If a student for instance, recruits one of her
classmates to subscribe, both will get a slight discount on their next
purchase. This will be our key resource to push our affiliate marketing in terms of word-to-
mouth promotion.
Regarding our advertisement strategy, we will further focus on experience sharing on TV as

well. After having successfully expanded, our availability in different cities will be shown
widely on any means of media.

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SEGMENTING, TARGETING AND POSITIONING

Segmentation: Our customer segment is frequent intercity travelers by road transport who
have the purchasing power and generally travel to tier 2 cities.
Targeting: Our target market is anyone and everyone who wants to travel outstation via taxis
who require safety especially women, reliability and convenience. We cater to all types of
customers and even bulk booking customers as well which can include festival traveler’s, joint
families etc. Our target market is the people who travel by luxury busses or taxis to different
cities.
Positioning:
• We position ourselves as a Differentiated Cost Leader as we are providing a very Routine

service and to a broad target market, i.e., the frequent one-way intercity traveler’s, but
providing a service to our Partners that has never been offered before.
• The product comes in the Low-price quadrant.
• P.O.D: Our point of parity is the Pricing features; we charge you fares of only one way and
not two way

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FLYERS, PRINT ADS AND SOCIAL MEDIA POSTS

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UNIQUE SELLING PROPOSITION (USP)

• Our USP is simple. We will be the most cost-effective way for a person who wants to travel
inter-city through cabs. We will be better for people who usuallytake luxury busses for this
travel. Most of the taxi services charge customers fortwo-way even if the customer is
booking for one-way because they don’t have areturn booking from the destination city
back. We are solving this problem by finding them return customers and taking a margin
from the profits. This will increase the demand for the operators exponentially and they
will make much more money this way than before.
• For example, if you have to go from point A to B, Ola is charging you ₹100, we will charge
₹60 and then we will find another customer from point B to A for ₹60again. This way we
make more money while being a cheaper option for the customers. We will be taking pretty
good margins from this profit
CUSTOMER RELATIONSHIP MANAGEMENT

Our CRM strategy will consist of multiple online solutions. To save costs and spend into in-
house customer support infrastructure Elle will use cloud solutions such as ZOHO CRM that
will allow us to service our consumers with 24/7 support. With the help of Zia (Zoho’s
Conversational AI) Elle will not have to employ a lot of support staff as the AI will be able to
resolve most of the tickets that the customers raise.
We have an FAQ page available on our website. The customer can go through it if they have
any questions regarding the process. The details about the features and the entire customer
journey are explained on our website. If they have any special query, they can ask on the
website on our forum.
We can be easily contacted in case of complaints through email or on app after travel feedback.
We make sure that we respond and take action immediately to make sure that the customer is
not inconvenienced much.
Reporting of any issue needs to be within 7 (seven) days of the happening of the issue, failing
which, such issue will not be addressed.

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Any issue reported on channels other than the above may be addressed by Elle Cabs only on a
best-effort basis. Elle Cabs takes no liability for inability to get back on other channels.
Retention Strategies
Most businesses do well with attaining customers; however, the more important task is to retain
them. In the service industry, the communication becomes a vital function. Our main goal is
not to let this communication break. We plan to keep the communication on by a programmed
sequence of letters, annual calendars, and events. Apart from that, follow ups tend to be a decent
form of retention strategy, however since we are providing it with a part of the core service, it
hence performs a dual task. Other factors that affect the customers loyalty is the attention they
receive even after the transaction is done. The follow-ups play a major role here. They not only
include the aspects and the activities of the project, like the progress, the effects, participation,
etc. here we plan to add more to the page by asking the customers about their experience.
This would let us know whether we have satisfied the customer and if not, we would also know
our mistakes. This one-to-one talk with our client would be conducted by one of our team
members, as we consider our customer’s satisfaction to be of utmost important.
MARKETING EXPENDITURE AND BREAK UP (IN ‘000)
MARKETING EXPENDITURE FOR FIRST

YEAR
FACEBOOK ADS 60
GOOGLE ADS 60
CHTR BOX 20
YOUTUBE ADS 40
INSTAGRAM ADS 40
SOCIAL MEDIA INFLUENCERS 0
YOUTUBE 40
INSTAGRAM 40
SNAPCHAT 20
ONLINE CONTENT AGGREGATORS 0
LITTLE BLACK BOOK 40
SCOOP WHOOP 40
BUZZFEED 40

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EMAIL MARKETING 40
CAMPAIGNS/PRINTS 60
RED FM MUMBAI 60
OFFLINE PROMOTERS 60
TOI INSIDE PAGES 60
REFERALS 40
STALLS AT COLLEGE FESTS 40
INTERACTIVE STALLS IN
40
CORPORATES
MISCELANEOUS 60
TOTAL 900

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CHAPTER 5
HUMAN RESOURCE

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Management Team
The founding members of Elle have divided among themselves the core functions and
roles of the business as per their respective fields of knowledge and expertise. Their
designations are as follows:
M Amulya Prasad, CEO and CMO:
She is largely responsible for strategy, pricing and overall

coordination. She possesses great communication and listening
skills; therefore. As a visionary thinker, she has the ability to make
key strategic decisions which are solidified by her deep
understanding of the current market scenario and responsible for marketing strategy, brand
management, market research, marketing communication, she has consistently shown an
ability to think out of the box and has great teamwork skills. With her abilities, such as clear
and fast thinking, practically and great soft skills, she is the ideal CMO.
Vaibhav Golani, CFO and COO:
He is responsible for managing the company’s finances, including

risk management, cash flow and financial planning. With his great
problem-solving abilities, his knowledge and experience in finance
related topics as well as his leadership skills and responsible for operations and resource
management. He maintains a good relationship to our taxi operators. Furthermore, he is
responsible for bringing more customers, having the know - how about all legalities regarding
our operations.
Vaibhav Jain, CTO and CHRMO:
He is our workforce strategist and responsible for HR Planning and

Customer Relationship Management. He has great communication
skills and can motivate people easily and hence suits the profile best
and as well handles the technical aspect of the business operations by app, website maintenance
and customer care cell for the grievances of customers to be addressed as well.

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ORGANIZATION STRUCTURE
 The organizational structure consists of a three-tier management. The top-
level management includes the three managing partners of the company
handling all the roles of the firm. The partners are the highest authority in the
company.
 The middle-level management consists of the various departmental heads such
as marketing manager, finance manager, etc.
 The lower-level management consist of the various employees from each
department
Owners of
Company
Cheif Human Cheif Finance Cheif Operating Cheif Technical Cheif Marketing
Resoure Manager Manager Officer Officer Officer
Human Resource Finance Operations Technical Marketing

Manager Manager Manager Manager Officer
Cab Providing App Maintenance,

Other Financial Accountants,
Auditers, Cost Agencies, Cab Customer Care Cel Initial Offline Marketeer,
Online Marketeers, Social
Employees Accountant Drivers
(both supply and
demand side)
Media Handlers
MID-LEVEL MANAGEMENT STRUCTURE

Marketing Manager
The marketing manager will have a dual role – Firstly, to promote Elle Cabs and its service.
Secondly, to collaborate with NGOs working in the field of women empowerment to further

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the cause of women’s safety in the country as well as to launch collaborative programs that can
provide employment to the women that the NGOs work for.
Finance Manager
The finance manager will have a unique role in our organization. His/her role will not be
restricted to arranging funds and its application and control. A primary function of the manager
would be investment of money. This not only means the excess funds of business but also the
funds especially arranged for investment with having cost reduction and profit maximization
for the firm which is the most important characteristic of the firm and increase the market share
with large fleet of cab aggregators as well.
HR Manager
The HR manager will ensure the efficient functioning of human factors without any conflicts.
The manager will also be responsible for redressing any complaints of vendors.
Operations Manager
The Operations manager is responsible for the on-field functioning of the business which
means that she is responsible for all the cab drivers and their performance. She will work in
close contact with the IT department so as to ensure safety of passengers as well as drivers.
IT Manager
The IT manager will ensure the efficient functioning of technological factors without any
conflicts. The manager will also be responsible for redressing any complaints of technicalities
of app and website.
FRINGE BENEFITS AND SALARY BREAKUP

The detailed information about the initial work force required and their salaries are provided
below –

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Types of employees
No. of Employees Salary Total (12 Months)
required
Initial offline marketeers 3 ₹ 20,000.00 ₹ 7,20,000.00
App maintenance 1 ₹ 35,000.00 ₹ 4,20,000.00
Customer care (both
3 ₹ 25,000.00 ₹ 9,00,000.00
supply and demand side)
Online marketeers 2 ₹ 35,000.00 ₹ 8,40,000.00
Total 9 ₹ 28,80,000,00
Initial offline marketeers – These are the foot soldiers who will acquire taxi
operators for us on the supply side and will promote our product in major bus
stations and other major transportation areas to get us customers on the demand
side. There will be one of them in each of the three cities of operations that is
Mumbai, Pune and Nashik. They will be our point of contact with the cab
operators in their respective cities. They will be handling our offline promotion
and marketing in their cities. They will be in regular touch with our cab operator
partners and take regular feedback and will make sure that all the cabs they are
using are up to date and properly maintained.
App Maintenance – One person in the office would be responsible for improving
and maintaining our mobile app. His job will be to prevent any glitches that may
be happening in the app. Regular feedback from the customers will also be taken
so as to improve our app even further.
Customer care – There will be three customer care executives who will be
working for us to resolve the queries and to provide real time assistance to our
customers. These customer care people will also be responsible for contacting our
taxi partners in order to resolve any issue which may arise both from the
customers’ side or the operators’ side.

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Online marketeers – These people will be digital marketing experts who would
be working full time to improve our presence online. Their job would be to find
new ways to reach out to potential customers through email, online
advertisements etc. They will be responsible for driving our digital advertising
campaign.
All the accounting and finance team would be outsourced with Chartered
Accounting Firms.
As we know that this is a startup, many of the jobs will be overlapping and we
expect our employees to work horizontally in different departments as well when
the specific need arises. We will be doing the recruitment of people keeping this
in mind so as to get the best people for the job who are flexible and can work in
other departments as well.
Any privilege, service, facility or amenity, which is directly or indirectly provided

by an employer to his employees (including former employee or employees).
Any free or concessional tickets provided by the employer for private journeys to
employees or their family members.
Any contribution by the employer towards an approved superannuation fund for
employees.
Any reimbursement, which is directly or indirectly made by the employer to
employees for any purpose
The Fringe Benefits are deemed to have been provided if the employer incurs any
expenditure or makes any payment in the course of business or profession. This
includes any activity whether or not such activity is carried on with the object of
deriving income, profits or gains. Any expenditure incurred or payment made for
the following constitutes deemed fringe benefit.

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 Hospitality  Maintenance of any

 Conference accommodation in the nature
 Sales promotion including of guesthouse
publicity  Gifts
 Employee welfare  Scholarship to employees’
 Conveyance, tours and travel children
 Hotel, boarding, lodging  Repair, running and
 Use of telephone/mobile maintenance of two-
phone wheeler/cars
Others:
 Insurance  Bonus
 Provident Fund  Accident Insurance
Employees will also be allowed employee stock options so that they are
motivated to work for the firm and thus increase their sense of belonging. Also,
it will motivate the employees to work harder to gain higher returns.
Employee’s contribution to EPF will be deducted from the salary at 12 %.
WORKING HOURS AND CONDITIONS

Owing to our purpose of providing safe travel option for women our working hours will be
round the clock i.e., 24x7 in shifts of 8 hours for IT employees and cab drivers while the normal
workday for all other employees will start at 09:00 am and would close at 05.00 pm. Any
variation or adjustments in the standard workday must be appraised and approve by top level
management.
A lunch break from 12:30pm to 01:30pm will be given for employees in office with timings of
9:00-5:00. Even though the timings for lunch are as such, the hours can be made a little flexible

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in order to accommodate the employees. A tea break from 3:30 pm to 4:00 will also be given
to them.
It will be the partner’s responsibility to ensure a clean and healthy workplace and also to ensure
that proper safety measures are taken during operations. Also, any complaints by the employees
will be heard by the partners and will be dealt with based on their discretion and it is their
responsibility to keep the employees motivated and ensure that their individual interests are
taken care of while ensuring that objectives are achieved.
ATTENDANCE AND PUNCTUALITY
The habit of punctuality and daily attendance will be encouraged and measure will be taken to
motivate and maintain the conforming of employees to this habit. An attendance system will
be installed to ensure that top management will be able to keep a direct control over the working
of the employees and will also keep them informed of the employees’ work.
LEAVE POLICY
We will provide an annual leave day of 25 days. This Annual leave will be lost if not used in
the specific time period of 12 months.
Leave of Absence: Because employees may be faced with difficult situations that require
them to take time from work, a leave of absence program with specific policies regarding types
of leave such as-family, medical leave and funeral leave. However, top management must be
informed about it so that arrangements for work can be made.
Sick leave policy: Employees are eligible for up to 36 hours of sick leave for each calendar
year. Temporary, part- time, and outsourced service employees will not be eligible for sick
leave benefits. Regular full-time employees earn 3 hours of sick leave for every calendar month
of service. However, sick leave will only be considered/ granted under the following condition
A doctor’s note to return to work may be required for any absences of more than two days.
Except where the law provides otherwise, sick leave benefits may only be used for the
employee’s actual illness or injury or the actual illness or injury of the employee’s spouse,
parent, or child.

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Unused sick leave benefits accumulate from year to year up to a maximum of 48 hours of sick
leave. However, employees are not paid for unused sick leave benefits. No sick leave benefits
are paid upon termination of employment for any reason. Nor can sick leave benefits be used
for vacation.
Employees who are unable to report to work due to an illness or injury must contact their
supervisor as soon as possible, but not later than two hours after their scheduled starting time.
If an employee becomes sick during the day, the employee must notify a supervisor prior to
leaving the workplace unless it is not possible to do so. Failure to follow these procedures may
result in the absence being treated as unexcused and may result in disciplinary action or penal
actions.
Period Leave: All female employees are entitled to up to 8 days of period leaves within a
year. This is provided to ensure employee absenteeism is reduced and to also do our bit for the
women who suffer severely while menstruating.
Vacation: Upon completion of 6 months continuous service, regular full-time employees are
eligible to take vacation. The length of service determines vacation eligibility and it will be
computed from the most recent date of hire as a regular full-time employee.
Vacation must be scheduled in advance and at a time agreed to by the employee and their
supervisor. When two employees in the same department select the same period, consideration
will be given to the needs of the department, seniority, previous vacation periods and other
factors Unused vacation will NOT be lost if not used within the prescribed time limit.
Time Off: Due to various reasons, employees may request time off from work. Time off
requests must be written on the appropriate request form. Forms must be submitted two days
prior to the time off requested. Once the schedule is posted for the week, changes in shifts are
the responsibility of the employee. All shift changes must be documented and approved by the
top-level management.
Monetary Benefits: We are providing Bonus as benefits to the employees with an increase
in the salary by 30 to 45% after a period of 3 years, after which the firm will look to expand,
thus providing the initial employees the promised benefits and promotions.
Maternity Benefits to Female Employees - Maternity Benefit Act, 1961:

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The object of maternity leave and benefit is to protect the dignity of motherhood by providing
for the full and healthy maintenance of women and her child when she is not working. With
the advent of modern age, as the number of women employees is growing, the maternity leave
and other maternity benefits are becoming increasingly common. But there was no beneficial
piece of legislation in the horizon which is intended to achieve the object of doing social justice
to women workers employed in factories, mines and plantation.
Thus, the corporation will not neglect the needs of a female employee who is going to become
a mother and will provide flexible methods for her to keep working as well as be employed.
This involves providing leave during her pregnancy and also provide the work from home
option for website developers sand research and development as well as the social media
analysts and PR agents, if need be, after the birth of the child.
RECRUITMENT SOURCES
Following will be the major recruitment sources which will be followed to help in recruiting
cab drivers and lower-level management:
 NGO working for women

 Online advertisement
 Print advertisements
 Outsourcing
For the Middle and Top-Level Management
 Employment agencies
 Brochures and Notices
 Employment Agencies
 Internships
 Employee Recommendations
 Hiring Ex-Employees from Competitors

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External recruitments, if any would be taking places so that the company is able
to pour in new and competent human resources, continue to expand its business
and therefore ensure the longevity of the business.
SELECTION PROCESS
1. Preliminary Screening
2. Written Test
3. General Interviews.
4. Aptitude Tests
5. Stress Situational Tests.
6. Compatibility interview
7. Job Offer
8. Background Verification
9. Reference Check
10. Health and Medical Tests
11. Orientation/Induction
After the selection of the employee the employee would be given the necessary documents
to sign along with the Non-Disclosure Agreement. This is because we know as a start-up
the company needs to be cautious about the competitors.
Induction Process Two-day Orientation
Under this the new employee would be given a two-day process to understand the workings of
the organization. This would include:
Operations of the Company
Organizational culture and policies
Reporting relationships
Director meet and dinner.

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TRAINING PROCEDURE AND IMPLEMENTATION

Training Needs Assessment: Driving is the most important element of the training
process for the women who will be employed as drivers. They will be taught driving and they
will be monitored closely on each ride and further training will be provided based on reviews.
An appraisal of the in-office employees’ performance will help the company identify the need
for training.
Employees will be given freedom and encouraged to approach the managers if they feel that
they require being up-dated in any field
Training Procedure: The training procedure of the employees will be as follows:
The employee’s performance will be constantly managed by the two partners. The partners will
be responsible for identifying the gaps in an employee’s performance and performing a Gap
Analysis.
The employees will be encouraged to take online courses on a regular basis at their own free
time.
On the job training will be imperative as the company is a new one and cannot afford to waste
its resources and efforts of the employees.
PERFORMANCE APPRAISAL METHODS

The company will use various methods to appraise performance of the all levels
of employees. These methods will be:
1. MBO (Management by Objectives) –
The performance of the employees will be rated against the achievement of objectives stated
by the management. MBO process goes as under.
 Establish goals and desired outcomes for each subordinate

 Setting performance standards
 Comparison of actual goals with goals attained by the employee

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 Establish new goals and new strategies for goals not achieved in previous year.
 Advantage – It is more useful for managerial positions.
Thus, an objective will be set for the employees and the performance will be based on whether
they are able to achieve it and if they do/do not, then identifying the reasons for it.
2. Critical Incidents Method -
The approach is focused on certain critical behavior of employee that makes all the difference
in the performance. The directors, as and when they occur, record a certain incident. This help
sin the evaluations of employees as they are based on actual job behaviors, ratings are supported
by descriptions, feedback is easy, reduces biases, chances of subordinate improvement are
high.
3. Psychological Appraisals:
These appraisals help to assess the performance of the employees in a more directed method,
which focuses on an employee’s potential for future performance rather than the past one. It is
done in the form of in-depth interviews, psychological tests, and discussion with supervisors
and review of other evaluations. It is more focused on employees emotional, intellectual, and
motivational and other personal characteristics affecting his performance.
4. Check list appraisals
For lower-level staff checklist method will be used since it is inexpensive and efficient for large
number of workers spread across many food trucks and any abnormalities would be easily
spotted and corrected.

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CHAPTER 6
FINANCIAL PLAN

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APPROXIMATE INVESTMENT
The initial startup cost consists of very little things because our business model doesn’t require
a lot of assets or equipment for the work. All our work is done online and on call. Due to this
reason, our initial leverage is very low.
App development
The building of our mobile app is one the most important aspects of starting our business. As
we are a solely app-based service provider, our app needs to be up to the limit. All of our taxis
are booked through our app. We will be focusing on building an app that is very user-friendly,
very attractive to look and something which doesn’t crash easily and for that we have decided
to deploy 5 servers for our app.
The cost of building our app is based on how many hours will it take to build the app as all the
app developers charge on a per hour basis and India is one the cheapest labor options available
to the whole world. The per hour rate charged in India is approximately 25$. And taking
account of the features that we want in our app; it will take around 400 hours to build the app
which costs approximately ₹7,50,000 but we are taking the estimate as ₹8,00,000.
The hours to build the app basically depends on the features as shown below –
All our features are pretty basic, the only advance feature that we want is the geolocation that
is the live location feature which we are providing to our customers as safety is one of our
unique selling points and we don’t want to compromise on that. Our app has very few
algorithms to calculate the price of the ride unlike uber/ola etc.in which a lot of algorithms are
required to calculate the trip cost. This is because we are an intercity cab aggregator and not an
intra city aggregator. The only algorithms we require are for home pickup, surge pricing and
late booking extra fees.
Advertising
Our advertising plan is online only. Currently at least for the initial stage, we are not planning
to advertise ourselves in offline modes. Search based ads are our main priority right now. Apart

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from this, we have hired people to go to all major bus stops and travel agencies to get customers.
These people will talk to different people and will tell them about our products. Our major
competitor are luxury busses and other cab aggregators and to tap that market, we have to tell
those people about our product.
Our online advertising budget for the first year is ₹10,00,000. This will be enough for one year
as we have to only pay websites to show our popups which will be based on the user’s search
history.
This plan will be enough for us to kickstart our operations and get our starting customers and
due to good service, we will try our best to retain them.
Regulatory costs
This is the cost for registering our company, getting all the licensing and other paper work
done. For all the formalities, we have set apart ₹1,00,000. This will be enough to get our
company kickstarted.

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Loss coverage
We have initially set aside ₹15,00,000 for covering the losses for the first year. All the
forecasted P/L statement have been provided later in this stage and this number of 15 lacs has
been calculated keeping everything in mind.
The main challenge which will be the reason majorly for our losses will be finding the return
journey for our passengers. Our business model is based on finding return customers for every
trip which is also our USP for the cab operators or our suppliers.
To reduce these losses and get customers for return journey, we will be partnered with several
travel agents in all of three cities in which we are operating so that they will provide us with
passengers with return journey but at a higher cost due to which we will have to forego a large
part of our margins. We are currently ready to take this cut in margins so that we don’t have
losses due to no return journey and our cab operators will also be happy.
Once we are established, we wouldn’t have to do this.
Initial equipment
Our initial equipment mainly consists of computers only and some other minor stuff. To start
our operations, that is all we require in the beginning. Some major software will also have to
be bought which will be used in our operations for tracking, customer care, database
maintenance etc. For buying all of this equipment and software, we have set aside ₹7,00,000.
Miscellaneous
Apart from all the other costs that I have mentioned above, an additional ₹10,00,000 have been
kept aside for all the other unknown expenses which will arise once we begin our journey of
creating and operating our company. We have taken a very conservative approach for keeping
aside the 10 lacs which we think will be more than enough for all our miscellaneous expenses.

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Fund Raising
At the beginning our startup we have decided not to have any investor, each of us will
contribute equally for the starting investment of ₹51,00,000. We have decided to not approach
any investor for raising funds because first we want to prove our numbers, our main focus in
the initial stages will be to automate as much as possible, be operationally efficient, figure out
everything as possible. Once all this is done and when we have to scale up, that is the point
when we have decided that we will approach investors for raising sufficient funds for upscaling.
We will be bootstrapping for around 1-2 years, until then we will have most of the things
figured out and then we will actively look for investment and fund raising
We have also decided currently that our most preferable investor would be the government.
We will be in regular touch with the government incubators and will take their help and once
we have reached a certain stage, we will pitch in for investment.
Shareholding Pattern
As I already explained earlier that we won’t have any outside investor in the business initially
and all the 3 co-founders will invest equally initially, the shareholding pattern will also be
33.3% each for all the 3 co-founders. This will continue until we decide to raise funds from
outside.
Revenue Model
Our revenue model is simple, we will be charging our customers based on the following:
 Base Fare
 Cost per km
 Cost per minute
 Additional surcharges based on demand
 Additional charge based on timing of booking
 Home pickup fee
Our price of the trip will be based on the above elements.

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We will have a margin of 30% on these and the rest 70%, we will give it to the cab operators.
One thing I would like to stress here is that even if we don’t get return passengers, we will pay
our cab operators for the return journey. As I had mentioned earlier that we will partner with
local travel agents so that they can provide us with return bookings if we don’t have one at a
higher cost. So, in this case our margin will be reduced to just 20%. But this is important as
our business model is based on charging the customers for one way only and not the return
journey which other cab aggregators like ola/uber do.
We will have another revenue source that is the one-time registration fee and yearly
maintenance fee which we will charge our taxi partners but we have decided to forego this
charge in our first year to incentivise the cab operators to join us. Once we are established, this
additional source of revenue will also be available to us.
Our major operating costs would be as follows –
 Employee salaries
 Loss coverages
 Office rental & other costs
Apart from these, we won’t have any major operating costs as such. The detailed forecasted
Profit & Loss statement for the first year will be provided further in this report.
PROFIT & LOSS ACCOUNT

The assumptions that we took in calculating this statement are as follows:
 No. of rides in the first year Q1 – 250 (Mumbai – Pune) 200 (Mumbai – Nashik)
 Growth rate of rides per quarter 12% in 1st year. 10% in 2nd year. 5% in 3rd year
 Cost per return journey Mumbai – Pune (₹4000) Mumbai – Nashik (₹4200) in 1st year
 Inflation rate per year is 6%
 The above cost has been taken as a weighted average of different kinds of vehicles in which
we provide this service such as economy, premiere and XL all three of which have varied
price for the customer so weighted average based on demand for each type of ride has been
taken to arrive at the cost per trip for both the routes.

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 No. of rides with return journey in year 1 Q1 – 60% Q2 – 65% Q3 – 70% Q4 – 75%
 No. of rides with return journey in year 2 & 3 is 80%
 Our margin for rides with return journey – 30%
 Our margin for rides without returns journey – 20%
 Depreciation rate is taken as 30% as this is the percentage for computers and majorly our
depreciable assets only include computers and computer software.
 Office rent is ₹30,000 per month in 1st year
 The initial ₹51,00,000 which we had invested will be accounted for by spreading it equally
for 15 years.
 The break-even growth rate is calculated as 22%. That means if we grow by 22% and
not 12% in each quarter, we will start to become operationally profitable in the last
quarter of the 1st year.
 All the other costs and assumptions have been clearly showcased in the Profit & Loss
statement.
 All the assumptions have been made by doing due research and studying our competitors
thoroughly.
 The one-time membership fee and yearly maintenance fee which we will charge from our
taxi partners is exempted for the first 3 years so as to incentivize the cab operators to join
us.
Year 1
Total
Particulars Quarter 1 Quarter 2 Quarter 3 Quarter 4
Revenue (Mumbai -
Pune) ₹ 2,60,000.00 ₹ 2,96,800.00 ₹ 3,38,688.00 ₹ 3,86,355.20 ₹ 12,81,843.20
Revenue (Mumbai -
Nashik) ₹ 2,18,400.00 ₹ 2,49,312.00 ₹ 2,84,497.92 ₹ 3,24,538.37 ₹ 10,76,748.29
Total Revenue ₹ 4,78,400.00 ₹ 5,46,112.00 ₹ 6,23,185.92 ₹ 7,10,893.57 ₹ 23,58,591.49
Expenses
Salaries ₹ 7,20,000.00 ₹ 7,20,000.00 ₹ 7,20,000.00 ₹ 7,20,000.00 ₹ 28,80,000.00
Office Rent ₹ 90,000.00 ₹ 90,000.00 ₹ 90,000.00 ₹ 90,000.00 ₹ 3,60,000.00
Depreciation ₹ 52,500.00 ₹ 52,500.00 ₹ 52,500.00 ₹ 52,500.00 ₹ 2,10,000.00
Other Costs ₹ 50,000.00 ₹ 50,000.00 ₹ 50,000.00 ₹ 50,000.00 ₹ 2,00,000.00
Total Operational
Cost ₹ 9,12,500.00 ₹ 9,12,500.00 ₹ 9,12,500.00 ₹ 9,12,500.00 ₹ 36,50,000.00

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Operational Profit/ -₹ -₹ -₹ -₹ -₹
Loss 4,34,100.00 3,66,388.00 2,89,314.08 2,01,606.43 12,91,408.51
Non-Operating
Expenses
Setup Cost
Amortization ₹ 48,333.33 ₹ 48,333.33 ₹ 48,333.33 ₹ 48,333.33 ₹ 1,93,333.32
-₹ -₹ -₹ -₹ -₹
Net Income 4,82,433.33 4,14,721.33 3,37,647.41 2,49,939.76 14,84,741.83
Particulars No Return Journey With Return Journey

No. of Rides 250
Revenue/ Ride 2000 4000
(Proportion of trips)
Quarter 1 40% 60%
Quarter 2 35% 65%
Quarter 3 30% 70%
Quarter 4 25% 75%
Margin 20 30
Growth Per Quarter 12%
Mumbai <> Pune
Particulars No Return Journey With Return Journey

No. of Rides 200
Quarter 1 40% 60%
Quarter 2 35% 65%
Quarter 3 30% 70%
Quarter 4 25% 75%
Margin 20 30
Mumbai <> Nashik
Year 2
Total
Revenue (Mumbai -
Pune) ₹ 3,93,379.84 ₹ 4,58,680.89 ₹ 5,04,548.98 ₹ 5,55,003.88 ₹ 19,11,613.59
Revenue (Mumbai -
Nashik) ₹ 3,33,586.10 ₹ 3,66,944.71 ₹ 4,03,639.19 ₹ 4,44,003.10 ₹ 15,48,173.10

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Total Revenue ₹ 7,26,965.94 ₹ 8,25,625.60 ₹ 9,08,188.17 ₹ 9,99,006.98 ₹ 34,59,786.69
Expenses
Salaries ₹ 7,63,200.00 ₹ 7,63,200.00 ₹ 7,63,200.00 ₹ 7,63,200.00 ₹ 30,52,800.00
Office Rent ₹ 95,400.00 ₹ 95,400.00 ₹ 95,400.00 ₹ 95,400.00 ₹ 3,81,600.00
Depreciation ₹ 52,500.00 ₹ 52,500.00 ₹ 52,500.00 ₹ 52,500.00 ₹ 2,10,000.00
Other Costs ₹ 53,000.00 ₹ 53,000.00 ₹ 53,000.00 ₹ 53,000.00 ₹ 2,12,000.00
Total Operational
Cost ₹ 9,64,100.00 ₹ 9,64,100.00 ₹ 9,64,100.00 ₹ 9,64,100.00 ₹ 38,56,400.00
Operational Profit/ -₹ -₹
Loss 2,37,134.06 1,38,474.40 -₹ 55,911.83 ₹ 34,906.98 -₹ 3,96,613.31
Non-Operating
Expenses
Setup Cost
Amortization ₹ 48,333.33 ₹ 48,333.33 ₹ 48,333.33 ₹ 48,333.33 ₹ 1,93,333.32
-₹ -₹ -₹
Net Income 2,85,467.39 1,86,807.73 1,04,245.16 -₹ 13,426.35 -₹ 5,89,946.63
No Return With Return

Particulars Journey Journey
No. of Rides 351
Quarter 1 20% 80%
Quarter 2 20% 80%
Quarter 3 20% 80%
Quarter 4 20% 80%
Margin 20 30
Mumbai <> Pune

No. of Rides 281
Quarter 1 20% 80%
Quarter 2 20% 80%
Quarter 3 20% 80%
Quarter 4 20% 80%

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Margin 20 30
Mumbai <> Nashik
Year 3
Total
Revenue (Mumbai -
Pune) ₹ 5,23,588.57 ₹ 6,17,719.32 ₹ 6,48,605.29 ₹ 6,81,035.55 ₹ 24,70,948.73
Revenue (Mumbai -
Nashik) ₹ 4,70,643.29 ₹ 4,94,175.46 ₹ 5,18,884.23 ₹ 5,44,828.44 ₹ 20,28,531.42
₹ ₹ ₹
Total Revenue ₹ 9,94,231.86 11,11,894.78 11,67,489.52 12,25,863.99 ₹ 44,99,480.15
Expenses
Salaries ₹ 8,08,992.00 ₹ 8,08,992.00 ₹ 8,08,992.00 ₹ 8,08,992.00 ₹ 32,35,968.00
Office Rent ₹ 1,01,124.00 ₹ 1,01,124.00 ₹ 1,01,124.00 ₹ 1,01,124.00 ₹ 4,04,496.00
Depreciation ₹ 52,500.00 ₹ 52,500.00 ₹ 52,500.00 ₹ 52,500.00 ₹ 2,10,000.00
Other Costs ₹ 56,180.00 ₹ 56,180.00 ₹ 56,180.00 ₹ 56,180.00 ₹ 2,24,720.00
Total Operational ₹ ₹ ₹ ₹
Cost 10,18,796.00 10,18,796.00 10,18,796.00 10,18,796.00 ₹ 40,75,184.00
Operational Profit/
Loss -₹ 24,564.14 ₹ 93,098.78 ₹ 1,48,693.52 ₹ 2,07,067.99 ₹ 4,24,296.15
Non-Operating
Expenses
Setup Cost
Amortization ₹ 48,333.33 ₹ 48,333.33 ₹ 48,333.33 ₹ 48,333.33 ₹ 1,93,333.32
Net Income -₹ 72,897.47 ₹ 44,765.45 ₹ 1,00,360.19 ₹ 1,58,734.66 ₹ 2,30,962.83

No. of Rides 467
Revenue/ Ride 2247.2 4494.4
Quarter 1 20% 80%
Quarter 2 20% 80%
Quarter 3 20% 80%
Quarter 4 20% 80%
Margin 20 30

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Mumbai <> Pune

No. of Rides 374
Revenue/ Ride 2247.2 4494.4
Quarter 1 20% 80%
Quarter 2 20% 80%
Quarter 3 20% 80%
Quarter 4 20% 80%
Margin 20 30
Mumbai <> Nashik
BALANCE SHEET
Year - 1
Liabilities Amount Amount Assets Amount Amount
Equity ₹ 51,00,000.00 Start Up Cost ₹ 29,00,000.00
Less/ Add: Profit Loss -₹ 14,84,741.85 ₹ 36,15,258.15 Less Amortisation -₹ 1,93,333.33 ₹ 27,06,666.67
Cash ₹ 15,00,000.00
Less Cash Loss -₹ 10,81,408.51 ₹ 4,18,591.49
Equipment ₹ 7,00,000.00
Less Depreciation ₹ 2,10,000.00 ₹ 4,90,000.00
₹ 36,15,258.15 ₹ 36,15,258.16
Year - 2
Reserves and Surplus -₹ 14,84,741.85 -₹ 14,84,741.85 Less Amortisation -₹ 3,86,666.66 ₹ 25,13,333.34
Profit and Loss -₹ 5,89,946.63 -₹ 5,89,946.63 Cash ₹ 4,18,591.49
Less Cash Loss -₹ 1,86,613.29 ₹ 2,31,978.20
Equipment ₹ 7,00,000.00
Less Depreciation ₹ 4,20,000.00 ₹ 2,80,000.00
₹ 30,25,311.52 ₹ 30,25,311.54
Year - 3

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Reserves and Surplus -₹ 20,74,688.48 -₹ 20,74,688.48 Less Amortisation -₹ 5,79,999.99 ₹ 23,20,000.01

Profit and Loss ₹ 2,30,962.80 ₹ 2,30,962.80 Cash ₹ 2,31,978.20
Less Cash Loss ₹ 6,34,296.14 ₹ 8,66,274.34
Equipment ₹ 7,00,000.00
Less Depreciation ₹ 6,30,000.00 ₹ 70,000.00
₹ 32,56,274.32 ₹ 32,56,274.35
We have reduced our cash balance by ₹10,81,408 in the first year and not the total amount
because we have removed the depreciation from the cost so as to calculate the cash loss
generated in this year. The depreciation is subsequently accounted for in the Equipment
head. This has been done in every year.
CASH FLOW STATEMENT

For our cash flow analysis, we have taken out our two non-cash expenses which are
depreciation of the computer equipment and second is the amortization of the setup cost
which will be divided equally each year for 15 years. Other than these two, all other
revenue and expenses are cash expenses.
Year 1 Total
Revenue (Mumbai -
Pune) ₹ 2,60,000.00 ₹ 2,96,800.00 ₹ 3,38,688.00 ₹ 3,86,355.20 ₹ 12,81,843.20
Revenue (Mumbai -
Nashik) ₹ 2,18,400.00 ₹ 2,49,312.00 ₹ 2,84,497.92 ₹ 3,24,538.37 ₹ 10,76,748.29
Total Revenue ₹ 4,78,400.00 ₹ 5,46,112.00 ₹ 6,23,185.92 ₹ 7,10,893.57 ₹ 23,58,591.49
Expenses
Salaries ₹ 7,20,000.00 ₹ 7,20,000.00 ₹ 7,20,000.00 ₹ 7,20,000.00 ₹ 28,80,000.00
Office Rent ₹ 90,000.00 ₹ 90,000.00 ₹ 90,000.00 ₹ 90,000.00 ₹ 3,60,000.00
Other Costs ₹ 50,000.00 ₹ 50,000.00 ₹ 50,000.00 ₹ 50,000.00 ₹ 2,00,000.00
Total Operational
Cost ₹ 8,60,000.00 ₹ 8,60,000.00 ₹ 8,60,000.00 ₹ 8,60,000.00 ₹ 34,40,000.00
Operational Profit/ -₹ -₹ -₹ -₹ -₹
Loss 3,81,600.00 3,13,888.00 2,36,814.08 1,49,106.43 10,81,408.51
Year 2 Total

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Revenue (Mumbai -
Pune) ₹ 3,93,379.84 ₹ 4,58,680.89 ₹ 5,04,548.98 ₹ 5,55,003.88 ₹ 19,11,613.59
Revenue (Mumbai -
Nashik) ₹ 3,33,586.10 ₹ 3,66,944.71 ₹ 4,03,639.19 ₹ 4,44,003.10 ₹ 15,48,173.10
Total Revenue ₹ 7,26,965.94 ₹ 8,25,625.60 ₹ 9,08,188.17 ₹ 9,99,006.98 ₹ 34,59,786.69
Expenses
Salaries ₹ 7,63,200.00 ₹ 7,63,200.00 ₹ 7,63,200.00 ₹ 7,63,200.00 ₹ 30,52,800.00
Office Rent ₹ 95,400.00 ₹ 95,400.00 ₹ 95,400.00 ₹ 95,400.00 ₹ 3,81,600.00
Depreciation
Other Costs ₹ 53,000.00 ₹ 53,000.00 ₹ 53,000.00 ₹ 53,000.00 ₹ 2,12,000.00
Total Operational
Cost ₹ 9,11,600.00 ₹ 9,11,600.00 ₹ 9,11,600.00 ₹ 9,11,600.00 ₹ 36,46,400.00
Operational Profit/ -₹
Loss 1,84,634.06 -₹ 85,974.40 -₹ 3,411.83 ₹ 87,406.98 -₹ 1,86,613.31
Year 3 Total
Revenue (Mumbai -
Pune) ₹ 5,23,588.57 ₹ 6,17,719.32 ₹ 6,48,605.29 ₹ 6,81,035.55 ₹ 24,70,948.73
Revenue (Mumbai -
Nashik) ₹ 4,70,643.29 ₹ 4,94,175.46 ₹ 5,18,884.23 ₹ 5,44,828.44 ₹ 20,28,531.42
₹ ₹ ₹
Total Revenue ₹ 9,94,231.86 11,11,894.78 11,67,489.52 12,25,863.99 ₹ 44,99,480.15
Expenses
Salaries ₹ 8,08,992.00 ₹ 8,08,992.00 ₹ 8,08,992.00 ₹ 8,08,992.00 ₹ 32,35,968.00
Office Rent ₹ 1,01,124.00 ₹ 1,01,124.00 ₹ 1,01,124.00 ₹ 1,01,124.00 ₹ 4,04,496.00
Other Costs ₹ 56,180.00 ₹ 56,180.00 ₹ 56,180.00 ₹ 56,180.00 ₹ 2,24,720.00
Total Operational
Cost ₹ 9,66,296.00 ₹ 9,66,296.00 ₹ 9,66,296.00 ₹ 9,66,296.00 ₹ 38,65,184.00
Operational Profit/
Loss ₹ 27,935.86 ₹ 1,45,598.78 ₹ 2,01,193.52 ₹ 2,59,567.99 ₹ 6,34,296.15
BREAK EVEN ANALYSIS

The break-even growth rate is calculated as 22%. That means if we grow by 22% and not 12%
in each quarter, we will start to become operationally profitable in the last quarter of the 1st
year.

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Year Revenue Expenses Profit

Year 1 ₹ 23,58,591.49 ₹ 38,43,333.32 -₹ 14,84,741.83
Year 2 ₹ 34,59,786.69 ₹ 40,49,733.32 -₹ 5,89,946.63
Year 3 ₹ 44,99,480.15 ₹ 42,68,517.32 ₹ 2,30,962.83
₹ 50,00,000.00
₹ 45,00,000.00
₹ 40,00,000.00
₹ 35,00,000.00
₹ 30,00,000.00
₹ 25,00,000.00
₹ 20,00,000.00
₹ 15,00,000.00
₹ 10,00,000.00
₹ 5,00,000.00
₹ 0.00
Year 1 Year 2 Year 3
Revenue Expenses
FINANCIAL RATIOS
Liquidity Ratios
In the initial stages of a company, liquidity is very less. We
Solvency Ratios have no creditors to whom we have to pay money. We have
no inventory, debtors or creditors as well so
Activity Ratios
these ratios are not required
Year 1 Year 2 Year 3
Profitability Ratios Net profit Ratio -0.6295 -0.17052 0.051331
Operating Profit ratio -0.54753 -0.11464 0.094299
Return on Equity -0.29113 -0.11568 0.045287

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CHAPTER 7
IMPLEMENTATION
OF STRATEGIES

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PHASES OF IMPLEMENTATION
PHASE 1 (FIRST 3 MONTH)
 In the first phase of the start-up, we would focus on establishing ground in terms of our
physical and virtual presence.
 The first step would be to acquire the necessary funds needed.
 This would be the stage for setting up the office space.
 Hiring individuals to start with the app development.
 Necessary certificates and registration formalities will be completed in this phase.
 The employees will be trained according to the requirements of the job description.
PHASE 2 (Next 3-6 MONTHS)
 In this phase we will start with the marketing campaign of our start-up.
 We will have an advertisement campaign aired
 Women Drivers and Cab Agencies would be approached
 Agreement and evaluation of the drivers and cabs would be done.
PHASE 3 (2 MONTHS)
 In this phase we will start our services and implement the final plan of action
 The app will be live on google Playstore and Apple App Store.
 The service will begin
 Problem Solving
 Monitor and Control
 Employee Management
 Feedback and problem evaluation and redressal

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LEGAL LICENSES AND FORMALITIES

Just as many jurisdictions around the world are trying to keep regulatory pace with advances
in mobile technology and the emergence of a “sharing economy,” state and municipal
governments in India are struggling to regulate taxi and other mobile-based aggregating
companies. A primary point of contention between some of these companies and government
regulators is their legal status and whether they should be treated as traditional taxi-operating
companies or as “intermediary” information technology companies. Aggregators contend that
they do not own or lease any vehicles, employ any drivers, but rather see themselves as only
providing a mobile platform for customers to connect with drivers. Most state and local
jurisdictions in India are either modifying existing taxi regulations or introducing new ones. In
most cases, Car Rent and Taxi has considered these rules to be onerous, outdated, and
incompatible with its business model.
 The Motor Vehicles Act ,1988: A central law that regulates road transport vehicles, specific
permits for transport vehicles and various conditions and requirements for holding such
permits.
 Information Technology Act, 2000: Provides the legal framework for IT companies, e-
commerce regulation and cybercrime.
 Road Transport and Safety Bill, 2015: If implemented, will replace the Motor Vehicles Act.
It contains provisions regulating IT--‐based transportation aggregators.
The major legalities will be:
 Undertaking by the driver--‐ The undertaking will state the conditions to be fulfilled by the
driver. It will state that the driver has fulfilled all legal obligations to become a driver
(license) and has a valid work permit. He will not take part in any activity contrary to the
benefit of the company. He will work only under the specified limits of the company. If he
is, in any way, not abiding by the law then Elle won’t be responsible for his actions. If he
is a part of any criminal activity, Elle won’t be liable for him.
 Agreement with the owners: An agreement stating that the vehicles will be provided to Elle
for running its business as „technology--‐based transport aggregators‟ in exchange for a
consideration which will be in terms of a fixed percentage. They will have to ensure that
the vehicles provided are registered and the required paperwork has been completed. The

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contract will also list down the number of vehicles, no of years for which each vehicle will
be in service, duration of the contract, and the process to renew the contract. It will also
specify the maintenance and insurance status of the vehicles.
Outstation/ Multicity (all inclusive)
 Charges Included: Driver Allowance, Night Charges, Tolls & inter-state tax, Hill Charges,
Service tax
 Extra Charges: Parking (if any), Any other charge which is not mentioned in "Charges
Included")
 This is just an estimate, actual amount will depend on kms used.
 Kms. will be billed from garage to garage
 This fare does not include inter-state tax, green tax, toll and parking.
 Balance amount needs to be paid at the beginning of the journey.
 Editing in booking details after confirmation of booking will be done on discretion of
company and charged @ Rs.250. Any difference in fare will be charged extra.
Cancellation Policy
You may cancel your booking from the My Account page after logging in online or by calling
the call Centre at any time after making a booking. Although a cancellation charge may be
application as per the below schedule:
 Within 6 hours of scheduled journey: 100% of the booking amount (Maximum Rs. 2000).
 Between 6 to 24 hours of scheduled journey: 50% of the booking amount (Maximum Rs.
1000).
 Before 24 hours of scheduled Journey: Rs. 200 from the booking amount.
 Within 1 hour of booking time- 50% of booking amount (Max.500) (This point will prevail
over point 1)
 For amount paid by cash, a cheque will be dispatched and for amount paid by card or net-
banking, amount will be automatically refunded.
 Elle Cabs reserves the right to cancel/change/switch the Cab

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 Elle cabs shall not be responsible for cancellation of booking due to unavailability of cab
or any other reason.
EXPANSION PLAN
Elle Cab is expecting a steady growth of customers which will then compensate for the cut in
price by not charging a two-way fare and making a considerable profit, plans to extend the
business in different routes.
As our extension follows a ‘step-by-step’ plan which needs an implementation time of several
months or even year. As soon as Elle’s is established in the market and the necessary liquidity
is available, the first step of the plan will be taken.
Our main goal is to increase the number of customers drastically and initially incentivizing
them and once the customer becomes habitual of our product. we plan to eliminate surge pricing
and make intercity travel affordable and safer.
Customers
Sales
Channel
Network
Product
However, there are several factors that need to be considered when a major increase of
customers is in sight. In the following the most important factors for Elle’s expansion plan will
be stated step by step.
As mentioned earlier that in the initial 3 years, we don’t want to get any outside investment
into the firm. This is because we have decided that 1st, we would like to test everything,

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automate as much as possible and get everything figured out. We would like to become the
market leader in the routes that we are currently working in and once that is done, then we will
expand and implement the same business model on other routes.
We would like to become operationally profitable and efficient, prove our numbers and when
the time is right to expand, then we will start to look actively for investment.
Product
Our first step will be making our product i.e., the entire experience of intercity
cab a household community i.e., reachable to everyone. We have to make sure
that our cars run on a
sustainable fuel with affordable rates. According to our research, many people have pointed
out that cabs are unreasonably charged which is because they charge a two- way fare. We, after
having considerable demand, will try to make the entire experience better. This we can do by
providing more features in our app like live chatting and live calling. Therefore, a huge amount
of money will be spent to develop our product mix initially to establish the.
Furthermore, partnerships with many companies are strived for, to optimize the goodies we
offer with every ride taken by a certain customer.
Network
The second step will be the extension of the network. So, we will also open this
intercity cab service for newer routes such as Surat, Ahmedabad, Nagpur etc.
We plan to have many different cab operators who will join our network so that we are not
dependent on few cab operators as such. We will give them umbrella of our brand after we
have established the brand in the minds of customer and provide customer the security and
safety.
As mentioned before, the partnerships with companies that can supply goodies will also be
extended. It is planned to cooperate with several major companies, especially in the Digital

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payment industry. For example, through a partnership with Google pay customers can be
provided with exciting discounts for every ride they make.
We can also have partnership with companies whose executives or employees travel a lot.
Hence, much like wholesale business, giving them special rates as per volume of people travel
also providing them with internal travel benefits too, giving them a more personalized service.
Hence customizing the offering for companies with bulk movement around those routes.
Sales Channel
channels. The website and the application are planned to be further developed in
many ways. Especially, the GPS tracker
will be improved to perfectly meet the needs of customer for safety.
Furthermore, the possibilities to “Refer a friend” campaigns and coupon offerings will be
extended to be smoothly applied in the app and website.
Customers
As it is our main goal to increase the number of customers, we need to expand

our radius of impact by extending our business geographically. Other big cities
in India, such as Delhi or
Chennai, including more routes. We plan to have exciting discounts and contests during the
time of any kind of pilgrimage or festivals. Also, our target for mainly festivals is college going
students who go to their respective home for festivals as India has such a huge population of
young people. Hence, we would have special discounts for college students.
EXIT PLAN
We, the founders and investors of Elle, are planning on growing our company quickly.
However, once Elle became successful, there are different opportunities. The main reason for
exiting our startup is that we might not want to take the risk of a potential bankruptcy. If the

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investors do not want to own the company any longer, there are many possibilities to get an
adequate return on their investment.
The two most common basic exit strategies for start-ups have been taken into consideration.
On one side, there is a buyout. If another company has interest in our product and our key
resources, we will consider selling our business, expecting an appropriate return on investment.
On the other side, we have the opportunity of an Initial Public Offering (IPO). If we decided to
turn Elle in a publicly traded company, we do not have to sell our stocks to the open market.
Every founder can decide individually, whether he or she will keep the stocks. Going public
via an IPO does not mean that we must give up our jobs at Elle, it just gives us the opportunity
to get a return on our investment. Therefore, an IPO is our preferred exit option.
However, there are always several potential risks involved when the business is new with a
different concept. You never know how well you might do with attracting your target market
and how you might not so do well with the target market. In case that we face such difficulties,
we will assure to minimize our loss of equity. Anyways, the exit strategies mentioned before
are two ways to exit our business.
Nonetheless, if it our business is not running well and there is no improvement insight, it will
be difficult to attract investors of any kind. Therefore, we do not see Elle as being profitable
anymore, we plan to exit the company as soon as possible.
In the worst-case scenario, we would have to liquidate the company. We will strive to make
sure that we do not reach that stage. If the forecasts show that we are headed in that direction,
we will focus on minimize losses of any kind.
Elle barely holds fixed assets.

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CONCLUSION
Elle is a profitable and unique business idea. A lot of careful thinking has gone into its ideation.
We are continuously working on making the process more efficient, as is the case of all
businesses.
We are one of the few players who would be working in the area of affordable inter-city taxi
service which is technologically efficient and very user-friendly. By keeping low cost and
safety as our main selling points, we aspire to build this company to higher levels thus
transforming the way people travel inter-city
By doing this, we will not only be making profits for ourselves but will be increasing the profits
of our various small-scale taxi partners as well.
This Entrepreneurship Development Project aims to teach us on how to make a full-fledged

business plan. Making this project was indeed a laborious task but at the end of it, it is
something that we made to implement in the near future. As we genuinely believe in the idea
and are keen on continuing it, we do wish to open up this venture by following our business
plan. Learning the various aspects of marketing, human resources, operations and finances, the
practical implementation was understood and how important they are in the functioning of a
business.
To conclude, the importance of entrepreneurship needs to be understood through projects like

these for contemporary business management students as more and more entrepreneurial
ventures are being undertaken by young entrepreneurs. We thoroughly enjoyed making this
business plan and in the due process making its implementation strategies has helped us to
devise a plan to open up the business.

88 | P a g e
REFERENCES
 (2020, January 18). Porter's five forces analysis on Uber. Retrieved April 15, 2021, from
https://expertwritinghelp.com/blog/2017/07/28/porters-five-forces-analysis-uber/
 Bhalla, M., Dr., Chajjed, A., Jain, S., & Rallan, P. (2018). An empirical study of the Indian
taxi market - with a brief analysis of the emerging taxi aggregator service. Shanlax
International Journal of Commerce, 6(1).
doi:http://www.shanlaxjournals.in/pdf/COM/V6N1/COM_V6_N1_001.pdf
 Definition of MSME. (n.d.). Retrieved April 15, 2021, from
https://www.msmehelpline.com/definition-of-msme.php
 Driving into future - indian radio taxi market. (2015, May 5). Retrieved April 15, 2021,
from https://www.slideshare.net/RedSeerConsulting1/driving-into-future-radio-taxi-
market
 Follow, V. (2018, June 5). Indian taxi industry Analysis -"Porter's FIVE FORCE".
Retrieved April 15, 2021, from https://www.slideshare.net/vipul80/indian-taxi-industry-
analysis-porters-five-force
 Goitom, H. (2016, July 11). India's regulatory approach to uber. Retrieved April 15, 2021,
from https://blogs.loc.gov/law/2016/07/indias-regulatory-approach-to-uber/
 India taxi market 2012 - 2022. (2017, October). Retrieved April 15, 2021, from
https://www.techsciresearch.com/report/india-taxi-market/1450.html
 THE MATERNITY BENEFIT ACT, 1961. (n.d.). Retrieved April 16, 2021, from
https://labour.delhi.gov.in/content/maternity-benefit-act-1961
 Micro, small & medium Enterprises Development Institute. (n.d.). Retrieved April 15,
2021, from https://www.msmedihubli.gov.in/sido_objectives.html
 On-Demand Taxi Market in India 2019-2025. (2019, October 23). Retrieved April 16,
2021, from https://mobilityforesights.com/product/on-demand-taxi-market-in-india/?add-
to-cart=2709
 Online cab aggregator market trends. (2014, December). Retrieved April 15, 2021, from
https://redseer.com/articles/online-cab-aggregator-market-trends/
 Performance appraisal. (n.d.). Retrieved April 15, 2021, from https://cio-
wiki.org/wiki/Performance_Appraisal
 Sarvepalli, S. K., & Prakash, N., Dr. (2016). CAB AGGREGATION INDUSTRY IN
INDIA – AN OVERVIEW, CURRENT SCENARIO, ISSUES AND POSSIBILITIES
FOR CONSOLIDATION. International Journal of Scientific Development and Research
(IJSDR), 1(4), 317-324. doi:IJSDR1603055
 Satapathy, S. (n.d.). Fringe benefit tax (fbt). Retrieved April 15, 2021, from
http://incometaxmanagement.com/Pages/Tax-Management-Procedure/7-Fringe-Benefit-
Tax-FBT.html
 They operate with proper set up like office trained supporting staff call: Course hero. (2021,
March 18). Retrieved April 15, 2021, from
https://www.coursehero.com/file/p7r126a/They-operate-with-proper-set-up-like-office-
trained-supporting-staff-Call/

89 | P a g e
APPENDIX
QUESTIONNAIRE
1. Do you travel intercity using a private taxi?
 Yes
 No
 Maybe
2. How much extra fare did you pay for a one-way journey?
 X2
 X1.5
 X1
3. Do you feel safe using the private taxi service?
 Yes
 No
 Maybe
4. Do you conduct any background check before choosing the taxi service provider?
 Yes
 No
 Maybe
5. Have you faced any difficulty regarding the driver's driving skills?
 Yes
 No
 Maybe
 Other
6. How do you find an intercity cab service in a new city?
 Family
 Friends
 Online Search
 Other

90 | P a g e
7. On average how many times do you booked a cab on Mumbai-Pune or Pune-

 0
 1-3
 4-6
 Other
8. On average how many times do you booked a cab on Mumbai-Nashik or Nashik-
 0
 1-3
 4-6
 Other
9. Rate the features on the importance for you in an intercity cab? (0-5, 0 being min
and 5 is max)
 Cleanliness
 Safety
 Car Quality
 Driving skills of driver
 Price
10. Will you be willing to book an intercity cab online if it’s cheap and safe?
 Yes
 No
 Maybe
THANK YOU

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Entrepreneurship Development Project

Submitted in partial fulfilment of the requirements for the award of the

Under the Guidance of

2020-21 Entrepreneurship Development Project | ELLE CABS

by us for the award of the degree of Bachelor of Business Administration in Finance

Dr Shikha Bhagat, Associate Professor, School of Business and Management.

diploma, associateship, fellowship or another title to any other Institution/University.

2020-21 Entrepreneurship Development Project | ELLE CABS

This is to certify that the entrepreneurship development project submitted by M

supervision in partial fulfilment for the award of Bachelor of Business

Administration in Finance and International Business.

Prof. Dr. Shikha Bhagat

2020-21 Entrepreneurship Development Project | ELLE CABS

Thanks to our friends, classmates, family members and information providers to

2020-21 Entrepreneurship Development Project | ELLE CABS

2020-21 Entrepreneurship Development Project | ELLE CABS

2020-21 Entrepreneurship Development Project | ELLE CABS

2020-21 Entrepreneurship Development Project | ELLE CABS

2020-21 Entrepreneurship Development Project | ELLE CABS

2020-21 Entrepreneurship Development Project | ELLE CABS

BUSINESS MODEL CANVAS

Cost Structure Revenue Streams

2020-21 Entrepreneurship Development Project | ELLE CABS

2020-21 Entrepreneurship Development Project | ELLE CABS

INTRODUCTION TO MEDIUM SCALE BUSINESSES

The Office of Development Commissioner (ODC) also known as Small Industries

The main services rendered by DC MSME office are:

• Providing techno-economic and managerial consultancy, common facilities and extension

• Providing facilities for technology up gradation, modernization, quality improvement and

• Developing Human Resources through training and skill.

• Monitoring of PMRY Scheme.

2020-21 Entrepreneurship Development Project | ELLE CABS

(A) Manufacturing Enterprises – The enterprises engaged in the manufacture or production of

2020-21 Entrepreneurship Development Project | ELLE CABS

Micro Enterprises Does not exceed twenty-five lakh rupees.

2020-21 Entrepreneurship Development Project | ELLE CABS

• Chemicals & Pharmaceuticals • Meat products

2020-21 Entrepreneurship Development Project | ELLE CABS

PORTER’s 5 FORCE MODEL

Bargaining Power of Suppliers – Different amongst different segments

2020-21 Entrepreneurship Development Project | ELLE CABS

Barriers to entry - Medium

Threat of substitutes - High

Threat of competition - High

2020-21 Entrepreneurship Development Project | ELLE CABS

2020-21 Entrepreneurship Development Project | ELLE CABS

• Meet the quality standards set and higher women safety.

Long term Goals:

Requirements: Minimum of two persons for the registration

2020-21 Entrepreneurship Development Project | ELLE CABS

2020-21 Entrepreneurship Development Project | ELLE CABS

2020-21 Entrepreneurship Development Project | ELLE CABS

PROBLEM SOLVING FEATURES

2020-21 Entrepreneurship Development Project | ELLE CABS

CONSUMER DECISION MAKING PROCESS

2020-21 Entrepreneurship Development Project | ELLE CABS

2020-21 Entrepreneurship Development Project | ELLE CABS

2020-21 Entrepreneurship Development Project | ELLE CABS

Increasing number of App languages to provide better flexibility to customers/drivers of tier 2

2020-21 Entrepreneurship Development Project | ELLE CABS

2020-21 Entrepreneurship Development Project | ELLE CABS

Organized taxi industry

2020-21 Entrepreneurship Development Project | ELLE CABS