Click

‘n Ride

Founders:
…

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Agenda
1. Summary ........................................................................................................................................................ 3

1.1 The Opportunity .................................................................................................................................... 3

1.2 The Idea ................................................................................................................................................. 3

1.3 The Market ............................................................................................................................................ 3

1.4 The Founders ......................................................................................................................................... 3

1.5 Feasibility .............................................................................................................................................. 4

2. Business idea .................................................................................................................................................. 4

2.1 Purpose and uniqueness ......................................................................................................................... 4

2.2 short-/long term business objectives ...................................................................................................... 4

3. Product and services ....................................................................................................................................... 5

3.1 Product................................................................................................................................................... 5

3.2 Development.......................................................................................................................................... 5

3.3 Launch ................................................................................................................................................... 5

4. Market overview ............................................................................................................................................ 6

4.1 Customers .............................................................................................................................................. 6

4.2 Competitors ........................................................................................................................................... 6

4.3 Location ................................................................................................................................................. 6

5. Marketing ....................................................................................................................................................... 7

5.1 Product................................................................................................................................................... 7

5.2 Price ....................................................................................................................................................... 7

5.3 Distribution ............................................................................................................................................ 8

5.4 Advertising ............................................................................................................................................ 8

6. Company structure ......................................................................................................................................... 9

6.1 Opportunities and risks ........................................................................................................................ 11

7. Financing ...................................................................................................................................................... 12

7.1 Investment plan ................................................................................................................................... 12

7.2 Financing and liquidity plan ................................................................................................................ 13

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1. Summary
1.1 The Opportunity
Europe’s view on our environment and our surroundings has change over the time. E-cars are
developed, the use of fuels shall be reduced, many people think more environmental. So, do
we. The demand for bicycles has increased, it is more “environmental-friendly” and can be seen
as fashion, to spend money on good quality bikes. In Berlin, everybody owns a racer, although
they are not even sportive. It is it is good for the environment and fits to your good fashion
combination. But nobody wants his bike to be stolen, so nobody is using it.
1.2 The Idea
“Click ‘n Ride” will provide an official service of bicycle locks to provide and increase bike
security starting in Dublin (IRE), one of the top cities of bikes used by the citizens, built close
to train stations, bus stations, city centre, etc. The “Click ‘n Ride” bicycle lock is developed as
a theft-safe and easily usable bike station to ensure, that every user has trust in the security of
his locked bike. You may also allow other users, mostly well-known friends to connect with
your registration number so that they can see your bike`s position and may be possible to open
the lock to use/share your bike. We encourage users to improve bike sharing across a
community and not to worry about theft or damage on some expensive bikes.
1.3 The Market
The target market is every bicycle user in town, especially focused on students, as they are the
main part of interested customers. Students are likely interested in comfortable, new
innovations created and provided in their close setting. But simply every owner of a bicycle
might find interest in “Click ‘n Ride”.
1.4 The Founders
“Click ‘n Ride” is led by its founders, (…). (…) is a certified public accountant after two years
apprenticeship and further practical experience. (…) has earned 3 years of experience in
business management and the specialist knowledge concerning bicycle sports and interests will
be covered by (…), while (…) bring in the necessary experience in technology, developing the
locks for “Click ‘n Ride”

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1.5 Feasibility
Due to the benefit to public services, there is the possibility for “Click ‘n Ride” to get subsidies
by the government. Also, the availability of obstacles like public lanterns, posts, or even bicycle
stands close to every public place will make it easy to spread the locks across the city very
quickly. To spread our idea, universities, schools and other institutions may consider
advertising our product, as they get an image of security and higher mobility. Competition such
as “Call a Bike” or other lending services for bikes will not compete against our idea due to the
fact, that customers use their own bike, instead of unknown bikes.

2. Business idea
2.1 Purpose and uniqueness
Many tried to create a new generation of using bicycles for saving the environment or living a
healthier life. What “Click ‘n Ride” is leading up to, is to create a new generation of bicycles
by providing proper safe locks around the customers. It offers the opportunity to the customers
to use own bikes in a more securer way and to promote the use of bicycles to encourage
environment protection. “Two birds killed by one stone!”. Also, the fact that the bicycle locks
are IT-based security measures guarantees a greater availability of more bike security.

2.2 short-/long term business objectives

In the short run, building up a certain image and well-known branding in Dublin is one of the
main factors, “Click n’ Ride” is focused on. In order to maintain in this business, customers
need to find some relations to the brand itself. Being connected to the brand makes a customer
more satisfied and the tendency of recommending it to others is increasing. This goes hand-in-
hand with developing good public relations in order to get subsidies by the government. A good
reputation and many different politically positive features, that are provided by “Click n’ Ride”
such as environment-friendly or consumer-friendly products can influence the decision-making
of receiving subsidies.

In the long run, the main focus is turning towards the creation of a bike-sharing community in
social networks, such as Facebook or twitter. This may cause customers more to trust the
product and to be willing to share bikes, just by using the bike-sharing community, collecting
more friends via online connection. Also, the thought of becoming international, spreading
across Europe with focus on large cities like Amsterdam, Berlin, Copenhagen, etc. needs to be
considered in the long run, as those cities provide a huge market opportunity to grow further as
a company.

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3. Product and services
3.1 Product
Simple, easily constructed bicycle locks, set up with a card scanner, comparable with the
magnet card system known from the university locker system can provide the perfect alternative
to self-bought locks that differ in price and security levels. “Click n’ Ride” secures a customer’s
bike in a professional way without any differentiation between bike values or prices.

The main spot to start the first Kick-Off is supposed to be Dublin, Ireland, one of the top cities
of citizen’s usage of bicycles. Built close to train stations, bus stations, city centre, etc. will
provide many different locations around the city, so that customers have a lock just right where
they might need it.
3.2 Development
The service is set up in different sections. All locks require a customer card, that will be received
as soon you register online or via mobile application. Connecting the use of a mobile phone
application to our service, you can save your bike`s position simply by registering/locking your
bike with your key card. This process will be immediately updated to your online account on
this certain app of ours.
Other users, mostly well-known friends are able to connect with customer’s registration number
so that they can see a bike`s position and may be possible to open the lock to use/share the bike.
With this principle “Click n’ Ride” increases the will to share. Theft or damage on some
expensive bikes is covered by insurance of an amount of €300 to make sure, that in case of theft
users may get their damage compensation.
3.3 Launch
The first Kick-Off is planned to be launched within the upcoming year, latest start of 2019, as
the summer of 2019 offers the best opportunity to start with a great kick-off for summer trends
such as new bicycle technologies. Further expansions are set to be done in the next two years
to become big in different cities around Europe.

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4. Market overview
4.1 Customers
First of all, the target group is not in a specific segment. As starting in Dublin, the Click ‘n Ride
is pretty much for every citizen of Dublin who owns a bike. The customers are sportive, they
own a bike and have the chance to ride quite often from A to B. Hence the most important
segment is the “healthy lifestyle” segment. The target group consists mostly of young people
with a smartphone. They own an expensive bike which they have to store at home and do not
use it for a ride to public places, because those bikes get stolen very often. Less important are
tourists, because they do not have bikes on their own and need to borrow some. Students for
example need a bike most of the time, so the “Click ‘n Ride” will focus on them first. Also,
people who have a short distance to work and want to become healthier by riding the bike, or
families who want to do a trip by bike in the city are potential customers. “Click ‘n Ride” is
very easy to handle and not expensive, so every income class can be part of the community.
4.2 Competitors
There are two competitors in the business. The first one is the normal bicycle locker producer
like ABUS. Those locks are more flexible as the “Click ‘n Ride” stations, but they are not as
safe and can be cracked easily. Those bicycle locks can cost from 5 € up to 100 €. The second
competitor is further bike sharing business like the “Call a Bike” from the Deutsche Bahn. This
bike sharing costs up to 25 € a day and the bikes are placed all over the city.
The weakness of the “Click ‘n Ride” service is, that the lock stations are hindering the
flexibility, when they are not at every place people want to go.
Therefore, the hot spots in the city will be picked out, so that people do not have to walk a long
time to their bike. This infrastructure will make the service very appealing. “Click ‘n Ride” also
uses both benefits of those different businesses and brings cheap safety and a bike sharing
service.
4.3 Location
As already said, the offering of the service will be at first for students. Dublin is a university
city with several potential customers. The young modern market will attract people who are
following a healthy lifestyle. Also, students are more likely to change their habits than older
people. The problem is that many companies choose universities to promote their products and
in big cities like Dublin the traffic is so dangerous, that people might rather like to drive with
the bus.

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5. Marketing
5.1 Product
“Click n’ Ride” bike locks offer potential customers a variety of benefits. With the modern and
highly secure bike lock technology it guarantees safety for the customer’s bike in any
circumstances. With the utilization of our product the bike is theft-safe and covered by
insurance. A demolition of the locks releases an alarm and calls the police immediately as a
consequence. Our product ensures flexibility and especially mobility in the city due to several
bike stations close to bus stations, train stations, in the city centre and also in residential areas.
This project adds to the aspect of the reduction of air pollution as well and deductive entails
health benefits. Our target is to motivate citizens to use their bike more often by ensuring them
complete safety.
The advantage of “Click n’ Ride” bike locks is its uniqueness in the idea and the only
comparable project is bike sharing. The bike locks enable customers to use their own familiar
bike and economize the costs of the ride - with the same result and security. So “Click n’ Ride”
bike locks prove affordable and more efficient than bike sharing.
5.2 Price
“Click n’ Ride” approach is to make its service affordable to everyone. So, the price is held as
low as possible and adds up to 5€ per month. This makes the offer especially attractive because
multiple persons can use the system by paying only once, since members can share their number
with friends and family.
The price includes material, administration, manufacturing costs and fixed costs.

Costs in EUR

Staff 2500,00 €

Material 60 €

Upkeep / bicycle 30,00 €

lock / year

Fixed Costs 40000,00 €

Membership price 5,00 €

/ month

The following calculation reveals the price composition:

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5.3 Distribution

Time Period Number of Expected Revenue Expected Profit

Members

1 1000 90000,00 € -42000,00 €

2 8000 530000,00 € 258640,00 €

3 20000 1280000,00 € 852000,00 €

“Click n’ Ride” sales volumes conclude following calculation:

The company sets the focus on marketing and signs a contract with Aisling Chan as marketing
partner. The blogger from Dublin manages a successful Instagram profile with a wide range of
influence and is signed for 300€ per posted picture with “Click n’ Ride” services.
5.4 Advertising
First place is going to be in Dublin. Later an expansion in Europe’s large cities with high rates
of cyclist is planned, e.g. Oslo and Antwerp. The marketing strategy is focused on social media.
People will firstly pay attention through face-to-face interaction in Dublin’s city, where the idea
and the system will be explained to persons in particular and abonnements will be offered with
special discounts as acknowledgements for the support of first members. As a result, people
will talk about the new project and recommend it to their friends. The next step will be print
media such as flyers and placards. A Facebook site and a business account on Instagram will
inform consumers and interested persons about the latest news and create a positive image.
Later, when the company expands, advertisement on television will be added.

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6. Company structure
The company will be organized in a line organization. The advantages are an easy structure, an
uncomplicated chain of command and a quick decision making. The five founders are part of
the board of directors. The organisation structure is presented in the following graphic.

Board of directors
All founders

Managing director

Personal Finance Marketing Production

The motivated and dynamic founders are (…). Everyone is integrated in the management
system and have partly responsibilities.
Managing director:
- Master of Science in Management
- Worked four years as CEO for Ride Nation

(…) is a friendly, motivated and creative person. He can bring his colleagues as a team together.
He also can motivate everyone to bring their best potential in the company. In an excellent way
he can give his company a good base to grow on.
Personal:
- Master of Science in Human Resource Development
- Worked one year in personal management of Bayer

(…) knows people. (…) can recruit the right staff for different sections of work. Everyone likes
her engagement and her friendly way to handle her colleagues.

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Finance: (...)
- Master of Science in Finance, Accounting and Taxes
- Worked eight years in the financial department of SAP

He likes to calculate. He finds every way to keep the company in black numbers. Furthermore,
he can calculate risks and can solve close to all financial problems.
Marketing: (...)
- Master of Science in Marketing and Channel Management
- One-year experience in sales department of Biodelta

Her personal preference is riding bike. In her free time, she rides nearly every day. On the
weekends she is going to bike in competition. Her know-how could help to motivate the
costumers to use their bike more often and to use the “Click ‘n Ride” system by simply living
the brand.
Production: (...)
- Master of Science in Computer Science
- Worked two years as a programmer at IBM

He is a computer geek. In his free time, he develops applications. His know-how helps to make
an excellent app for the bike system.
The Business form of the Click ‘n Ride company is a private limited company. It’s a smart start
up with five founders. The advantage is an inexpensive start for the company. The main
shareholders are the five founders, which are the together the Board of Directors. The control
over the company and the ownership is closely connected. The bureaucratic work is not so time
costly and so decisions can be made quickly. This is important, because in this new sector there
is not so much competition.
Board of directors:
All directors come together on a weekly meeting on Friday afternoon, to talk about the results
of the week and to plan the next steps for the following week. This helps to make decisions
quickly and to strengthen the unity.
Staff:
In the first three years new staff will be recruited every year. After certain time the company
can growth and expand to new cities. If the company is established in more than 10 cities, new
staff will be recruited every yearly quarter. The workers should be well trained, while they work
for “Click ‘n Ride”. Highly skilled workers should have the possibility to get five free days per

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year to go to further education. Staff is hired for a minimum of two years to ensure that gathered
knowledge is not going missing due to staff exchange.

6.1 Opportunities and risks

The main opportunity is the new idea of this system. There are no competitors on the market
which have a comparable lock system for bikes. Bicycles are environmental-friendly vehicles.
So, the company uses the trend of the climate change and gives all people the opportunity to
use their bikes to act climate-neutral. The second opportunity is the safety of the locks. 99,5%
of the bike locks are safe, so the bikes cannot be stolen. Furthermore, the bike locks can be
placed nearly everywhere. Every customer can profit from the system, because they can use it
everywhere in the city. Also, the locks are independent from time. Customers can use it every
daytime and immediately. Another opportunity is the application, created by (...). The consumer
can invite friends to use his/her bike and get a cheaper monthly payment, so that the inviter may
be happy to save money and the company gets more costumers.

If this system will be successful, many competitors may be able to copy this idea and kick-start
in other cities. Another problem is the launching and the start-up period. At the beginning it is
not possible to place as many locks in the city as demanded. Moreover, it is not clear, if the
customers are willing to pay for such a system, because normal locks are not so safe, but cheaper
and more flexible than the “Click n’ Ride” system.

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7. Financing
7.1 Investment plan
To build up a company founding capital is needed. The demand needed in the first year consists
of 300.000€ for 1000 bike locks and 50.000€ for programming and distributing the IT-solution
for “Click n’ Ride”. The acquisition costs of the IT supported bike locks are 300€ per lock,
additionally an upkeep of 30€ per year and bike lock is to pay.
In the following years sustainable growth is planned, therefore new bike locks need to be buyed.
In return it is planned that the number of customers will increase from year to year. Every
customer pays 5 €/month. Another income source of “Click n’ Ride” are advertisements, which
appear in the app. Due to the increasing number of customers the coverage of the advertisements
rises and revenues due to advertisements will increase.
Another very important goal is to keep the old customers due to good performance on the
market. Otherwise no sustainable growth is possible.
In the following the calculated development of revenues and expenses is shown.
time period 0:
expenses:
implementation of 1000 bicycle locks: 300.000,00 €
costs of programming: 50.000,00 €
time period 1:
expenses:
upkeep: 30.000,00 €
implementation of another 200 bicycle locks 60.000,00 €
revenues:
members: 1000 60.000,00 €
advertisements of other companies: 30.000,00 €
time period 2:
expenses:
upkeep: 36.000,00 €
implementation of another 600 bicycle locks: 180.000,00 €
revenues
members: 8000 480.000,00 €
advertisements: 50.000,00 €

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time period 3:
expenses:
upkeep: 48.000,00 €
implementation of another 100 bicycle locks 300.000,00 €
revenues:
members: 20000 1.200.000,00 €
advertisements 80.000,00 €
7.2 Financing and liquidity plan
In order to finance the company approximately 402.000 € are needed. Therefore, the founders
decided to invest 200.000€ of their own savings. The other 202.000€ can be borrowed as a loan
at a bank, the interest rate will be 8%. 150.000€ of the 202.000€ and the 200.000€ own capital
directly flow as investment into the bike locks, the other 52.000€ are needed as an overdraft
facility to sustain the first two years. After two years the debts will be paid off and the income
of the founders will at least double from 10.000€ to at least 20.000€ and will increase
enormously during the following years.
In year 3 the revenue is added up to 852.000€, so that there would be the possibility to expand
to another city or to diversify the business.
Year 0 1 2 3

Investment: 350.000,00 €

continuous deposit: 90.000,00 € 530.000,00 € 1.280.000,00 €

continuous payment: 90.000,00 € 216.000,00 € 348.000,00 €

personal drawing: 40.000,00 € 40.000,00 € 80.000,00 €

cash-flow -350.000,00 € -40.000,00 € 274.000,00 € 852.000,00 €

capital costs 0,00 € 12.000,00 € 16.160,00 € 0,00 €

profit -52.000,00 € 257.840,00 € 852.000,00 €

raising of capital 150.000,00 € -52.000,00 € 0,00 € 0,00 €

repayment of capital 202.000,00 €

capital surplus -350.000,00 € -402.000,00 € 55.840,00 € 852.000,00 €

cash balance -350.000,00 € 402.000,00 € 55.840,00 € 907.840,00 €

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