SMART BUS STOP / BUSINESS PLAN

Created by: Elie Jean Habib

Introduction

Benefits of public transportations:

• Provide opportunities for increased physical activity in the form of walking or biking on
either end of the trip
• Save up to four times the money used by commuting in private car The regular use of
personal car will require the costs of maintenance and other additional charges such as
parking fees, emission tickets, and speeding fines.
• Help in reducing the overall environmental greenhouse gas emissions.
• Meet new people. Public transportation is used by diverse people and again, there is no
need for over-emphasizing on this point. The odds are that people will be able to interact
with each if they use public transport as opposed to traveling private.
• Relax. With public transportation, the traveler will have his own time, take a nap, avoid
the road rage, and get out of the pressures of driving his private car. During the commute,
the traveler can also read or just enjoy the view which will help in boosting the dopamine
hormones and reducing the stress levels.
• It will help cities become better placed. Environmentalist and urban planners have it that
public transport helps cities reduce traffic congestion and the overall level of pollution.
• Promotes local city tourism. most people are usually discouraged by the level of
congestion in major cities because it leads to traffic and air pollution. Congestion due to
huge traffic and private vehicles makes maneuvering within the city tricky thus limiting
the number of people who would wish to visit congested cities.
Therefore, if most people were to use public transport in major cities, it would aid in
decongestion and encourage city tourism. Tourists may also feel much safer and free to use
public transport systems such as trains and buses because it gives them the chance to meet
new and interesting people from different cultures.
• Areas with public transport have better security. Evidence based research from
criminology reports indicate that areas with public transport have improved overall security
and few cases of crimes. Public transport areas are actually well lit and manned by patrol
as well as police officers thereby reducing crime rates and improving security by more than
80 percent.

Impact of real estate market

 Based on a study by The Environmental and Energy Study Institute (EESI) made in 5
major cities in USA:
• Properties in proximity to public transit (defined as within a half-mile radius) perform
better than properties farther from public transit.
• Sale price near stations are higher for residential properties than in areas farther from public
transit.
• Commercial property sales price per square foot increase between 5 and 42 percentage
points more in transit-proximate areas when compared with areas farther from public
transit.
• An increase in residential rents within transit sheds has encouraged developers and
frustrated consumers. Increases in rents were between 2 and 14 percentage points higher
in the public transit station area than in neighborhoods away from transit
The presence of fixed-guideway public transportation (rail and bus rapid transit) has a strong
correlation to higher property values
Transit creates value and, as a result, influences development and business location decisions
(supporting resilient tax bases). This creates additional ridership, reducing automobile travel and
carbon emissions. Supporting further public transit service expansion, along with appropriate land
use policies, can further propel development and housing opportunities.
Impact of regional economy
High-density transport infrastructure and connected networks are usually associated with a high
level of socio-economic development. When transport systems are efficient, they contribute to
increase economic and social opportunities and benefits that result in positive multiplier effects
such as better accessibility to markets, employment, and additional investments. On the contrary,
when the transportation systems is poorly developed in terms of capacity or reliability, economic
costs can be identified in reduced or missed opportunities and an overall lower quality of life.
While assessing the impact of an improved transportation system on the urban economy of Larnaca
would require in-depth analyses on multiple aspects, this section will explore some of the potential
impacts looking at the transportation of passengers and goods. When it comes to passengers’
mobility, an efficient transportation system reduces the costs and time associated to mobility for
the individuals. This contributes to reduce the distance between the individuals and the local
economies, i.e. passengers have increased access to the urban labor market and the local retailers
have better access to potential customers. Further, encouraging the use of public transportation,
while discouraging private transportation, can generate income for transportation companies; this
income will also be used to cover wages for the companies’ employees and therefore contributing
to and increased purchase power. For example, restoring sidewalks and ameliorate and/or create
bus or taxi lanes; while at the same time imposing taxes on the movement and parking of private
vehicles could encourage passengers to choose public transportation and at the same time, fines
and taxes can contribute although to a limited extent, to increase revenues for the municipality that
could use these amounts for further amelioration of the public space. When it comes to goods
transportation, it is evident that an efficient transportation system will increase time and cost
savings for the companies; ultimately contributing to higher productivity and increased access to
a broader range of markets and suppliers. The negative effect of an efficient transportation system
on companies increases the costs that is ultimately paid by the customers through higher goods
prices. Both passengers and goods transportation requires a functional and well-developed
transportation network and long-term investments in urban planning. In this light, it is crucial for
the decision-makers to develop a comprehensive policy and regulatory framework that keeps
together the different needs of the population. Overall, a more efficient communication and
coordination among all the relevant stakeholders is crucial (municipality, line Ministries, private
sector, and civil society, among others). In this line, designing awareness campaigns and working
on civic education might favor a closer relationship between the Authorities and the citizens,
offering incentives to either use public transportation or alternative mobility schemes, and
ultimately to build a collective sense of ownership over public space.

How to make public transport an attractive option

Successful public transport is essential for any transport sector emissions reduction strategy To
make public transport an attractive and everyday choice for residents, cities must design the service
well, and overcome physical and cultural barriers – particularly after the disruption of COVID-19.
High quality public transport services are reliable, frequent, fast, comfortable, accessible,
convenient, affordable, and safe, serving routes for which there is demand.
Here is a list of ways to make public transportation more attractive:
- Promoting a whole-network, intermodal approach to physical transit planning, fares and operations
includes:
• Physical planning: designing transit lanes, intersections, stations, stops…
• Integrated fares: Smart ticketing systems automatically adjust the fare that is charged to consider
each passenger’s specific journey and travel frequency.
• Integrated operations
- Improve the bus transit experience through reliable and easy-to-use services
• Optimizing bus routes to minimize overlap and ensure coverage across the city in line with
demand.
• Designing an intuitive network and easy-to-read bus map.
• Providing high-frequency, reliable services
• Building regular bus stops for easy access.
• Friendly use app
 Business Plan - Smart Bus Stop
Value Proposition:

Waiting for a bus never needs to be frustrating again with the smart bus stops. Often made from repurposed
metals and other recycled materials, these bus stops respond in real time to customer queries, changes in
bus schedules, and traffic conditions to keep customers informed about the status of their journey. In short,
they do everything you expect a traditional bus stop to do (providing you with a sheltered place to wait for
your ride) and a whole lot more into the bargain.

The features and advantages of smart bus stops.

Enhanced communication: these smart bus stops are integrated with real time communication systems
which enable customers to press a call button to either hear an automated message providing information
about the next buses, or to talk to a human operative.

Creativity: artwork, miniature lending libraries, free Wi-Fi, A 32-inch digital touchscreen giving users
access to three levels of services, which will be enhanced over time, and providing information about
mobility,. These creative touches help customers waiting at the bus stop to feel less bored and frustrated as
they wait for their bus to arrive.

Real time responses to changes in bus timetables: electronic displays providing details of upcoming bus
journeys are a common feature of smart bus stops, and these digital displays usually have the capacity to
change automatically if a bus will be arriving more quickly than expected, if the bus is delayed, or if a route
has to be changed at short notice (for instance, due to unexpected traffic in the area). A ouble sided
advertising screen which can be used for advertising

Attractive and ecofriendly designs: smart bus stops still provide those waiting for buses with shelter, and
they tend to be designed to maximize comfort with wider seats, glass that protects against the sun’s glare,
wide rain shields and platforms made from sturdy and eco friendly materials (such as recycled carbon and
metals). These smart bus stops also use solar panels on their roofs to generate free Wi-Fi, usb charger, and
digital bus timetables.

Providing data for government: Sensors that will provide government departments with a better overview
of the urban environment, particularly with respect to air quality and wireless internet quality

Contactless payment for recharging bus cards and buying tickets

Market and Competition

Our focus group is the ministry of transportation, main municipalities, and bus companies

- Pame, Motion in Larnaca

- Intecity buses (between main cities)

Our marketing strategy will be by direct marketing with our focus group, by scheduling meeting and
presenting our product
 Since there is no smart bus stop in Cyprus yet, our competitors are smart bus stops providers like

- Trout Digital
- Oem kiosks

Risks and Challenges:

Our main risk is the political risk, due to changes in government and regulations. The project could freeze
for a certain time, due to conflict in opinions between the old government and the new one, or due to the
long bureaucracy procedure. This will increase the cost of the storage, maintenance…

A clear contract including all risks and changes can protect both the company and the ministry from any
change.

Financial Prospects:

We are assuming start-up capital 300,000$ from investors and a bank loan depending on the amount number
of smart bus stops that will be installed. The remainder of the necessary financing will come through
investors.

There are 5000 bus stops in Cyprus, we will start by installing around 40 smart bus stops all around Cyprus.
These bus stops will provide us income from the advertising on the LED panels, and selling data to the
government from the sensors installed.

After a year we will star installing more bus stops each year until we will replace all bus stops by smart bus
stops. We will be following with Cyprus bus companies and the ministry of transportation, to help decide
which bus stops we will be replacing or building.

Investors will receive a percentage of the income every year based on their investment.

Cost of installation $480,000.00

Warehouse and office $30,000.00 $31,500.00 $33,075.00

Marketing $30,000.00 $31,500.00 $33,075.00
Salaries (sales team/Graphic designers/ Developers) $60,000.00 $63,000.00 $66,150.00
Maintenance $4,000.00 $4,200.00 $4,410.00
Loan Payment $30,000.00 $31,500.00 $33,075.00
Investment Payback $240,000.00 $240,000.00
Equity 40000 $80,000.00 $80,000.00

Total $154,000.00 $481,700.00 $489,785.00

Advertising $480,000.00 $528,000.00 $554,400.00

Information $20,000.00 $22,000.00 $24,200.00

$500,000.00 $550,000.00 $578,600.00

Profit $346,000.00 $68,300.00 $88,815.00