A Entrepreneurship Report

On

A Business Plan Tripsy Rental Bikes

Submitted To

Jaipuria Institute of Management Indore

Submitted By

Aakansha Trivedi, Arun Mahapatra, Pragati Shukla,

Sanskar Gupta, Shrishti chauhan, Shruti Modi, Sunidhi Johri

Under Guidance of

Dr. Vinayak Vishwakarma

Professor

Jaipuria Institute of Management Indore

January 2023
 Acknowledgment

Dr. Vinayak Vishwakarma has provided us with this golden opportunity to work on
our Entrepreneurship assignment for which had to make a business plan and work on
the strategic planning for same. We would like to express our sincere gratitude and
appreciation, his assistance was extremely valuable. He provided us with all the
guidance, We needed to complete our assignment.
 Table of Content
A brief idea of the Company

Who Owns Company

Company's Vision & Mission Statement

How does Company operate?

Company's Pros and Cons

Cost Structure

How the Company makes money

Company's Lean Business Model Canvas

Company's Customer Segments

Company's Value Propositions

Company's Channel

Manpower Requirements

Company's Customer Relationships

Company's Revenue Stream

Company's Key Resources

Company's Key Activities

Company's Key Partners

Company's Cost Structure

Company's Competitors

Company's SWOT Analysis

Company s IPRs
Conclusions

Brief Idea of Company

India's roads are dominated by two-wheelers. Most of us grew up riding a bicycle, then sifted
to motorized two-wheeler. However, the bike-sharing industry, whether bicycles or scooters
has not seen the same level of success as the cab-hailing industry. The Idea which influenced
our business tripsy is need of two-wheeler vehicle by students that are living in different cities
or states for studies and work purpose. Two-wheelers are not only cheaper but also safer means
of commute than cars, plus due to presence of cabs traffic problem is increasing in India. Two-
wheeler rental services can also help in cutting down of prices.
This Idea of Two-wheeler rental services first came up in mind of Ms. Akansha Trivedi, who is
our group member. She is from Chittorgarh, Rajasthan and currently pursuing PGDM from
Jaipuria Institute of Management, Indore. Akansha usually struggles to find conveyance daily
and that’s when this idea crossed her mind that it would make her life very easy if she has scotty
but cost of vehicle, cost of maintaining vehicle and parking is an issue.

Travelling by two-wheeler is relatively easy and time saving in comparison to rental cab, when
a person has a two-wheeler for certain period of time, they can easily go to crowded area
specially market areas or certain areas where four-wheelers are not allowed, Example: Cloth
market or sarafa bazzar of Indore. Not just that if anyone wants to explore a new city, best way
to do that is by two-wheeler. In fact in many tourist places people rent two-wheelers to explore
rather than any other convenience.

Who Owns the Company

Started in 2022 with a group of seven college students. Aakansha Trivedi, Arun Mahapatra,
Pragati Shukla, Sanskar Gupta, Shrishti Chauhan, Shruti Modi, and Sunidhi Johri are the
seven founding members of Tripsy Rental Bikes, who also refer to themselves as "Saplings." To
find a rapid fix for the mobility problem that many students encounter who reside on the
outskirts of the city or who are newcomers to the city and cannot afford a vehicle. An easy way
to get anywhere you want in safety.

Tripsy Rental Bikes was created to empower individuals and make their lives easier. It is a one-
stop shop for everyone who enjoys independent travel and wants to discover new areas. You
may travel easily and conveniently with the help of Tripsy Rental Bikes. The nice thing about
these bikes is that they can be hired for a while and can also be used as bike taxis, so when
you're weary of walking about, just get on one of our Tripsy Bikes.

Mission Statement
Our mission is to provide cost efficient, easy and convenient two-wheeler rental services to
students and also to working class who are in different city and specially to those who are in
different cities. Renting a Two-wheeler is way cheaper than renting car or buying two-wheeler.
Vision Statement
Over the next few years, we are expecting Tripsy to become one of the leading players with
high profitability in Indore. By reinvesting parts of our profits, we plan to expand our fleet and
increase our advertising, eventually expanding in the whole state.

How does Company Operate

Given the fact that Indore is the "Students Hub," we chose to launch our business here.
The main office of our business will be on New Palasia Road, where all operational
activities will take place. Because New Palasia is situated in the center of Indore.
Therefore, it will be simple for us and our customers to contact us from either end.
They can directly reach out to us at our working space or give us a call. We'll be
launching our App as well to make it even more convenient for our customers to reach
out. There are two ways in which our company operates: One way is delivering bikes to
the customers location.

Second way is customers can come to our store/office and pick up. Tripsy's official
bikes and we can give them in cheaper price.

In addition, we’ve divided Indore into 2 parts:-

● Old Indore
● New indore

We’ll be also covering outskirts of Indore

In old Indore we will operate our services from “Khatiwala Tank and ” Gwaltoli & Chhoti
Gwaltoli side as, There are many Bikes/scooters are available for sale in second hand prices.

Whereas in new indore our company will operate our services from “Devas Naka road” which
is the main hub of transportation. The reasons remains the same which we have applied in Old
Indore Operating Strategy.
Company’s Pros & Cons
Pros
 ● Less investment is needed as the suppliers will provide the two-wheelers.
● Satisfy the customer's needs: The customer's needs are satisfied as they are provided
with their chosen two-wheeler and route map.
● Emerging market needs. The market for online bike rental business is growing at an
encouraging pace.
● Business model is based on solving consumer problems i.e. lack of commute in
outskirts of Indore, and getting a 2-wheeler delivered to customer’s location.
● Less competitors
● Provides a variety of payment methods; the rider can select the payment method that
best suits their needs.
● Profitability- keeping a vehicle is similar to an asset, therefore it can be used to generate
steady flow of income.

Cons-
● Dependency on suppliers: The business is dependent on the suppliers for the two-
wheelers.
● Dependency on workers: The business is dependent on the workers for the delivery of
two-wheelers to the customers.
● Lengthy process as compared to competitors: the process is lengthy because the app
will do the document verification for the riders (driver's license, Aadhar card, etc.)
● Finding the right supplier - finding the right supplier can take a lot of time, energy and
trial/error.
● Low Margins- The gross margins for bike rental are typically around 43%, which can
make it more challenging to incur new expenses and maintain profitability.
● High employee turnover- In the bike rental business, employee turnover is often high,
which can be quite costly and time consuming for your business. It's important to try
and avoid this as much as possible by offering competitive pay, benefits, and a positive
work environment.
● Time commitment
● Risks : In this business, vehicle will be given to some stranger, so there is continuously a
risk of damage to the goods

Cost Structure
Total invest amount for the company – ₹25,00,000
7 Promotors
· Pragati Shukla (10% Equity Stakeholder) - ₹250000

· Aakansha Trivedi (10% Equity Stakeholder) - ₹250000

· Sanskar Gupta (10% Equity Stakeholder) - ₹250000

· Shristhi Chauhan (10% Equity Stakeholder) - ₹250000

· Arun Kumar Mahapatra (10% Equity Stakeholder) - ₹250000

· Sunidhi Johri (10% Equity Stakeholder) - ₹250000

· Shruti Modi (10% Equity Stakeholder) - ₹250000

2 Investors
HDFC Bank (20% equity holder)– ₹500000

Angel investor (Shubham Goyal) (10% Equity holder) – ₹250000

Ride charge will be ₹5/km and we will charge on hourly basis also, the charges will be
₹25/hour.

One time cost

App development – ₹10000 (Designed and developed and customer can also order their bike
from Tripsy ,app will work both android and ios)

Bike – ₹40000/ bike (In starting we will buy second hand bikes from dealers)

GPS for bike – ₹4000/bike(We will track the bike movement)

Furniture for office – ₹15000(Tv, table chair etc)

Listed to pvt. Ltd - ₹2000 approx

Fixed Cost
Office rent– ₹12000/month

Bike Insurance – ₹3000 / bike on yearly basis

2 customer care executives – 8000 monthly/ person

1 Manager – ₹15000/month

4 Employees or driver – ₹10000/month

Medical insurance for employee – 4000/year

Provident fund for employee – 10%/month

1 Consultancy CA – ₹25000/year

1 Web Developer –

App mentainance – ₹1000/month

Advertising cost
· 1st month – ₹30000 approx

· After that ₹5000/month

Variable cost
Fuel – 0.5 litre is pre filled fuel, rest fuel will be taken care by customer himself, its all on there
km/s of travelling

Maintenance charge – Since our bike wiil be running very high, we would require periodic
maintenance services, that’s for we will have a contract with a mechanic on monthly basis for
reguler servicing or our fleet.

Electricity Bill – ₹5000 approx

Over heads – Support staff, Administrative cost,

How the Company makes money

Company Revenue Stream

Following a successful era of on-demand ride-hailing businesses, an on-demand bike or bike on
rent is a new emerging business idea that is getting a lot of attention for all the right reasons.
Rent your trip with our bikes.

Revenue Sharing Basis

This segment enables stakeholders to purchase bikes and rent them out to customers. The
bikes will be registered with TRIPSY and will be available for rental throughout India. Every
quarter, 30% of revenue will be distributed to asset investors. This revenue-sharing steam is a
win-win situation for both parties, with a minimum contractual tenure of 5 years. This is one
of the most fruitful ways to keep your company growing in the market.

Tripsy Franchise
This segment provides enthusiastic entrepreneurs with the option of ongoing collaboration/franchise.
Anyone can start a TRIPSY franchise business in any of the locations by following a few simple
guidelines. The TRIPSY business model confirms a complete return on investment.
Customer Segmentation
 Market Segment

SEGMENTATION Tripsy
DESCRIPTION

● Geographic spread
● (Cities, Climate, Region: Indore, Outskirts of Indore (as of now)
Region)
Population Density: Urban, Sub-Urban

Climate: All kind of Climate except rainy region

● Demographic
description Age: 18+ (with driving license), age group of 18-40
● (Age, Gender,
Family Size, Income, Gender: Male, Female, Transgender, and others
Occupation)
For young adults, adults, newly married

Income: Mid Income range and above

Class: Middle class, People who has an income

above 25000

Occupation: Students, and others

Education: N/A must know how to ride bikes

 ● Psychographic
description(Main Travel, seeking mobility, Occasionally, Seeking
Consumer needs, flexibility and economical, People who don’t care
Personality & Lifestyle) about social status

● Behavioral
description (Usage level, economical, extremely reliable, loyal customer,
Level of Brand Loyalty Comfortable in riding, quality, service

Company’s Value Proposition

Value proposition to riders
● Flexibility: the type of vehicle a rider wants at the rider’s chosen location
● Convenience: It is convenient to select the route map and ride according to the rider's own
wishes.
● Payment is made at the rider's discretion.
● Freedom: freedom from the driver’s intervention
● On-demand service: a service provided to riders without prior reservation
● Affordable: affordable to all the rider segments.
● Ease: ease of going with a companion on a two-wheeler
● Safety: emergency button and reporting function

Value proposition to the supplier of two-wheelers

● Income: they can earn money by renting out their unused two-wheelers.
● Flexibility: people can rent two-wheelers on their own time.

Value proposition to the workers

● Flexibility: They can work around their schedules.
● Income generation: They can earn extra income by working.
● Easy recruitment: no recruitment process except the submission of some important
documents
● Investment: No prior investment is needed.
Company's Channels
Company Chanel of Distribution
The process of selling products and services directly between a business and consumers who
are the end-users of its products or services is referred to as business-to-consumer (B2C). The
majority of businesses that sell directly to consumers are classified as B2C.

Tripsy main business model is B2C. In this case, the services are redirected directly to the
audiences/end customers. This is one of the most popular business models, with a large
portion of the market heavily leveraging it.

The young generation, also known as millennials, is the target audience for the B2C business
model. In terms of target audiences, the B2C model caters to the daily commute needs of
people looking for a personalized and cost-effective trip. Apart from daily commuters, the
TRIPSY B2C model is popular among adventurous travelers looking for a dependable and
cost-effective mode of transportation (Micro-mobility mode).

Customer Relationship
● Authentic Experience
● Ease of Doing Operating
● Good Flow of Communication
● Convenience (On the road)
● Customer Experience on the app and reliability
● Good pricing and availability
Manpower requirement
Starting stage
● Two customer care executives
● One Manager
● Four Employees
● One Consultancy CA
● One Web Developer

Middle stage (after registering for GST) turnover

(1year)

● Five customer executives

● Two Manager
● Forty Employees
● One Consultancy CA
● One Web Developer

Final stage (After capturing the market)

● Opening 4 new branches in 4 metro cities
● Twenty customer executives
● Ten Manager
● Two Hundred Employees
● Five Consultancy CA
● Five Web Developer
Key Resources
● Office for working space
● Dealers with whom we will purchase/borrow vehicle.
● 4\5 Employees in starting.(male\female)
● Good quantity of Battery’s & Petrol.
● Furniture for office
● Laptops
● AC, LCD, Camera for operational and security purpose
● Investors

Key Activities
● Will focus on both genders Male/Female customers.
● Build a strong core tech.
● Ask for the proper documentation for the identification of the customers.
● Secret Tracking devices in vehicle by which threat of boing stolen can be avoided.
● Provide Services in less time as much as we can.

Key Persons
Aakansha Trivedi (10% Equity Shareholder)
Arun Mahapatra (10% Equity Shareholder)

Pragati Shukla (10% Equity Shareholder)

Sanskar Gupta (10% Equity Shareholder)
Shrishti Chauhan (10% Equity Shareholder)

Shruti Modi (10% Equity Shareholder)

Sunidhi Johri (10% Equity Shareholder)

 ____________________________________________________

70% Equity stakeholders are the founders

______________________________________________________

Remaining 30% of Investment and Equity Stakeholder ship will come from –

HDFC bank (20% of Equity Stakeholder ship)

Angel Investors ( In Exchange of 10% Equity)

Company’s Competitors

Direct Competitors

Royalbrothers – Provides rental two-wheelers on pick up basis

Rentrip -Provides Rental cars, two-wheelers, bicycles, furnitures

Onbikes.com- Provides two-wheeler rentals to riding gears, exclusive bike merchandise to road
trips and tours, bike refurbishing and maintenance to fleet management.

Indirect Competitors

Jugnoo, Ola, Uber, Local Transport- All of these provides rides and are a competitor to Tripsy
bikes. Add on advantage for Tripsy bikes are that we give the vehicle on rent and we deliver the
vehicle to the location itself.

Challenges- These are well established brands and their customer interface is very large.
Confidence in these Brands and brand loyalty is also a factor.

SWOT Analysis

Strengths
Less investment is needed as the suppliers will provide the two-wheelers.

Satisfy the customer's needs: The customer's needs are satisfied as they are provided with their
chosen two-wheeler and route map.

Provides a variety of payment methods; the rider can select the payment method that best suits
their needs.

Weaknesses
Dependent on suppliers: The business is dependent on the suppliers for the two-wheelers.

Dependent on workers: The business is dependent on the workers for the delivery of two-
wheelers to the customers.
Lengthy process as compared to competitors: the process is lengthy because the app will do the
document verification for the riders (driver's license, Aadhar card, etc.).

Opportunity
Fewer or negligible alternatives are available; there are very few alternatives available in the
current market scenario.

Trends: The trend of solo nature exploration may increase market demand for trippies.

Wider market: there is a very wide market, especially in the Tier 1 and Tier 2 cities because of
the students.

Threats
Increasing competition: as the competition is very high, the big players can divide the
customer segments with their strategies.

Fear of stealing two-wheelers: as the two-wheelers are provided to the riders with utmost
freedom, there is a risk of riders with wrong intentions damaging or stealing the vehicle.

Fear of copying the idea: The idea of the Tripsy can be copied by other players in the market.
Company’s IPRs
All connected product and service names, designs, and slogans, as well as the names "Tripsy",
“Tripsy Bikes” and "Tripsy Rental Bikes," are trade names, logos, or service marks of TRIPSY.
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Present & Future Plannings

Starting Stage :- We have just started our company without registration of GST and all the manpower
requirements are mentioned in the above topic. We have hired less employees in the early stage. Once we will
acquire profitable turnover then we will apply for registration for GST.

Middle stage:- After meeting the required turnover amount for the registration for GST , Which means people
are aware about our company and services and we are receiving good response from the customers which
motivated us to expand our business nationwide.

Final Stage:- We have captured the market and firstly our company is focusing more on metro cities for
expanding our business. Which will be beneficial for our company. Firstly in 4 metro cities which are
1)Delhi
2)Mumbai
3)Banglore
4)Chennai
And after that we will plan to expand our business on the remaining metro cities and other states and cities.
And we will require more manpower requirement .
Conclusion
This assignment allowed us to understand a little depth about the entrepreneurial planning
process.

We began by identifying the needs of our target customers, trying to pinpoint the issue that
many students and newcomers to the city, and we tried to focus on finding a solution to the
same.

As soon as we determined the concept we would be working with, we had to make a strategic
strategy.

We attempted to look at the strategic planning techniques, such as creating a Lean canvas
model, SWOT analysis, segmentation, cost structure, and many other business model elements
to get a better understanding.