Business Model

Template for describing the key aspects of your business

Name of founder(s):
Matt Justine S. Manaig
Brent Crisostomo
Eiron Masangkay

Company name:
Rent and ride Company
Market Size
For whom are you creating value? List your target customers (paying) and users (non-paying)
Describe the size of your market (TAM - SAM - SOM) in terms of # of potential customers and $ Revenue potential

TAM: According to Philippine News Agency there are over 2.1 million learners in
senior high school. According to CHED, there are approximately 1,596,345 college
students in the Philippines.

SAM: There are over 4,220 students in MMCL not including their geographic and
Assess potential for Tam/Sam/Som
demographic profile. (according to CHED).
- Potential number of customers/users
- Revenue potential
SOM: 4,220 students are the total students enrolled in MMCL according to CHED.
multiplying it by 10-25% will get 422 - 1,055 percentage of students. Using Slovin's
formula, we can safely acquire 205 for 5% in 422 population percentages and 167 for
X users
6%. Next, 1,055 population percentages would be 290 for 5% and 219 for 6% required X USD X users
maximum sample size. The SOM of the business will use the 167 of 6% confidence X USD X users
level as the maximum respondent for the market surveying and 100 will be the X USD
minimum. The approximate value market for shuttle services 85₱ - 70₱ per student
head (According to MMCL). 4,220 * 85 = 295,400₱ - 358,700₱ for the semi-private
transportation. And for public transportation the minimum fare is ₱13 and an additional
₱2.25 for every succeeding kilometer. 4,220*13₱ = 54,860₱ for their first ride and
additional of 2.25 for every succeeding kilometer. (Lao 2022)

DATA SOURCES:

1. https://ched.gov.ph/wp-content/uploads/2018/07/Private-Higher-Education-Institutions-Faculty-Student-Ratio.pdf
2. https://www.pna.gov.ph/articles/1180564#:~:text=Learners%20at%20the%20elementary%20level,and%20946%2C611%20learne
rs%20in%20Kindergarten.
3. https://fs.mcl.edu.ph/MCLRepo/download/MCL%20SHUTTLE%20SERVICE%20PRIMER%202022.pdf
4. https://onlooq.com/a-complete-guide-to-philippine-public-transportation-metro-manila/
Channels
How do customers hear about your products? How do you distribute your products? How do you make it “sticky” and get
people to keep coming back (stay top of mind)

Business channel:

A facebook post will be used to advertise the products to the customers and retailers could advertise the
product to nearby students. The distribution channel for this business will be indirect. Based on the level 1
concept, the retailer will offer to its customers the product that came from the producer as a profitable
product. It would be the retailer's responsibility to interact with customers and sales must be maintained by
the retailer.

Customers will be able to enjoy the product with limited events and promotions offered by the company.
Upon completion of a 7 day period of using the business carpool, customers will be given a voucher that
can alleviate the additional fee for one day or give them a discount in the ride.
Revenue model
Who is paying? How much are they paying? What are they paying for? (sale of goods, usage fees, subscription fees,
licensing fees, advertisement, sponsorships, donations) How much profit do you make per transaction? Be specific and
write down numbers (your best guess) Show a chart with your revenue projections for the next 3 years.
See these articles to learn about revenue models you can use: https://fi.co/insight/the-10-most-popular-startup-revenue-models
https://medium.com/business-model-validation-101/10-examples-of-revenue-models-50af0078c58c

Student fees: (Daily)

1. Income per students (Assuming student travels 25km)
₱50+₱13.50(25 km) = ₱387.5

2. If student didn’t return the car in time:

₱387.5 + ₱300 = ₱637.5

3. Retailer income per day: ₱700.00

4. Every 10 cars (10 students)

₱387.5 *10 = ₱3875

Monthly income: (BUSINESS ONLY OPEN AT MON - SAT)

₱3875* 24 = ₱93,000 (per 10 students monthly)

For the next 3 years:

(₱93,000*12)(3)= ₱3,348,000
(Assuming 10 students uses car everyday in every month and every year)

Fees are expected to change if the gas prices, car maintenance

prices, labour prices changes. Price changes may only occur once
every month.
Costs
List your fixed costs (machinery, rent, web hosting, salaries) and variable costs (marketing, production, distribution, sales
commissions). How much money do you need to develop your MVP? Can you calculate your break-even point?

Dynamic - As the value of gasoline, maintenance of a car changes daily the cost of the business prices will
not be fixed and will be changed once every month.

Cost:
Dynamic cost:

1. Car - ₱609,000 * 10 = ₱6,090,000 (Price of 10 wigo cars)

1.1. Car Maintenance - ₱10,000 (Price of car maintenance per month)
1.2. Car gasoline - (changes overtime)

2. Employee (Retailer)
₱700 * 24 = ₱16,800 per month

3. Renting space - ₱3,000 (Per month)

REFERENCES and GUIDES: (for pricing)
1. https://www.pna.gov.ph/articles/1043264
2. https://www.philstar.com/business/motoring/2001/10/10/136201/how-far-can-y
ou-go-liter-gas
3. https://www.zigwheels.ph/new-cars/toyota/promo-subic