Runólfur Sigmundsson Martin Westin

Sask Bikes offer a healthy and convenient way to travel around the city with the environment in mind “Convenient and smart” “For a healthier city and people” Positioning Statement

Benefits Users Cheap Independent Healthy Environmentally friendly City of Saskatoon Less pollution Increased public health Image

Capital cost Initial investmentCost Equipment (Stations & Bikes)1,292,700 Leasehold Improvements10,000 Automobile20,000 Furniture, Fixtures and Tools15,000 Total1,337,700

Financing Equity $ 400,000 Grants $ 500,000 Debt $ 500,000

Locations Year 1 20 stations Downtown University Campus Residences Broadway 8 th street

Locations Year 5 40 stations Suburbs

Target Market Population of Saskatoon: 254,000 Students Commuters Other citizens Tourists 2.1 million each year

Promotion Facebook Twitter App Posters: – Bus stops – Bike stations Brochures – Airport – Hotels Tours around the city

Service and Price Rent a bicycle with a personal card Leave it at any station Usage Fees 0 – 30 minutes (24h) $6$6 Every additional half hour $ 10 Annual subscription $ 65

Competitors Direct competitors – Any store that sells bikes: Canadian tire Sport Chek Indirect competitors – Any other way to travel: Bus Own car Taxi

Break-even for advertisement Without bike rental revenue – Base case Advertisement revenues: $3000 per station/month

Break-even for bike rentals Without advertisement revenue – Base case number of customers: 260 customers/day

Revenue model IRR 55.6% Net income – Break even in the first year

Feasibility Non-for profit Government-owned

Questions?

Capacity

Price Cost per day Sask Bikes: $0,30 per day Own bike: $0,93 per day Bus pass: $2,44 per day Own car: $ 24,32 per day