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March 2017BUSINESS PLANQwikTrips Inc.SHANTA L. HEREFORD, Owner1. EXECUTIVE SUMMARYQwikTrips Inc. is a new start-up company designed with the expectation of rapid expansion in the on-demand networking industry. 1.1 ProductQwikTrips will market its products and services as solutions to transportation and personal service needs in geographical areas where our competitors are not concentrated. Direct advertising, social media marketing and television advertising will be the company's main marketing channels. These channels ensure that target customers are reached repeatedly and effectively. The company will monitor its market position through constant tracking.1.2 CustomersQwikTrips focus will be on the on-demand service market with target customers in areas where our competitors are not concentrated. The target customers are motivated to use our services over that of competitors because of the convenience and quality associated with our services and they are not able to access the competitor’s service. Our Target CustomersWorking and Professional Adults, Senior Citizens, Disabled Persons, Business Owners, Homeowners, Persons who use Public Transportation, Teens, College Students.1.3 What Drives UsThe company's goal in the next year is to pursue an aggressive marketing campaign and from that, penetrate a high % of the market share. The company's goal in the next two to five years is to become one of the top rated on-demand services company in the marketplace by continuously monitoring, evaluating, and following up on customer reviews, complaints and comments. The company's goal in the next year is to pursue an aggressive marketing campaign and from that, penetrate at least 65% of the market share in each market we pursue. 2. COMPANY DESCRIPTION2.1 Mission StatementThe mission of QwikTrips is to provide reliable, timely, and safe on-demand services by using complete in-app credit/debit card access, along with computer aided and GPS dispatch."Get what you want, when you want"2.2 Principal MembersShanta L. Hereford, Visionary & FounderMs. Hereford has been responsible for the vision and development of QwikTrips. Her role as Founder is to secure startup funding for the company and manage the day to day operations.2.3 Legal StructureQwikTrips is Incorporation.3. MARKET RESEARCH3.1 IndustryAn outgrowth of the sharing economy, ridesharing apps connect people who need a ride with people who have a vehicle and time to drive - notably, not necessarily people who are licensed taxi drivers. Companies like Lyft, Hailo and Uber provide a smart phone app that lets consumers hail a ride, set their destination, and pay without leaving the app itself. The benefit to the consumer is ease of use, availability of rides, and sometimes lower prices than traditional taxis.Many companies require at least some sort of certification for the drivers, and take a cut of the drivers' fares. Drivers can choose when they work (though they can receive bonuses for logging a certain number of hours) and provide their own vehicles. In the U.S., ridesharing companies argue that the work-when-you-want arrangement qualifies drivers as contractors, not employees. Despite legal battles and controversy over surge pricing, ridesharing companies have exploded in popularity, both in the U.S. and internationally.Early entrants in the transportation app space, like Uber and Flywheel, were founded around 2009; new companies have been cropping up since. Overall, the industry has risen more than in $10 billion in venture funding.3.1.1 Ride-SharingRide sharing companies have raised more than $25 billion in private capital since 2010. Today, top-5 ride sharing companies –Uber, Didi-Chuxing, Lyft, Ola, and Grab – have a combined market capitalization of roughly $120 billion (based on most recent primary round valuations). We believe ride sharing apps have a large and expanding market opportunity, and benefit from significant secular and demographic tailwinds.Ride-sharing apps such as Uber and Lyft have a large revenue opportunity today and the potential to disrupt several industries involved in human and non-human mobility. Based on a sum-of-parts, bottoms-up approach, we estimate more than $600 billion in revenue opportunity available to ride-sharing apps today. Alternatively, if ride-sharing accounts for 5% share of annual human miles traveled in the future, then they stand to benefit from over $650 billion in economic value created per year. Our proprietary consumer survey of 5,500 smart phone users highlights a marginally higher likelihood of ride sharing usage among people who do not own cars and a marginally lower likelihood of purchasing a car among people who have used ride sharing apps in the past, both indicating that ride-sharing apps have significant potential to alter car ownership decisions in the future.As more people choose ride-sharing apps over owning a car, arguably, ride-sharing apps encroach into market value of parking spaces, auto insurance, and adjacent car ownership related spend buckets such as car service centers;Ride-sharing apps have the potential to expand the addressable market to consumers who wouldn’t have spent on taxi or public transportation previously (e.g. old people, young kids, etc.);Ride-sharing apps have the potential to launch in cities, suburban, and rural areas where taxi cabs haven’t operated till date;27717754248153.1.2 Approach to Ride-Sharing IndustryAs it relates to the market potential of ride-sharing apps, Shares Post asked a couple of questions of 5500 survey participants: Do you own or lease a car? And have you heard of or used ride-sharing apps? We summarize the findings from both of these questions below, but what we found interesting is the following:About 38% of all survey respondents had used ride-sharing apps at least once in the past, in other words, there’s still more than 60% of the population that hasn’t used ride-sharing at all. We asked a series of questions of these people in our survey. ?More details in a subsequent section of the report;81% of consumers owned or leased a car; and moreover,There was a marginally higher penetration of ride-sharing usage among consumers who did not own or lease a car. Or, 42% of consumers who didn’t own or lease a car had used ride-sharing apps in the past.3.1.3 Ride-Sharing Market OpportunityRide-sharing apps face a large addressable market opportunity today – roughly in the range of $500B to $800B. And, this market opportunity will grow over the longer term due to secular trends and scalable use cases228600045720Ride-sharing companies benefit from significant secular trends at the intersection of Mobile, Technology, and Automobile industries coupled with favorable demographics, cultural, and behavioral changes associated with a rising millennial population. According to our proprietary survey of 5,000+ Smartphone consumers, more than 60% of survey respondents haven’t used ride-sharing apps to date, with “lack of number of cars available” cited as #1 reason.Currently, we are witnessing major trends at the intersection of Auto & Tech industries that could be highly disruptive over the next 20 years. While each of these trends are fairly independent and appear to happen simultaneously, we believe these trends are also complementary and contribute to the secular development of other such secular trends. While these trends would take several years to completely manifest themselves, we believe that business models such as ride-sharing will fundamentally benefit from such positive long-term trends.3.1.4 Ride-sharing apps benefit from significant secular & demographic trends When asked about the biggest concerns to survey respondents who haven’t used ride-sharing apps in the past: “What is your biggest concern about ride-sharing or cab hailing mobile apps?”; Roughly 40% of survey respondents indicated that they haven’t used ride-sharing due to lack of car/driver density, and the subsequent concerns appear to be largely “Solvable” business cases. For instance, non-riders indicated that they would prefer to schedule rides, or pay with cash, or estimate fares in advance.3.1.4 Concerns about Ride-Sharing Apps 3.2 CustomersThe company's emphasis is on the on-demand dispatch, mobile data, and credit/debit card markets of the industry. The company believes that the major future trend in the industry will be complete on-demand access for consumers for just about everything.Customers and Target MarketsQwikTrips focus will be on the on-demand services market with target customers that are motivated to use our services over that of competitors because of the convenience and quality associated with our services and the fact that they cannot access the competitors in their geographical area. Customer Buying CriteriaWe believe our customers will choose our on-demand service based on the following criteria:· Performance. We work with one goal in mind: to get customers the service they want, when they want it, promptly, efficiently, comfortably, and safely.· Superior Service. Timely, private usage and customer care.· Quality. This involves providing courteous service in clean, well-maintained cars and providers.· Convenience. Timely, On-Demand, Affordable and easy to pay with by using our in-app payment options. This provides an extra blanket of security for both the user and the provider.Challenges associated with rising consumer expectationsThe headline here is that consumers’ expectations around the mobile experience continue to evolve, largely driving technological improvements by leading Internet players such as Amazon, Google, and Facebook and ride-sharing apps would need to increasingly focus on continuous improvements in wait times, route optimization, pricing policies, and overall website/mobile user experience. And, we think such companies face the risk of playing catch-up to match such rising expectations.Proprietary Ride-Sharing Customer Survey3.3 CompetitorsIndustry Rivalry: The on-demand industry has become quite competitive. There is cut throat competition between larger, well established multinational/national players and local small and mid-sized players and individual operators in every market, be it any city, town in the USA or any other market in the world. New age multinational players such as Uber and Lyft are disrupting the space with innovative technology and competitive pricing.Here's a rundown of the biggest competitors:Uber· Founded: 2009· Location: San Francisco, CA· Status: Private, late-stage· Total funding: $9.01 billion· Top investors: Baidu, Benchmark, Goldman SachsLyft· Founded: 2012· Location: San Francisco, CA· Status: Private, Series C· Total funding: $2.5 Billion· Top investors: Ventures, Alibaba, and Andreessen HorowitzSidecar· Founded: 2012· Location: San Francisco, CA· Status: Private, Series C· Total funding: $35 million· Top investors: Union Square Ventures, Avalon Ventures, Light speed Venture Partners, Google VenturesHailo· Founded: 2011· Location: New York, NY· Status: Private, Series C· Total funding: $100.6 million· Top investors: Union Square Ventures, Accel Partners, Wellington Partners, Atomico VenturesThe threat of New Entrants: The threat of new entrants is quite high in the industry. New players can come easily in the market without any significant entry barriers.Bargaining Power of Suppliers: Bargaining power of suppliers is low as providers have ample choices in terms3.4 Competitive AdvantageQwikTrips advantage is that we have more services and features available to the consumer. We offer 24/7 live customer support, which Uber does not. We also have the tipping and ride gifting features that many consumers and providers have voiced is definitely needed. And we offer our services to geographical areas where the competition is not heavily concentrated because the market is a large enough size for such a corporate giant. We will focus on attention to markets where the population ranges from 100,000 to 1,000,000 residents rather than focus on major metropolitan areas where the competition is. 3.5 RegulationRide-sharing RegulationsThe on-demand ridesharing network company (Sidecar, Uber or Lyft) generally takes the place of government in enforcing standards for drivers and vehicles, though two states and the District of Columbia now have basic driver background and minimum insurance requirements in place for TNCs (see next section). Each TNC has its own regulations at the corporate level. Uber insists that state and local Taxi rules should not apply to it or its drivers. TNCs' corporate rules include the following:Safety· Background Checks - Each TNC requires that all drivers undergo comprehensive background checks, including being screened for criminal offences and a litany of driving incidents before becoming a certified driver. Per the Fair Credit Reporting Act, background checks can extend to a maximum of seven years. Uber blog even mentions these criteria being more onerous than that required to become a taxi driver. QwikTrips will require each provider on our platform to forgo an in-depth national background check before providing service to any users of our application.· Vehicle Quality - Lyft and Sidecar both require drivers' vehicles to be the model year 2000 and newer. In addition, they must pass a 19-point vehicle inspection. Uber requires UberX vehicles to be the model year 2004 and newer, mentioning that the average vehicle model year is 2008. QwikTrips will set forth strict vehicle requirements based on the level of service provided by the Provider.· Document Verification - Each driver is required to show proof of insurance, vehicle registration, and driver's license. These are all verified and kept on file by the respective company. QwikTrips will require any provider providing licensed services such as rideshare, massage therapist (where applicable), contractors (where applicable) to submit valid documented written proof of a state driver’s license, valid state registration and valid vehicle insurance. · Zero Tolerance Policy-If a rider suspects their driver is intoxicated, they are encouraged to report the violation to the TNC. QwikTrips will have a Zero Tolerance Policy in place for providers who are intoxicated, drugged, accused of theft, extremely rude to users, or QwikTrips customer service representatives, etc. Anyone in violation will be automatically and permanently terminated and removed from our application database.InsuranceEach network company carries its own insurance policy. Uber, Lyft, and Sidecar each maintain a $1 million Liability Insurance Policy for drivers, through a third party insurance company. This coverage meets all requirements set forth by existing State and Local auto insurance regulations. QwikTrips intends on securing Liability Insurance via Hiscox Insurance.4. PRODUCT/SERVICE LINE4.1 Product or ServiceOur ServicesQwikRide (Ride-Sharing)· Sedan· Elite· Van· SUVQwikShare (Share A Ride)QwikShip (Delivery/Courier)Sedan (Small)Van (Medium)Cargo Truck (Large)QwikAssist (Errands)QwikTow (Towing)QwikRub (Masseuse)QwikGrub (Food Ordering/Delivery)QwikMove (Movers)QwikClean (Cleaners)QwikFix (General Contractors)4.2 Our Pricing StructureQwikTrips ServicesShipping Company ChargesPartner Price, Order PriceTrip Fee Base Fare Booking Fee Cost per Min Cost Per Mile Minimum Charges Cancellation Fee Service Fee QwikExpress - - - 1.45 1.50 0.35 1.10 6.10 5.00 - QwikElite - - - 7.00 1.50 0.50 3.20 15.00 10.00 - QwikVan - - - 3.15 1.50 0.50 2.00 7.60 5.00 - Qwik SUV - - - 14.00 1.50 0.60 3.75 20.00 10.00 - QwikShip 21.81 - - 1.50 1.50 0.35 0.75 - 5.00 - QwikAssist ( Service Charge) - 15.00 4.99 - 1.50 - - 20.00 10.00 7% of Partner Price QwikGrub (7% of PO) - 15.00 4.99 - 1.50 0.35 - 6.00 5.00 7% of Partner PriceQwikRub - 15.00 4.99 - 1.50 - - 30.00 10.00 7% of Partner PriceQwikTow - 50.00 - 35.00 4.99 0.65 2.50 50.00 20.00 7% of Partner PriceQwikClean - 15.00 4.99 - 1.50 - - 20.00 10.00 7% of Partner PriceQwikFix - 50.00 4.99 - 1.50 - - 35.00 10.00 7% of Partner PriceQwikRX - 50.00 4.99 - 1.50 - - 65.00 50.00 7% of Partner PriceQwikMove 1 mover/1 truck - - - 25.00 10.00 2.15 5.00 50.00 25.00 - QwikMove 2 movers/1 truck - - - 50.00 20.00 2.15 5.00 100.00 50.00 - QwikMove 3 movers/2 trucks - - - 75.00 30.00 4.15 10.00 150.00 75.00 - QwikMove 4 movers/2 trucks - - - 100.00 40.00 4.15 10.00 200.00 100.00 100.00 4.3 Product/Service LifecycleProduct is currently in the early development and planning phase. QwikTrips is actively seeking funding to complete software development and implement product launch for summer 2017. 4.4 Intellectual Property RightsOnce we develop the software applications, QwikTrips will be the intellectual owner of the applications. Currently, QwikTrips is considering contracting app development leader, Techno duce to complete the development process.4.5 Research & DevelopmentQwikTrips has conducted a 2-month beta testing from November 2016 to January 2017, using a neutral app provided by . ?Although, the testing was done in Atlanta, Georgia, where Uber has a very strong presence, our tester was able to make $1600 in less than 60 hours. We also learned that Uber doesn’t have the best reputation. Also, insider tips on the competition's services and features were supplied via a 12-month survey. ?By interviewing consumers and providers of their service as well as analyzing our own research, we found out why users of their service as well as drivers, do and don’t like Uber, Hailo and Lyft.5. MARKETING & SALES5.1 Growth StrategyWe plan to grow one market at a time. We will start by assessing areas where our competition is not located. And then assess the need for our services. Once we establish ourselves successfully in one market we will expand to the next.5.2 CommunicationOur customers will be able to communicate with us using in-app messaging and phone support. We will have customer service reps available 24/7 to handle customer questions, complaints, reservations, etc by contacting us via email, 800 numbers or in app support. 5.3 ProspectsWe will market our services in local newspapers, social media, local radio, SMS marketing and direct advertising. 6. FINANCIAL PROJECTIONS6.1 No. Of Trips Forecast Year 1Column1Month 1Month 2Month 3Month 4Month 5Month 6Month 7Month 8Month 9Month 10Month 11Month 12QwikTrips ServiceQwikExpress 787 1,573 2,360 3,147 3,934 4,720 5,507 6,294 7,081 7,867 8,654 9,441 QwikElite 787 1,573 2,360 3,147 3,934 4,720 5,507 6,294 7,081 7,867 8,654 9,441 QwikVan 787 1,573 2,360 3,147 3,934 4,720 5,507 6,294 7,081 7,867 8,654 9,441 Qwik SUV 787 1,573 2,360 3,147 3,934 4,720 5,507 6,294 7,081 7,867 8,654 9,441 QwikShip 787 1,573 2,360 3,147 3,934 4,720 5,507 6,294 7,081 7,867 8,654 9,441 QwikAssist ( Service Charge) 787 1,573 2,360 3,147 3,934 4,720 5,507 6,294 7,081 7,867 8,654 9,441 QwikGrub (6% of PO) 787 1,573 2,360 3,147 3,934 4,720 5,507 6,294 7,081 7,867 8,654 9,441 QwikRub 787 1,573 2,360 3,147 3,934 4,720 5,507 6,294 7,081 7,867 8,654 9,441 QwikTow 787 1,573 2,360 3,147 3,934 4,720 5,507 6,294 7,081 7,867 8,654 9,441 QwikClean 787 1,573 2,360 3,147 3,934 4,720 5,507 6,294 7,081 7,867 8,654 9,441 QwikFix 787 1,573 2,360 3,147 3,934 4,720 5,507 6,294 7,081 7,867 8,654 9,441 QwikRX 787 1,573 2,360 3,147 3,934 4,720 5,507 6,294 7,081 7,867 8,654 9,441 QwikMove 1 mover/1 truck 787 1,573 2,360 3,147 3,934 4,720 5,507 6,294 7,081 7,867 8,654 9,441 QwikMove 2 movers/1 truck 787 1,573 2,360 3,147 3,934 4,720 5,507 6,294 7,081 7,867 8,654 9,441 QwikMove 3 movers/2 trucks 787 1,573 2,360 3,147 3,934 4,720 5,507 6,294 7,081 7,867 8,654 9,441 QwikMove 4 movers/2 trucks 787 1,573 2,360 3,147 3,934 4,720 5,507 6,294 7,081 7,867 8,654 9,441 TOTAL 12,588 25,175 37,763 50,350 62,938 75,526 88,113 100,701 113,289 125,876 138,464 151,051 6.2 Profit & Loss ForecastREVENUEPer Trip RevenueTrips Year 1Trips Year 2Trips Year 3Revenue Year 1Revenue Year 2Revenue Year 3?????USDUSDUSDQwikExpress 5.04 61,365 64,433 67,655 309,278 324,742 340,979 QwikElite 10.80 61,365 64,433 67,655 662,738 695,875 730,669 QwikVan 7.63 61,365 64,433 67,655 468,212 491,623 516,204 Qwik SUV 13.60 61,365 64,433 67,655 834,559 876,287 920,101 QwikShip 4.35 61,365 64,433 67,655 266,936 280,283 294,297 QwikAssist ( Service Charge) 2.55 61,365 64,433 67,655 156,480 164,304 172,519 QwikGrub (6% of PO) 3.60 61,365 64,433 67,655 220,913 231,958 243,556 QwikRub 2.55 61,365 64,433 67,655 156,480 164,304 172,519 QwikTow 22.44 61,365 64,433 67,655 1,377,023 1,445,874 1,518,167 QwikClean 2.55 61,365 64,433 67,655 156,480 164,304 172,519 QwikFix 5.00 61,365 64,433 67,655 306,823 322,164 338,273 QwikRX 5.00 61,365 64,433 67,655 306,823 322,164 338,273 QwikMove 1 mover/1 truck 31.45 61,365 64,433 67,655 1,929,918 2,026,414 2,127,735 QwikMove 2 movers/1 truck 46.45 61,365 64,433 67,655 2,850,388 2,992,907 3,142,552 QwikMove 3 movers/2 trucks 77.45 61,365 64,433 67,655 4,752,692 4,990,326 5,239,842 QwikMove 4 movers/2 trucks 192.45 61,365 64,433 67,655 11,809,625 12,400,107 13,020,112 Total Revenue???? 26,565,367 27,893,636 29,288,318 EXPENSES????USDUSDUSD Customized App & Web Development 20,000 - - Bank Account 100 - - USPTO Trademark Registration 1,500 - - Security Attorney Fee 34,200 41,040 49,248 Business Attorney Fee 27,000 32,400 38,880 Legal Fee 75,000 90,000 108,000 Business Registration 280 336 403 Business License 75 90 108 Website Domain 16 19 23 Graphic Design 1,400 1,680 2,016 Banners/Tents/Promotional Setups 6,000 7,200 8,640 Insulated Bags(Custom) 1,400 1,680 2,016 RainJackets 3,400 4,080 4,896 Removable Stickers 1,400 1,680 2,016 Office Furniture 3,500 4,200 5,040 Equipment 10,000 12,000 14,400 Supplies 3,400 4,080 4,896 Business Insurance 840 1,008 1,210 #100000 Flyers - Printing 32,400 38,880 46,656 #2500 Business Cards - Printing 25,440 30,528 36,634 App & Web Maintenance 6,000 7,200 8,640 Website Hosting 120 144 172 Phone Service 1,200 1,440 1,728 Accountant/Bookkeeping 9,600 11,520 13,824 Director Salary 30,000 36,000 43,200 Financial Analyst 24,000 28,800 34,560 IT/Dispatch 84,000 100,800 120,960 Marketing - Recruitment 150,000 180,000 216,000 Server 3,000 3,600 4,320 Marketing - Launch 225,000 270,000 324,000 Office Space 36,000 43,200 51,840 Utilities 12,000 14,400 17,280 Internet Service 1,920 2,304 2,765 Customer Service Reps 120,000 144,000 172,800 Corporate Cards 5,000 6,000 7,200 Total Funds Required 955,191 1,120,309 1,344,371 Net Income 26,560,367 27,887,636 29,281,118 6.3 Financial Assumptions6.3.1 No. Of Trips Assumptions:We assume that only 3.5% of Population uses our services over a year. And we assume that Trips will increase by 5% of 3.5% each year.6.3.2 Trip Revenue Assumptions:We assume that our trips rates remain constant over the years. Revenue will be increase due to the use of our services by public.6.3.3 Passengers Spend Per Trip:6.3.4 Expenses Assumptions:All expenses in Year 1 are assumes on the basis of current market rates. And we assume that all expenses increase due to inflation by 5% every year.Operating expenses include cost of sales (credit card fees, mobile/Internet access fees, and network maintenance fees), sales and marketing, insurance, and other related costs such as customer service, and operations. ................
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