faithfound
New member
In india, there is a problem which as far as i searched , no one is solving/providing good enough solution with profitable model. Alot of times inter-city long distance train routes r fully booked many days prior to the travel date, and not every tier2/tier 3 city has bus routes available/or fully booked on alot of days( especially festive/wedding seasons). So people have no option left as how to travel that far . The idea is to provide a 7-seater car with a driver and oyo-type convenience, facility and affordability . The car provided would be high mileage ,customised for enough storage for 7 people, mid cost (8-10 lakh, there r a few good 7-seater cars in market providing 20+ kmpl mileage ). There would be an app to provide this service, let's name this app X for now.
Target customers would be middle class population wanting to travel from and to tier 2/tier 3 cities in different states with a) negligible bus options , b) trains fully booked and c) large distance.
Also the travel would not be directly to/from any tier 2/3 city , it would be mostly from/to top/famous cities of any state .
Some microeconomics I came up with as to if this type of service can be profitable :
Let's say 6 people( doesn't have to be a group, those 6 can be individual non-related people too) from Indore who due to no seats left in train and no good bus service from INDORE to NASHIK booked a ride on X . It's an 18 hour journey . Either one single driver can do it( 2 shifts), or 2 drivers( 1 shift each) can do it ( interchanged in any given city between that route). Let's say each shift salary is 600 and allowance for food/others is another 200, so cost of 2 shifts is 1600. Now for a 20 km mileage car , 1000 km ride's fuel cost would approximately be around 6000, given current petrol/diesel rates) . Let's add 1000 more for various toll plazas in between . Add 500 more for car maintenance and 1500 more for app developing/customer support/some water and snacks provided in car/miscellaneous expenses. Now car value depreciates each year by 10% , so 300 more for car value depreciating each day. Total cost would come out to be around 11000. We can charge 2000-3000 rupees per customer( depending on occupancy of that route , if 4/7 seats r filled then 3000, if 5 r filled then 2800, if all 7 r filled then 2000 each) and....there is a profit of 1000-3000 per one way trip.
Also note this is alot different than ola rentals/blablacar ( carpool ) etc platforms and they often tend to be inconvenient because a) driving that far urself is not easy and b) the high cost of renting whole vehicle for personal use.
Now this whole model can only work if there is enough population wanting to travel and other transport options not being available or extremely expensive ( flights) at that time, which we know there r tons of cases like that, especially during/near any festive/wedding seasons. So folks, how is the idea?
Target customers would be middle class population wanting to travel from and to tier 2/tier 3 cities in different states with a) negligible bus options , b) trains fully booked and c) large distance.
Also the travel would not be directly to/from any tier 2/3 city , it would be mostly from/to top/famous cities of any state .
Some microeconomics I came up with as to if this type of service can be profitable :
Let's say 6 people( doesn't have to be a group, those 6 can be individual non-related people too) from Indore who due to no seats left in train and no good bus service from INDORE to NASHIK booked a ride on X . It's an 18 hour journey . Either one single driver can do it( 2 shifts), or 2 drivers( 1 shift each) can do it ( interchanged in any given city between that route). Let's say each shift salary is 600 and allowance for food/others is another 200, so cost of 2 shifts is 1600. Now for a 20 km mileage car , 1000 km ride's fuel cost would approximately be around 6000, given current petrol/diesel rates) . Let's add 1000 more for various toll plazas in between . Add 500 more for car maintenance and 1500 more for app developing/customer support/some water and snacks provided in car/miscellaneous expenses. Now car value depreciates each year by 10% , so 300 more for car value depreciating each day. Total cost would come out to be around 11000. We can charge 2000-3000 rupees per customer( depending on occupancy of that route , if 4/7 seats r filled then 3000, if 5 r filled then 2800, if all 7 r filled then 2000 each) and....there is a profit of 1000-3000 per one way trip.
Also note this is alot different than ola rentals/blablacar ( carpool ) etc platforms and they often tend to be inconvenient because a) driving that far urself is not easy and b) the high cost of renting whole vehicle for personal use.
Now this whole model can only work if there is enough population wanting to travel and other transport options not being available or extremely expensive ( flights) at that time, which we know there r tons of cases like that, especially during/near any festive/wedding seasons. So folks, how is the idea?