Ride-Hailing Blueprint: From Business Plan to Pitch Deck
Ride-Hailing Blueprint: From Business Plan to Pitch Deck
Introduction
OAK Business Consultant prepared a case study for a client in the transportation/mobility sector with a ridesharing app. This ride-hailing service sought investments using a detailed financial model based on realistic projections in the mobility/transportation business. The business has been in operation since 2012 and now aims to bring a fresh perspective to Canadian residents. With the ridesharing concept as their main objective, they want to become a prominent transportation network company providing reliable and trusted transportation services for anyone and everyone.
The client sought our expertise in crafting a business plan, financial model, and pitch deck to provide more precise insights for their investors. Consequently, our specialists gathered in-depth revenue data to formulate detailed financial projections for the client’s transportation/mobility venture.
Challenges
While working on this project, our experts encountered several challenges, including:
- Anticipating the growth in population and employment in the coming years.
- Understanding age and lifestyle preferences in the targeted regions.
- Analyzing the current market share of existing competitors and projecting the potential ratio of future competitors.
- Grasping the overall target market, pinpointing the specific audience to target, and forecasting the audience size in the subsequent years.
- Comprehending the necessary investments, especially in technology, marketing, and operations, and identifying potential revenue streams.
- Assessing the business’s potential in the forecasted years, determining an accurate valuation, and deciding on an acceptable share percentage to offer investors during pitches.
Solution
To overcome the challenges, our specialists started with market research focusing on ride-hailing companies operating within our client’s target market. Through this research, we pinpointed potential customers and determined the monthly customer growth rate. It’s worth noting that while ride-hailing apps are part of the taxi industry, they have distinct characteristics.
Our experts gained a deeper understanding of the target audience through market research. They identified the specific age group our client would target and conducted a detailed and accurate revenue analysis. This research also provided insights into who would use our client’s ride-sharing services.
Furthermore, this understanding allowed us to grasp the client’s business more comprehensively. This insight enhanced our ability to conduct financial and cost analyses, giving the client a competitive edge over other ride-hailing companies.
Our client sought an evaluation of key financial metrics—ROIC, NPV, IRR, and burn rate analysis—as they aimed to secure investments. Such an overview is crucial to showcase the business’s potential and current position. Investors prioritize understanding a business’s financial stability and growth potential. Hence, we also assessed the CAC/CLV ratio, integrating it into the financial model to demonstrate the company’s substantial revenue generation from its customers.
Result
Our financial model enables clients to forecast the financial performance of their ride-hailing startup for the next five years. The model encompassed revenue, expense, cash flow projections, and sensitivity analysis to evaluate the effects of different factors on their financial performance. Furthermore, the breakeven financial ratios, cash utilization of funds, and equity table helped our clients attract investors and analyze their financial projections. The model is user-friendly and dynamic, where user can change their assumptions, and the model will update automatically and present the data. The prospective investor was highly impressed by the precision and comprehensiveness of the financial projections, which consequently facilitated our client in securing funding from investors.
Additionally, the business plan provides clients with a deeper understanding of their business operations and aids in attracting more investments. It offers comprehensive market research conducted by our expert team, including market analysis, competitor analysis, financial projections, investment strategies, and market and operational strategies. Our experts have also diligently worked on developing tailored recommendations and actionable insights to ensure the success and growth of the client’s business. By leveraging industry best practices and innovative strategies, our team ensures that the business plan outlines the current landscape and anticipates future challenges and opportunities.
Moreover, the Pitch Deck assists clients in effectively presenting their business ideas to investors. It’s designed to simplify complex concepts for both the client and investors, streamlining discussions and saving valuable time.
Financial Highlights
Input Sheet
The Input sheet encompasses all the assumptions clients can adapt based on their requirements. It includes assumptions related to revenue, cost, investments, CAPEX, and OPEX, all of which are essential for creating the business’s financial projections.
Income Statement
The Income Statement tells about the monthly and yearly income generated by the business based on the assumptions taken. It gives detailed information about the Revenue, Cost of Service, Operating Expenses, Tax Expenses, Interest Expenses, and Net Income generated by the business. Our expert team created this Income Statement with the help of inputs as well as the information collected from client or through market research.
Cash Flow Statement
The Cash flow statement gives information about the company’s cash inflows and outflows through its investing, operating, and financing activities; these projections are based on the projected years (5 years in this case).
Balance Sheet
Our professional team also provided the client with a balance sheet showing the company’s assets, liabilities, and capital. The balance sheet is used to analyze the company’s performance in the projected years, which the client can use to analyze the company’s future performance and attract more investors.
Project Evaluation
In the project evaluation sheet, our experts forecasted the most crucial information that is important to investors. This includes the Net present value, Internal rate of return, Payback Period, and Minimum Expected Equity Percentage by Investors, as seen in the picture.
CAC-CLV Analysis
One of the most important pieces of information that our experts work on for our client’s best interests is the CAC-CLV Analysis. This Analysis tells about the Customer Acquisition Cost for our client and how much they need to invest to acquire their targeted customers. This Analysis also tells the business about the expected customer lifetime value, that is, how much the one customer is worth to the business, not just at the start but also after a few years of gradual growth.
Dashboard
Our Expert’s objective was to create a tool for the clients that they can use to analyze and visualize the data they need and show their data in a way to help make accurate financial decisions in less time.
Business Model
Market Analysis
Our team of financial specialists crafted a business model for the client, with the Market Analysis being a pivotal document. In this analysis, we delved into various market segments to extract pertinent information for the client. This section sheds light on market trends and aids in formulating strategies tailored to the client’s business. Moreover, it offers insights into the ride-hailing business and the broader industry.
In the market research, our experts have gathered information from around the world, specifically Canada’s major cities, as our client is based there. The concept was to highlight all the users who want to book a ride or who have their personal vehicles and want to earn extra money.
Competitive Analysis
The Business Plan encompasses an in-depth competitor analysis of the client’s competitors, which gives details about the competitor’s strengths. Our client further uses that to do a comparison of their strengths and opportunities and have a competitive advantage over their competitors. This analysis also pinpoints potential opportunities and vulnerabilities of the competitors. It provides insights into offerings that can set ride-hailing drivers apart from competitors, like Uber drivers or taxi operators.
Pitch Deck
The client sought a ready-to-present pitch deck for their investors. In response, we crafted a Pitch Deck tailored to their needs. Such decks are instrumental when introducing the business idea to potential investors during funding rounds.
In the Pitch Deck, our specialists provided comprehensive insights into the ride-hailing market and other taxi companies and even touched upon public transportation. Leveraging this information, our team customized the pitch deck to cater specifically to our client’s focus on ride-hailing services and apps.
Traction
Company Traction is one of the most important elements investors want to see, as it will help them know about the business’ progress over time and highlight the growth rate of the business. Our expert team has made this through the help of a Financial Plan and Business Plan.
Performance Forecasting
Revenue performance projections for the upcoming years are another key aspect investors prioritize. Our team ensures this information is presented in a manner that’s comprehensible and straightforward for investors and the client to discuss.
Market Trends
Furthermore, our experts also provide the market trends and highlight all the favorable trends for our client’s business. This helps the client to understand their strengths in a better way and how they can use them in the future to grasp growth opportunities.
Conclusion
Oak Business Consultant takes pride in assisting our client in crafting financial model, plan, and pitch deck for their mobility/transportation business tailored to the client’s needs and market dynamics. Our products thoroughly understand the client’s needs, financial standing, decision-making, and strategies. We are committed to providing support as the client grows their business. Our expertise lies in comprehensive market research and precise financial forecasting, ensuring businesses stand out and thrive. As seasoned financial and business analysts, we’re dedicated to guiding business owners through their financial planning journey with unparalleled service.
What Oak Business Offers?
Our diverse services include Financial Modeling, Business Plans, Pitch Decks, and more. Additionally, we possess the expertise to assist you in fundraising and developing a comprehensive business plan. Our business plans incorporate strategies to target the right market and foster sustainable growth. With our financial models, you can forecast future financials and seamlessly integrate them with your models. Some of the templates can be seen by clicking on the following links:
You can optimize your business operations by choosing us for your financial services. Contact us for comprehensive support if you encounter challenges in launching your business. Explore our portfolio to discover why numerous Micro-Small and Mid-sized Businesses consistently prefer our financial planning services. Partnering with us ensures a path paved toward success.
