PROJECT FEASIBILTY REPORT ON

RIDENOW

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 TABLE OF CONTENTS

CONTENTS PAGE NO.

1. INTRODUCTION 6
2. OBJECTIVE 7
3. RATIONALE 8
4. RESEARCH METHODOLOGY 9-10
5. MARKETING FEASIBILITY 11-13
6. SURVEY ANALYSIS 14-20
7. TECHNICAL FEASIBILITY 21-22
8. FINANCIAL FEASIBILITY 23-24
9. FINDINGS 25
10. CONCLUSION 26
11. BIBLIOGRAPHY 27

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 INTRODUCTION
Now days, almost human life becomes more and more easy.
It is possible only because of the technology. Various online systems
make the life of human very comfortable. By some clicks only, we can get
whatever we want at home. We already know about the online
shopping, e-banking, etc. Similarly, The Car Rental System is the online
facility to book cars online within few clicks only. Some people cannot
effort of having a car, for those people this system becomes very helpful.
This system includes various cars, as per the customer order and
comfort, it place the order and deliver the car as per the location within
the area. For travelling a long distance, booking can be done via internet
service only.

This online system will provide the facility to admin to add

a new car, delete a car, modify a car or booked a car to the customer. A
customer can get a car on rent online by online payment. It will facilitate
the human being in their much busy life. This system will also very helpful
to those users of rental organization who unaware from their traveling
rout by providing them the online map from pick up to return place. As
every organization want to satisfy their customers, so system will provide
a feedback area to get feedbacks from the customers. The main purpose
of a Car Rental System to be implemented is to manage information
about Cars, Customers and the system users related to the company.

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 OBJECTIVE

The main objective of are study is do first market

feasibility.
Then we are going to do technical feasibility.
Then financial feasibility have to be done on this project.
To provide friendly and reliable customer service in order
to establish a loyal customer base.
To reduce the losses in the first two years (introduction
stage).
To grow at a profitable rate after the introduction stage.
To make the customer aware that hiring a car is the next
best option to buy a car.
To establish a system that will allow renters to register and
rent cars online.
Now a days the pollution is increasing rapidly so we try to
introduce some eco-friendly cars as well as provide a car
sharing service so that the traffic problem also reduces.

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 RATIONALE

The rationale of the study includes many things

for this start-up company because.

Through this app you easily gets your own personal car as
well as you do not have to worry about the parking.

As you can easily get your car at your location at any time of
the day. An also as per the duration fixed you can use that
car and drop the car at your destination.

As through this service the customer can drive for short as

well as long routs both.

If the customer uses this service he can get personalized

experience of car and also he dont need to worry about the
EMI.

Now a days the pollution is increasing rapidly so we try to

introduce some eco-friendly cars as well as provide a car
sharing service so that the traffic problem also.

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 RESEARCH METHODOLOGY

Research is a careful and detailed study into a specific

problem, concern, or issue using the scientific method.
It's the adult form of the science fair projects back in
elementary school, where you try and learn something
by performing an experiment. This is best accomplished
by turning the issue into a question, with the intent of
the research to answer the question.

Primary data is the type of source used in this

report.
At first I collected the whole data from the
survey which is done to analysis the market.
And also from that I collected some
information through their answers of the
survey that are they really interested in rental
services or not.
And one more imported information I got is
that youth is more interested in this car rental
services as they are more fond of travelling.

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I also use various other secondary data to make this
report
Study out the surveys done by competitors and
also get to know how they target the market.
And which area they are targeting to grow their
market.

The survey techniques which I used to analyze the

market is through questionnaire method which
involves certain questions related to rental services.
The questionnaire process was done through online
survey site survey monkey in which we collect the
data of more than 100 people but we just ignore
some people because of to rectify the spam and the
people to seem to be just not interested in our
survey.

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 MARKETING FEASIBILTY

MARKET ANALYSIS
As per the latest trends in the car rental services industry, the more
and more people now book to rent cars via mobile application, and
other internet access rather than visiting the car rental office. Car
rental mobile application usage has seen an increment in recent
time. The car rental business is also segmented into organized and
unorganized labor, with the organized labor expected to provide
the highest incremental opportunity going forward.
No doubt, the Car Rental Services industry has indeed changed
gears over the last five years, growing strongly after being forced
into retrogression during the recession period. The fact that air
travelers represent the industrys primary market, growth in air
travel over the last five years has been most important in driving
revenue expansion in this industry.
Furthermore, the industry is anticipated to continue growing going
forward, driven by an increase in the number of air travelers, rising
per capita income and of course rising corporate profit as well. The
industrys largest companies are expected to retain their
competitive advantages over smaller players, such as maintaining
strategic alliances with airlines and hotels
The trend in the car rental services industry is that most car wash
companies in the bid to survive the recent global economic
meltdown included additional services to their core service
offerings. It is much easier for car rental companies to increase
their revenues by diversifying as against increasing the scope of
their market.

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Competitive edge
The following factors of competition give our start-up some
competitive edge over the other car rental companies.

Quality
Quality of cars- Ridenow strives to consistently offer
dependable vehicles. Each car is thoroughly cleaned before
every trip so that customers get a perfect car.

Quality services- Ridenow accords highest priority to fast and

friendly customer service, safety and comfort. It strives to
offer prompt, personal attention to every client. Our
chauffeurs are trained to attend the clients and always
believe in giving service with a smile. Punctuality and
promptness are the key qualities of our chauffeurs. Our
chauffeurs are uniformed, well behaved, equipped with
mobile phone, well versed with the topography of the city
and understand and speak English and Hindi .The Company is
open for 24 hours.

Price Ridenow offers its customers car rental packages at

:

a competitive price without compromising on quality or

sacrificing company profits.

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 Convenience: All American Express, Visa, and
MasterCard card are accepted. Ridenow makes car renting
easy and hassle free.

Questionnaire for Concept Testing

1. What is your gender?
2. What is your age bracket?
3. Do you have a license?
4. Do you have any interest in car renting?
5. While hiring cars what would you give priority to cost or
comfort (quality service)?
6. How often do you hire car for travel in a month?
7. What is the purpose for hiring a car?
8. Which mode of payment you prefer? Cash ONLINE
9. Do you prefer to hire Air-conditioned cars or non-Air-
conditioned cars?
10. Do you prefer driver or you want to drive self?
11. What is the most in demand car rental type?
Hatchback
Sedan
suv
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 SURVEY ANALYSIS
THIS SURVEY IS DONE BY RANDOM SAMPLING METHOD. ANY THE
POPULATION SIZE OF THIS SURVEY IS 100.

Q1 WHAT IS YOUR GENDER?

MALE FEMALE

58 42

GENDER

42% MALE FEMALE

58%

In the first question in our survey we thought it would be important to

ask the audience whether they were male or female. We did this so we
could keep track of who we ask so we could get as close to an even mix
from both genders.

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Q2 WHAT IS YOUR AGE BRACKET?
18-25 26-40 41-50 50+
45 46 6 3

AGE
18-25 26-40
6%3%

45%

46% 41-50 50+

The second question of our survey focused on analyzing the age groups of the
people we asked. We wanted to gain this information to help us find the possible
age groups of the potential car-rental. We thought this information could be
helpful in order to help find the marketability of the service and analyzing
information with the other questions we asked. As you can see in the figure above
our general population ranged from 18-40 which would most likely be the people
we would target the service towards

Q3 DO YOU HAVE A LICENSE?

YES NO
77 23

LICENCE
23%
YES NO

77%

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In question three of the survey we thought it would be necessary to ask
individuals if they possessed a drivers license. We thought this information was a
very important aspect of our study because it would tell us whether car-sharing
would influence people getting a license and to help us estimate how much of the
population possess a drivers license. This question could be used in many ways to
help us analyze more of the questions that we asked in the survey.

Q4 DO YOU HAVE ANY INTEREST IN CAR RENTING?

YES NO DONT KNOW
70 8 22

interest in car renting

yes
22%

no
8%

70% DON'TKNOW

In question 4 we wanted to ask individuals if they would be interested

in car-sharing if it became available. This information helped us get an
idea of whether people would be willing to try or be an everyday user
of the service.

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Q5 While hiring cars what would you give priority to cost or comfort?
cost comfort
35 65

PRIORITY
COST
35%
COMFORT
65%

In this ques 5 we get to know about the priority which customs prefer. And we get
that customers prefer comfort more over cost.

Q6 how often do you hire car for travel in a month?

less than once 16
1-3 times 7
3-5 times 35
5-10 times 36
More than 10 times 6

hiring
less than 1
6% 16%
1-3 times
7% 3-5 time
36%
5-10 times
35% 10+

Through this ques we get to know that how many times in a month customers
hired the cars for travel purpose.
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Q7 what is the purpose for hiring a car?

business personal other

32 63 5

purpose
business
5%
32% personal

63% other

Through this we get the information why customers used the cars. And at last we
get to know that the customers hire the cars for some personal use such as
travelling.

Q8 which mode of payment do you prefer?

cash online others
37 48 15

Payment
15% cash
37%
online

others
48%

Through this ques we know that as the digital payment scope is increasing so we
get that now more people focus on paying through online or through cards more
over cash transactions.

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Q9 Do you prefer to hire Air-conditioned cars or non-Air-conditioned
cars?
AIR-CONDITIONED NON-AIR-CONDITIONED
73 27

prefer

27%
ac non ac

73%

Through this ques we know that now customers prefer ac cars over the non ac
ones.

Q10 Do you prefer driver or you want to drive self?

DRIVER SELF DRIVE
43 57

driving

43% driver self

57%

From this ques we know that people want to drive self rather than take a driver
and gave a navigation to him.

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Q11 what is the most in demand car rental type?
hatchback sedan suv
52 25 23

demand car

23% hatchback

sedan
52%
suv
25%

Through this ques we get to know which type of cars are more in
demand and now which cars we have made run on the streets.

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 Technical Feasibility

To execute this whole start-up we need proper working personnel. As

well as we need a proper system through which we provide best
services to our customers. The requirement of human resource is as
follows:

Finance manager 1
Marketing and sales manager 1
Personnel manager 1
Receptionist 1
Chauffeurs 15
Web developer 2

Types and no. of cars through which we start this

business.

CAR CATEGORY

HATCHBACK Ford Figo (5seater) 20

SUV FORD Ecosport (5seater) 10
SEDAN Ford Espire (5seater) 5

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PRICE GRID
This data is provided as per 10hr and for around 50km only.

CAR CATEGORY Zoomcar price Ridenow PRICE

RATE PER hr RATE PER hr
Hatchback 750 650
SUV 1100 1000
SEDAN 900 850

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 FINANCIAL FESIBILITY

We have been able to pull cash that will be enough for us to

successfully launch a standard car rental services company with
fleets of comfortable and reliable cars. We will leverage on
leasing opportunity as against outright purchase of cars meant
for rental services. So also in the bid to cut cost, we will
contract the servicing and maintenance of all our cars.
This table shows the estimated figures of the first year of the
start-up.
Printing & stationery 10,000

Cars on lease 51,00,000

FUEL 5,00,000

RENT 50,000

PARKING CHARGES 20,000

MAINTENANCE 5,00,000

TELEPHONE CHARGES 10,000

ELECTRICITY CHARGES 40,000

SALARIES TO STAFF 25,00,000

TOTAL 1,00,00,000

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Sales Forecast
One thing is certain; there would always be corporate
organization and individual clients who would need the
services of car rental Services Company.
We are well positioned to take on the available market in
Jaipur and we are quite optimistic that we will meet our
set target of generating enough income / profits from the
first six month of operations and grow our car rental
services business and our clientele base.
We have been able to critically examine the car rental
services market and we have analyzed our chances in the
industry and we have been able to come up with the
following sales forecast. By the end of the first fiscal year
we are able to make a profit of around 68lakhs which we
try to increase year by year.

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 FINDINGS

From this report we get to know about the

customers preference on the rental services.
We also get to know about the market of the rental
services which area we have to target to make growth
in the market.
Also we get to know about the cost incurred in
starting the business and also the expenses which we
made on various assets and personnel development.

Also by the break-even analysis we get to know in

how much time of starting of the business we make a
successful profit in the firm.

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 CONCLUSION

We get to conclusion of report that if we start our

business right now. We can easily make this idea
feasible and make around 60-70 lakhs of profit in a
fiscal year. By easily targeting the youth customers
and provide them best rental services of their
desire.

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 BIBLIOGRAPHY

1. www.google.com
2. www.scribd.com
3. www.surveymonkey.com
4. www.wikipedia.org

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