Shuttle on Btown During my senior year in high school I lost a very close friend to a horrific drunk driving accident. She and two of her older sister had been out partying at the bars and the “sober driver” failed to remain sober for the car ride home and they were too frugal to call or taxi and too embarrassed to call a friend. I wanted to come up with a business that could work indirectly toward combating drunk driving, which in my mind the best option is an affordable young people targeted taxi and or shuttle service. I recently transferred from Indiana University in Bloomington, a Big 10 school where most nights are spend partying similarly to what my friend was doing the night she was killed. Public transportation in college town’s like Bloomington doesn’t really exist and is definitely no where near the convenience that the L train provides us with in Chicago, many schools lack affordable taxi services and Shuttle on Btown came from a point of pain that probably many college suburban/rural campuses face. I know that this company is not necessarily something related to fashion business at all, but I have done multiple other fashion related business plans and I wanted to mix it up, in addition this cause and subject matter is something very close to my heart and something that I think could seriously reduce the amount of drunk drivers on the road in college towns and campuses.
Shuttle on Btown – The Best Way Home General Company and Product Description Shuttle on Btown plans to capitalize on the lack of late-night transportation around the Indiana University Bloomington’s bar scene. While multiple options for late-night campus transportation exist, transportation to and from the Kirkwood and Walnut Street area (the concentrated area of nightlight) is highly inefficient and also frustratingly difficult to use. This business will offer consistent shuttle routes to and from the bar scene and off-campus student housing every night while Fall, Spring and Summer classes are in session. College students have continuously expressed their demand for a service of this nature. Shuttle On Btown strives to offer an innovative transportation service catering to nightlife at big college campuses where other taxi services are in efficient, unaffordable, and incongruent with what the student population needs. The company will try to “extend the party” into the car ride home with a fun atmosphere, friendly staff, and a bring your drink home with you policy. Company Services Shuttle on Btown’s service will feature a fun and exciting atmosphere targeted at college students. Our goal is to make Shuttle On Btown the “cool” way to get home. The fleet will feature colorful, eye-catching vehicle wraps that further our image as the best college transportation service on the market. Further, our service offers the option of riding with groups larger than what a traditional taxi can hold. For this reason, we anticipate our service generating demand from group events such as bar crawls, birthdays, and other major campus events such as Little 500 Bike Race and Homecoming events when large groups of friends want to get around town together as a group. These groups can enjoy the comfort and convenience of our shuttles or take advantage of our party buses which are available to rent for an entire evening. No longer will groups have to wait 30 minutes for the entire group to get to the destination location in groups of four per taxi, or wait outside in bad weather for buses on an unpredictable schedule with inconvenient drop off and pick up locations. Besides the ‘party’ atmosphere within our fleet, which includes music and the option to bring your drink home with you, Shuttle On Btown features another important means of differentiation in its convenience to the customer. To make the service as user-friendly as possible, Shuttle On Btown is implementing a GPS system
in the entire fleet so each waiting customer check how far out their ride is using their mobile device. This alleviates the current problem of having to call a cab, struggle to get through to a dispatcher, and be required to wait thirty minutes for your ride. Unlike current taxi options, the service offers the option of paying with debit cards and credit cards for those running low on cash, and also utilizes a ‘frequent rider’ system where customers have the option to earn a free ride after their tenth time using the company’s services. The Fleet: To effectively cater to the variety of customers, the vehicles in Shuttle On Btown’s fleet come in three different forms. Three of the vehicles will be the 2010 Toyota Prius Hatchback. These vehicles can carry four passengers in addition to the driver and get an EPA estimated 51 miles per gallon. The next portion of our fleet will be five passenger buses. Vici Consulting has identified the Ford Collins Activity bus as a bus that will be capable of handling all the customers’ needs at an affordable price. These buses will be bought used with roughly 50,000 miles on each with the intention of upgrading our fleet to hybrid buses as the technology becomes cheaper and more efficient in the upcoming years. The passenger buses have the ability to carry nineteen passengers in addition to the driver.
The last portion of the fleet will cater to the customers who value style and status over price. The two ‘party’ buses will come in the form of stretch SUV’s with the inside having nice upholstery, sound system, and televisions in addition to amenities such as bottled water and snacks. Customers would rent these vehicles for a specific night or
certain period of time in which the vehicle was used only for them. The goal of this service would be to make the customers stand out as VIP’s when they show up to a bar or restaurant. The party buses will have the capacity to hold up to twenty-five passengers and could be used in unison as to cater to groups ranging up to fifty people. Customers Shuttle on B-Town will target Indiana University students of legal drinking age that visit the bars more than once per week and do not have access to designated drivers. This specific market includes a little over 5,000 students. Additionally, the party bus services offered by Shuttle on Btown will be targeted at the approximately the 5,000 members of the Greek community for major social events such as athletic games, Greek formals, bar crawls, and other campus events. Bloomington is beautiful and it not uncommon for weddings to be held here especially during the slower summer months, our shuttle service would be perfect for wedding guests and the parties following. Market Research and Competition There is currently a need for a low cost and convenient transportation service catering specifically to nightlife crowds in Bloomington. While there are a number of transportation options between the hours of 9PM and 4AM, none target this consumer segment in a way that offers extreme convenience while maintaining low prices and offering a “nightlife� atmosphere The only service currently driven by any company that would compete with Shuttle On Btown in regards to time and schedules is the Night Owl through Bloomington Transit. However, the routes serviced by the Night Owl are centralized around the Indiana University campus dormitories and would not compete directly with the locations Shuttle On Btown would cater to. Threats in this space include those alternate transportation services already being offered, most notably taxi services, a few select existing campus and local bus routes, and designated drives and other private forms of transportation.
Shuttle on Btown plans to be strategically positioned to take advantage of the opportunity and fulfill the “point of pain” of the nightlife consumer segment. Prices and a catered atmosphere and convenience will be the factors that set us apart most notable from our competition. Marketing The company will allocate an average of $300 per month to marketing expenses. These funds will be used to develop the company’s ‘push’ marketing strategy and bolster the company’s image as ‘the best way to get home,’ Specifically, funds will be used to design and distribute koozies and t-shirts and to run advertisements in student newspapers such as the Indiana Daily Student and The Odyssey. Marketing also intends to run exclusive promotions with local bars. We would frequently offer exciting deals with local bars which allow Shuttle On Btown riders get to cut the entrance line at bars, as this ouwld be a strong motivator to use our service for the market we are targeting, bar goers. Another popular option which we plan to implement is handing out cups in our shuttles which constitute a drink special at a local bar. This promotion encourages students to use our shuttle service while also increasing traffic at bars that join with us in these efforts. Since our service offers a means of avoiding driving under the influence, the company is seeking partnerships from local bars and clubs. Combined efforts with local bars have already been addressed, but specifically the company plans to target Kilroy’s on Kirkwood, Kilroy’s Sports, and Jake’s Nightclub. These locations tend to be most popular with our target market and can promote Shuttle On Btown as the best way to get home after a fun night out. Lastly, we expect support from Indiana University since our company is promoting the safety of its students. The university has recently gained publicity for its increasing number of assaults and drunk driving accidents. Shuttle On Btown provides a safe and affordable option for those who may have resorted to walking home and becoming the next assault victim or driving drunk and hurting themselves or another person. The company will utilize table tents to advertise across the Indiana University student community as well. These table tents will be used on a regular basis in bars, restaurants, and across campus. This will expose target markets to the availability of the shuttle service by providing the company’s contact and route information. Moreover, the
company will put flyers across the Indiana University campus and in local restaurants and bars. Together, the table tents and flyers will expose the company’s services to all of the target markets. Pricing While Shuttle On Btown differentiates itself from competitors within the market simply by the innovative party environment the company also prides itself as an industry price leader. Since the company wants to be perceived as economically priced and studentfriendly, each taxi or shuttle ride will cost $3, regardless of destination or time of year for students. Further, Shuttle On Btown will offer customers the option to buy ‘frequent rider’ cards in which customers use the company’s services ten times and get the next ride free our system will track this so a it is basically a virtual card and is not something the customer will have to keep track of on their own, likely to be the least of there concerns when coming from the bars most likely intoxicated. We will use phone numbers to keep track of specific customers in our virtual frequent rider program. In regards to the party bus services, buses will cost $100 to rent for an hour. This price is extremely competitive as average party bus rentals cost upwards of $125 per hour. These prices reflect student prices, which will be our major target consumer, however to be competitive with other shuttle services in the summer months an hopefully compensate for slower college scenes during the summer we will charge $115 for party bus rental for non student functions and reservations. Sales and Distribution Sales will be generated mostly by word of mouth and by need. We will have a hotline available during operating hours and you will also be able to book online or through our Facebook pages reservations, we will also eventually develop a mobile app where you can both track your vehicle, reserve, and pay for your reservation. We will except both cash and credit/debit cards to make customers lives the most simple, it is hard to make sure you have cash on you at all times and we realize that. We will also let you pre-pay online for your reservation or night out. Because we our a service based company our distribution will be non-existent because we aren’t distributing a product. Operations The focus of the operations is to effectively and efficiently serve the largest number of customers. Implementing a GPS system in the fleet allows customers to check the
location of the vehicles in real-time. The fleet will consist of three small car taxis capable of carrying four passengers each, five small buses capable of carrying fifteen passengers each, and two party buses capable of carrying twenty-six passengers each. Shuttle on Btown will employ fifteen drivers whose time on the job will vary according to cyclical and seasonal demand patterns. Taxi and shuttle routes will be centralized around the bars on Kirkwood and Walnut, with drop off points near heavy traffic areas for those living in student housing. To maintain profitability during summer months, Shuttle on Btown will convert to a traditional taxi service in which customers call when rides are needed and a small number of drivers are kept on call. Operating hours will be from 9 p.m. to 3 a.m. every night of the week. Thursday through Saturday the fleet runs continuously on three routes – The Bobby Knight Route (servicing the northwest area of campus including Varsity Villas, the stadium, and west area of town), The Broseidon Route (servicing the Jordan Avenue and central area), and The Moonshine Route (servicing the south side of town.) These routes, together, reach all of the popular student living areas as identified in the market survey. Besides the owner and executive staff, the operations for Shuttle On Btown will consist of ten drivers. While school is in session, the entire fleet of taxis and passenger buses will be in use every Thursday, Friday, and Saturday of the week. For Sunday through Wednesday, the party buses will run on the routes while taxi drivers will serve as on call employees throughout the night. Employees who drive the party buses will be notified at least five days in advance and scheduled only on an as needed basis. Drivers will run from 10:00 PM to 3:30 AM on any given night of the week. The eight full-time employees will be working 38.5 hours a week, with the two part time employees filling in for sick employees or driving the party buses on an as-needed basis. The goal will be to ensure there is no downtime for any of the scheduled routes. During the summer season, which will obviously be slower because less of the student population is on campus. Shuttle on Btown will operate like a traditional taxi company while still offering group services by reservation. During the summer students can call the company from any location on campus, and an appropriate vehicle will be dispatched to them; the ride will cost the same $3 flat fee, making it a more preferred option, even in the offseason Financials
The company will use 50% debt and 50% equity financing. Equity will act as a fixed cost for the business and will allow an even balance between what we owe investors through dividends or through equity ownership percentages as we begin to make profits and also what we as a company incur as initial debt expenses. Initial outlay amounts to about $220,000 which covers the cost of purchasing and ‘wrapping’ our fleet of vehicles, GPS implementation expenses, and marketing costs incurred during the initial launch and grand opening. Project Timeline The company will take about 3 months to start up I am estimating. We will need financing first off and then make our vehicle purchases and then begin to wrap they and finally start making our marketing products. We will promote at the end of the school year at closing ceremonies and at Little 500 bike race a huge event at the end of the school year. Then beginning summer session we will start servicing our market. We anticipate most of our initial business to be events and some student bodies. We want to introduce our service first over the summer to test out pricing strategies, routes, and vehicle selections to see what is working and what is not. We will then need to purchase additional vehicles at the beginning of the school year in mid August. This will be the busiest of times, school hasn’t gotten too crazy yet and students are enjoying time on campus and getting to know each other, most commonly through social event at bars and events that need transportation.