Revenue Streams

Fast fuel is focusing on capturing value for its investors from multiple revenue streams. Multiple Revenue
streams are discussed below.

1. Servicing Fee

Fast fuel will charge Rs. 50 for its service initially. Later it will charge according to the distance covered.

2. Advertising

In app advertisement is another source of revenue for Fast fuel. Placing company’s ads on our application
will allow fast fuel to earn money which is called affiliated marketing.

Cost structure
Cost driven Business Model

The Business model of Fast Fuel will be cost driven. Our focus will be on reducing cost wherever
possible. For example warehouse cost can be reduced by entering into the contract with the supplier on
particular predetermined price. Similarly rather than purchasing permanent delivery vehicles we will hire
rider which will have their own motorbikes. Moreover, rather than going for large fancy offices, we can
build a simple open work cells.

Nature of Business Cost

There will be moderate fixed cost but slightly more variable cost. We will initially be in need of an office,
some fixtures and an application. This will not require high upfront investment. But later as our business
grows, our variable cost will be high. This is because Fast fuel will need more riders to deliver the service
and more employees will be needed to manage the riders’ performance. Apart from this, as we are a
service based company, we will required core competencies and partnerships with the suppliers and will
need few physical assets.

Cost Categories

The major cost categories of Fast Fuel are

1. Mobile Application development

2. Fuel cost
3. Office supplies and furniture
4. Salaries of employees/Riders
5. Transportation cost
6. Promotional expenses
7. Lawyer fee for signing legal agreement with fuel companies.
8. Cost of Business registration and licensing fee
9. Utilities expense
Financing/ Funding
Initial funding required by Fast Fuel is around 1000,000 rupees. This include funds for one month period
until the fast fuel up to speed. We will seek investors to provide us with capital. There are numbers of
organization who support young entrepreneurs and provide startup capital to launch business successfully.
Some organization includes invest2innovate, NUST center for innovation and entrepreneurship etc.

Our Onetime Expenses will be around 500,000 to 600,000 Rupees and Ramp up expense will be around
200,000 rupees. Ramp up expense will include promotional expense. Ongoing expense are around
300,000 Rupees will include office rent, fuel buying, rider’s salaries and marketing Expense.

Startup Cash Summary (in Rupees)

Mobile App development* 100,000

Business registration 50,000

Legal fees* 30,000

   

Promotional  

Facebook Ad($0.05 CPM ) (Rs7.97x3000) 23,910

SMS Marketing (50,000 SMS for 15000) 150,000

Flyers* 10,000

Total 183,910

Office  

Office Rent per month 80,000

Office furniture and fixtures  

Tables (Rs50000 x2) 100,000

Staff chairs (Rs15000 x10) 150,000

Total 330,000

Rider monthly salary + Commission  

10 rider x Rs 20,000 200,000

Utilities* 50,000
 Office supplies*1 10,000

Total Startup Cash 953,910

Onetime
Expense

Ramp up
Expenses

Onetime
Expense
Ongoing
Expenses

1
* These cost are gathered from personal sources. References are given for other costs.