1. 1
ICE PlanIt Business Plan Entry
By Eric Dahl, Lars Verhoef, Dylan Hergott, and Taylor Mills

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Contents
Concept Summary ..................................................................................................................... 3
Revenue Model.......................................................................................................................... 3
Customer Segments and Players............................................................................................... 3
Value Proposition....................................................................................................................... 5
Key Employees.......................................................................................................................... 6
Marketing Plan........................................................................................................................... 7
Acquiring taxi companies as partners ..................................................................................... 7
Driver acquisition.................................................................................................................... 8
Passenger acquisition ............................................................................................................ 9
Competition...............................................................................................................................10
#TAXI ....................................................................................................................................10
Uber ......................................................................................................................................11
GataHub................................................................................................................................11
Taxi Companies Independent Apps.......................................................................................12
Financial Analysis .....................................................................................................................12
Appendix...................................................................................................................................14

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Concept Summary
Our company is called Recrilo Technologies Inc. and our vision is to provide solutions to
everyday issues using existing technology in innovative ways. Our first product is called
TapCab, which will be the nature of discussion for this business plan. TapCab is a taxi ordering
smartphone app that connects licensed taxi drivers with passengers using GPS technology. It is
the easiest way to order a taxi in the world; that means there is no registration needed for
passengers. A user simply downloads our application and taps ‘Request Taxi’ (see Exhibit 1) to
have the nearest available taxi arrive to their current location. If they so choose, they can
determine their pickup location, drop-off location, pickup time, fleet of taxi, type of vehicle, which
will then calculate an approximate wait time, trip time, and cost of trip (see Exhibit 2).
Passengers can easily pay their fare using their smartphone, or pay directly to their driver with
cash, debit, or credit. Both drivers and passengers rate each other after each trip. Drivers or
passengers that consistently get poor ratings may be blocked from the system to better ensure
positive experiences for all users.
Revenue Model
TapCab generates its profit from three revenue streams:
1. Successful order fee. Every time TapCab facilitates a successful taxi pickup, it charges
the driver $1.50. TapCab receives $1.30 as a brokerage fee and $0.20 goes to the
partnered dispatcher. There are no fixed costs in licensing our services.
2. Priority credits. During busy hours, when there is a long wait-time to hail a taxi, users will
have the option of using priority credits to improve their position on the waitlist. Each
credit costs $5 and all revenue incoming from the use of these premium credits goes to
our company.
3. Processing fee. When customers pay for their taxi using a credit card through TapCab, a
5% + $0.30 processing fee is charged to the driver. This fee covers the 3% + $0.30
transactional cost we must pay to BrainTree, our payment provider, and brings in 2%
extra contribution.
On average we expect our total revenue per successful taxi pickup to be $1.81 and net revenue
to be $1.46 (see Exhibit 3 for breakdown). Specifics on how we will pay drivers and how the
drivers will pay us will be discussed further in the ‘Driver acquisition’ section under ‘Transaction
system.’
Customer Segments and Players
Broad passenger market: Canadians aged 18 – 45 who own a smartphone and use taxi
services.

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This market mainly uses taxi services for airport trips, shopping, medical appointments, eating
out, going to bar or nightclub, business appointments and generally anytime when driving is not
the preferred option, inconvenient or unavailable.1
Approximately 80% of Canadians aged 18 – 45 own smartphones2
and that percentage is
expected to increase year-over-year.3
In addition, 89% of total taxi dispatches are sent by
passengers aged 18 – 45,4
which suggests that penetrating this target market has significant
potential. Our expected paid advertising customer acquisition cost is expected to be $1.23 our
average net revenue will exceed this with just one use.
Specific passenger market: Canadians 18 – 25 who own a smartphone and go to bars,
restaurants, or nightclubs weekly
The reasons this demographic needs to take a taxi are: too intoxicated to drive, too cold to walk
or bicycle or take public transportation, public transportation is closed, and it is too late to have a
friend or family member pick up.
These customers use taxi services weekly, almost all have smartphones and use them for more
than just texting and calling, have strong social media presence (which can help garner brand
exposure), are more influenced by their peers behaviours, and are more likely to be early
adopters for new technological change, traits that are ideal for market entry.
From our interviews we found that this demographic has grown frustrated with the inefficiencies
of the current taxi dispatching systems. One user admitted, “I spent $10 last month on #TAXI5
because I didn’t want to deal with being put on hold. An app that did the same thing and more
but was free, I would definitely use.”
Driver market: Each taxi driver can be thought of as a small business owner. Each driver pays
brokers for their dispatching and marketing services. Each brokerage company charges a rate
that correlates to the level of service they offer. Some drivers lease cars and licenses from
these brokers, while some own their assets outright. Currently the amount of revenue these
drivers bring in is directly dependent on the quality and quantity of rides that are dispatched to
them and their ability to find hailing passengers. Inefficiencies arise when drivers are waiting for
a dispatch or finding a hailing passenger. While we could not find specific data concerning the
percentage of Canadian taxi drivers that own smartphones, one driver we interviewed said he
would buy a smartphone if it meant more business.
Drivers we have interviewed gave us great insight into creating a product that fits their needs.
“The average fare I get is $15. I have no problem paying $1.50 to make $15.”
1 Pg. 5
http://www.saskatoon.ca/DEPARTMENTS/City%20Clerks%20Office/Documents/Reports%20and%20Pub
lications/taxi_study.pdf
2 http://www.6smarketing.com/blog/canadian-smartphone-use-statistics/
3 http://www.huffingtonpost.ca/2012/12/20/cellphone-smartphone-use-canada_n_2338011.html
4 http://www.umbrellamedia.com/products/taxi-media/demographics
5 Note: #TAXI is a phone number service that charges passengers $0.50 for putting customers in touch
with available taxi dispatchers. It will be discussed further in ‘Competition’

5. 5
“Lots of passengers call multiple dispatchers so sometimes I drive halfway across the city and
no passengers are there.”
“I need to wait in my car to get a dispatch. On slow days I could be at home with my family
waiting for a call, instead of waiting in my car.”
Dispatch market: Brokerage companies bring in revenue by offering marketing and dispatching
services, car leases, and taxi license leases to drivers. They receive the same revenue
regardless of how successful their drivers are per day. Therefore, there only way of making
more profit is buying more taxi licenses or cutting costs. When talking to drivers one suggested
that they cut phone operators to save money, which bottlenecks the phone lines, leading to
busy lines and less business for drivers.
Value Proposition
TapCab offers significant value to all major players in our space which are outlined below.
Passengers
o A time saver. Passengers will never wait on hold or be placed on a busy line again. They
can pay for their trip swiftly through their phone or traditionally with cash or debit.
o Reliability. Drivers that neglect accepted orders or offer a poor customer experience
earn a negative reputation and may be suspended from the system.
o Control. Passengers can see the exact location of their incoming taxi, get an estimated
fare rate, and a recommended route to their location ensuring that drivers act with
integrity.
o Safety. All drivers are fully licensed and insured. Passengers lost items can easily be
returned.
o Easy. There is no registration needed, the user interface is simple yet effective, and it’s
free.
For Drivers:
o Increased business. TapCab offers drivers an opportunity pickup more passengers on
average leading to more profit.
o Performance based costs. Drivers only pay when TapCab successfully brokerages a
trip.
o Less idle time. Passengers can see drivers on their map, are given notifications when
the driver is close, receive poor ratings if they are late or cancel an order, and can pay
on their credit card efficiently through their phone, all leading to a reduction in driver wait
times and improved productivity.
o Can receive calls anywhere. When times are slow, drivers can leave their car and spend
their time more rewardingly.
For Dispatchers:
o Additional revenue stream. Dispatchers receive 20 cents on each successful trip
TapCab brokerages.

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o Improved customer satisfaction. Easily connect customers with their lost items, reduce
hold wait times, and receive higher ratings.
o Cost savings. Hire less phone operators, save more.
o Employee retention. More business for drivers means happier drivers. Happier drivers
means a lower employee turnover rate.
For Government Regulators:
Taxi passengers are ever more frustrated by the inefficiencies and ineffectiveness of the current
taxi ordering system6
, yet complete “taxi deregulation has failed to demonstrate any substantial
benefits to drivers, taxi firms, or users.”7
To make matters more challenging for regulators, there
is massive lobbying for changes in taxi regulations by some of our competitors, as well as a
collective effort against regulations by brokers and drivers8
. TapCab offers an efficient and
effective solution for passengers, drivers, and brokers that works within government regulations,
thus eliminating the need to change regulations while simultaneously benefiting the
governments’ primary stakeholders.
Key Employees
The individual stories of how we all came together with Recrilo all have a single common thread
– a mutual respect borne out of an appreciation for hard work, big dreams, and the desire to
leave a positive impact on our society. Despite our relative youth, the TapCab team has
extensive experience across many fields including: entrepreneurship, sales, engineering,
financial analysis, accounting, project management, computer programming, and online
marketing. Our team speaks candidly and objectively when working on the business, hoping to
never let emotion dictate decisions or allow opinions to be taken personally. Currently our
diverse skillsets make us the ideal team to take advantage of this opportunity. Our next hiring
will be for another developer to assist Taylor and Donovan in the debugging process and work
on creating new features.
Taylors Mills – Head developer and founder
Taylor is the founder of Recrilo Technologies Inc. In 2013, while finishing his education at the
University of Saskatchewan for mechanical engineering, he taught himself to code and began
writing the first version of what is now known as TapCab. He has been focused on the
development of the app for six months full-time, using student loans to live and pay for the initial
setup costs of the business. His commitment and vision for the company has enabled him to
secure financial and full-time commitment from the four other co-founders. His role in the
company from here-on-out is to add features to the app, debug, and help Donovan translate the
iPhone OS app to the Android OS app.
Donovan Sotnikow – Developer
6 http://albertaventure.com/2014/04/fare-trade/
7 Pg. 89
http://www.saskatoon.ca/DEPARTMENTS/City%20Clerks%20Office/Documents/Reports%20and%20Pub
lications/taxi_study.pdf
8 Note: The legal challenges some of our competitors face and the lobbying effort by both parties will be
more thoroughly discussed in later sections.

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Donovan is a recent University of Saskatoon Computer Programming graduate who is an
experienced Apple and Android coder and has launched multiple apps in the Android Play
Store. He is based out of Montreal and has advised Taylor throughout the development
process. Over the past couple months he has been working on the weekends translating
TapCab from the iPhone OS app to the Android OS app. He has committed to quitting his full-
time job to finish the translation and be our maintenance developer for Android.
Lars Verhoef – Head of financial service and operations
Lars is a 2014 graduate from Hogeschool van Amsterdam finishing with a Bachelor of Business
Administration specialized in Financial Services Management. He moved from his hometown of
Utrecht, Holland to Calgary, Alberta with the goal of starting a venture in the booming market.
He has extensive experience as an investor, bookkeeper, project manager, and as a hedge
fund accountant. His role in the company is to manage finances, seek investors, and keep our
team accountable to their milestones.
Dylan Hergott – Head of sales and partner acquisitions
Dylan is in the last semester of his Bachelor of Commerce degree specializing in Marketing at
the University of Saskatchewan. He has been with TapCab since the ideation stage in early
2013. He is enthusiastic, energetic, and has experience in sales, marketing, team management,
and public speaking. His role within the business is to acquire strategic partners with taxi
dispatchers, nightclub owners, drivers, and the media. He has presented TapCab in multiple
business competitions, reaching the finals on every pitch.
Eric Dahl – Head of online marketing and social media management
Eric is a 2014 graduate from the Gustavson School of Business with a degree in Business
Commerce specialized in Entrepreneurship. He has experience in public speaking, sales, social
media management, creating profitable businesses, and executing successful paid advertising
campaigns. His role in the business will be user acquisition through digital communities, online
paid advertising, search engine optimization, and content creation.
Marketing Plan
Without earning support from taxi dispatchers, we will not have access to drivers and our app will offer
no value to passengers. Therefore we must first gain strategic partnerships with taxi service companies
so we can accumulate a strong base of drivers before marketing to customers.
Acquiring taxi companies as partners
Market entry: To date we have approached Comfort Cabs in Saskatoon and United in Calgary,
and both have made verbal agreements to test our app for one month risk-free. We approached
these companies first for two main reasons:
1. Both are relatively small for their city. It allows us to test the product on a small-scale,
make tweaks without a huge effect, and further prove our business model. If there are
fundamental problems early-on and the company decides it no longer wants to use our
services, we have not lost a huge share of potential drivers.

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2. They are co-operative companies. This means that the drivers are also the owners of the
company. These companies have less corporate bureaucracy and the driver’s profits
have much greater salience than the dispatchers want for control.
We are going to focus on Saskatoon, Calgary, and eventually Victoria to enter the market. We
have a strong network as a base for each of these cities and they are all small enough that we
could gain a significant market share without needing significant resources.
Rapid expansion plan: In recent weeks the largest taxi companies in Calgary, Vancouver,
Edmonton, and Ottawa have created an organization called Canadian Taxicab Group
(www.taxitruths.ca). These competitors are coming together to act as a unified voice against
changing taxi regulations. This organization is currently discussing plans to create an
application that is very similar to ours, yet development of an app would take many months,
significant resources, and will require a large group of competitors to work together. TapCab is
the solution these companies are looking for. We have begun the relationship building process
by sending an e-mail outlining our value propositions to the CEOs of each partnered company
(see Exhibit 4). A successful partnership could put our app in the hands of over 3000 drivers,
offer us leverage to gain further partnerships, and give us the legitimacy we need to receive
investment.
Driver Acquisition
After forming strategic partners with taxi companies, we will be granted access to their driver’s
information (taxi license, name, license plate number, e-mail, and phone number) which we will
input into our system. Each driver will be given unique account number and password so they
can log in as a driver and pick up passengers through the app. From here we will text message
each driver with a link to download TapCab and their individual account information. When they
open the app they will be given an onboarding tutorial of how to use it.
Transaction system: When TapCab facilitates an order, we charge the drivers account $1.50.
When a passenger pays through our application, we take 5% + $0.30 of the order as a
transaction fee and the remaining balance goes to the driver’s account as revenue. The
difference on the account we pay to the driver or the driver pays to us.
Total Revenue = Orders*$1.50 - #PaymentsThroughApp*$0.30 - $PaymentsThroughApp*5%
For example:
1. If TapCab facilitates 10 orders and only one of the orders paid through the app on a $50
fare, we would pay the driver $32.20 (10*$1.50 - 1*$0.30 - $50*0.05 = -$32.20)
2. If TapCab facilitates 100 orders and two of the orders were paid through the app for a
total of $80, the driver would pay us a total of $145.40 (100*$1.50 - 2*$0.30 - $80*0.05 =
$145.40)
All drivers we talked to said they would love to use our app as long as their company allowed
them to. A company called FastCab attempted to enter the Calgary market by creating their own
fleet and going to the drivers before having a partnership with the taxi dispatchers leading to
corporate backlash and a $1 million dollar lawsuit. The drivers loved the extra business but were
told that if they downloaded any third party dispatching apps without their permission they would
be fired. We learned from FastCab’s mistake and will never allow drivers to use our app unless
a dispatch partnership is already in place.

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Passenger Acquisition
Website and AppStore search engine optimization (SEO): Currently we have a basic app
landing page but soon will be hiring a professional website designer to create a full-scale
website. We are going to optimize our content and keywords for “[city we are entering] taxi app”
and similar phrases that would help connect us to potential customers. We have been collecting
e-mail addresses and phone numbers on our website (www.tapcab.ca) in preparation for our
beta launch.
Priority credits: If it is a busy night and passengers are in a hurry to get home they can buy
priority credits for $5 and move higher up or to the front of the dispatch list. Depending on
demand, it will cost a different amount of credits to be expressed to the front of the dispatch
queue. These credits can help us entice users to download our app and invite their friends. For
example: “Refer a friend to download TapCab and you will both get a free priority credit!” Before
fully-launching priority credits we need to answer three questions through A/ B testing.
1. On average how much revenue do we gain per user at different priority credit price
points?
2. What is our retention rate of users that know about priority credits versus those who
do not?
3. What is the acquisition rate of customers when leveraging priority credits?
After doing multiple tests for each of these questions we can determine whether or not using
priority credits is a net gain overall or not. Our main concern is that users will uninstall our app
because their taxi is taking a long time to arrive and they understand it is likely because other
users are buying priority credits. The massive benefit to having priority credits as a function is
that all revenue will go directly to us.
Positive first time experience: The first time a passenger uses our application they will
automatically be pushed to the top of the dispatch queue. The user will not be aware of this but
it is to better ensure there first experience using TapCab is a positive one, in the hope we can
retain them as a customer in the future.
Personal network: To date we have sent personal messages to our friends to get them excited
about TapCab, to like us on Facebook (to date we have 260 followers), and to sign up to be a
beta tester on our website. We have a group of around 30 people in Saskatoon, Calgary, and
Victoria who agreed to being ‘TapCab ambassadors’ and will help us gain traction by sharing
our posts and telling their friends about our app. With the help from our ambassadors, we can
gain a significant base of users for free.
Media: We have collected hundreds of e-mail addresses of journalists who have wrote about
our competitors or the taxi industry in general. Right before our full launch, we are going to get
in touch with each one and pitch a story that relates to their past pieces, articulating respectfully
how it could be a perfect follow-up story. The main narratives we are going to portray are:
o “TapCab and Taxi Industry vs. Uber”
o “Young Entrepreneurs Start a Tech Company”
o “New Taxi Ordering App in [city]”

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We are also going to get in touch with our universities, bloggers, radio stations, and TV stations
to gain maximum exposure.
Social media: We are going to post content to our Facebook feed once per day and our Twitter
three times. Research suggests that this amount of posting is ideal for getting engagement
without annoying followers. Most of our posts will be pictures, videos, and articles we think are
interesting or funny. Since we are in our target demographic, we think our followers will find our
posts entertaining as well. We do not want our social media to seem corporate, we want it to
have a fun and cheeky voice. Ever-so often we will post something promotional or about the
progress of our business, but most of our posts are for amusement to drive user engagement.
We are also going to use Facebook and Twitter as a means of customer service. We will
respond to every message that is sent to us and hope to mitigate issues the second they arise.
Online paid advertising: Facebook, Twitter, and homogenous streams: Facebook and Twitter
will be the focus of our paid advertising campaign in the early stages because we can target our
key demographic, A/B test multiple campaigns, and market specifically to iPhone users (our
Android app will not be launched until January). The average paid advertising app install per
download costs approximately $1.23. While we believe our paid acquisition cost will be lower
than this, because our app is free and adds more value to the user than most apps, we will use
this conservative metric for our assumptions. Per customer acquisition, we will gain an average
revenue of $10.41 annually in Saskatoon. This number is based on the assumption that we will
have a 54% user retention rate. We have found that this figure is average for our industry, yet
believe our retention rate will be higher because passengers do not need to register any
information to use our app, while all of the other similar apps require you to enter at least your e-
mail and phone number, and often your credit card information. From these figures, our return
per acquisition on paid advertising will take approximately two months. If this model stands
correct, a cash injection aimed at paid advertising will offer us significant returns and will
position us as a company that could be an attractive investment opportunity. A full breakdown of
our assumptions are explained in Exhibit 5.
Rolls Royce day guerrilla marketing: We are going rent a Rolls Royce and pick up TapCabbers
all around the city for a whole day, and it will cost the passenger nothing. We bypass the
regulations our competitors are facing by not charging users for the service. On Rolls Royce day
we will post all over our social-media and contact all the media outlets in hopes of getting high
exposure and strong activity. We are going to record the reactions of the passengers with a
GoPro camera in the front seat and a camera crew outside for a promotional video.
Promotional videos: Apart from the Rolls Royce video, we are going to make a tutorial video that
shows how easy or app is to use TapCab as well as a funny commercial called TapCopter (see
Exhibit 6 for commercial script).
Competition
#TAXI
When a passenger calls the phone number #TAXI it charges them $0.50 and connects them to
the first free taxi operator in the city.

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Analysis: Our product is easier to use, adds more value, and is free for passengers. It will not be
challenging to get a passenger to switch from a paid service that offers little value to a free
product that offers significant value.
Uber
o Started in 2009
o Hires black cab limousine drivers
o Hires drivers without taxi license
o In direct competition with taxi companies
o Regulations holding back from flourishing in most
Canadian markets
- Black cab limousines must charge at least
$75 per trip, cannot legally charge by the kilometer
- UberX drivers are unlicensed and often uninsured
o In 142 cities around the globe
o Canadian cities Montreal, Vancouver, and Toronto
o In direct competition with taxi dispatchers
o They charge Uber Drivers 20% plus $1 per ride
Analysis: While Uber has deep pockets, offers significant value to passengers, and has a strong
brand, regulations are holding them back from full entry into the Canadian market and those
regulations are not looking to change anytime soon. We offer passengers a similar user
interface, yet only use licensed taxi fleets. Uber charges for fares based on supply and demand
of a given area. A popular case is of a girl who was charged $539 for an 18 mile ride on
Halloween.9
Apart from the obvious lobbying campaign from taxi companies and licensed taxi
drivers, Uber has also struggled with maintaining happy Uber Drivers. Their 20% plus $1 charge
on every ride makes it impossible for many drivers to make ends meet. They have organized an
App-Based Drivers Association to have a unified voice in protesting Uber’s policies.10
Assuming
the licensed taxi industry is here to stay, even if the regulations do change in Canada and Uber
is allowed entry, our business still has viability in being the Uber alternative.
GataHub
o Started in 2013
o Only hires licensed and insured drivers through dispatch
companies
o Only partners with one company per city through exclusivity agreements
o Each company can rebrand the app
o 25 fleets in Canada
o Charges brokers monthly licensing fee and drivers 2% of each fare
o Just finished testing with taxi companies
Analysis: Currently GataHub has many of the same features as our application but the overall
user experience is much less smooth. Having exclusivity agreements might make it easier for
them to acquire partnerships initially, but makes their app much less valuable for the
9 http://www.techtimes.com/articles/19657/20141110/uber-charged-this-man-539-for-an-18-mile-ride-on-
halloween-night-what-happened.htm
10 http://www.businessinsider.com/uber-drivers-across-the-country-are-protesting-tomorrow--heres-why-
2014-10
Seed/Angel $1.5 million
Series A $11 million
Series B $37 million
Series C $258 million
Series D $1.2 billion
Series E $1 billion
Total $2.5 billion
Seed/Angel $275,000
Total $275,000

12. 12
passengers. That being said, our business model pays dispatch companies to use our app,
while their business model charges them, so dispatchers have an incentive to switch from their
product to ours.
Taxi Companies Independent Apps
o Not user friendly
o Only works for individual company
o Most do not have GPS tracking
Analysis: Similar to the challenges with GataHub, each of these apps only runs one fleet of taxis
so their value to passengers is minimal. Almost all of these apps have poor user interfaces, and
receive terrible ratings on the AppStore.
Financial Analysis
Use Exhibit 7 (forecast), Exhibit 8 (user growth), Exhibit 9 (cash flow graph), and Exhibit 10
(income statement), to facilitate financial analysis.
Our financial analysis has two important assumptions:
1. We will only enter Saskatoon, Calgary, and Victoria, in year one and two. Therefore, our
rapid expansion plan will not take place as described in our marketing plan.
2. We will not receive funding from investors.
We made these conservative assumptions so we can have a good understanding of where we
can be by completely bootstrapping and having relatively small growth.
As a lean start-up, we try to have a very low overhead with mostly variable costs. Our gross
margin is 80%, as our only cost of sales are transaction costs (2.9% plus $0.30 to BrainTree), a
brokerage fee to taxi dispatchers ($0.20 per successful order), and servers ($0.01 per order).
Starting in May, all five of our teammates will need to take a minimum wage salary to pay for
living expenses. These salaries will cost us a total of $11,027 per month which will be a big hit
on our working capital. Without paying these salaries, our team will not be able to work full-time
and our business will not be able to run, making it a necessary cash outflow.
Apart from salaries, our largest expense in year one will be for marketing. We will be spending
$41,500 in online direct marketing in the first year. The first month we will be testing whether the
assumptions we have made are true including our cost per install, user retention rate, average
usage per month, and average revenue per use. If we can prove that our customer acquisition
costs are significantly less than our annual revenue per customer, we may spend more money
on online direct marketing and look for investors to fund our growth. We also have made the
assumption that we will gain around 300 downloads per month in each city from word of mouth,
media, and other free means of gaining traffic. We also assume a 54% retention rate for each
download, meaning that 54% of people that download our app will use it for all of their taxi
dispatches while 46% that download it will not use it at all. We will also need to spend $3,000 in
the first year on other types of marketing such as: Rollse Royce day, promotional video creation,
business cards, posters, and other promotional merchandise.

13. 13
We expect to gain approximately 31,000 users by the end of year one between Saskatoon,
Victoria, and Calgary and will breakeven at $169,765 in sales or at 93,792 transactions.
We are going to need to spend around $3,760 on legal in the first year for passenger’s terms,
driver terms, privacy policy, software terms, corporate equity agreement, employee contract,
and a shareholders agreement.
We chose to only supply one year of income statements because we need to prove our
assumptions before making accurate year two forecasts. Even if our cost and revenue per user
is correct, we are unsure what our investment will be and who our partners will be in which
cities. Our ‘Worst-Case Income Statement’ is based on the assumption that all of our fixed costs
are 50% more expensive than our predictions and that we will bring in 25% less orders than
predicted.
We need $14,000 to stay cash positive in our toughest months (December, Jan, Feb, May, and
June) and a cushion of $3,000 for working capital. Therefore in total we need $17,000 for our
business to continue operations. Eric, Lars, and Dylan are investing a total of $12,000 into the
business so we will need $5,000 to stay afloat.
Our net profit will end up being $18,733 after salaries in year one with a profit margin of 10%.
While this number does not seem overly exciting, most of the users gained in year one will be
retained in year two and will not cost us anything to acquire. In addition, if we had a cash
injection early on we could put much more money into marketing early on and receive payback
from the customer much quicker.
Operational Plan
See Exhibit 11 for the next four months operational plan. We have added only specific projects
and milestones in this plan and left out day-to-day operations like bookkeeping, continual
debugging, social media, etc.

14. 14
Appendix
Exhibit 1: First screen for passengers after download.

15. 15
Exhibit 2: Advanced order information

16. 16
Exhibit 3: Average revenue and net revenue per ride calculations.

17. 17
Exhibit 4: Canadian Taxicab Companies e-mail.

18. 18
Exhibit 5: Average revenue per $100 invested in Facebook and average revenue per install
in Saskatoon, Calgary, and Victoria.

19. 19
The reason the total revenue per install is higher in Calgary and Victoria ($14.26, and $14.56)
than in Saskatoon ($10.41) is because on average people in Calgary aged 18 – 45 order more
taxis per year.
$1.23 cost per install11
89% of dispatch calls are from 18 – 45 year olds12
80% of 18 – 45 year olds own smart phones13
54% retention rate14
11
https://www.fiksu.com/resources/fiksu-indexes#analysis
12
http://www.umbrellamedia.com/products/taxi-media/demographics
13
http://www.6smarketing.com/blog/canadian-smartphone-use-statistics/
14 http://prosperityanalytics.wordpress.com/2014/03/28/st-patricks-day-uber-and-ltv/

20. 20
Exhibit 6: TapCopter commercial script.
Exhibit 7: Financial forecast.
December Januari Februari March April May June July August September October November
Cash Inflow
Booking Fee 270$ 636$ 1,960$ 5,100$ 8,240$ 11,381$ 14,535$ 17,718$ 20,915$ 24,112$ 27,309$ 30,507$
Transaction Fee 5% + $0.30 po 38$ 89$ 274$ 714$ 1,154$ 1,593$ 2,035$ 2,481$ 2,928$ 3,376$ 3,823$ 4,271$
Premium Service Fee -$ 42$ 131$ 340$ 549$ 759$ 969$ 1,181$ 1,394$ 1,607$ 1,821$ 2,034$
Total $308 $767 $2,365 $6,154 $9,944 $13,733 $17,539 $21,380 $25,238 $29,095 $32,953 $36,811
Cash Outflow
Cost of Goods Sold
Transaction Cost 2,9% + $0.30 po $26 $62 $192 $500 $808 $1,115 $1,424 $1,736 $2,050 $2,363 $2,676 $2,990
Commission $0.20 po $36 $85 $261 $680 $1,099 $1,517 $1,938 $2,362 $2,789 $3,215 $3,641 $4,068
Servers $2 $4 $13 $34 $55 $76 $97 $118 $139 $161 $182 $203
Subtotal 64$ 151$ 466$ 1,214$ 1,961$ 2,709$ 3,459$ 4,217$ 4,978$ 5,739$ 6,500$ 7,261$
Other Cash Outlfow
Direct Marketing 500$ 1,000$ 4,000$ 4,000$ 4,000$ 4,000$ 4,000$ 4,000$ 4,000$ 4,000$ 4,000$ 4,000$
Marketing -$ -$ 1,000$ -$ 500$ -$ 500$ -$ 500$ -$ 500$ -$
Salary -$ -$ -$ -$ -$ 9,533$ 9,533$ 9,533$ 9,533$ 9,533$ 9,533$ 9,533$
Employment Insurance -$ -$ -$ -$ -$ 172$ 172$ 172$ 172$ 172$ 172$ 172$
Canada Pension Plan -$ -$ -$ -$ -$ 472$ 472$ 472$ 472$ 472$ 472$ 472$
Workers Compensation -$ -$ -$ -$ -$ 297$ 297$ 297$ 297$ 297$ 297$ 297$
Holiday Pay -$ -$ -$ -$ -$ 553$ 553$ 553$ 553$ 553$ 553$ 553$
Banking 20$ 20$ 20$ 20$ 20$ 20$ 20$ 20$ 20$ 20$ 20$ 20$
Communication 50$ 50$ 50$ 50$ 550$ 550$ 550$ 550$ 550$ 550$ 550$ 550$
Legal 2,260$ -$ -$ -$ -$ 750$ -$ -$ -$ -$ 750$ -$
Servers 150$ 150$ 150$ 200$ 200$ 200$ 250$ 250$ 250$ 250$ 250$ 250$
Software 2,120$ 120$ 120$ 120$ 120$ 120$ 120$ 120$ 120$ 120$ 120$ 120$
Subtotal $5,100 $1,340 $5,340 $4,390 $5,390 $16,667 $16,467 $15,967 $16,467 $15,967 $17,217 $15,967
Total Cash Outflow $5,164 $1,491 $5,806 $5,604 $7,351 $19,376 $19,927 $20,184 $21,445 $21,706 $23,717 $23,228
Operating Cash Flow -$4,856 -$724 -$3,441 $550 $2,592 -$5,643 -$2,388 $1,196 $3,793 $7,390 $9,236 $13,583
Financial Forecast
Most likely

21. 21
Exhibit 8: User growth forecast.
Exhibit 9: Cash flow graph.
Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov
Saskatoon
Users Direct Marketing 0 407 1220 2033 2846 3659 4309 4634 4797 4959 5122 5285
Users Marketing 300 300 300 300 300 300 300 300 300 300 300 300
Orders 180 424 912 1400 1887 2375 2765 2960 3058 3156 3253 3351
Marketing % 100% 100% 25% 25% 25% 20% 10% 5% 5% 5% 5% 5%
Marketing budget 500$ 1,000$ 1,000$ 1,000$ 1,000$ 800$ 400$ 200$ 200$ 200$ 200$ 200$
Calgary
Users Direct Marketing 0 0 0 1626 3252 4878 6504 8130 9919 11707 13496 15284
Users Marketing 0 0 300 300 300 300 300 300 300 300 300 300
Orders 0 0 198 1268 2338 3409 4479 5550 6727 7905 9082 10260
Marketing % 0% 0% 50% 50% 50% 50% 50% 55% 55% 55% 55% 55%
Marketing budget -$ -$ 2,000$ 2,000$ 2,000$ 2,000$ 2,000$ 2,200$ 2,200$ 2,200$ 2,200$ 2,200$
Victoria
Users Direct Marketing 0 0 0 813 1626 2439 3415 4715 6016 7317 8618 9919
Users Marketing 0 0 300 300 300 300 300 300 300 300 300 300
Orders Victoria 0 0 198 733 1268 1803 2445 3302 4158 5015 5871 6727
Marketing % 0% 0% 25% 25% 25% 30% 40% 40% 40% 40% 40% 40%
Marketing budget -$ -$ 1,000$ 1,000$ 1,000$ 1,200$ 1,600$ 1,600$ 1,600$ 1,600$ 1,600$ 1,600$
Total
Users 300 707 2120 5372 8624 11876 15128 18380 21632 24884 28136 31388
Orders 180 424 1307 3400 5494 7587 9690 11812 13943 16075 18206 20338
Orders Creditcard 36 85 261 680 1099 1517 1938 2362 2789 3215 3641 4068
Marketing % 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100%
Direct Marketing budget 500$ 1,000$ 4,000$ 4,000$ 4,000$ 4,000$ 4,000$ 4,000$ 4,000$ 4,000$ 4,000$ 4,000$

22. 22
Exhibit 10: Income statement.

23. 23
Exhibit 11: Operational milestones and roles.