1. PeaKSolution

2. Identify Innovate Implement Recommend
Population Growth
roughly 20% of Mexico’s population in 1% of nation’s land mass 2PeaKSolution

4. Identify Innovate Implement Recommend
Urban
Sprawl
Congestion
Major Issues Caused by Overpopulation
Inefficient
Transportation
Air Pollution
4PeaKSolution

5. Identify Innovate Implement Recommend
Health
Climate
Change
Nutrient
Pollution
Major Problems Caused by Air Pollution
Air Pollution
Water
Quality
Photochemical
Reactions
Nitrogen
and
Phosphorous
Eutrophication
Algal Blooms
Toxins and
Deoxygenation
Contaminated
Food Supply
5PeaKSolution

6. Identify Innovate Implement Recommend
Improvements Across Two Decades
1992 – 8 Days scoring over 50
2012 – 248 Days scoring over 50
Appendix (pp. _-_) for additional graphical information 6PeaKSolution

7. Identify Innovate Implement Recommend
Transportation Methods
21,200,000 Residents
Private
Transportation
Public
Transportation
7PeaKSolution

8. Identify Innovate Implement Recommend
Transportation Methods
1) Private Vehicles
- Cause 80% of transport-related GHG emissions
- Cause 90% of street traffic
- Few reap benefits; All share costs
Colectivos Other Private Automobiles
8PeaKSolution

9. Identify Innovate Implement Recommend
Transportation Methods
2) Public Transportation
- Covers only half of the Federal District
- Metro System: Railways and Subways
- Over 200 km/125 miles of track
- Line 12 completed in 2012
Cost: $2,000,000,000 for Line 12195 stations – 115 of which are underground 9PeaKSolution

10. Identify Innovate Implement Recommend
1989 – “Hoy No Circular”
Steps in the Right Direction
Setback #1: decreased overall utilization of existing vehicles
Setback #2: many residents purchased additional (used) cars to use on different days
Program: prohibited use of 20% of vehicles each day; based on last digit of license plate #
10PeaKSolution

11. PeaKSolution 11
Identify Innovate Implement Recommend

12. Cuauhtémoc
Benito Juárez
• 75 miles per charge
• 5 feet folded
• Spin move for
convenient parallel
parking
• 23 sq. miles
• 7 million workers
• 10 % of roads and
registered vehicles
Identify Innovate Implement Recommend
12PeaKSolution

13. • Least expensive car in the world
• ~ 60 mpg | 75mph
Identify Innovate Implement Recommend
13PeaKSolution

14. • Since 2008,
bikes in heart
of the district
• 4 mile radius
to Metro
stations
Identify Innovate Implement Recommend
14PeaKSolution

15. Identify Innovate Implement Recommend
15PeaKSolution

16. Financials
Identify Innovate Implement Recommend
16PeaKSolution

17. Budget Origin
• $2 billion to fund a new
project in 2008
• Metro Line 12 Rail
• Reallocate 5%
• $100 million budget
• Car & Bike Sharing
Identify Innovate Implement Recommend
17PeaKSolution

18. Cost Structure
Buyback Program
($10 million)
Car & Bike Sharing
($70 million)
Installation /
Operational
($20 million)
Identify Innovate Implement Recommend
18PeaKSolution

19. Cost Structure
30% Hiriko Fold
60% Tata Nano
10% Bike
Car & Bike Sharing
Identify Innovate Implement Recommend
19PeaKSolution

20. Purchasing Cost
Car/Bike Sharing Budget $ 70,000,000.00 %
Hiriko Fold $ 21,000,000.00 30%
Tata Nano $ 42,000,000.00 60%
Bikes $ 7,000,000.00 10%
Hiriko Fold $ 21,000,000.00
Retail Price/Car $ 16,000.00
Retail Quantity 1,313
Tata Nano $ 42,000,000.00
Retail Price/Car $ 2,000.00
Retail Quantity 21,000
Bikes $ 7,000,000.00
Retail Price/Bike $ 300.00
Retail Quantity 23,333
Identify Innovate Implement Recommend
20PeaKSolution

21. Installation
COSTS
Charging
Stations
Parking Setup
(Hiriko)
Security
Parking Setup
(Nano)
Identify Innovate Implement Recommend
21PeaKSolution

22. Operations
COSTS
Electricity
(Hiriko)
Gas (Nano)
Insurance
(Nano)
Insurance
(Hiriko)
Identify Innovate Implement Recommend
22PeaKSolution

23. Installation & Operational Budget $ 20,000,000.00
A. Parking Setup Costs (Hiriko) $ (98,718.75)
A. Parking Setup Costs (Nano) $ (2,613,302.00)
B. Ubitricity Charging Station Costs $ (367,500.00)
C. Insurance Costs (Combined) $ (2,500,000.00)
D. Gas Costs (Nano) $ (9,703,200.00)
E. Electricity Costs (Hiriko) $ (342,187.50)
Security
$ (4,000,000.00)
Leftover $ 375,091.75
Installation & Operational Total Costs
Identify Innovate Implement Recommend
23PeaKSolution

24. Timeline
Project
Launch
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24
# of Elapsed Months After Project Launch
Implement
250Launch 250
Slim Cars
Charge toll using License Plate Toll Zone system
Launch 22,000 Bikes
Launch 1,000 Tata Nanos
Add more Nanoson a monthly basis to maintain a ratio of 10 bought back cars : 1 Tata Nano.
Initiate Buy Back Program
@ $100
50,000 75,000 100,000
Evaluate every six months, if 25% of the target is not met in each period, then increase the buy back rate.
We will launch all 22,000 bikes at the beginning of the project.
We will implement a license plate monitoring system to create a toll zone in the Cuauhtemoc district.
213 200 100 100 100 100
We will launch an initial fleet of 250 Slim Cars and use a decreasing quarterly schedule to expand to capacity.
Identify Innovate Implement Recommend
24PeaKSolution

25. Identify Innovate Implement Recommend
25PeaKSolution

26. Car Buy Back
Program
(Offer $100 flat
rate per used car)
Recycling
Program
(Salvage glass
and metals)
Rebate
Program
(Sell materials to
manufacturers)
Goal: Remove 100,000 cars from
circulation (1.67%)
$100 equates to ~ 21 days of
income at the minimum daily wage
of $4.75
This compare to ~ $1,218 in the
United States
We hope to attract cars in the
worst condition with this offer.
>These are the cars causing the
most pollution.
We can conserve natural
resources by recycling
reusable materials from the
used cars.
We can sell the recycled
materials back to the
manufacturers of our vehicles
to offset costs.
Identify Innovate Implement Recommend
26PeaKSolution

27. Project Value Drivers
Revenue Structure
• Membership
• Usage Fees
• License Plate Congestion
Toll Zone
– Charge $2/car/day
– Currently 800K cars pass
through daily
• Advertising
Prevented Costs (Savings)
• “The results suggest that
the benefits of a 10 percent
reduction in ozone and
PM10 in 2010 are about
$760 million (in 1999 U.S.
dollars).”
– 20% -> $1.49B
• Each microgram per
cm3reduction in PM10
worth about $100 million
per year.
Identify Innovate Implement Recommend
27PeaKSolution

28. (9) Efficient Utilization of Space
(8) Social Services (i.e. education,
welfare, etc.)
(1) Adequate
Healthcare
Services
(6) Access to
Energy
(7) Demand
in Labor
Market
(4) Sustainable
Consumption of
Environmental
Resources
(5) Consistent
and Economic
Food Supply
(2) Water /
Sewage
Infrastructure
Identify Innovate Implement Recommend
28PeaKSolution

29. PeaKSolution 29
High
Population Density
Low
Population Density
Low
Quality of Life
High
Quality of Life
Mexico City
New York
Tokyo
Austin
College
Station
?

30. QUESTIONS AND ANSWERS
Thank you for your time…
30PeaKSolution

31. Appendix
Background Information……………………….. A1- A
Financials…………………………………………….. B1 – B
Additional Information………………………….. C1 - C
31PeaKSolution

32. Appendix A: Air Quality #1
32PeaKSolution

33. Appendix A: Air Quality #2
33PeaKSolution

34. Appendix C: Smog
34PeaKSolution

35. Appendix C:
Registration Requirements
35PeaKSolution

36. A. Parking Setup Costs
A. Hiriko Folding Car 250
Regular-sized Parkings Spaces 63
Cost of Parking Space $ 1,500.00
Total Cost $ 93,750.00
Admin time per week
Weeks per year 52
Admin Cost $ 2,343.75
Annual software cost $ 750.00
Annual incentive cost $ 937.50
Annual marketing material cost $ 937.50
Total $ 98,718.75
A. Tata Nano 5000
Regular-sized Parkings Spaces 1667
Cost of Parking Space $ 1,500.00
Total Cost $ 2,500,000.00
Admin time per week
Weeks per year 52
Admin Cost $ 62,500.00
Car parking spaces saved
Annual software cost $ 750.00
Annual incentive cost 25000
Annual marketing material cost 25000
Total $ 2,613,302.00

37. B. Ubitricity Charging Station Costs
Number of charging stations (Q) 250
Charging stations renting price (P) $ 90.00 per car/per month
Total cost per year $ 270,000.00
Mobile metering equipment 325 per car
Total metering equipment (50 cars) $ 81,250.00
Installation fee 65 per car
Total installation fee (50 cars) $ 16,250.00
Total Costs $ 367,500.00

38. C. Insurance Costs (combined)
C. Insurance Costs (Combined)
Number of Hiriko Folding Car 250
Cost of Insurance/Hiriko $ 1,500.00
Total Cost of Insurance $ 375,000.00
Number of Nanos 5000
Cost of Insurance/Nano $ 500.00
Total Cost of Insurance $ 2,500,000.00

39. D. Gas Costs (Nano)
D. Gas Costs (Nano)
Cost per Gallon $ 3.11
Number of gallons 12
Total Cost/Car $ 37.32
Total Cost/Fill $ 186,600.00
Number of Fills/Year 52
Total Gas Cost $ 9,703,200.00

40. E. Electricity Costs (Hiriko)
E. Electricity Costs (Hiriko)
Cost per Charge $ 3.75
Charges per day 365
Charge per year $ 1,368.75
Number of Cars 250
Total Electricity Cost $ 342,187.50
Toll Zone Installation Budget $ 4,000,000.00

41. Buyback Practicality
Minimum Wage (Mexico City) 4.6 (63 pesos per day)
Buyback - Flate Rate 100
Value: # Days of Free Cash Flow 21.7391304 business days
30.4347826 1 month of income
Backup Slide (Min Wage - USA) 7.25 (per hour)
58 per day
Value 1260.86957
(valuation of minimum wage job
in USA)

42. ZOPA
Hiriko Fold $ 21,000,000.00 Hiriko Fold Purhase Cost
Retail Price/Car $ 16,000.00 Selling Price $ 16,000.00
Retail Quantity 1313 Markup % 25%
S1 Price/Car $ 14,000.00 C.O.G.S. $ 12,000.00
S1 Quantity 1500 Profit Margin $ 4,000.00 ZOPA
50% $ 2,000.00
Tata Nano $ 42,000,000.00 Tata Nano Purchase Cost
Retail Price/Car $ 2,000.00 Selling Price $ 2,000.00
Retail Quantity 21000 Markup % 25%
S1 Price/Car $ 1,750.00 C.O.G.S. $ 1,500.00
S1 Quantity 24000 Profit Margin $ 500.00 ZOPA
50% $ 250.00

43. HOW DOES MEXICO CITY
COMPARE?
2011 IBM Global Commuter Pain Survey
Appendix C

44. Mexico City Experiences the
Greatest Commuter Pain