FAQs

FREQUENTLY ASKED QUESTIONS.

INVESTMENT OPPORTUNITY FAQS.

Q: WHY ONLY LONDON?

A. Simple. The Hackney Carriage Licensing Act of 1874. It only allows taxis to operate in London without a license. Unfortunately, everywhere else the act classes us as a vehicle but obviously we have no engine. This will require an Act of Law to change the wording on the Licensing application. Other councils have shown interest in our product, but the taxi laws are old and stringent.
Congestion and pollution are not a London only problem however. The solutions in other Cities will be the same as London and we imagine this law from 1874 will soon have to be re-looked at for other Cities so VELUBA, and others like it, can operate there.
That’s why for now the business plan is based solely on London. But it’s also the biggest opportunity in the UK too just by sheer scale.

Q: HOW IS VALUATION OF £4M ARRIVED AT?

A. We have based the valuation on the expected value of the business at the end of Year 2 which represents 6 x EBITDA.
EBITDA in Year 1 is negative but in year 2 EBITDA quickly rises and is profitable throughout Year 2 and cash positive each quarter. In effect provided we get through Year 1 and the target income achieved then the valuation is in effect the profit run rate from month 13 onwards
The name VELUBA has been trade-marked and has considerable value in itself.
The VELUBA App has been built and is operational on Google Play and the AppStore.

Q: WHERE DOES REVENUE COME FROM?

A. 95% of income is budgeted to come from passenger fares. A limited amount of advertising revenue is predicted in the early stages of the business. However it is hoped (but not budgeted) that this will rise significantly over budgeted amounts. In effect it is a buffer against any shortfall in fare income. A lot of interest is being shown already.
Income will also come from promotions. Brands are already seeing the potential of our product to advertise theirs. Clinique is about to start a promotion with our vehicles.
The budget works on a 5-Day week operation but in reality, it will probably be 6-6.5 days giving greater revenue opportunities.

Q: WHAT RETURN COULD INVESTORS EXPECT AND WHEN?

A. The profitability of the business rises substantially as we grow the number of bikes and with our conservative/realistic forecasts the business will have an EBITDA of £1.7m PA at the end of Year 3 rising to £2.5m in Year 4. Based on a PE of 6 (conservative) then a sale at the end of year 4 would give a MV of £15m. In effect for each £10,000 invested the return would £37,500 (275%). If advertising revenues can be increased or the PE ratio increased then this figure could be substantially higher. Ideally, we would be targeting a return of at least 400% by the end of Year 5 as a minimum.
It is unlikely that the company would sell prior to the end of Year 3.
It is envisaged that a trade sale to a “green” operator who can expand operations and marketing activities may pay a premium above the numbers suggested.

Q: HOW SCALABLE IS THE BUSINESS?

A. We previously looked at franchising and see this model as a way of increasing the number of VELUBA bikes on the road. Our budget assumes we are a full operator and only operate 70 bikes in Year 3 which is a small number in relation to potential demand. Franchising may or may not be the way forward to scale up the business to achieve greater grow at a faster rate.
The cost of buying VELUBA bikes is relatively low and they have a fast payback. The greater barrier to growth with be finding and managing drivers and ensuring availability at peak times. The use of franchising may assist with achieving the number of drivers.
The VELUBA App can easily be used in other cities apart from London. Potentially franchises/licences can be granted for other cities.
The production and purchase of bikes is not considered a problem with good production facilities in place.
There is a potential for the business to be slightly seasonal with greater demand in the summer months. This means increasing the fleet during the summer may be attractive to maximise revenues.

Q. WHAT OTHER BUSINESS OPPORTUNITIES ARE THERE?

A. Two business opportunities are already well underway.
Firstly on the 14th June our first container with two VELUBA and two VELUBA Cargo left our Liss showroom on its way to South America, for what we hope will be a flourishing International opportunity with some key influential clients. So, our sales of VELUBA and VELUBA Cargo have commenced and will grow exponentially as they become seen more and more by individuals and organisations alike throughout the world, all wanting a “Last Mile” economic, eco-friendly sustainable solution for their towns and cities transportation. Or simply people just wanting to have their own VELUBA app-based taxi business.

Secondly, as we said previously, VELUBA has been chosen by an International production company to be used to promote their World-renowned client’s branded products in London, Manchester and Birmingham. VELUBA‘s modern, standout eye catching design is a marketeer’s dream and we now know that both VELUBA promotions and advertising will blossom as a result of this first promotional booking. We plan to put VELUBA firmly front and centre in this marketplace.
Currently we are looking at a number of commercial opportunities, some of these are:-

  1. VELUBA Tours , app bookable for sightseeing in towns and cities.
  2. VELUBA Cargo app bookable parcel, groceries and food delivery service.
  3. VELUBA and Veluba® Cargo self-funding business ownership scheme.
  4. VELUBA neighbourhood community transport schemes.
  5. VELUBA and Veluba® Cargo leasing.
  6. VELUBA app based last mile taxi service outside the UK.
  7. VELUBA events and incentives for business.
  8. VELUBA weddings…The three wheeled eco wedding carriage.
  9. We are open to any suggestions.

None of the above are represented in the business plan but will increase the companies profits and speed it to a much higher valuation and possible exit.

Q. ARE VELUBA TAXIS INSURED?

A. Yes. All VELUBA bikes are fully insured. They all have £5,000,000 Public & Products
Liability (including liability to passengers) underwritten by an ‘A’ rated insurer at
Lloyd’s of London.

Q. ARE VELUBA TAXI DRIVERS PRE-CHECKED?

A. Yes. All VELUBA drivers are, and will continually be, enhanced DBS pre-checked in line with Tfl policy and guidelines. If not a UK citizen, we insist each driver must have a ‘Certificate of Good Conduct’, issued by the relevant non-UK country embassy, whilst their enhanced DBS check is being processed. This is highest and most thorough check a driver can have.

Q. ARE VELUBAs EXPENSIVE?

A. All our journeys have a simple cost structure. £3 base ride fare, plus £1.25 a mile and 20 pence per minute thereafter. And when you realise one of our biggest strengths is the routes we can take you soon see we are quick too. So, nowhere takes too long to get to and most journeys are actually shorter than you think. Why? Because we can use bus lanes, cycle lanes, permitted pathways as well as roads.

Q. HOW DO I KNOW I WON’T GET ‘RIPPED OFF’?

A. To travel in a VELUBA you have to book and pay on our App. As soon as you tap in your desired destination an estimated fare appears on screen. Accept that fare and your taxi is booked. Your exact final fare deducts automatically when you reach your destination. No cash. No hassle.

Q. ARE VELUBA DRIVERS TRAINED?

A. Yes. All our drivers attend our own driving course that is a registered Bikeability Scheme. They must pass a driving test that teaches them about the VELUBA and, just as importantly, road safety. Only then do they receive our Pass Certificate.

Q. IS THE VELUBA SAFE?

A. All our vehicles are fitted with 3 CCTV cameras. All are fitted with seat belts and all are made from hardened polyethylene, another name for recycled plastic bottles. Passengers are protected on all sides by it. It’s light, strong and entirely ‘ECO’. Not only that, as soon as you book your VELUBA the drivers details are sent to your smart phone and our HQ, so you and our team know exactly which cab is yours and the details of your driver.

Q. WHY CAN’T I PAY WITH CASH?

A. VELUBA is an App hailed taxi service. You book, pre-order and pay for your journey on the App. No surprise charges, all based on real costs from actual durations and real distances. Safer for you and safer for our drivers too. Our drivers accept no cash payments so therefore carry no cash either. Safety for all is everything in a VELUBA.

Q. ARE VELUBA BIKES ECO-FRIENDLY.

A. Absolutely. Not only are all our vehicles zero emission, an absolute must for our increasingly polluted and congested cities, every VELUBA body shell is also constructed from hundreds of re-cycled plastic bottles as well. Generally known as hardened polyethylene. We look to be as eco-friendly as we possibly can be in all we do.

Q. CAN I GET A VELUBA AT NIGHT?

A. Yes, absolutely. London is like a different city to view at night. So amazing to see. All VELUBA are fitted with headlights and rear lights, indicators and internal lights, just like other taxis. A night out starting or ending in a VELUBA makes for a more special evening.

Q. WHY DO I HAVE TO DOWNLOAD THE APP?

A. Just like other taxi Apps the VELUBA one is your way of booking and paying for your journey. The App tells the driver where you want to be picked up from and where you want to go. It tells you the estimated cost of your journey, how far it is and then lets you pay automatically when you reach your destination. It also lets you see on screen where your driver is and how long before they pick you up, live on screen. VELUBA is an App based service, not a cash one. Safer for you and the driver.

Q. CAN I GO ON LONG JOURNEYS IN A VELUBA.

A. You can, but why would you? VELUBA is designed for shorter journeys in and around the city. Journeys under 4 or 5 miles. Mostly 2 to 3. You’ll be surprised how closer thing are in a VELUBA because of the routes we can take. Nothing is as far as you think in London as the VELUBA flies.

Q. HOW FAST CAN A VELUBA GO?

A. VELUBA is an e-bike. Pedal and electric assist. The maximum electric motor allowed on any electric assist vehicle is 250 Watt. The maximum level of electric assist to a VELUBA is 15.5 MPH. Doesn’t sound a lot but when you consider you spend hardly any time in London’s traffic jams you’ll get to where you need to be so much quicker.

Q. CAN I BOOK A VELUBA FOR A DAY?

A. You can book a VELUBA for as long as you like. By the hour or by the day. For events or special occasions. Contact us for more details on that by email to: info@veluba.com or simply call us.

Q. WHAT IF THE BATTERY GOES FLAT?

A. It won’t. Our taxis have a battery life of up to 12 hours, or approximately 180km. Also, your driver knows at all times how much battery power they have left. And, should the unlikely event happen and they do run out of power, they can always rely on good old fashioned leg power and pedal you the rest of the way.

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