Small Business Talk Part 1-
Shuttle Cab in Vit
The Shuttle cab business in VIT earns 64 Lakhs yearly.Interested to know how?
We have 10 shuttles in VIT that help students get from one point to another at just 10 bucks, this cab is Tata Venture which approximately costs Rs5 lakhs.
I talked to the drivers and they said they drive around 8 hours a day completing 200 km and 50 rounds total.
The vehicle on average always has 7 people in it.
Thus an average vehicle earns about 7 (No. Of people)* 10 (Price paid by a single person)* 50 (No. Of rounds) = 3500 bucks.
So in total 10 vehicles earn about 35000 bucks in a single day.
This was revenue now let’s talk about plain profit-
The mileage offered by the car is 15 kmpl, and with the average diesel price(Rs. 71), it consumes around Rs. 934(Round of to 950) worth diesel.The driver earns Rs.300 per day(Salary of 9000).
With maintenance and servicing costs putting up about Rs.3000 in a month (Rs. 100 per day).
The profit comes around 2150 bucks in a day .
Again the whole shuttle business then earns Rs. 21500 per day or Rs. 6,45,000 every month.
Yearly profit of 64 Lakh 50 thousand.(Business runs for 10 months)
So what was your placement offer again?
P.S- The initial investment of the cars would be paid back in just 8 months.