Pick-Me-up, Term Paper Example

Introduction

Pick-Me-Up is not your average ride service. It is an app generated transportation option that allows the user to catch a ride from wherever, or provides a driver for their personal car in the event they are unable to drive home. Having a GPS tracker on the app takes away the guess work of “where am I at”? Pick-Me-Up is a tourist driven enterprise, and its placement will be accordingly. The first location will be in Orlando, Florida and upon successful operations and outcome, the next venture will be Miami, Florida.

Form of Business Ownership

Pick-Me-Up will be started as an LLC. I will be the sole owner and primary operator of the business. The reason for forming a LLC is that it separates personal property from this business venture. In the event the company grows to new levels of success, other business formations can be considered at that time.

Supply and Demand Analysis

The supply and demand for rides is extremely high in tourist areas. Often guest start out on foot and in the end they decide it would be a better option to catch a ride than walk all the way back. Another option is they drive to their location, have a bit too much to drink, and want to get back to their home with their car to start fresh the next day. Clearly the option to hire a cab is always available, but you have to be able to explain where you are and wait for them to arrive. Pick-Me-Up can locate the client from their app access and can send the closest driver to them. They also can send a driver to drive their car home. It’s quick and price competitive.

SWOT Analysis

Strengths: There is continual need for ride services in heavily populated tourist area. Tourist areas are vacation areas, which means the likelihood of recreation involving alcohol. The availability to locate the customer and get to them in the quickest time possible.

Weaknesses: There are taxi cabs typically available and waiting on most populated areas. There is no wait and the price is comparable to Pick-Me-Up. There are many existing relationships already in place when it comes to ride services. For example the local bar has their company they always refer business too, and so forth.

Opportunity: Pick-Me-Up is a contract service where individuals get to ride in nice cars instead of smelly taxi cabs. They have the ability to be ordered at the push of a button which is far more convenient than calling around to find a ride. They offer the service of driving your car home so you won’t have to worry about finding it in the morning.

Threats: Other ride services that offer similar amenities like using a traditional car for transportation and comfort. This is the digital age, so many ride companies could implement an app for their services as well. Entering a new market that focuses on tourist which has its peak seasons will create a high and low for Pick-Me-Up’s services.

Management

Planning: The Company will be owner operated, with specialty managers who specialize in the specific areas. Planning addresses the vision, mission, strategies, and goals/objectives. This will be my area of operation. The entire vision direction of the company is the basis for which it is founded.

Organizing: An operational manager will be hired to oversee the overall organizational design, culture, and social network. This manager will be directly responsible for this framework for which the Pick-Me-Up will function, including the chain of command.

Directing:The operational manger will be responsible for directing. This responsibility includes leadership, decision making, communication, teams, and motivation. Once the company has established itself in a stronger financial situation, this position will require its own separate manager to oversee.

Controlling: A manager will be hired to oversee the system process and strategic human resources. This position will create a performance standard, a method to weigh performance to these standards, and taking the necessary corrective actions when necessary.

Recruiting, Hiring, and Training Employees

The recruiting and hiring process is extremely important in this type of business. Because each driver is a contract employee, they essentially are their own boss. Each driver needs to represent themselves and the company in the best manner possible. There is minimal training involved within this position. Merely how to work the system, take clients and get the maximum amount of money incoming. Because of the nature of the business a thorough background check will be conducted and a face-to-face screening. For the second drivers, the ones who will drive the client’s car home while the primary driver follows, they will be required to have a completely clean record void of any moving violations. In order to find and recruit and retain the necessary drivers, we will target colleges, social media, craigslist, and other career builder sites. This will allow us to disclose our requirements and prescreen the candidates. We will also utilize a referral program.

Marketing Mix (4 Ps)

Product: This is a ride service that offers not only door to door service, but also the option to drive the customer’s car home as well. Targeting the tourist market, it is a great option for those individuals who need a ride, but just don’t know where they are. The customer who just flew into town, and the one who walked too far but does not have the energy to walk back. The Pick-Me-Up app locates the customer, gets some detail about their needs, like if they need their car taken, number of people, and where they are and where they are going. The client enters their credit card information, and are on their way in a matter of minutes.

Price: The price for a traditional ride will be comparable to that of taxi services. There will be a five dollar pick up fee, and then the client will pay per mile after that. Now let’s say the customer needs their car driven home, the fee will increase because it will require two drivers. The ride fee will be the same, but an addition forty percent will be added for driving their vehicle home as well.

Place: The test market for this will be the heart of the tourist area, Orlando Florida. There will be a sixty mile radius for which we cover. The drivers are located all over Orlando and the closest driver will have first dips on the call for a ride. The client can make arrangements for a further distance and we will have individuals in place for accommodating them if possible. The driver will know where to go and who to pick up through the company web page.

Promotion: The biggest outlet we will utilize is social medial. This will promote not only the app but also the service. We will also use flyers and pass them out at the local hotels and bars, as a means to invite customers to try our services. We will also create a partnership with businesses. Offer a kickback for their referral which would be an ongoing promotion option for Pick-Me-Up.

The best option for traditional advertising will be radio. It is not too cost absorbent but can reach a large listening audience.

Environmental Analysis

Competitive Forces:

The primary competition in our market are existing taxi companies. Their strengths are the significance that coincides with this yellow car and sign on top. A ride to the desired destination when and where it’s needed. Overcoming the competition is as simple as offering a better service for a comparable or cheaper price.

Economic Forces:

The current economy in this market is booming. Being that it is a heavily populated tourist market, there is a large need for transportation. This location will always be a great market for the transportation services. There will be a large customer base available at any given time. In the event, however the traffic shifts from high tourist, we still have the option to serve the working professionals and locals as well.

Technological Forces:

Technology will be a significant differentiation for this company. The app allows Pick-Me-Up to see where their customer is, and send the closest driver to them. The customer has the option to call in for a ride too, in the event they don’t have an app suitable telephone. Within the app they can enter all their information, and the driver will text or call the customer when they arrive. Technology will prevent the middleman, ultimately saving a significant amount of money.

Socio-cultural Forces:

The demographic forces that impact our business is location. We will target high tourist areas where people find themselves in need of transportation. This will include highly traveled businesses as well. Target market will be highly focused on the airline traveler, the out-of-towner that just needs to get to their destination. Convenience, luxury, and price will be the reasons why we will create and keep our existing clients and build new ones.

Accounting

The bookkeeping, payroll, and all other accounting areas will be contracted out to an independent firm. The firm has not yet been decided yet, but it will be based on price and ability to fulfill the needs of Pick-Me-Up in the time frame that business demands.