An exciting new business idea is possible in Eugene. University Mopeds is a company that rents mopeds to University of Oregon students and anyone else who needs to move around town efficiently. This is the only business that caters to this market in Eugene.
It’s possible for students to own their own transportation throughout the school year for less than the monthly cost of a cellular phone bill. Mopeds offer many benefits over cars. They are much more economical to operate, less fuel-efficient, and easier to maintain. These vehicles can also be insured for between $30 and $50 per year.
This business targets approximately 15,000 students who are full-time. There are also thousands of students who are commuting daily from the Autzen Field area. Parking on campus is hard to find, and the bus offers few options. This is where an economical moped can come in handy.
While students may not have the means to purchase a motorbike, they do have the ability to rent one at $50 per month. University Mopeds would purchase used mopeds for $400-$700 and lease them out. The average moped would be paid off in under one year.
In year one, University Moped would attempt to get 1% of all full-time students. This would equate to 150 mopeds rented. We anticipate a five-year growth rate of at least 15%.
University Mopeds are profitable if there is a reasonable average purchase price of $550 and a ten-month rental agreement at $50/month.
- Rent 150 units in the first year.
- University Mopeds are fully self-sufficient by year three and will be profitable.
- Rent at least 199 units by year three and 263 units by year five (15% annual growth rate).
University Mopeds is the first company to service students. At University Mopeds, clients will be able to rent a quality means of transportation at a fair price. University Mopeds will be a financially sound business, which will reward employees and its owners.
1.3 Keys to Success
- Customer service excellence and quality.
- Affordable rental prices
- Reaching your target market
- Integrity in our customer service results in repeat customers