(English) Growth Plan Explained

Eugene Suslo
Apr 01, 2016

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Our Growth plan is first of all targeted at increasing your fleet size while keeping your expenses low. Let me explain it in details. What happens is that you only pay for the drivers who are actively working, thus you can add as many drivers as you want, without being afraid of the costs going up. An “actively working” driver is the one who has done a minimum number of jobs per month, calculated as (cost per driver)x2. If a driver has done 0 (zero) jobs – you don’t pay anything. If a driver has made less than a minimum number of jobs per month you pay a proportional amount depending on the number of jobs he/she has done.

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Let’s take an example and dig into some numbers. Your total fleet is 100 cars, and you make $1 per each job made by your drivers.
You start by adding 20, then 50, then all 100 drivers to the system. While you are trying the system and apps first two months you have only 100 orders per month. Third month you grow to 500 orders. Then you apply marketing, referral campaigns and ads and you grow to 5000, 10000, 20000 orders each month.

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Now let’s take some estimations and see how your costs develop. As you might expect not all drivers will be performing equally and as your number of orders/month grow, most of your drivers will be making more than a “minimum amount” of jobs per month thus limiting the costs. Now taking the cost of actively working driver/month as $19, we can calculate how your total costs develop in comparison with your revenues each month.

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As you can see at first your costs are a bit higher as you don’t have much orders. Next month you have the same number of orders, but grow to 50 drivers, however your cost stays unchanged. Third month your revenue is slightly higher than your costs. Next month your revenue spikes exceeding costs by a factor of 3. Month 5 and 6 your costs stay unchanged closing to the theoretical limit, however your revenues continue to grow as you increase the amount of jobs done each month.

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Our initial goal was to help your grow and develop with no fear of increasing your costs. I hope this analysis will help you to understand growth plan and analyse your business model. If you need help with that, click the button below and we will help you do the calculations absolutely for free.

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Regards,
Eugene Suslo