I’m solving a problem of independent transportation in cities by being first long term 2-wheeler rental company. Writing here to seek some scaling up advice.
In my three years of college life one major problem I came across was affordable, independent transportation. Two months back I began Ontrack Technologies with the aim of solving this one problem.
We started renting bikes at a nominal price and enjoyed a successful B2C relationship. But now would like to focus on a B2B model which has constant revenues and less operational costs. We now have a few confirmed orders from businesses who are willing to lease our bikes for 2-3 years.
Now the problem with these orders are that I’ll require huge capital to purchase the bikes. We tried speaking to banks, but they seek collateral and vintage (and we don’t have either). Most of the VCs/Investors aren’t interested in this model at present due to its capital intensive nature and the scalability is questionable.
Few of them told me that this is much needed solution, but a very difficult business model.
I see this as a big opportunity for us as we are the only ones leasing bikes in the country as of now. Yes, the bigger the opportunity gets, the more challenging it becomes. But this I see this as a serious business that serves a purpose and on that can make money.
I would love to hear your advice about our business model and on how to scale up at this stage.