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01

SCOOTER RENTALS

Category

Revenue Share

Year

2023

Location

Calgary, AB, Canada

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Help manage the in-house scooter rental program for up to a 50% share of the revenue.

Scooter Rentals

The current global governmental push for a greener economy combined with traffic congestion in the cores of major cities plus the millennial generation's wide adoption of smart technologies and the crashing of global equities markets has created a perfect storm of opportunity for those wise enough to jump on the mobility bandwagon by diversifying their portfolios into trendy, highly profitable business ventures.

Joint Venture Project Specifics



IMMEDIATE LIMITED TIME OPPORTUNITY FOR THE FIRST 18 JVRP MEMBERS


As of June 2023, we have an immediate opportunity available to members to participate in our joint venture with Scootsee, Alberta's #1 scooter rental and guided tour company, to provide their rental and tour program with an inventory of 6 - 18 additional scooters for use in their summer tourist business in Drumheller. The model used in this program will be different from the in-house personal scooters currently available at Space Central. Scootsee will use the commercial grade smart-app controlled Feishen FC-1 which are valued at a retail price of $900 USD (or $1200 CAD). Our supplier has a small inventory remaining of under 160 units and we aim to purchase 18 of them immediately at the wholesale price of only $750 CAD, a substantial discount from the regular price.




The Joint Venture Revenue Pool will finance the purchase of the scooters and Scootsee will then manage the program by renting time on the scooters daily for both individual rides and guided tour packages. They anticipate a daily average of 3 guided tours and several shorter individual rides throughout the tourist season of 2023. All repairs and maintenance, insurance, and accounting will be administered by Scootsee in combination with a GPS tracking and ride control app that provides us with a detailed usage report each month to understand our rental performance metrics.


Scootsee will provide us with a guaranteed daily fixed revenue stream of $25/scooter regardless of the number of daily rentals achieved. Our gross return is expected to be $750/month royalty per scooter purchased by the JVRP. At the end of the 3-month pilot, JVRP participants will have received back 50% of this 3-month total for a gross royalty return of $1125 based on an original contribution to the JVRP of $750. The breakeven point is thus 2 months with a 1-month bonus profit of $375.


Earn a net profit per scooter of $375 = 50% ROI

(in the first 3 months).


If the JVRP buys the entire inventory of 18 units for a total purchase of $13,500 + tax, we will receive back a total guaranteed royalty by October 1, 2023, of $40,500. The JVRP pool members keep 50% of this total royalty or $20,250 for a net profit of $6,750... AND the JVRP still owns the scooters!


The scooters will be managed by Scootsee until the snow flies or until Space Central requests an equipment transfer back to Calgary to be used in the member rental program throughout the year.


Beginning in the spring of 2024 and recurring annually thereafter, Scootsee will again utilize the scooters for each tourist season for the life of the equipment, thereby generating an excellent annual royalty for each JVRP member. All proceeds are shared on a pro-rata basis as determined by each participant's total contribution to the pool and the number of scooters purchased. The scooters have a 3-5 year expected lifespan and should generate at least $3000 per 4-month tourist season. In the best case scenario, assuming a maximum 5 years of the project, each scooter would be expected to return a total of $14,250 to the pool, and each JVRP participant would keep 50% or $7125 on an initial contribution of $750 + tax.


Your Total Optimistic 5 Year Expected ROI = $6375 or 850%.


In the event of unpaid rent or default on the program by Scootsee, we contractually take immediate possession of the equipment AND any additional inventory of Scootsee equivalent to any shortfall.


The JVRP therefore has a very low risk exposure with this project.


 

CALCULATIONS


Assumptions:

  • Scooter purchase: $750 each + taxes (plus applicable credit card fees)

  • Daily Guaranteed Rental of $25/scooter during May - Sep tourist season

  • Share of off-season bonus revenue; not guaranteed

    • (assumes 1 ride per day) $5/day x 20 days/mo x 8 mo x 5 yrs x 50%

    • $2000 non-guaranteed bonus royalties (winter dependant)

  • JVRP 50% Revenue Share of monthly earned revenue

  • Phase 1: the 3-month project runs from July 2023 - September 2023

  • Phase 2: the off-season runs October 1, 2023 - April 30, 2024

  • Phase 3: Annual renewal of this seasonal schedule until September 2027

  • Phase 4: Assumed sale/disposal of scooters and wind-up of Scooter 1 - JVRP


Projected Revenues and Royalty Payout (Year 1)

  • $750 Monthly Gross Revenue per scooter x 3 months = $2250 (July - Sep 2023)

  • 50% revenue share = $1125

    • less capital purchase of $750

  • equals net royalty profit of $375 (= $1125 - $750)

  • ROC (return on capital) $375/$750 = 50%

  • Breakeven point is $750 / $375 royalty/mo = 2 months!


Projected Revenues and Royalty Payout (Year 2 - Year 5)

  • $750 Monthly Gross Revenue per scooter x 4onths = $3000 (June - Sep thru 2027)

  • 50% revenue share = $1500 x 4 years = $6000

  • Plus year 1 revenue share of $1125

  • Equals $7125 total royalties earned

    • less capital purchase of $750

  • equals net royalty profit of $6375 (= $7125 - $750)

  • ROC (return on capital) $6375/$750 = 850%


Projected Additional Revenues and Royalty Payouts (Years 1 - Year 5)

  • (assumes 1 ride per day) $5/day x 20 days/mo x 8 months x 5 years x 50%

  • $400 / yr x 5 years = $2000 bonus royalties (winter dependant)



 

Caveat: Depending on the overall rental of the scooters outside of the Scootsee guided tours phase during the peak tourist season, we expect the scooters to last a minimum of 2 years and a maximum of 5 years. Results beyond October 1, 2023 cannot be guaranteed however and should not be relied upon exclusively for your JVRP participation decison. Results are on a best efforts basis. In the event of an early liquidation of the scooters for cash after the 2023 phase 1 portion, you will receive back 50% of the net sales proceeds as a return of capital.


 

Joint Venture Project Gallery

How to Participate

All Joint Venture Revenue Pool participants must be a member of Space Central in order to share in the revenue stream of this opportunity.

Please create a FREE account user name and password if you haven't done so already, visit the membership page to understand the options available to you, select the membership that is most suitable for your needs, then enroll as a member with your selected option. You will then gain access to many hidden pages including the revenue sharing reports and unique metrics exclusive to this JVRP opportunity. 

Commit to at least 1 scooter ($750 + tax + credit card fees as applicable), and you will receive a coupon code for 50% off the monthly membership fees of your choice for as long as you remain a JVRP participant.  HURRY: This offer expires at the end of this month.

 

NOTE: as a member, you will also tap into our loyalty program and additional revenue sharing streams including the 20% bonus allocation from this JVRP that we contribute to the profit sharing plan available to all members. YES, you will earn even more money from this project than just a pro-rata revenue share based on your contribution!

"Membership does have its privileges!"

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