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Pinoy Araw Tricycle

Mainstreaming the Pinoy Araw Tricycle or Solar Trikes for Development and Environment

The business will have solar tricycles or “Trixies" as its flagship product. The Trixies will be lightweight, high technology, cost effective, and durable solar powered tricycles. It will be composed of locally available components and materials. The Trixies will have basically three major markets: tricycle drivers and operators, local government units, and subdivisions. The solar tricycles will enable poor tricycle drivers to earn more because of lower costs on fuel and maintenance. Passenger fare will eventually decrease. The tricycle’s manufacturing process will increase local employment. In the long term and with widespread replication, air, ground, and noise pollution will be greatly decreased. Oil dollars will be saved. The business will usher in a new era of renewable energy based transportation.

Facts

Year of establishment

2007

Sales (US$)
Two years ago:
Last year:
This year (forecast): 29,900
Year 2 (forecast): 89,700
Year 3 (forecast): 269,100
Net profit after tax (US$)
Two years ago:
Last year:
This year (forecast): 1,495
Year 2 (forecast): 4,485
Year 3 (forecast): 13,455
Total number of Employees
Two years ago:
Last year:
This year (forecast): 5
Year 2 (forecast): 15
Year 3 (forecast): 45

How do you expect this to be financed?

Own Contribution in cash 1,000
Loans (debt) 20,000
Shares in your company that you offer to investors (equity)
Other sources 2,000
Total finance needed (US$) 23,000

The Business

What is your product/service?

The Trixies will be modern tricycles that will embody Filipino culture and resourcefulness. Like the jeep, it will be a ubiquitous feature of the Filipino urban environs, a readily available and very affordable means of traveling. Aside from moving people and goods, the Trixies will also symbolize the effort of the country to clean up its cities in terms of air, noise, and water pollution.

The Trixies will be quiet, cost effective, non-polluting, hybrid solar and pedal powered tricycles. It will very similar to the tricycle of today in terms of build and functionality, having a main motorcycle and a passenger carriage. Its difference will be in its power source, drive system, and material composition.

The Trixies’ primary source of power will be 2 units of 110 watt-peak solar panels. These solar panels will charge 400 ampere-hour industrial type batteries that will directly power a 800-watt DC motor. The motor will be directly coupled with the rear wheel axle of the motorcycle or bike, and the gear system will be customized but similar to that of a regular motorcycle. The panels will serve as the roof of the tricycle, both for the driver and the passengers, and the battery will be housed underneath the passenger seat.

In the long term, the secondary source of power of the solar tricycles will be strategically located battery charging stations. These battery-charging stations will have 1-kilowatt capacities and shall function like regular gasoline stations. The tricycles will have spare batteries that will be charged at the stations while the on-vehicle batteries are being used.

The tertiary source of power (back up) will be the Trixie’s driver. The tricycle will be fabricated in a manner that it will retain the pedals of a regular bicycle that the driver can manually use anytime.

The Trixies will be made of durable, corrosion resistant, lightweight materials like stainless steel or aluminum, fiberglass, and plastic. Whenever feasible, the tricycle chassis and sidecar will be made of recycled materials. The tricycle will be able to carry three passengers and will have an average speed of 30 to 40 kilometers per hour.

Explain how you will sell your product/service (marketing strategy) and how you will reach your customers (distribution strategy)?

The major markets will be tricycle drivers and operators, local government units, and subdivisions. Direct marketing and product demonstration will be done for all these target buyers. Specific marketing strategies will be done to cater to their distinct motivations.

For tricycle drivers and operators, the product will be positioned in terms of more earnings and less expenses for the driver and operator. For local government units, the Trixies will be positioned in context of the Clean Air Act mandate, urban planning and tourism. For subdivisions, the idea of having sophisticated, renewable energy based, quiet tricycles will be highlighted.

Brochures, Power Point presentations, and focus group discussions will be applied where appropriate and necessary. A mini travel caravan or road show will also be done to increase media coverage and product promotion.

The major competitions are the current internal combustion tricycles. The Trixies will have an advantage in terms of fuel economy, quietness, and cleanliness. The major advantage of the competition is the greater engine power, existing distribution and maintenance infrastructure, and functioning financing system. To override these advantages, the Trixies will “piggy-back” on the same existing infrastructure and financing system.

What makes your business different/better than your competitors (competitive advantage)?

The product is very unique since it will purely be solar powered and human powered -- clean, quiet, cost-effective, and in a sense, futuristic. It will be the spearhead for the development of the Pinoy Araw Jeep and Pinoy Araw Kotse.Once the product hits the streets, it will be certainly be the subject of conversation, interest, and contention. It will also serve as a medium to increase awareness and attitude change pertaining to global warming and environmental preservation.

The Entrepreneur & Management

Describe the entrepreneur & management

The entrepreneur is experienced project management and enterprise development. He has worked for 14 years with non-governmental organizations, cooperatives, and local government units in the field of local economic development.

He is experienced in feasibility studies, enterprise development, and project implementation.

The entrepreneur’s experience as consultant with the USAID governance project has enabled him to promote local government and private sector investment.

He served as Area Manager for the Alliance for Mindanao Off-grid Renewable Energy Program in remote conflict affected areas in Mindanao.

He is now working as a consultant for Solar Electric Company, currently managing the implementation of rural electrification projects in Mindanao and facilitating the commercial delivery of solar home systems.

In 2006, the entrepreneur’s policy proposal entitled “The Spreadlight Policy: Popularizing Micro-scale Renewable Energy through Micro-financing” was selected as one of top three proposals by World Bank’s Panibagong Paraan.

Development

How does your business improve the local living standards (social and environmental)?

At the micro level, the business will improve the net income of tricycle drivers by up to 100% of current levels, or an increase in daily net income of $4 to $8. In terms of passenger fare, levels can decrease from $0.24 to $0.20. These will be done due to the reduction of expenses on pump fuel. At the macro level and in the long term, additional income can accrue to the 67,000 tricycle drivers in Metro Manila. This potentially translates to $297 thousand additional daily income. If the entire tricycle population in the Philippines will be taken into account, that is 578,000 drivers, the potential additional income is at $2.5 million per day. The inflow of this income will significantly improve local economies. The business proposed aims to jumpstart this income inflow, initially aiming to provide additional daily income of $4 per day to at least 90 drivers, or $360 dollars per day in additional income. The long-term objective is to demonstrate the viability of the business and to replicate it nationwide.

At 6 liters of gasoline per day per tricycle (or a total $4.4 dollars at current pump prices) Metro Manila spends about $297 thousand per day for tricycle fuel. For the entire Philippines, the figure is at $2.5 million daily. These amounts are what the country can potentially save in petro-dollars if the solar tricycle will get widely used. The savings can then be spent for social services such as education and health.

Needs
Advice - engineering, Network - business partners