Module Code: MKTM033

Module Name: The Entrepreneurship Report

Name: Anil Kumar
Lecturer Name: Prof. Ashish Gadekar
UON Module Tutor: Kate Pascoe
Student ID: 16444036
Word Count: 2,100
TOPIC: Mauricecar co. ltd (Online Car Rental and taxi booking Business)

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EXECUTIVE SUMMARY
This piece of document presents the opportunity analysis of car rental business, which intends to
set up car rental services in Mauritius. The uniqueness of this car rental service will be that it will
be the pioneer player which will provide the service of booking cars through a mobile app called
“Mauricecar ” and the company will be registered with the same name Mauricecar co. Ltd. It is
noted that developed countries such as UK offer such facilities where EUROCAR and some
other are readily available. Being a small country, it will have only 2 offices in the most strategic
locations to capture the maximum business. First office will be in the airport which will look
after the tourist and the second office will be in the heart of cybercity Ebene. Ebene is chosen
due to its accessibility and it is a cybercity where most of the corporate offices and tertiary
institutions are located. It is the ideal time to set up online car rental business at the same time it
is a strategic investment which is going to be success in the long run, this sort of project is
pioneer in Mauritian market which will showcase that how convenient world can be through
Internet of things.

Mauricecar co. Ltd. will be having 2 offices and each will have 2000square meter of land which
will comprise the office space and ample of parking to keep 100 cars. Along with the car rental
service there will be some additional services provided such as chauffeur drive cars as well as
Mobile app taxi same services which Ola and Uber provides. It is high time in Mauritius
whereby people need such services which are affordable safe and convenient. This business
opportunity analysis depends on a study of all the elements which are micro and macro condition
utilizing SWOT and PESTLE examination to assess the speculation chance against the
anticipated return. The all-out venture cost is assessed at MUR 150 M which will be financed
through bank loan along with 1 family member who will also finance the project. The company
will recover its cost which is incurred in the project within 5 years. We are anticipating 50%
booking in the very first year and the following consecutive 4 years it will reach to 100%
booking which will recover the cost invested. The yearly turnover after 5 years is expected to be
40 M which the net profit is expected 30M per annum. Mauricecar co. Ltd. prime objective will
be to create and maintain good business long term relationship which will provide them quality
service and good returns of their money. By doing this they will come back to our service again
and again. Moreover, by starting this business it will create at least 20 jobs which are customer
services, IT technicians, chauffeurs’ drivers, car delivery boys and mechanics. Our business

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focus will be on quality and timely customer service with reliability.

List of Figures

1. Figure No. 1 : Tourist arrival from past 12 years.

2. Figure No. 2 : Tourism earnings from past 12 years.

List of Tables

1. Table 1: Driving Plan

2. Table 2. Summary of the Investment

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Table of Content
1.0. Introduction...................................................................................................................................4

2.0. Business Idea..................................................................................................................................4

2.1. Opportunity Analysis....................................................................................................................5

2.2. Market Feasibility..........................................................................................................................6

a. SWOT Analysis of Mauricecar co. ltd..................................................................................................7

b. PESTEL of Mauricecar co. ltd.............................................................................................................7

2.3. Financial Feasibility.......................................................................................................................9

3.0. Target Market and pricing strategy.............................................................................................9

4.0. The Investment Project – Mauricecar co. ltd............................................................................10

5.0. Exit Plan.......................................................................................................................................11

6.0. Conclusion....................................................................................................................................11

7.0. References....................................................................................................................................12

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1.0. Introduction
This Entrepreneurship report is my dream to start the online car rental business in Mauritius. Car
rental business has huge potential in the Mauritian market due to Tourism sector which is
flourishing every year. The company will be incorporated by the name Mauricecar co. ltd. which
will have 2 strategic locations Ebene and the Airport. This business will be in partnership with
one family member who will be involved in the business and as well as finance the project.

Vision statement: To be the number 1 on Indian ocean for online car rental service.

Mission statement: To provide the best service, quality and value to employees and customers
with respect and rewards.

2.0. Business Idea

The idea of car rental is inspired by establishment of various famous international companies,
including National Car Rental which started its journey in 1947, Europcar in 1949, Enterprise
Rent-A-Car in 1957 , Thrifty Rent A Car 1958, and Budget Rent a Car 1958 (IMUENTIYAN,
O. and BENIN, C., 2015). The car rental business when started was very simple where you have
to go personally to book and pick up the car. However, in today’s era it is all about web-based
technology where you book your car online and even the delivery of the car will be at your
doorstep. The idea of mobile app booking car is also inspired by Eurocar which has been in
existence for a decade and the same idea of car rental will be followed by Mauricecar co. ltd. in
Mauritius.
“My recent visit to UK where I hired a car from Eurocar which made my entire trip so smooth
and phenomenal simultaneously was very cost effective as compare to metro and bus. While I
was in UK, I already thought why not the similar business model with required modification we
implement in Mauritius”.

2.1. Opportunity Analysis

Mauritius is known to be a tourist’s destination and as per the recent date of the tourist arrivals
and the information collected from different stakeholders, the total number of tourist arrival in
Mauritius for the year 2018 was 1,395,000 which is very good number for a small country like

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Mauritius. The arrival of the tourist in 2018 was same as the total population of Mauritius. The
tentative tourist arrival in 2019 is expected to be 1,450,000 (Statsmauritius.govmu.org, 2019).
The trend of tourist arrival in Mauritius has increased every year and tourism industry will
remain flourishing. Below picture shows the tourist arrival from past 5 years.

Figure No. 1 : Tourist arrival from past 12 years.

Source: (Budget.mof.govmu.org, 2019)

Tourism is also one of the main pillar of the Mauritian economy. Car rental business in Mauritius
is extensive and majority of the Tourist prefer to self-drive which saves a lot of their money and
time same time proved quite convenient. Tourist come with their proper plaining and itinerary
but only thing is that they must book the taxi through an agent or when they arrive in Mauritius
which is time consuming and hectic. Now tourist will be able to book the car prior to their travel
to Mauritius through Mauricecar mobile application which will enable them to book 3 types of
different services self-drive car, chauffeur drives and mobile taxi. The company will be
incorporated, know and registered as Mauricecar Co. Ltd.

2.2. Market Feasibility

On the off chance it is noted that people are acquainted with one of the most recent patterns in
the vehicle rental services industry, that more individuals presently book to rent cars by means of
mobile applications, and other web get to instead of visiting the vehicle rental office (Yang, Y., Jin,
W. and Hao, X., 2009). Vehicle rental versatile application use has seen an augmentation in ongoing
time. Since Mauritius is a tourist destination and have large number of tourists coming to the
country shows great market feasibility.

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Below in the figure shows tourism earnings.

Figure No. 2 : Tourism earnings from past 12 years.

Source: (Budget.mof.govmu.org, 2019)

Since 2014 tourism earning are more stable and hiking which indicates the market is very
promising for our business. Mauritius has also declared to be the educational hub therefore the
arrival of International students is also high. Students generally complain about the taxi
overcharging them and even the local car rental service provider are also expensive. Our
business model will be affordable and trendy. In today’s world of business if anyone must
sustain is to follow technology and that’s what our business model is all about in Mauritius as no
one is offering such services.

a. SWOT Analysis of Mauricecar co. ltd.

STRENGTHS

 First car rental business through mobile application in Mauritius

 High demand for online taxing booking in Mauritius by tourist
 It will gain first mover advantage
 It will be easy to manage being a small country

WEAKNESSES

 High capital investment

 Bureaucratic delays in obtaining permits.
 Local population might take time to adopt with such service

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  Fuel cost are high
 Scarcity of good IT people in the local market

OPPORTUNITIES

 From one location to different strategic expansion throughout Mauritius

 After being successful in Mauritius other Indian ocean countries like Seychelles,
Maldives and Madagascar can be tapped

THREATS

 Competitors and taxi providers might copy the same business model in the future which
will impact our business negatively.
 Mauritius being a small country will be difficult to sustain if there will be competitor as
there are only 2 segments targeted which are tourism and expats.

b. PESTEL of Mauricecar co. ltd

A very famous quote said by Mark Twain “Mauritius was made first, and then heaven; and that
heaven was copied after Mauritius.” Well it is very true and till today Mauritius has kept its
beauty same as it used to be in addition the tourist arrival is increasing every year. This is
because of the various reasons which are given below;
Political
Mauritius is an example for entire Africa due to its rapid growth and a strong vision of
government to make Mauritius a hub to do business in entire Africa. The govt. advancing the
rebuilding and modernization of textile and sugar industry. What's more, they are advancing ICT
division, made ocean bottom centre, Freeport and at the same time attracts foreign investment
and the economy is picking up with high arrival of Tourist. Our project is within the
government’s mission and vision as we will be fostering technology.

Economic
The present financial state of the nation is excellent and developing with the great pace in each
division. In the event that take a glance at the GDP in Mauritius extended 4.1 percent year-on-
year in the last quarter of 2018, after a 3.3 percent development in the past period. The travel
industry division in Mauritius has developed by 8.7% of GDP: The travel industry of the nation

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is developed because of its great climatic, climate condition, secured by Indian sea for example
shoreline and all visitor come and appreciate the indigenous habitat of the Mauritius. Our
business will focus on the tourism sector to generate more economy.

Social
In the nation, there are legislative just as non-governmental association work for the social
advancement of the nation. The govt. offers such a significant number of tasks for the private and
other association. Government provides funds for various services which are heath care, pensions
and travelling free for the people who are above 60 years old etc. As a corporate social
responsibility, we will provide special services to those who will be above 60 years old.
Technology
Mauritius govt. has been expanded up to Rs.24billion in which 11 billion has been contributed
by the Mauritius govt. The govt has been contributed on different projects like Road
development and furthermore encourage Industry 4.0 and other ICT area. With the same vision
of Govt. we will be prompting ICT sector and we yourself will be one example.

Legal

Government expelled the custom obligations on rice, milk, oats milk, almond milk, road light
and lamps additionally Removed the obligations on T.Vs up to 32 inches and up to 15% on T.V
sets over 32 inches. They charged higher duty on vitality wasteful electrical and electronic
machines. With regard to the legal aspect we will adhere to the rules and regulations. We are law
obeying people and will follow the same process.
Environmental
Government for assurance and improvement of the nation condition they make 3 noteworthy
strides which are Energy proficient, empowering open, industry, private for utilizing vitality
effective lights for that they give extra endowment. They likewise outline an administrative
establishment Energy proficiency the board office which empower by giving financial incentives
to not to buy contaminating vehicles and bio energizes. Our project we will use Hybrid and low
emissions car to keep the environment safe and healthy.

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 2.3. Financial Feasibility
The Mauricecar co. ltd project is estimated to cost of MUR 150 M. it will be financed 75% by
bank loans and the remaining 25% will be finance by the business partner (Name is anonymous)
and myself. As per the financial sources and anticipation it is seen that car rental and online
booking of taxi market is expected to grown and the business in the very first year, expecting to
have the 50% booking and following year will have 100% booking of the cars due to high tourist
arrival in Mauritius. The company will recover its cost which is incurred in the project within 5
years. The expected profit with 100% booking of the cars as from 5 years onwards is 30M per
annum.

3.0. Target Market and pricing strategy

The target market will be the tourist and expatriate working in Mauritius. According to
Statsmauritius.govmu.org. (2019) it was recorded that in 2018 the total number of tourists visited
Mauritius was 1,395,000 from different countries and the tentative tourist arrival in 2019 is
expected to be 1,450,000. As per (François, 2019) the total number of foreign workers in
Mauritius is 39,032 which includes 27,408 men and 11,624 women. There are no online car
rental service provider and there is a huge potential in the online car rental and mobile app
booking taxi. This relates the market gap and the opportunity analysis. With regard to the pricing
strategy we will have different pricing mechanism whereby weekend promotions will be live to
tap the working professionals and regular promotions will be for Tourist. To attract more clients,
we will have referral scheme whereby if someone recommend any of his friend will get tickets
for movie or any other adventurous activities. Below is the driving plan which will be offered to
customers

Driving plan
When you join  
Annual Fee MUR 2000
Monthly commitment None
Application fee MUR 1000
Driving plan None
When you drive  
Monday - Thursday  
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 Hourly Rates from MUR 150
Daily rates from MUR 700
Friday - Sunday  
Hourly Rates from MUR 200
Daily rates from MUR 800
What’s included  
Fuel √
Insurance √
200 free kilometers √

Table 1: Driving Plan

Source: Own Work

4.0. The Investment Project – Mauricecar co. ltd

This project will be in partnership with one of the family members who is a consultant and at the
same time has started its small car rental business in a traditional method. Furthermore, the idea
is discussed with Family Uncle (Name is anonymous) to come up with a car rental business
whereby people can book and pay online through Mauricecar application. The total investment in
the project will be 150 M and the table below will have the breakup of every individual cost
associated in the project.

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Table 2. Summary of the Investment

Source: Own work

5.0. Exit Plan

IF somehow in dire circumstances company fail to succeed as expected then we have a exit plan
which we will execute as follows;

1. Commercial renting to corporates in Ebene. The renting will be annually and fleet of 10
will be provided to each company.
2. Buy and Sell cars

6.0. Conclusion
As per the above business opportunity identification and analysis, it can be concluded the
Mauricecar co. ltd.’s project to start online car rental and taxi service in Mauritius is financially
viable and at the same time convenient for expats and tourist. This project will be pioneer in
Mauritius and has a future in the business market as it is technology driven. The idea of this
project is inspired by the famous car rental service provider Eurocar. Eurocar is the market
player in the UK and Europe. In present to sustain in business market the key mantras are to
understand customer taste, be price oriented, convenience to your clients and make use of
technology. With Mauricercar co. ltd all these services are available at customer’s doorstep at the
same time it will create jobs for the local people. Furthermore, the analysis of SWOT and
PESTEL shows that Mauritius is very promising for such project which should have been in the
market few years back.

7.0. References
Budget.mof.govmu.org. (2019). [online] Available at: http://budget.mof.govmu.org/budget2018-
19/2018_19budgetsupplement.pdf [Accessed 23 Apr. 2019].

François, F. (2019). Mauritius: Almost 40,000 foreign workers recorded on the island. [online]
Indian Ocean Times - only positive news on indian ocean. Available at: https://en.indian-ocean-

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times.com/Mauritius-Almost-40000-foreign-workers-recorded-on-the-island_a2701.html
[Accessed 21 Apr. 2019].

IMUENTIYAN, O. and BENIN, C., 2015. A WEB-BASED RENTAL SYSTEM (A CASE-

STUDY OF UNIBEN TRANSPORT SERVICES). CHAPTER ONE.

Statsmauritius.govmu.org. (2019). Statistics Mauritius - International Travel & Tourism Jan-Sep

2018. [online] Available at:
http://statsmauritius.govmu.org/English/Publications/Pages/Tourism_Jan-Sep18.aspx [Accessed
13 Apr. 2019].

Yang, Y., Jin, W. and Hao, X., 2009. Dynamic pool segmentation model and algorithm in the car
rental industry. Journal Of Computers, 4(12), pp.1202-1208.

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