MIDTERMS FEASIBILITY STUDY PROPOSAL

SLIDE 1- TITLE OF THE FEASIBILITY (Luis)

Verbal explanation special instruction: Pretend that the group will really propose a study for your
chosen company; the leader will introduce the members; Shortly explain why this study is
needed.]

Greetings Mr. De Ramos. We are group 6, and today we will be presenting the Feasibility Study
on Creating a Motorcycle Taxi Business for 2Go Group Inc. I am LUIS ALEJANDRINO, and
together with me are Julian Bautista, Carlo Obispo, & Jackie Savella. The group has decided to
create a feasibility study about creating a motorcycle taxi business for 2Go since the
competition within the motorcycle taxi business is limited and the group sees a big probability of
success for the company. The reason behind this is that 2Go Group Inc. has an excellent brand
positioning within the industry and the country creating an advantage towards other motorcycle
taxi company. Lastly is that, the group sees this as an opportunity for 2Go since the company is
one of the pioneers in terms of logistics services and they will be the first company that will have
a connection with logistics industry and the motorcycle taxi business.

SLIDE 2- COMPANY PROFILE (JAKI)

To Start of..

2Go Group, established in 1949, stands as a prominent logistics and transportation

company in the Philippines. And it was Founded by the late J.G. Sotelo, the company has

evolved over the years to become a key player in the industry. Specializing in freight services,

2GO operates within the shipping, logistics, and supply chain domain. Its market encompasses

both domestic and international sectors, offering a comprehensive range of products and

services, including sea freight, air freight, land transportation, and logistics solutions. The

company positions itself as a reliable and efficient partner for businesses seeking seamless

transportation and logistics support.

The company’s logo, reflective of its commitment to connectivity, the dedication to

bridging distances and facilitating the smooth flow of goods and services.
SLIDE 3- MATRIX OF THE BUSINESS MODEL CANVAS (DIEGO)

[Verbal explanation special instruction: Each block must be explained]

Key Partnerships

Payment Processors: Collaborating with payment processors enables 2GO to offer various
payment options, such as credit/debit cards, Gcash, and Maya. This enhances customer
convenience and expands the potential customer base. Additionally, secure and seamless
financial transactions foster customer loyalty and trust.

Google Philippines: Partnering with Google Philippines provides access to data analytics and
Google Maps integration. This collaboration can enhance customer tracking, route optimization,
and overall service efficiency. By leveraging Google's expertise in data analytics, 2GO can
make data-driven decisions to improve service offerings and customer experience.

LTO Philippines: Collaboration with the Land Transportation Office (LTO) is crucial for
navigating regulatory requirements and ensuring compliance. Given the heavily regulated
nature of the transportation industry, working closely with the LTO helps 2GO stay compliant
with the law and industry regulations.`

Key Activities

Partnering with Different Companies: Collaborating with businesses in specific sectors

provides access to resources, expertise, and clientele that can enhance service offerings and
expand the customer base. These partnerships can also lead to innovative solutions and new
business opportunities.

Providing the Best Motorcycle Taxi Service: Emphasizing comfort and service excellence is
crucial for maintaining customer satisfaction and loyalty. 2GO Philippines can differentiate itself
from competitors and attract more business by prioritizing these factors.

Implementing Safety Technology: Ensuring the safety of both drivers and passengers is
paramount for any transportation service. Utilizing technologies such as driver safety training,
emergency response systems, and GPS tracking can help mitigate risks and increase consumer
confidence.

Hiring Drivers with Professional Licenses: Employing drivers with professional licenses
ensures they have the skills and credentials necessary to operate a vehicle safely and legally.
This also enhances the trust and reputation of the business.

App Development: Developing an intuitive and feature-rich app is essential for customer
convenience and engagement. Since the app is the primary point of contact between the
service and its users, it should be user-friendly, reliable, and secure.

Marketing/Advertising Activities: Building a strong brand presence, attracting customers, and

raising awareness all rely on effective marketing and advertising. These initiatives help
communicate the service's value proposition and differentiate it from other offerings

Key Resources
Capital: Sufficient funds are necessary to finance various business activities, such as vehicle
purchases, technology development, marketing campaigns, and operational costs. Sufficient
funds ensure smooth operations and enable the business to capitalize on expansion
opportunities.

Skilled Workforce/Labor: Providing high-quality services and satisfying customers relies on

having a competent and skilled team. Hiring and retaining skilled drivers, customer care agents,
and other staff is crucial for the company's overall performance.

Transportation System: A reliable and efficient transportation system is the backbone of a

motorcycle taxi service. Ensuring reliable routes and well-maintained bikes is essential for
providing safe and timely transportation services.

Partnerships and Sponsors: Collaborations with other businesses and institutions can provide
additional funds, expertise, and advertising opportunities. These partnerships can help increase
the service's visibility and credibility.

Software Technology and Forecasting Systems: Software technology, including mobile

applications and forecasting systems, is essential for managing operations, tracking vehicles,
and delivering a seamless customer experience. These technologies improve customer
satisfaction, decision-making capabilities, and service efficiency.

Value Proposition

2GO Philippines' motorbike taxi service, "Go Moto," offers convenient and on-demand travel
options with the ability to order a motorbike taxi "anywhere, anytime." The service guarantees
accessibility through a booking mobile app and emphasizes reliability in getting clients to their
destination safely. Additionally, "Go Moto" highlights affordability compared to traditional taxis or
ride-sharing services. Safety is ensured through appropriate training and compliance with laws.
Overall, "Go Moto" provides affordability, reliability, accessibility, and convenience, making 2GO
Philippines a competitive player in the motorcycle taxi industry.

Relationships

Chatbot Services: Chatbots provide clients with a quick and easy way to communicate with
2GO Express, handling various inquiries such as shipment tracking, pickups, and common
issues. This enhances customer satisfaction and improves the overall customer experience by
offering prompt responses and 24/7 assistance.

Customer Support System: A strong customer care system is essential for efficiently handling
consumer questions, issues, and complaints. By providing competent and responsive customer
service specialists, 2GO Express can build customer trust and loyalty, leading to positive
referrals and repeat business. This system also provides valuable feedback for improving
operations and offerings.

Email and Social Media Marketing: Social media and email marketing are effective tools for
engaging with customers, communicating relevant information, promoting sales and discounts,
and marketing services. Social media marketing helps 2GO Express communicate in real-time,
increase brand recognition, and promote community involvement, while email marketing allows
for personalized communication and direct customer engagement.
IoT Technology for Regular Updates: By leveraging Internet of Things (IoT) technology, 2GO
Express can provide real-time updates and notifications to customers during the shipment
process. Incorporating IoT sensors and tracking devices into its logistics operations enables the
company to track the position, condition, and status of goods in transit. This constant
communication allows 2GO Express to provide accurate delivery predictions and quickly resolve
any issues or delays, enhancing transparency, reliability, and customer confidence.

Channels

2Go Website: The website serves as a primary resource for users to plan rides and learn about
2GO Philippines' services. Customers can seamlessly access both services by being redirected
to the subsidiary, 2GO MOTO. Additionally, the website is used to share news, updates, and
promotions.

Social Media Advertising: Platforms like Facebook, Instagram, and Twitter are effective
channels for advertising and engaging with potential clients. 2GO Philippines can use these
platforms to promote services, target specific demographics, and engage in real-time
interactions with clients. Social media advertising can generate leads, increase website traffic,
and enhance brand exposure.

Direct Calls and Emails: Direct communication channels such as calls and emails are
essential for engaging with clients. These channels can be used to solicit feedback, address
customer inquiries or issues, and offer personalized promotions. Direct contact helps build
relationships and loyalty with customers.

Customer Segments

Customers who need affordable and fast transportation: This group likely includes
individuals customers looking for cost-effective and efficient solutions. By targeting this
segment, 2GO can attract customers who prioritize affordability and speed, potentially
increasing its customer base and revenue.

Riders seeking job opportunities: By offering job opportunities to experienced and qualified
individuals, 2GO can attract talented riders who can enhance the quality of its service. These
riders can help 2GO maintain high service standards and meet the needs of its customers,
leading to improved customer satisfaction and loyalty.

Cost Structure

Insurance: Insurance is essential for protecting the business from risks and liabilities, as well as
ensuring the safety of customers and riders. It is necessary to have sufficient insurance
coverage for risk management and compliance.

Marketing/Advertising Campaigns: Marketing and advertising are crucial for raising brand
awareness, attracting customers, and fostering brand loyalty. The business must budget for
marketing efforts, including traditional, social media, and digital marketing.
Employee Salaries and Wages: Employee salaries and wages, including those of riders and
other personnel, constitute a significant portion of the cost structure. Offering fair and
competitive compensation is essential for attracting and retaining skilled personnel.

Rider Payouts: Rider payouts, the money given to motorcycle taxi riders for their services, are
a direct cost of providing the service. Proper management of these payouts is necessary to
maintain the viability of the business.

Revenue Streams

Transportation Services: Providing transportation services is the main source of income for
2GO Philippines. Revenue is generated through the fees that riders pay, which are based on
factors such as distance, time of day, and demand.

Brand Partnerships: Collaborating with other businesses can create new income streams for
2GO Philippines. These partnerships may lead to co-branded campaigns, sponsorship
agreements, or advertising opportunities, all of which can generate additional revenue.

Price per Kilometer/Distance: Basing rates on the distance traveled is a primary revenue-
generating strategy for the motorbike taxi service. By implementing a cost per mile or kilometer,
2GO Philippines establishes an income stream directly linked to the distance traveled by its
clients.

Surge Pricing: During periods of high demand, 2GO Philippines can increase fares using surge
pricing. This dynamic pricing model helps maximize income by balancing supply and demand
and encouraging more riders to be available during peak hours.

SLIDE 4-5- PRODUCT AND OR SERVICE AND OPERATIONAL FEASIBILITY (JAKI)

For the PRODUCT AND OR SERVICE AND OPERATIONAL FEASIBILITY

The first question that we chose;

1.1. Can the new product or service be produced and delivered profitably, in an ongoing
manner?

- Given that 2GO Group is known for being the largest integrated transportation and
logistics provider, there's a strong indication that our venture into GO MOTO can be
profitable. With existing infrastructure, expertise in logistics management, and a well-
established reputation, 2GO Group has the potential to leverage these advantages to
ensure the profitability of GO MOTO. However, In this manner careful consideration of
operational costs, pricing strategies, and market dynamics is essential to sustain
profitability in the motorcycle ride service sector.

1.2. Is there sufficient customer demand for the product or service based on initial market
assessment?
 - Along with the persistent issue of traffic congestion in the Philippines, there's a strong
indication that there'll be significant demand for GO MOTO services. Especially in
bustling urban centers like Manila, where traffic is a daily struggle, people are
increasingly seeking alternative transportation options.

By introducing GO MOTO, 2GO Group can tap into this growing demand and provide
commuters with a reliable and convenient transportation solution. Through careful
market assessments focusing on areas with the highest traffic congestion and commuter
needs, 2GO Group can tailor its GO MOTO service to effectively meet the specific
requirements of its target audience. This strategic approach allows 2GO Group to not
only address the transportation challenges faced by commuters but also to establish
itself as a trusted provider of accessible transportation solutions in the Philippines.

(Next slide)

1.3. Does the company have the necessary resources and process expertise for the new
venture?

- 2GO Group has a wealth of experience and resources as a top player in transportation
and logistics, which puts it.. in a prime position to launch GO MOTO. The company
already has the infrastructure, fleet management skills, and operational know-how
needed to run a motorcycle ride-hailing service smoothly. Moreover, 2GO Group can
create strong operational systems and training programs for GO MOTO. This ensures
that the new venture not only succeeds but also thrives in the long run.

SLIDE 5-6- MARKET AND INDUSTRY FEASIBILITY (ANGELO)

At this point of time in our country, one of the life savers when it comes to commuting is
the business of motorcycle taxi. This business have been going on for quite sometime
now and it was first known as “habal-habal”. However due to the overpricing and
riskiness of riding a motorcycle without any registered operator, “habal-habal” has
weakened. Now because of that, entrepreneurs used that idea to create one of the
country’s strongest business that helps commuters commute from one point to the
other. There are three motorcycle taxi company as of the moment namely, Angkas,
JoyRide and Move It. Now if you are a true commuter, you will be able to observe that
even though there are a lot of ways to commute, there are still a lot of individual having
problem when it comes to commuting. This is the reason why we thought of creating a
Motorcycle Taxi business for 2Go Group Inc.. Since most commuiters are trying to save
time, energy and money, We thought that venturing in this business will give us an
opportunity to compete and be the number 1 motorcycle taxi brand in the Philippines.
Our target market may come in different form such as Students, Employees and non
professional individual who are looking for an affordable and less hassle way to
commute. Venturing into this business probably tells everyone that there is a big chance
of success since the market is huge based on observation. Not only that, each individual
may observe that the demand for the market is still increasing and growing since there
are a lot of factors affecting people's choices in terms of choosing motorcycle taxi as a
form of commuting. 2Go’s advantage towards their competitor when they finally venture
to this business is that they have already established a good brand positioning within the
Logistics industry making people aware of how quality their service is. However the only
problem when venturing in the business of motorcycle taxi is that making sure that each
and every rider is up to the regulations set by the Land Transportation Office to ensure
the safety of the rider and also the customer and lastly is to protect the brand positioning
of 2Go.

< There must be 2 to 3 photos, graphics or illustrations including figures and statistics in order to
support the answers under the Market and Industry Feasibility area.>

Key questions to answer include:

2.1. Is there a quantifiable demand for the product?

2.2. Who are the target customers?

2.3. Who are some potential customers by name?

2.4. What customer needs will your new product, service address?

2.5. What is the size of the market?

2.6. Is the market growing or declining?

2.7. How attractive is the business idea of the company in the proposed industry?

2.8. Do any strategic, defensible niches exist in the proposed market?

2.9. Are there any major obstacle that needs to be considered in the general external environment
like relevant law and regulations?

Slide 7-8- MANAGEMENT/ORGANIZATIONAL FEASIBILITY (diego)

< Select 3 to 4 questions under the Management/Organizational Feasibility as the 3rd area of
feasibility study. Present the key questions and answers in this slide/s. Show 1 or 2 short
sentence or phrase for each answers. Remember that these are initial findings in this area. No
need for full answering of all questions.>

< There must be 2 to 3 photos, graphics or illustrations to support the answers under this area;
Photos here can representative people resource from the website or social media of the chosen
feasibility company>

Key Questions:

3.1. Are the people resources of the company have the knowledge and skills that are needed
for the operations/production, delivery and marketing relative to the new business
venture?
With 2GO's established reputation as a top logistics firm in the Philippines, the company's
human resources possess the knowledge and skills necessary for the successful launch of the
new motorcycle service, "GO MOTO." Leveraging 2GO's Training Program, They emphasize
the following principles:

Our Training Philosophy:

● Investment in training prioritizes critical competencies that drive business growth.

● Individuals are responsible for their own development.
● Leaders play a role in coaching and mentoring, providing space for individuals to learn
and grow.
● Establishing business academies is essential for capturing and creating new knowledge.
● Learning on Demand is encouraged.
● The 70:20:10 ratio model is followed, emphasizing that individuals obtain 70% of their
knowledge from job-related experiences, 20% from working with others, and only 10%
from formal interventions.
● Utilizing internal subject matter experts as trainers demonstrates thought leadership.
● Future plans include establishing 2GO University, comprising Business Academies
representing each Business Unit to address specific technical or functional
competencies.

Framework:

Results Driven: Ability to create momentum based on the ultimate goal of achieving results.
Empowered To Lead: Given a degree of autonomy and responsibility for decision-making in
specific organizational tasks.
Agile: Ability to move quickly and easily.
Data Savvy: Ability to develop strategic insights into key performance indicators (KPIs) and
capability in analytical reporting and storytelling.
Youthful Mindset: Embracing favorable aspects of youth, such as vigor, strength, liveliness,
and hopefulness (and risk-taking).

With 2GO's strategic approach and effective implementation of this training program and

framework, the company is poised to compete with similar businesses and potentially become a

leading competitor in the motorcycle taxi industry.

3.3. Does the concerned team, staff and crew require intensive and special training
needed relative to the new product or service to be developed??

Given 2GO's existing Training Program and Framework, the concerned team, staff, and crew
may not require intensive and special training specifically tailored to the new "GO MOTO"
motorcycle service. The company's emphasis on individual responsibility for development,
coaching and mentoring from leaders, and the 70:20:10 ratio model suggest that existing
training resources and methodologies can be leveraged to equip the team for this new venture.
However, targeted training sessions or modules focusing on the unique aspects of the
motorcycle service, such as safety protocols, customer interactions, and operational
procedures, may still be beneficial to ensure a smooth and successful launch.

3.4. Are the top management have the managerial experiences and capabilities to
effectively manage and oversee the proposed new venture of the company?

With 2GO's established position as a top logistics firm in the Philippines, it's likely that the top
management already possesses significant managerial experience and capabilities. However,
the specific requirements for effectively managing and overseeing the proposed new venture,
"GO MOTO," may vary. If the top management has experience in the logistics industry and has
successfully launched new services or products in the past, they may already have the
necessary skills.

To ensure effective management of the new venture, top management can further enhance
their capabilities through additional training or workshops focused on the unique aspects of the
motorcycle service, such as regulatory requirements, customer service nuances, and
operational challenges specific to motorcycle service. Regular reviews and updates to the
training program and framework can also help align management skills with the evolving needs
of the company's new service.

Slide 9-10. ANALYZING THE FINANCIAL FEASIBILITY (Mico)

4.1 What are the research & development and production costs?

The research and development (R&D) and production costs of a ride-hailing or motor taxi
business can vary widely depending on several factors such as the scale of operations,
technological infrastructure, geographical coverage, regulatory requirements, and market
competition. Here's a breakdown of some potential costs involved:

App Development & Technological Infrastructure

Building a user-friendly and reliable mobile application for both passengers and drivers involves
significant R&D costs. This includes frontend development (user interface), backend
development (server-side logic, database management), and integration of various features like
GPS tracking, payment processing, and communication tools. Apart from app development,
there are ongoing costs related to maintaining servers, databases, and ensuring cybersecurity
measures to protect user data.

Driver Acquisition and Training

Recruiting drivers, conducting background checks, and providing training on service standards,
safety protocols, and app usage incur expenses.

InsuranceSince drivers use their own vehicles, the company will subsidize insurance coverage
for drivers, passengers, and vehicles.

Regulatory Compliance
Depending on the region, there might be costs associated with obtaining permits, licenses, and
complying with local regulations, which could include legal fees and administrative expenses.

Marketing and Promotion

Improving brand awareness, customer acquisition, and retaining them through promotional
activities, advertising campaigns, and incentives for both riders and drivers.

Research and Innovation

Constantly improving services, exploring new technologies (like electric vehicles or autonomous
driving), and adapting to changing market trends require ongoing investment in research and
innovation.

4.2. How much revenue can be generated from the product? What are the other potential
other sources of revenue, if applicable?

Estimating the revenue potential of a ride-hailing business for 2GO in the Philippines can be
challenging due to various factors such as market dynamics, competition, pricing strategies, and
operational costs. However, we can make a rough estimation based on industry averages and
projected demand.

Revenue from Ride Fees

Revenue is generated from the fees charged to passengers for each ride. This can vary based
on factors such as distance traveled, time of day, and demand. According to industry estimates,
an average ride-hailing service in the Philippines can generate anywhere from ₱30,000 to
₱60,000 per driver per month. Assuming an average revenue of ₱40,000 per driver per month,
and considering the number of drivers GO MOTO aims to recruit, we can estimate the annual
revenue from ride fees.

Commission from Drivers

Ride-hailing companies typically charge a commission fee from drivers for using their platform.
This can range from 15% to 25% of the total fare. Assuming an average commission rate of
20% and projecting the number of rides per driver per month, we can estimate the annual
commission revenue.

Advertising and Sponsorship

2GO can explore opportunities for advertising partnerships with brands or local businesses. This
can include displaying ads on the app, sponsoring promotional events, or featuring sponsored
content in newsletters or social media posts. Revenue from advertising and sponsorship deals
can vary widely depending on the size of the audience and the engagement levels.

Subscription Services

Introducing subscription-based services for frequent riders or offering premium features for a
monthly fee can be another potential revenue stream. This can include perks such as
discounted rides, priority booking, or access to exclusive offers and events.
Data Monetization

Analyzing and monetizing the data collected from users can be a valuable source of revenue.
This can involve selling anonymized user data to third-party companies for market research,
targeted advertising, or urban planning purposes.

Delivery Services

Expanding the business model to include delivery services for packages or food can create
additional revenue streams. This can leverage the existing infrastructure and network of drivers
to provide on-demand delivery solutions to customers and businesses.

These are just a few potential sources of revenue for a ride-hailing business like GO MOTO.
The actual revenue generated will depend on various factors such as market demand,
competition, operational efficiency, and the company's ability to innovate and adapt to changing
trends in the transportation industry.

4.3. What is the potential profitability of the product?

Slide 11: CONCLUSION IN THE PRELIMINARY ANALYSIS (MICo)

Our group's preliminary analysis indicates that there is potential for 2Go Group Inc. to benefit
from the feasibility study on starting a motorcycle taxi business.

The analysis makes several important issues clear:

1. Market Demand and Opportunity: There is a sizable market opportunity for 2Go Group Inc.
to enter this industry given the ongoing problem of traffic congestion in the Philippines and the
noted growth in demand for motorcycle taxi services. The team's findings point to the critical
need for reasonably priced and effective transportation solutions, particularly in populated areas
like Manila.

2. Strengths and Advantages of the Company: The team sees a great chance for success in
the motorcycle taxi industry by utilizing 2Go Group Inc.'s well-established infrastructure,
operational know-how, and solid brand positioning within the logistics sector. The company's
reputation for reliability and efficiency could give it a competitive edge over existing players.

3. Operational Feasibility: According to the analysis, 2Go Group Inc. has everything it takes to
start and run a motorcycle taxi service, including the capital, know-how, and operational
capacities. The company's current infrastructure, fleet management expertise, and operational
know-how can be utilized to facilitate the seamless integration of the new business into its
current offerings.
4. Management and Organizational Feasibility: The team feels that 2Go Group Inc.'s human
resources are adequately prepared to oversee the proposed motorcycle taxi service, with an
emphasis on training and development. The company's ability to supervise and efficiently run
the new endeavor is further strengthened by the top management's background in the logistics
sector.

5. Financial considerations: The team believes that the prospective returns will exceed the
high initial costs associated with app development, driver acquisition, insurance, regulatory
compliance, and marketing. The corporation may be able to reduce financial risks due to its
sound financial standing and proactive cost-management approach.

In conclusion, the early research points to the viability and possible profitability of 2Go Group
Inc. starting a motorcycle taxi business. Through the implementation of efficient management
practices, leveraging company strengths, capitalizing on market demand, and assuring
operational efficiency, 2Go Group Inc. has the potential to become a prominent player in the
motorcycle taxi industry, providing commuters with a dependable and convenient mode of
transportation.