Buzzify

Funding Request

We are an eBike rental/subscription company located here in Toronto. We currently operate a fleet of various brands and models of eBikes and rent these out on a weekly/monthly basis. As of now, our customer base is nearly 100% Uber Eats/other delivery couriers and the demand for these rentals is extremely high, even through these cold winter months. Our fleet's utilization rate has consistently been above 80%, and with improved maintenance protocols and an integrated IOT system, this could easily reach 90-100%. Within 3 months, we have proven that this business model is highly profitable and there is undeniable demand for it. For reference, there were 207,000 food delivery drivers in Canada in December 2022. This number has only grown exponentially as we drastically increase our immigration rates. Given these figures, we have no doubt that the demand is there to grow this business to a very large scale. However, there are a couple obstacles we are facing that are preventing us from scaling. 

This is where we want to take the next step by manufacturing Buzzify's own OEM eBike models instead of renting out existing brands. After serving hundreds of delivery couriers, we have learnt what is most important to them when it comes to choosing an eBike to use for deliveries: range, security, and price. By designing and producing an eBike that beats the competition in these areas, we will provide the best solution possible for this massive market.  These bikes will solve the two main obstacles mentioned above, while also providing a better overall solution to our customers allowing us to enter the retail market as well. 

Range: the number of kilometres/miles an eBike can be ridden on a single charge determines how many deliveries they can do in a day and more importantly, their earnings potential. This is the number one question that our customers ask when deciding which eBike to rent.  Many of the eBike brands and models on the market have to cater to the general consumer priorities which include comfort, all-terrain capabilities, aesthetics, weight, and more. Most eBikes sport around 500-600 watt hours of battery capacity; ours will sport over 900 watt hours and will provide the option to mount an extra battery to the frame, further doubling the range capabilities of our bike. 

Security/Management: another thing our customers are constantly worrying about is theft and security. By having an IOT system built into the frames of these bikes, they will have GPS tracking, security features (alarm, remote killswitch etc.), as well as advanced insights into usage which will improve maintenance protocols.  This IOT system will also allow us to use barcode scanning to manage our rental fleet with ease, while also providing a subscription model for customers who purchase our bikes. By paying a monthly fee, they will have access to our app which includes these security/anti-theft features that they will undoubtedly want for their major purchase. 

Price: by utilizing a frame/wheel design that is smaller than most long-range eBikes, we can keep the cost of the bike down and improve weight efficiency. We’ve also found that delivery couriers are willing to sacrifice some performance for affordability. Things like hydraulic brakes, brand-name shifters and tires, and fancy LCD screens can be given up in exchange for lower pricing and ease of maintenance. However, all-weather capability is very important (especially in Toronto) so the 4-inch fat tires are a must. This will be the first long-range, fat tire eBike that can be priced below $1200. 

We already have sample models being produced for these bikes, and we need more capital to finalize the R&D process and to proceed to bulk production. We are currently operating at a profitable rate with about 40 bikes. We hope to scale to over 200 bikes within the next year.