Piyush Ashtekar

Discounted Cash Flow Model for Uber v/s Own car Outflow for Car owner one time Loan Amount Car Loan Interest Rate(per month) Loan Period (Months) EMI Annual Loan Payments Life of car Salvage Value of car Cash Inflow Maintenance Cost for 5 years Insurance cost Extra Maintenance Cost i.e. Tyre Replacement one time Maintenance Cost for 1 Year Fixed Fair for CAB Diesel Price per Litre in Rs. Car Milage Cost per KM Average Running K.M Per day Per Day Cost Days in a Year Fuel Cost Total Annual Cost NPV (Cr) Discount rate (Cost of capital) Incremental Cost Time- - 2,50,000 5,50,000 0.79% 84 8,989 1,07,870 7 2,50,000 Uber Buy a car 39,310 12,000 20,000 11,-,660 63,511 50 -,900 94,900 -5,94,000 6.50% 7.00% Cash flows (With Uber) -94,900 -1,01,543 -1,08,651 -1,16,257 -1,24,395 -1,33,102 -1,42,419 -3,80,541 6.50% Cash flows (with own car) -2,50,000 -63,511 -63,511 -63,511 -63,511 -63,511 -63,511 2,36,489 Assumption: 1) 2) 3) 4) 5) Here we assume that Fuel Cost per liter is Rs. 70/- and Car given mileage of 20 K.M/Liter. Here we assume that OLA will hike their CAB rate @ 7% of annual incremental basis. Here we assume that person can invest those amount(cash outflow to uber) @ 6.5% in Fixed Deposite. Here we taken Fuel cost as a constant because Fuel price is volatile so we can't take it on incremental basis. Here we assume that Salvage value of Rs. 3,00,000/- can be recover at the end of 7th year.