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Case of a bike Rental Company

Case 1 :

A bike rental company has started its operations in Hyderabad and has scaled up so quickly where it has scaled to 20 warehouses from 1 single warehouse in a single year.Every warehouse consists of few bikes and few employees to meet the requirements of bike rental within  a radius of 5 kms.


  • Its costs have shooted up by more than 20X.They wanted to know the real reasons for those.
  • Cash management has been a big task for refilling all the warehouses with enough cash reserves to meet daily expenses while tracking them properly.
  • Daily cash balances could not be recorded due to continuity of shifts.


  • We have adopted an approach to account books of the client on a cost centre basis for identification of expenses allocable for specific warehouses.
  • We have implemented a Cash Management System to transfer cash through an online portal which tracks all the payments along with tracking of expenses daily along with sharing of documentary evidence sharing with the accounts department.
  • Bank CMS to collect shift wise cash to account cash on a shift basis.


  • Warehouse wise expenses have been tracked. This has shown that the spends in some warehouses is high irrespective of the orders. We tried to bring down some of the fixed cost in those warehouses. The major expense is due to repairs for which bills are not produced by the warehouse in charges. The company has hired a mechanic which has saved heavy expenditures on repairs and maintenance of vehicles.
  • Orders on certain days were very high but the employees remain the same and the employees were not able to handle all the orders. So we have started utilising the employees in the warehouses where they could not be utilised at optimum level.The order acceptance level has gone up from 70 % to 90%.
  • Warehouse in charge closes gives a report on the MIS like cash report, orders report and expense report which is reconciled on a daily basis with the MIS maintained at the Head office.
  • We have arrived at the pricing of the vehicle trip per km which has helped the management to arrive at dynamic

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