FAQs. Velotaxi -The Original from Berlin

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1 Velotaxi -The Original from Berlin The CityCruiser, best-known as Velotaxi, and the DeliveryCruiser are EPACs (Electrically Power Assisted Cycles) according to EU legislation. They are both human-powered and motor-assisted, and designed for running a professional passenger transport/ sightseeing/ delivery business, combined with the commercialization of the vehicles - especially the cabin surface - as a highly visible, mobile out-of-home media. The unique tricycles are developed, manufactured and sold world-wide by Veloform Media GmbH. What started in Berlin in the summer of the year 2000 has become a product and operational concept that has conquered over 120 cities in 52 countries all over the world. Because of the regional and national differences in legislation, geography, climate, lifestyle, and mentality, all the operational parameters developed in Berlin have to be adapted to local requirements and the varying economic potential of this business model. In the following we will take you through the most essential aspects that need to be considered prior to setting up a Velotaxi business with the CityCruiser/ DeliverCruiser: 1. Advertising concept 2. Operation 3. Technical specs and maintenance 4. Legal aspects 5. Checklist 1. Advertising concept The CityCruisers and DeliveryCruisers are ideal instruments for events and promotions. In 2007, the CityCruiser was officially recognized as an ambient media by the German Outdoor Advertising Association. CityCruiser/ DeliveryCruiseroperators rent the surface of the vehicle to advertising and event clients, and offer various services such as sightseeing tours, free shuttles during big events like trade fairs, exhibitions or global sporting events, delivery and courier services, etc.). The main source of advertising income is renting out the advertising surfaces of your vehicle fleet (the number of vehicles ranges from 5 to 20, on average) for one or several months, or even better for the whole season. The advertising price e.g. used by Velotaxi-operators in Berlin for one month is 1, EUR per City- Cruiser. For the whole season (mid April to mid October), the package advertising price is EUR 9, per CityCruiser. The references on the Veloform Media homepage give you an impression of how many international brands have booked CityCruisers and DeliveryCruisers for their campaigns, in Berlin or in one of the many other successful locations. Events and short promotion campaigns are becoming more and more popular. Clients sometimes book a complete fleet for a few days or a few hours. As the popularity of CityCruiser and DeliveryCruiser used at promotions and events increases, it can be useful to have an extra set of cabins in stand-by so that they can be exchanged quickly for events in periods when the whole fleet is also booked for monthly or seasonal advertising on the regular routes.

2 1.1 Branding The production costs of the advertising stickers are usually charged separately to the advertising partners. The price in Berlin ranges from 300 EUR (logos on the sides and poster on the rear screen) to 900 EUR (4c full covering). The foil that printers use is similar to 3M, but many have found alternative materials that are less costly. Depending on the length of the campaign, most suppliers offer different degrees of adhesiveness. Naturally, the higher the adhesiveness, the more difficult it is to demount the stickers. The mounting takes several hours. More information and professional DTP templates can be found in our branding information (see the CityCruiser and DeliveryCruiser download sections on the Veloform Media homepage). 1.2 Setting up the pricelist for advertising and events The prices for the advertising space that Velotaxi charges in Berlin are lower than in most other locations. Cities such as Paris or Tokyo have prices that can be twice as high as the Berlin price, or more. Look at price lists of other local outdoor advertising space (bus and metro stations, posters and billboards, busses, trams, regular taxis, possibly other rickshaws) to define a competitive price. The USPs of the CityCruiser and the DeliveryCruiser as out-of-home media are: - Highly visible because of the memorable cabin design % eco friendly - Mobile and present in the most frequented spots - The transport function differentiates it from a mere billboard - Positive image associated with topics such as sports, environment, youth, fun and innovation will reflect favourably on the advertised brands As mentioned earlier, please check out our homepage for the most important international references. If you click on the logos, you can view photos from the campaigns. 2. Operation 2.1 Topographic and demographic requirements The ideal environment for a Velotaxi business is a city centre with suitable, highly frequented routes along tourist attractions. A good network of bicycle lanes is desirable but not a prerequisite. The important criteria for the choice of routes are that they must be of interest to potential advertising clients. Equally important is that these routes must offer drivers the opportunity to derive their income from transporting passengers. 2.2 Velotaxi-season and hours of operation It is crucial to co-operate with other transport enterprises, especially taxi drivers, in order to avoid hostilities towards the still unusual vehicles. It s a pioneer s work.

3 With winters becoming more and more tepid, some Velotaxi-operators work all year round, in order to be operational during the important Christmas season, which is very attractive to potential advertising and events clients. Of course, the local climate will play a major role in your decision. Closing in the winter for 1 or 2 months may be useful to do a general inspection and maintenance of the vehicles, and to concentrate on the sales activities for the following season Drivers The free-lance drivers in Berlin pay a rental fee of around 10 EUR per day that covers the main operating expenses. They keep all the fees they earn from passengers. During events and promotions, of course, the client pays the operator also for the rider, who earns a fixed fee, as he transports passengers for free. To choose the right drivers is very important for a CityCruiser/ DeliveryCruiser operation. Keep in mind that the drivers will be the ones interacting with passengers as well as advertising partners. Our experience shows that the drivers should ideally speak at least one foreign language and have some promotional experience. Their professionalism and enthusiasm for the vehicle and in general the world of bicycles is the heart and soul of the work out there on the street. 2.4 Passenger fares The passenger fares are either based on the distance or for a set amount of time. These prices differ according the general price level for public transport and taxis. In Berlin, the first km costs 2.50 EUR, every other km 1 EUR per person. For a 30- Minute tour, the price is EUR 15 per passenger. If you choose to operate a business model where the advertising client pays for free transportation of their customers, during events, promotions or free shuttle services sponsored by an advertising client, the drivers will receive tips, often higher than their actual fixed fee. 3. Technical specs and maintenance CityCruiser and DeliveryCruiser are emission-free pedicabs. Their core feature is the motor assist. combined with a 14-gear Rohloff Speedhub transmission, driven by muscle power. The motor assistance should only be used as support for departing and accelerating, and when going uphill. This makes for a comfortable riding experience. The vehicles are particularly suitable for an urban environment. The rear seat of the recyclable, Polyethylene CityCruiser cabin provides room for two passengers with hand luggage. In the DeliveryCruiser cabin, the rear parte is converted into a spacious storage compartment. To ensure full safety, all of Veloform Media s vehicles have been tested and certified by DEKRA (German Automobile Monitoring Association). 3.1 Technical specifications The 48V motor is integrated in the front wheel hub. The motor is operated by a twist grip and only works at full capacity until the vehicle reaches a speed of about 18 km/h. With increasing speed, the propulsion is more and more taken over by the rider.

4 The batteries can be charged with a special charger that is plugged into a normal 220V power source. The capacity of the batteries largely depends on how much they are used. Experienced drivers can get through their 8 hour day without running out of battery power. Have a look at film How to drive and the other movies of the CityCruiser playlist on the Veloform Media Youtube-channel. The charging process takes about 5 hours and is normally done over night. According to EU legislation for Electrically Power Assisted Cycles (EPAC), it is forbidden to use the electric assist when nobody is pedalling; a sensor therefore registers the information and blocks the motor. It is, however, possible and desirable to run as much as possible without adding the motor assistance. According to the newest EU law, an initial assistance from the motor up to the speed of 6 km/h, is possible, and the CityCruiser and Delivery Cruiser controls have been programmed to implement this possibility, optimizing the riding comfort even further. 3.2 Design The cabin is made of 100% recyclable polyethylene, making it stand out from other pedicab models. The standard colour for the cabin is white. It can be used as advertisement space by covering the whole surface or parts of it with large stickers. What makes the cabin unique in comparison with the traditional Asian rickshaws is that for the first time in pedicab history, the rider is included in the cabin, allowing him to share the same space and protection with the passengers. The special attraction of the vehicle design is that the cabin surface is visible from all angles. Advertising can be mounted on the Perspex, poster-shape screen at the rear of the CityCruiser, on the snout, the side, and the highly visible side bars connecting the front and the rear end. A good branding will not disappear, no matter from which angle the vehicle is looked at, or photographed. Please note: The cabin cannot be sprayed or painted as this would damage it! 3.3 Shipping When we export the vehicles, we have to use the custom tariff number , a category entitled "motorized vehicles". For customs the EPACs are allocated here. In particular emergency cases, if this custom tariff number is not feasible for your destination, special arrangements can be made for a separate shipping of some components, which then have to be remounted. 3.4 Maintenance The maintenance can be executed by a professional bicycle mechanics, or in cooperation with a bicycle repair shop. All vehicles are delivered with a maintenance manual, which defines all the maintenance tasks that have to be performed at regular intervals. Some every day, others every week, every month etc. Keep the vehicles clean and in good repair at all times. This will be crucial for the image of your operation, which is important for attracting passengers and advertising partners. Maintenance costs (parts and staff) can be calculated on the basis

5 of approx. 300 EUR per vehicle per year. Of course, this figure will depend on how much you are committed to proper maintenance throughout the year. Your warehouse/ atelier should be safe, dry and provided with sufficient power supply. We recommend that it is located as close as possible to your perimeter of action. As important as a clean cabin and fully functional vehicle is the intactness of your advertising stickers. They must be kept clean and without damage. 4. Legal aspects 4.1. Classification as a bicycle The electric assist has a maximum output of 250W and will switch off when the vehicle reaches a speed of 18 km/h. These technical features ensure that the CityCruiser fulfils all the requirements of an EPAC (Electrically Power Assisted Cycle) according to EU law Permit In Germany, the official recommendation No 149 by the Federal Ministry of Transport was sent to every municipality in the country. This recommendation states that Velotaxi operations should be licensed and given the necessary exemption approvals to allow them to operate as bicycles on the street Insurance Insurance requirements will often be defined by the license-giving municipality as part of the conditions for granting permission. The recommendation published by the Federal Ministry of Transport has requested that an insurance policy have the following coverage: - up to ,00 EUR for personal injuries - at least ,00 EUR for every single person ,00 EUR for material damage ,00 EUR for pecuniary loss In many locations, the insurance company will be dealing with this kind of vehicle or the first time. This can provoke disproportionately high insurance fees. You can argue that CityCruisers have never been reported stolen so far - how could a City- Cruiser not be noticed? -, and that accidents have been extremely rare anywhere. Also, the average cruising speed is very low, and the riders are mostly passionate cyclists familiar with traffic rules, because one requirement to become a Velotaxi driver is possession of a valid driver s licence.

6 5. Checklist The 5 most important steps to successfully set up your CityCruiser/ Delivery- Cruiser operation 1 The vehicle is classified as an Electrically Power Assisted Cycle (EPAC) and was designed as a semi-enclosed tricycle. * Outside the EU: Request formal classification of the vehicle as a tricycle (pedicab), by stating the following points: - It is driven by pedal power - The electric assist of max. 250 W, according to EU legislation for motorized vehicles, makes CityCruiser and DeliveryCruiser non-motorized vehicles - the electric assist is the same as on a regular electrically-assisted bicycle - the electric assist cannot work without pedalling, it is controlled by a sensor - without pedalling, the CityCruiser does not move - the maximum speed is 25 km/h, the motor switches off when 18 km/h are reached 2 Advertising price: *What prices do other outdoor advertising companies charge for their posters and billboards (on busses, trams, in metro stations, bus stations, etc) 3 Permits and papers: * What permits and official papers are necessary for your operation? * Where are the vehicles allowed/ not allowed to operate (streets, bicycle/ bus lanes, parks, pedestrian zones etc.)? * How many passengers are you allowed to carry? * Are you allowed to charge a fee for this transportation service? * Are you allowed to display, and charge for, advertising on the cabin surface? You have to point out that the CityCruisers are always in motion: they do not need neither taxi stops, ranks, nor any stations, nor do they take up parking space on the street 4 Freelance Drivers: * Can you hire drivers on a freelance basis? * What formalities are required to hire freelance drivers? 5 Insurance * What kind of insurance is necessary (third party etc.)? * How much does this insurance cost? 6. Contact Do not hesitate to contact us if you have any questions: Veloform Media GmbH Marzahner Chaussee Berlin, Germany Tel +49 (0) Fax +49 (0) info@veloform.com Follow us: