Starting a Business in Pedicab or Padyak Operation

Pedicab or Padyak or foot-pedaled tricycle is a man peddled bicycle with a sidecar for passengers. It is one of the most convenient transportation in rural areas, specially from the central town to the villages It usually covers short distances and feeder trips but longer trips can be arranged. This mode of transportation is a best alternative especially with the high prices of gasoline and when streets are flooded.

Prohibitions

  • No padyak/pedicab shall be allowed to enter, pass, or utilize any highway, national or provincial road, or any main street in the city.
  • Pedicab operation shall only be allowed in subdivision roads, callejons, alleys, and small side streets within the city.
  • No person below 18 years of age shall be allowed by any owner or operator to drive padyak.

Estimated Investment Costs (in Php based on 2009 prices)

  • Basic Equipment (10 Pedicab bikes @P6,500 each) – 65,000.00
  • Basic Materials/Supplies:
    • Bike tools 2 sets @P295/set – 590.00
    • Cleaning materials (wash cloth) 1 set – 50.00
    • Safety and proper lighting/reflector devices 10 pcs @P500 each – 5,000
  • Total – P70,640.00

Estimated Monthly Income

Revenues (P80 daily boundary x 10 units x 26 days) – P20,800.00
Less:

  • Repairs and Maintenance (5% of monthly income or revenue) – 1,040.00
  • Depreciation (monthly for 3 years for 10 bikes) – 1,805.55
  • Membership Dues (P3,000 for 10 bikes/12 months) – 250.00
  • Contingency cost (10% of 10 units of bikes) – 6,500.00

Total monthly operating expenses – P9,595.55
Estimated monthly income – P11,204.45

Return of Investment

  • ROI = P11,204.45/P70,640.00 = 0.15
  • Payback period = 8th month

Registration Requirements

  • Business name registration (www.bnrs.dti.gov.ph)
  • Mayor’s/Business Permit (check your local municipality/city)
  • BIR TIN (www.bir.gov.ph)

Financing Facility

  • Small Business Corp. (www.sbgfc.org.ph)
  • People’s Credit & Finance Corp. (www.pcfc.gov.ph)
  • National Livelihood Dev’t. Corp. ([02] 817-3012/2657/0445)

source: dti.gov.ph, photo from www.gmanetwork.com

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