Cost-Effectiveness Analysis in Motorcycle Investment for Use in Public Passenger Transport Services

Abstract

Motorcycle taxi service providers face challenges due to the fluctuation of fuel prices, which impact their operations. Additionally, the use of fuel-based motorcycles serves as a catalyst for social and environmental issues. This research employs mathematical principles along with economic analysis to study optimal routes and assess the cost-effectiveness of choosing between fuel-based motorcycles and electric motorcycles with swappable batteries for providing public motorcycle taxi services within the Thammasat University, Rangsit Campus. The objective of this study is to identify suitable routes and analyze the cost-effectiveness of choosing between fuel-based motorcycles and electric motorcycles with swappable batteries for public motorcycle taxi services within Thammasat University, Rangsit Campus. The evaluation of the total cost of ownership for both types of motorcycles over a 10-year lifespan includes operational costs and the external costs associated with carbon dioxide emissions. Additionally, the study considers investment decision criteria by evaluating the payback period, internal rate of return, net present value, and sensitivity analysis throughout the motorcycles' service life in providing motorcycle taxi services. The study reveals that using motorcycles for the transportation of passengers along optimal routes can reduce fuel costs by up to 12.58% annually. Meanwhile, electric motorcycles with swappable batteries have a longer payback period compared to fuel-based motorcycles but offer long-term profitability due to lower total ownership costs and expected future returns, estimated at over 34,089.45 baht. This essential information assists entrepreneurs in making strategic investment decisions regarding the future of motorcycle taxi operations.