Investing in matatu business plan

Pros and cons of matatu business

Unpredictability One week your crew might present you with a constant flow of money only to disappoint you in the next. These cartels are also responsible for determining the bus fare especially during peak hours and acting as the eye out on matatus aiming to earn money from routes they are not meant to operate on. However, if the loan option does not appeal to you, purchasing the vehicle alone can also work. I get many calls from investors and one thing they all have in common is problems with workers. Make a point of visiting a few garages to compare the quotes. The best way to ensure the profit margin does not fluctuate too much is tasking the crew a certain target every day. However, the unregulated nature of the matatu industry coupled with gangs and cartels who extorted matatu owners and made it hard for most people to survive in the industry. You can get body branding and sound system installation services from the likes of Choda Fabricators, Moha Graffics, and Lithium to mention a few. The application process can be lengthy considering the thorough background checks conducted lately, but once the process is complete your vehicle will be ready for the road. The unprecedented hike in fares is an indicator that the demand is going up. The Matatu business in Nairobi is exceptionally competitive considering the capital city is always up-to-date with the latest trends. Well, irrespective of your perception of the industry, the fact of the matter is that this is not a business for the faint-hearted.

If somewhere along the way you pick say five passengers for a fare of Ksh. Unpredictability One week your crew might present you with a constant flow of money only to disappoint you in the next.

matatu business plan sample

If the Sacco is doing quite well business-wise then you can expect to recover this token fee in around 3 months of doing business. An average engine costs Ksh, and above.

The minimum amount of initial capital you can expect to inject to get your matatu on the road is Ksh, assuming you buy an old van which has been used locally for several years.

cost of 33 seater matatu

Other loan facilities also help but be sure to check the interest rates and the authenticity of the company offering the loans. Such a car has been on the road for six to eight years.

richest matatu sacco in kenya

The competitive nature of matatus along Nairobi roads can be attributed to the desire to impress and thus lure the most customers. However, you can make more or less than this figure depending on the route and capacity of your car.

How to succeed in matatu business

Not to mention, it is an excellent way to keep your cents entertained on their voyage. It is always advisable to purchase a new vehicle as opposed to its second-hand counterpart to avoid an early kick out from the matatu business. Wear and tear Competition from matatus for the fastest is partly to blame for the wear and tear seen in Kenyan matatus. His story is one of many that have tried their hand in the business and ripped the fruits. Most drivers do not own the vehicles, which they drive with little care and leave in bad condition. Remember to make an insurance for your vehicle as well as your crew through a reputable PSV Insurance company. In the 14 seaters category, Toyota shark is the king of the road. I get many calls from investors and one thing they all have in common is problems with workers.

OTC enjoyed a monopoly in the Kenyan transport industry until

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The pro’s and con’s of Investing in the Matatu Industry.