Starting a Successful Taxi Business In Kenya

 How To Start A Successful Taxi Business In Kenya

The Kenya's transportation industry has truly undergone a remarkable transformation. There is a transition in the modes of transport in Kenya as far as technology is concerned. There is the introduction of the digital ride that has gained great popularity in major cities around the state. The rise of Apps have made it possible for Kenyan drivers to get linked to potential clients without much of a hustle. However, one thing that i have found quite unclear in most sites is the requirements that one needs to meet in order to set the ball rolling. In this article I will dive into detailed aspects of getting your business rolling. I will detail the legal requirements as well as the strategies you could use to get yourself out on a more successful road. 

Capital Required to Start

In any business set up it is important to understand that you are going to need money to make money. During my research I noted that the breakdown of the taxi or Uber business in Kenya, is not extensive. There are a lot of expenses that other bloggers have not ventured. I will help to break this down for the common man to understand. 

You need a vehicle. Not just any type of vehicle is bound for this instance. The model, year of manufacture and the engine CC goes in a lot in order to make this profitable. It is advisable to go for a low CC vehicle and make a purchase of a vehicle not dated past 2012. The reason I make this an aspect of focus: Is owed by the fact that most of the online cab communities, will not list an older model than the 2012. 

Registering on Digital Platforms

There are certain documents that are needed to be able to have yourself as well as your vehicle registered on the digital platforms. Such include;

Public service inspection certificate

Vehicle certificate of registration (Logbook) 

PSV driving licence (D1) 

Regular driving licence

KRA certificate

Certificate of Good Conduct

It is important to take note that for all procedures in this case need to take the 'public' domain into importance for all the above processes. The initial documentation pertaining to the vehicle in its intitial purchase might take a private domain. It is therefore important that during preparation, to have particulars changed to the public approach. Complying to the policies and the requirements ensure a smooth roll over and registration into the available digital platforms. 

Profitability

A profitable approach into the taxi business take a lot into concern. When purchasing a vehicle in order to dive into the business, there are some factors to take into consideration. The vehicle needs to be a 2012 model or newer. It is also important to take on a vehicle with a much lower engine capacity. 

I would link an engine capacity of a vehicle to the fuel consumption. A higher engine CC would mean a higher fuel consumption and thus limited profitable margin. 

When purchasing a second hand vehicle, it is also important to make a selection of a vehicle with little to no mechanical problems so as to limit repair and maintainance expenses as far as the vehicle is concerned. 

Once one has gained access to the digital platforms, certain factors should be taken into account. One needs to evaluate the competition of the area zones. Certain apps such as Bolt, goes on to show hot zones for clients. However, it is important to take note that such zones have influx of other service providers. Therefore, one should take time to understand the relevant areas and the untapped zones for better performance. 

One should also understand that certain apps do take time to have a build up of raport. A driver needs to maintain a high rating to be able to scale higher on the apps since it takes on a competitive algorithm. 

Challenges Faced. 

Despite the fact that these Apps provide certain safety measures for their drivers, there are certain loopholes that need to be taken into consideration. These platforms do take strict measures on parts of the drivers, however, the platforms do not have a certain threshold by which clients get to register on these platforms. This is a glitch that opens up a window for crime. Drivers lack adequate security as provided by the digital platforms. 

Conclusion. 

To conclude, it is safe to say that this is a good business venture to dive into. It is a capital intensive business to dive into. I would also add that the venture needs a great amount of research.