My business idea is to venture in a TUKTUK TRANSPORT BUSINESS, which is growing very fast within Mombasa and its environs. This will help create a job opportunity for myself and others as well satisfy the high demand market for short distance public means of transport.
Budget Breakdown (approx)
We can connect you with the project owner if you would like to fund this project directly
Problem Statement
I lost my job early this year on 2 June 2019, after the company I worked with for three and half years closed down all its operations laying down all its employees. This occurrence caught me unaware and gave me a thought and NEED to start a practical business. For the past three months, I have survived merely through taking loans from mobile loan apps, which have left me in debts accumulating close to 75 thousand shillings now.
Looking for another loan to clear all this debt would cost me extra because I am yet to get another reliable job. I believe if MavenCORE.net supports me raise the capital I need to start a TUKTUK Transport business, I will not only be able to secure a reliable venture for myself but also create a job opportunity for another jobless person (a Driver). This also will create an alternative means of public transport to Mombasa locals and both domestic and foreign tourists visiting the city.
I personally have done business before and I believe in success, key things being having discipline in utilization of resources, keeping good records in profit margin, loss and expense.
My Motivation
Back in 2011-2014 I was operating a second hand clothes business buying and selling used ladies clothes locally known as “Mitumba,” I would buy official second hand skirts and blouses between Ksh70 & Ksh 100 from Kongowea market in Mombasa and sell them between 200 and 350 a piece in my home area Changamwe sub county. Then I would save between 500-600 shillings a day. The savings I made enabled me to pursue a diploma course in journalism and mass communication paying college fees of 4000 shillings per unit subject for 24 units in 2 and ½ years, and I graduated successfully in August 2014.
This kind of achievement is what gives me the motivation for a comeback in business but this time to a more researched and calculated business idea a (TUKTUK TRANSPORT Business).
Project Details
TUKTUK industry has a great potential to the growth of our economy. Besides drivers and TukTuk owners, the industry has created thousands of jobs to its affiliates i.e. TukTuk Car wash, spare shops, mechanics and few more others.
All I need is capital support from a noble Organization like MavenCore.net in order to secure a brand new TUKTUK at a cost of 425,000. With my research, a TUKTUK with a diesel-powered engine is more preferable due to its cheaper maintenance cost as in comparison with petrol-powered engines.
This preference also makes the price of diesel powered TukTuk a bit hire in buying price as compared to the petrol-powered ones.
The market is readily available in Mombasa and its environs with TUKTUK users increasing daily through domestic and foreign tourist visiting Mombasa as well as local residents. The only competitive means of Public transport within Mombasa is the 14-seater Matatus of which many of them are worn out hence decreasing in number day by day. This is where a TukTuk transport comes in to fill the gap for the high demand of short distance public transport.
Expected Returns
Fare Charges for TukTuk transport ranges from 50 shillings to more than 500 shillings depending on distance covered per single trip and load carriage. In a day, a driver can make numerous of trips and cash in more than 3000 shillings, by which he/she is able to pay self, fuel and service the vehicle, including car wash and finally save 1000 shillings daily for the TUKTUK owner.
This means that with a Single TukTuk I will be able to make returns of 1000 shillings a day, 5000 – 6000 shillings in a week and finally banking more than 28,000 shillings a month. In a quick calculation 28,000 multiplied by 12months a year makes a return of 336,000 shillings although the amount might reduce a bit depending on incurred expenses.
With this kind of returns, I will give back 20% profit of my investment to MavenCORE.net so that it can support others to benefit in their projects. For long-term measures, I have identified a savings strategy to save at least 8000 shillings in a good SACCO of which I am already registered. This savings in a year would be enough to give me a good loan to buy another TukTuk hence creating another job opportunity for an extra driver.
Also With urge to advance in my career education I believe starting this business will not only help me pay fees for my degree in journalism and mass communication but also create job opportunities for others.
TUKTUK’s have to date created reliable jobs to more than 10,000 drivers in Mombasa and Kilifi Counties. The industry is still expanding in a highly competitive public transport sector, some introducing the business in areas like Nakuru, Nairobi, Thika and other towns in the country. By this and from my personal research on this industry I believe it something worth investing for.
It’s my hope that my business Idea gets sincere consideration. I am open to any suggestions and directives from the team at MavenCORE.net and other partners involved. Thank you very much for your time and Consideration.
Comments
This is a good idea. However, you need to consider that you will be going into the business a a new operator and you will need sometime to network and find regular clients before the business can pick up properly.
Best of luck as you venture into the bisiness
Hi Vincent. I operated public transport business in Mombasa before. Just a few pointers:
1. You will only make money if you drive it yourself.
2. Diesel engine means more rattling due to vibration and therefore less lifespan. And of course noise.
3. You will be very lucky to keep a 1,000 bob a day, considering maintenance, police bribes etc. plus due to wear.
Anyway, best of luck with your idea.
Thank you Albert for your guidance and observation. I have considered all this factors though thats why i want to invest in a brand new TUKTUK. For the market loops i have also done enough research and identified how to run the business.
Thank you for your response i have been answered.
My advice is that you source for daily contracts I e hotels, SGR terminus , schools, tourist hotels and bus stations for you to break even and maximise daily collections.
Thank you very much Joel for your advice. Its a very nice idea and I’ll surely put it in consideration once i start rolling.
Insurance cover of Kes 5000 must be a 3rd party cover policy. Not a good idea for such an investment.
Thank you sir for your observation, i’ll probably put it in consideration once i start the business.
My question is in Mombasa is there other competitors who already have the same business.How will you out shine your competitors if they are there?
Thank you very much for your question VINCENT.
Yes there are competitors in mombasa but that should be nothing to worry about. Allow me to share just afew industries that are doing very well despite the high competition.
1. Bodabodas (all over the country)
2. Mpesa Shops
3.Cargo transport & logistics
4. Think of Shuttles and mini buses in Nairobi
5.Talk of clothes and vegetable sellers in a market like Gikomba in Nairobi and Kongowea in Mombasa.
6. TUKTUK in areas like mombasa, voi and malindi.
All these and many more others face very high competition today in the country but still the investers of this sectors still make huge profits. And to be frank competition will always be there and it makes a business environment a healthier one. Thank you.