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Matatu business
ali
#1 Posted : Wednesday, July 02, 2008 12:51:00 PM
Rank: Veteran


Joined: 6/11/2008
Posts: 892
Guys,i have a query. i know most of you will tell me that a mat business is bad,but i want to give it a chance and this is not a joke. i love transport business and my heart is there,but i am not touching any taxi business hata,i tried once and as guys say 'iliniota kama moto'. i need advice on this. which is better? do i get a new mat ama i get an old one,use it kifogo kidogo mpaka it buy a new one? anyone who has been in this business? i have a very effective crue that is dependable on

fellwo SK members,i need wosia



I am more than a conqueror in Christ Jesus
For in him (Jesus) we live and move and have our being-Acts 17:28
Happy
#2 Posted : Wednesday, July 02, 2008 2:22:00 PM
Rank: Member


Joined: 7/3/2008
Posts: 1
Hey SK flaternity. Have been following discussions on this forum for the last 2 yrs or so.

Now,my question is,does any of you know someone with a separate fulltime occupation and has succeeded in this biz. If so,which tricks did they use?

People have to move daily and this biz will always be there.
double eem
#3 Posted : Wednesday, July 02, 2008 4:17:00 PM
Rank: Member


Joined: 12/12/2007
Posts: 24
This biz is good for those with time to manage it. if dont have the time then you might be giving someone an open cheque. Also get a new mat. An old one will also be very easy for fraud from the crew. and BTW dont talk of trusted crew they are all the same. Its only the magnitude of stealing that varies.

double eem
Rozzie
#4 Posted : Wednesday, July 02, 2008 7:02:00 PM
Rank: Member


Joined: 1/14/2008
Posts: 4
I had also thought of going into mat biz,but settled on a tuktuk instead(mombasa). Inspite of a few pitfalls here and there,business has been good. If you have good guys ready to work for u,then go for it...my tuktuk driver was an ok guy,drove the thing well and being a KAX,it still looks rather new.Ensure that you have spys who can be checking on how your guys are handling the mat while u are at work. If its in your heart,give it a shot!

Buy when others are selling,Sell when others are buying....
ali
#5 Posted : Thursday, July 03, 2008 6:48:00 AM
Rank: Veteran


Joined: 6/11/2008
Posts: 892
the business has risks,very true,many fall by the wayside and quit but there is a group that makes it.

i have buddies who have advised me to get a new Mat and put it on Long distnace routes like meru,Namanga. others have told me that since iam an office person and may not make it to always go and see whats happening and sort out any mess arising,the better altenative is to buy a second hand mat and put it in routes viewed as less profitable,routes with less police interference. Is there any SK guy who can advice us on this issue? i am very much interesetd,i have tried to wish away the desire but i find myself with passion to make it in this venture

SK person with experiebce and a word on this?


I am more than a conqueror in Christ Jesus
For in him (Jesus) we live and move and have our being-Acts 17:28
Leylah
#6 Posted : Thursday, July 03, 2008 7:08:00 AM
Rank: Member


Joined: 6/12/2008
Posts: 44
Rozzie,
Thanks for your contribution. Im interested in the tuk tuk biz in msa but getting discouraged after doing some survey. Tell me honestly,how do you make per day,whats the rate of ROI? and whats the make of your tuk?

usione wembamba wa reli,gari la moshi hupita!
tmatekwa
#7 Posted : Thursday, July 03, 2008 8:05:00 AM
Rank: Member


Joined: 10/1/2007
Posts: 232
I have been in this thing since 2003 and it all boils down to management. For beginners you must have a mechanically sound vehicle. The newer the better for you will spend less time and money on repairs. Then you must get a crew with the right amount of experience,ie,adequate knowledge of mechanics,accident scene management,peculiar habits of law enforcers on the route of operation,commuter's travelling habits,the powers and jurisdiction of various extortion gangs and their members. Last but not least you must have an incentive plan in place to promote maximum returns. I.e bailing them out on traffic offences,giving the driver or the conductor well defined executive powers. You must know a good mechanic for repairs. It is mandatory for beginners to have mentors for atleast 3 months as they learn the ropes of trade.

Osama bin Laden
JK-Sm
#8 Posted : Thursday, July 03, 2008 10:27:00 AM
Rank: Member


Joined: 7/3/2008
Posts: 2
Im only a month old in the business of matatus. I tried to go for a 'Manyanga' this is after doing research on what works best. Got the crew,after one week sucked one set due to excitment resulting to vehicle damages.Right experienced crew is a must. They must also have PR exellency and craftness to escape the main menace 'Traffic Police' Half your earnings go to these fellows who charge you on flimsy grounds. The business is very good if only the police would do what they are trained to do on the roads and not harass and indimidate people. If you empower your staff to make instant decisions on some occassions. The business is great,fun and addictive.

Jue
Axe
#9 Posted : Thursday, July 03, 2008 11:12:00 AM
Rank: Member


Joined: 11/22/2007
Posts: 44
i hav a friend of mine his is a 29 seater very clean n well supped up,lakini its now on its 3rd engine and 2nd gearbox. Kenyan matatu drivers are a real mess.

He who fights and runs away,shall leave to fight another day.
"You wouldn't know where the boundary was until you got a slap on the back of your wrist"
dijkstra
#10 Posted : Thursday, July 03, 2008 12:30:00 PM
Rank: Member


Joined: 11/28/2006
Posts: 91
-Ensure you have plenty of time to manage it - if you are employed,it may be tough - your crew will always be calling you to let them out of police hooks; maybe by paying court bails,advising them on how much bribe to give to that cop....

-Please buy a new matatu and it'd better if you are buying cash.

-Getting the right crew is mandatory. A friend of mine sold his matatu after he was given 300bob as the days collection...



none
kimiri
#11 Posted : Thursday, July 03, 2008 1:28:00 PM
Rank: Member


Joined: 3/12/2008
Posts: 215
I fully agree with tmatekwa. I have been in the biz for about four years and I can not complain about how I am doing. I ventured into the business to ensure that I had a source of income in case I was retrenched which was quite common in the place where I work. When starting,one can experience very expensive lessons including unscrupulous financiers,crew,mechanics,police etc. With experience,however,the returns can be quite handsome. To me the mat biz is just like many other businesses.


kn
ali
#12 Posted : Friday, July 04, 2008 6:30:00 AM
Rank: Veteran


Joined: 6/11/2008
Posts: 892
Thanks fellow members. tell me one thing,I have a KAP I am being sold for as low as 200k,Nissan QD 32,a KAZ I am being sold for Ksh 890k,Toyota shark,between these two,which should I go for? With KAP,I have been advised to buy it,‘burn it’ as they say and get new things,ati by the time it become new again,it will have taken another 150,so the total will be like 350 and it will be brand new,for the shark,it is ready for work,as in,you get it today and use it kesho. I have an experienced crew and with a nice record,but the challenge is that I am an office person and even if they got arrested,I would not be available for them


I am more than a conqueror in Christ Jesus
For in him (Jesus) we live and move and have our being-Acts 17:28
Juma
#13 Posted : Friday, July 04, 2008 6:50:00 AM
Rank: Member


Joined: 10/12/2006
Posts: 24
What are you willing to risk?

If you are cautious go for the older nissan. However note that u may sumbuka due to frequent breakdowns. But tis a lower risk while you learn the ropes.

A newer model should give less stress when it comes to repairs hence more value. It costs more than twice the price of the older vehicle... a higher risk,just make sure you take insure comprehensively!
ali
#14 Posted : Friday, July 04, 2008 7:27:00 AM
Rank: Veteran


Joined: 6/11/2008
Posts: 892
I guess I am also cautious to put an M in an area I have no experience in,but with 350k,I can still get something and get myself a foothold and some experience. Between city route and middle distance routes,what servers better?


I am more than a conqueror in Christ Jesus
For in him (Jesus) we live and move and have our being-Acts 17:28
tmatekwa
#15 Posted : Friday, July 04, 2008 7:31:00 AM
Rank: Member


Joined: 10/1/2007
Posts: 232
Avoid the shark,unless you are planning to operate on long distance or medium distances. It's spares are very expensive. Avoid kaz. This is a thing that is about to clock 2years,a time when overhaul of major systems is due. It will chew some 100k in the next 12 months,and this is on the lower end. To add salt to injury you will be lucky to dispose it at 600k come same time next year. As for the kap just make sure that the chassis is still intact. Ie no welding no bends no cracks. Be prepared to overhaul front suspension,engine,transmission,electrical and brakeing,engine cooling systems,reinforce the floor and front bumper. Get good body work and interior decor. A music system without the bass speaker.(you may install it latter after knowing your way around.). A video system,some fancy wheels,then viola! You are ready for business. Your 150k may be inadequate. So push a harder bargain,like 120k to 150k. Give them a target of 3k daily. Operate the thing for 12 months and dispose at 300k o.n.o. Best town routes 105,30,12,33 well organised. Most chaotic 46,2,111,8,4,56,and any other route dominated by touts and kissi. Most lucrative 125,102,2,111,110,and any other route not dominated by citi hopper. Most dangerous routes 23,2,102,and any route controlled by mungiki. Frequent hijackings,strikes. The golden rule. MATATU CREWS ONLY HAVE EXPERIENCE ON ONE OR TWO ROUTES. SO DO NOT ATTEMPT TO EXPORT OR IMPORT ANY.

Osama bin Laden
ali
#16 Posted : Friday, July 04, 2008 8:38:00 AM
Rank: Veteran


Joined: 6/11/2008
Posts: 892
@tmatekwa

Wow,this is getting better,thanks a million. Kindly tell me,how much will it cost me to overhaul the thing? There is what they call 'kurudisha kwa jiko' where it comes back shaped,new in all aspects apart from the number plates? Whats the rough estimate? How much will it cost me to put that mat on the road? Lets assume the owner sells it at 130k


I am more than a conqueror in Christ Jesus
For in him (Jesus) we live and move and have our being-Acts 17:28
tmatekwa
#17 Posted : Friday, July 04, 2008 12:02:00 PM
Rank: Member


Joined: 10/1/2007
Posts: 232
You being a novice in the game,you are likely to be taken advantage of by mechanics and brokers. On my part 200k may do. However,you need the help of a mechanic to evaluate what you intend to buy. I suggest that you go for a ready made thing,with the same amount.

Osama bin Laden
Jofa
#18 Posted : Monday, July 07, 2008 2:40:00 PM
Rank: Member


Joined: 6/3/2008
Posts: 29
Go long distance with Molo Line or Great Rift,those shuttles that are managed professionally. Town service? They'll do you in from all directions. Ati cops,mechanics,crew,mungiki,e.t.c Hiyo mathree itakua yako na wao. Only the log book is yours.

Those who say it cannot be done should not get in the way of those who can!
kigee
#19 Posted : Monday, July 07, 2008 8:49:00 PM
Rank: Member


Joined: 2/19/2007
Posts: 1
i tend to think the reason that most matatu dont do well its coz they are not run proffesionally like other biz,take for instance the buses companies that ply the western route they make alot of money per day especially on festive season and weekends but coz of mismanagement after some years they are no where to be found



kigee
mukiha
#20 Posted : Friday, July 11, 2008 8:52:00 AM
Rank: Elder


Joined: 6/27/2008
Posts: 4,114
You cannot rely on one matatu for your financial needs. To make it big,you need to have another regular income stream or start with at least four vehicles like Citi Hoppa and Double M did [a bad idea if you are new in the trade].
Nothing is real unless it can be named; nothing has value unless it can be sold; money is worthless unless you spend it.
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