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Boda Boda Business [Need Advice]
Scott Smith
#1 Posted : Tuesday, January 24, 2012 9:32:46 PM
Rank: Hello


Joined: 1/24/2012
Posts: 5
Hi Wazuans, a friend of mine wants to venture into boda boda business around Juja area. WHat he intends to do is to buy a motorbike(for around 70k) and hire a worker to run the bike for him. Is this a good investment? What kind of hurdles should he expect to face and how can they be avoided/solved. Your input will be highly appreciated.
seppuku
#2 Posted : Wednesday, January 25, 2012 1:16:49 PM
Rank: Veteran


Joined: 5/11/2010
Posts: 918
Scott Smith wrote:
Hi Wazuans, a friend of mine wants to venture into boda boda business around Juja area. WHat he intends to do is to buy a motorbike(for around 70k) and hire a worker to run the bike for him. Is this a good investment? What kind of hurdles should he expect to face and how can they be avoided/solved. Your input will be highly appreciated.


One piece of advice: buy the Indian bikes. TVS Star2 or Bajaj Boxer are good choices. Very economical. These Chinese things guzzle too much and that affects profitability. The most important thing however is to find a trustworthy rider. Assuming you get into a flat rate agreement with him so that he gives you KES 300 everyday, which I understand is the average (at least where I live), you can expect to break even in about 8 months. Maybe 10 or 11 if you factor in servicing costs. Biggest challenges include not getting your agreed flat fee on the basis of (possibly faked) arrests, "kazi ilikuwa mbaya" and so on. Also, an unscrupulous rider can sell your good parts and replace them with bad ones. Make sure you insure your bike too and hire a licensed fellow to operate it. It'll help you stay out of trouble with opportunistic law enforcers.
Learn first to treat your time as you would your money, then treat your money as you do your time.
Kaka M
#3 Posted : Friday, January 27, 2012 2:01:37 PM
Rank: Member


Joined: 4/18/2011
Posts: 459
@ Seppuku has mentioned some important points. To add onto his points, get a guy who is careful otherwise with riding or he will be going through potholes just because he can, then you constantly have repair costs.
Then you may need a proper agreement in writing that you are hiring your bike on the following terms. Lately, a number of getaway means for robbers are mo-bikes and also some passengers have had some nasty experiences with riders. You wouldn't want a motorbike registered in you name being sought for being involved in a criminal activity. Wish u all the best. In another thread here talking of how guys made their first million, one guy amongst other things hired out bicycles at Juja so there is already a success story.
Elder
#4 Posted : Friday, January 27, 2012 3:24:00 PM
Rank: Elder


Joined: 9/7/2010
Posts: 2,148
Location: elderville
After considering all that posted above, unless you get an insurance company that is ready to cover injuries to the rider and passenger ( more so when the passenger is not wearing a helmet) then stay away from this business. One accident can leave you counting your roadrunners or dog Bruno as the only assets you could call your own.
He who can express in words the ardour of his love, has but little love to express. - Petrach, Son. (That men by various ways arrive at the same end. - Montaigne, The Essays of.)
Scott Smith
#5 Posted : Saturday, January 28, 2012 5:52:08 PM
Rank: Hello


Joined: 1/24/2012
Posts: 5
Thanks for the contribution guys. I think Elder raised a valid issue regarding insuring the rider and the passenger. Although law suits are not that much of a big deal in Kenya, if an uninsured passenger was to suffer any form of physical harm, especially paralysis or brain damage, that would be the end of the business and most probably any other assets the operator owns. On the other hand, getting an insurance company that covers comprehensively is an uphill task. The premiums might be too high to make it viable. Does anyone know of any such companies/contacts?
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