Investment: Matatu

[Euler]

@Trojanex

I only know of one from a friend of a friend. Alichukua box kutoka kwa mhindi on loan and he was to be paying 100k per month. Things got tough and he didn’t manage the amount monthly. Ikabidi atrain kuwa matatu driver ajiendeshee mwenyewe but kikaumana bado. He reduced the seats from 14 to sijui 9 seater yenye wanaitaga shuttle. Kikaumana pia. At this time he was complaining of sleeplessness due to stress. Mhindi akampea 14days auze gari alipe balance ama arudishe gari story iishe. Akatafuta mnunuzi ikawa noma due to the short window amepewa na mhindi. How the story ended sijui all I know is that saa hii ukimwambia story ya matatu anaezaendea machete akukatakate.

We cannot judge the business with his case though.

Sad but hilarious :D:D:D. 100k a month is quite a lot.

[Euler]

@sani

Cooperative bank wakitaka kufanya biashara ya matatu waende wafanye wao wenyewe, wasikudanganye wakupatie gari na mkopo uwe unafanya biz ya matatu uwapelekeage pesa
Kila mwezi

I think you once worked at Coop-bank if I’m not mistaken. Hebu tupe insight ya financing Yao and default rates

[Euler]

@wedogo3366

I agree. The case supports @propesa’s advice that matatu mpya ni mbaya.
It appears ilikua matatu mpya. Why did he struggle? - Repair issues? driver/conda? bad route? Bad timing (corona) Police? simply low earnings?, did he depend on the income for his needs and paying the loan?
Would the condition be different if he bought a cheaper and locally used vehicle in cash.

Mbona matatu mpya ni mbaya? Initial cost?

[Gikonyo]

Kila biashara iko na upande mzuri na upande mbaya,wewe jaribu inaweza kukubali

[wedogo3366]

@Euler

Mbona matatu mpya ni mbaya? Initial cost?

Probably ni high initial cost and high depreciation. Yearly depreciation inareduce as a vehicle ages.

[x-trail]

nunua ujoin the club just know wewe ndio utakua unalipwa as the last person

[Aquaman]

Terrible venture.
My mum bought one 20 years ago,I think she spent 650k on it. Dealing with normal kenyans is already a challenge on its own,now dealing with drivers? Ended having one of my uncle’s as the driver to reduce the leakage in cash collections.That whole stint didn’t even last two years.Got rid of the money pit and forgot about it. You will feel busy and look busy because of the shit you will be dealing with daily but you will never get off the hamster’s wheel.

If you are really looking for financial freedom,the best thing is aim for a business with moderate to high barriers to entry.Spend a lot of time thinking of as many barriers that can prevent others from following you, that’s when you will find a great business.

[cortedivoire]

Ile pesa unapata weka 40% ikue budgeted kwa psychiatrist atoe pressure ya biz. Hio pressure utapeleka kwa nyumba na main hustle ukosane na kila mtu.
[ATTACH=full]390877[/ATTACH]

[Oxygen]

@wedogo3366

I was thinking of Meru - NBI route. Anyone in that route?

Chukua hiace box, pimp kiasi na uweke debe/hewa. Peana kwa Mekina Sacco itambe meru-nairobi na ungonjee 3500-5000k daily on a normal day na upto 8k kukiwa na ‘pooo’. Lakini mat ikianza kuchapa doo itashuka of course

[Trojanex]

Mzee, look no further. Kuna Toyota hiace - box hapa unawezashinda leo and 100m on top. Seems your dream was perfectly timed. Lotto sio ndotto[ATTACH=full]391089[/ATTACH]

[ChifuMbitika]

The key to success in this sector is to have a good honest driver. Everything else is constant.

[Shaka]

Good biz is one you learn a skill and graduate to set up a biz, for example a matatu driver who later owns his own matatu. A mechanic who gets to own his own garage etc, this idea of employing people to make you money in an industry you know little about, you learn the hard way.

[Muthafari]

@Shaka

Good biz is one you learn a skill and graduate to set up a biz, for example a matatu driver who later owns his own matatu. A mechanic who gets to own his own garage etc, this idea of employing people to make you money in an industry you know little about, you learn the hard way.

People who drive their own matatus seem to do relatively well

[mbwakali]

@Oxygen

Chukua hiace box, pimp kiasi na uweke debe/hewa. Peana kwa Mekina Sacco itambe meru-nairobi na ungonjee 3500-5000k daily on a normal day na upto 8k kukiwa na ‘pooo’. Lakini mat ikianza kuchapa doo itashuka of course

Maintaining a box is also very expensive. It’s engine 1KD, 2KD ,d4d, TR etc is akin to that of a prado… Nimeskia owners wanalia sana side ya maintenance costs. Can’t be compared to a shark. They are a really nice and fast though. Abiria tutaenjoy

[ndume]

@wedogo3366

I was thinking of Meru - NBI route. Anyone in that route?

Watu meru hawapandi matatu mzee. Unique shuttle zote ni mpya. That is a lucrative route

[Trojanex]

@Muthafari

People who drive their own matatus seem to do relatively well

So those who drive other pple matatus don’t do well?

[Muthafari]

@Trojanex

So those who drive other pple matatus don’t do well?

It’s just a general observation. Former driver who own matatus even tend to stay longer in the business. Just like people who drive their own matatus.

But off course they are exceptions… Unaeza angukia a good matatu crew and Sacco.

[kipuke]

@Shaka

Good biz is one you learn a skill and graduate to set up a biz, for example a matatu driver who later owns his own matatu. A mechanic who gets to own his own garage etc, this idea of employing people to make you money in an industry you know little about, you learn the hard way.

True! Most of these sob stories are of those who hired people to do the work for them. Yao ilibaki ati kungojea pesa ikuom.

Farming by telephone wont work or might work
Operating matatu by hired hands wont work or might work
Running a startup biz, any startup biz, by proxy generally wont work.

[mikel]

@ChifuMbitika

The key to success in this sector is to have a good honest driver. Everything else is constant.

True, my maternal grandpa has successfully run a matatu business from the 70s hadi sai. He moved from buses to “face me” and now " nissan" . Operation has always been in Western Kenya…the furthest has always been kitale kakamega or mumias kisumu but its mostly mumias/ bungoma kakamega.
I observed a few reasons why he has lasted for so long in the industry
1. He only uses new matatus
2. Same trusted drivers…I know one
Who has been there since I was born in
The 80s. Drivers take full charge of the matatu including insurance and service.
3. He owned a garage and a body building/ fabricating workshop
4. Sundays were for service
5. Matatu only operated for 3years then sold regardless of the condition.
6. My uncles were all heavily involved in the businesses either as managers, working at the garage or drivers esp when loan is still being paid…and installments were always finished within 1year
7. He never expanded the business, always maintained a small fleet of less than 7 matatus at a time…but invested heavily elsewhere like real estate and commercial farming. He’s now 97 with 2 matatus still under his name…all my uncles are now running their own matatu businesses with their sons ( my cousins). All my male cousins are trained mechanics…its a rule in that home, doesn’t matter whether you are also a teacher or a doctor but your first formal training is in a metal workshop and a motor garage.

[ChifuMbitika]

@mikel

True, my maternal grandpa has successfully run a matatu business from the 70s hadi sai. He moved from buses to “face me” and now " nissan" . Operation has always been in Western Kenya…the furthest has always been kitale kakamega or mumias kisumu but its mostly mumias/ bungoma kakamega.
I observed a few reasons why he has lasted for so long in the industry
1. He only uses new matatus
2. Same trusted drivers…I know one
Who has been there since I was born in
The 80s. Drivers take full charge of the matatu including insurance and service.
3. He owned a garage and a body building/ fabricating workshop
4. Sundays were for service
5. Matatu only operated for 3years then sold regardless of the condition.
6. My uncles were all heavily involved in the businesses either as managers, working at the garage or drivers esp when loan is still being paid…and installments were always finished within 1year
7. He never expanded the business, always maintained a small fleet of less than 7 matatus at a time…but invested heavily elsewhere like real estate and commercial farming. He’s now 97 with 2 matatus still under his name…all my uncles are now running their own matatu businesses with their sons ( my cousins). All my male cousins are trained mechanics…its a rule in that home, doesn’t matter whether you are also a teacher or a doctor but your first formal training is in a metal workshop and a motor garage.

That’s a good family tradition