Hi everyone, I hope you have been enjoying every article on this platform. What do you think? Are they helpful? Is there a particular entrepreneurial endeavor you would like to make an article on? Then don’t hesitate to get us!! Give us your suggestion by just writing in the comment box. Lately we have written about running farms, be they livestock or agriculture. But that’s not all an entrepreneur can venture in. Yes, farms are very lucrative but if you are not a farm lover, you can try other options, such as a passenger transport service business.
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This option is very good for heavy fund investor, but it also work for other investors depending on the passenger transport service sector, you choose to invest in.
Just decide which passenger transport service sector meets your budget and once you have that figured out, you can start at once.
Advantages of a Passenger Transport Service Business
- The passenger transport service sector in Africa is very lucrative, due to the rapid rate of urbanization in most countries. People are moving from village to cities in search of greener pasture. As a result there is a great demand for better passenger transport services.
- This business sector is highly solicited in Africa, taking into consideration the simple fact that most of its inhabitants do not have the required means to purchase a personal car. It is also worth to note that, the roads in most of these countries are poorly constructed.
- Insurance plays a great role in this sector. All cars, boats, bicycles, tricycles involved in this business, need to be insured. This secures your profits, as well as reduces the risk of severe casualties in your business.
Types of Passenger Transport Service Businesses
Why I call it passenger transport service, is simply because we have other forms of transportation, that doesn’t involve human. This includes trucking, goods delivery, livestock transportation, specialty transportation and much more.
However, the passenger transport service sector in Africa can be further divided as seen below:
Commercial buses are highly solicited today in Africa for movement of persons within and without country borders. Indicating to you the huge business opportunity this sector is offering.
Flight tickets for inter-city and region travels are expensive thus, many companies and individuals turn to solicit with ease commercial bus transportation services.
This commercial bus transportation services also permits passengers, to carry light goods over long distances at a cheaper rates.
Taking into consideration that this business is capital intensive, you will have to decide if you will go in for used or new buses. And the cost ranges from $15000.00 to $50000.00
Here is a business opportunity that is highly unexploited, in Africa. You can take advantage of this business, if you leave in an area with large water bodies. This can be very useful in areas which are characterized with huge road traffic.
The investment figures here are demanding.
Motorcycle Taxis and Tricycle or Auto Rickshaw
If you have a limited budget and you are considering investing in the passenger transport service sector, this is good business for you.
Rickshaws however are neat and less accident prone compared to motor cycles.
Motorcycles still remain one of the highest import demands from China and India to Africa.
You can earn minimum $25.00 a day from a single motorcycle and to buy one in the range of $500.00-$1500.00. A rickshaw on the other hand can earn minimum $50.00 a day and its cost is between $1500.00- $4000.00.
Taxi Cabs and Private Hire Cars.
Private hire taxi cars focus on serving customers who book for their services through phone calls and Other Applications (example taxify and uber), unlike taxi cabs that pick up customers along the road.
They make a daily earning of $50.00-$100.00 including the 20% used up for fuel. To purchase a taxi cab of your choice will range from $5000.00-$15000.00.
Ok guys those are the different passenger transport service businesses you can invest in.
Right now I would give you options that are applicable to all four of this transportation types. You could choose which one you want to invest in and then apply the tips so you know how to go about the business. These are options of the various turns you can give to your business. I will use a car as an example but it can be a motor cycle, rickshaw or a bus depending on your business type.
- You can choose to buy the car and commercially choose to drive it yourself as your full time or part time job or business.
- Opening your own transport company, can be a good option. This will suggest you buy cars, employ drivers to drive them commercially on your behalf for a salary. You could pay them monthly at a standard price or according to the mileage they cover. You are free to choose a payment plan.
- Renting of luxury cars, motor bikes, buses or rickshaws can be good business as well. People use a lot of these at their occasions or group outings. This is especially very lucrative if your country is has touristic site.
1. Do your feasibility studies:
Have a clear and concise idea of fuel cost, calculate the quantity of fuel needed over a specific km coverage, calculate the expected cost of weekly maintenance of the vehicle, and as well consider the routes you plan to cover.
2. You must analyze and develop a plan and strategy against the business challenges:
You must treat this with caution and not tolerate negligence. Ensure proper maintenance for your cars, avoid employing reckless drivers, ensure good passenger relations, and buy durable car brands. Ensure proper training and personal growth of your team.
3. Register your car and insure it:
If you want to run your own company you need to register your company at the appropriate place. You also need to insure your car and pay for all the other necessary documents.
4. Start small:
Don’t be in a rush to buy many cars. Start with a few and gain experience. You don’t want to start a business that will be difficult for you to manage.
So there you have it dear entrepreneur, all you need to know about the passenger transport service business.
If you are ready to brace the next level of your life, please do.
And don’t forget to drop a comment, if this was helpful!