Investing in the matatu business is no mean feat despite it being a lucrative industry. Road transport has always been the backbone of transport and savvy investors have always been on the lookout for capitalising on this gap.
A trip to downtown Nairobi on a hot, sunny day treats you to a lively cocktail mix of nonstop hooting, whistleblowing, and touts banging the sides of vehicles as they call out for passengers.
This is also where Nicco Movers Ltd has built its reputation as a dominant player in the transport industry They are one of the most revered matatu Sacco in Nairobi that plies the Githurai 45 route through Thika Road.
In a previous interview, one of its drivers revealed the details of its operations, including the cost of a bus, the working conditions for drivers, and their expected salary range.
The 46-seater bus driver identified as Stevo has been in the transport industry for 12 years, since 2012. He shared that he starts his day as early as 5 am and wraps up his day by 9 pm. He works 5 days a week.
Stevo explained that to work such a job requires passion and self-belief in oneself. In his case, when growing up he always wanted to become a bus driver.
He said that the vehicle’s drivers are paid daily wages amounting to roughly Sh. 1500. On bad days, the wages can not go below Sh. 1000. Based on these figures, the drivers earn well above Sh. 25,000 per month.
A brand new 46-seater bus costs about Sh. 7 million. Stevo shared that he makes up to 11 trips a day with his bus. Even during peak hours, Nicco Travellers charges a flat fare of Sh. 70.
He noted that this pricing strategy is a deliberate decision by the management to keep customers happy and ensure retention.
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“From Monday to Friday, the vehicle can earn its owner between Sh. 13,000 to Sh. 15,000 per day. This is after deducting fuel costs, labour wages and additional expenses,” he said, adding that during the weekends, the bus can fetch around Sh. 9,000.
Stevo shared that, aside from regular expenses, the vehicle owner covers costs like insurance, TLB route licenses, and County Government licenses through the Sacco.
The young driver shared that he has experience with long-distance vehicles but mentioned that the challenges they come with didn’t suit him, which is why he opted to work with short-distance vehicles instead.
“In Nicco Travellers, discipline comes first. This is our office so we cannot risk ruining our business since we need these customers,” Stevo concluded.
Credits: Story za Uber