Matatu business has several advantages and disadvantages. This type of venture has some hidden challenges no one would tell you until you until you join the bandwagon.
Sometimes I feel telling someone,”stop”,after seeing him take a huge bank loan to start matatu business…but I wait until he knocks himself down then I repackage myself to give him facts. Away from that, here are advantages and disadvantages of matatu business
Advantages
Easy to start
Matatu business is not hard to start as long as you have money to buy a matatu, pay for insurance, PSV license and obey the Michuki rules. But the real problem comes the vehicle hits the road.
Profitable
Matatu business is profitable and can make you a millionaire, but you must have solid management skills to penetrate the sophisticated industry.
Disadvantages
Harassment from police
If you don’t meet the Michuki rules, you definitely have to face the wrath of the police. Even if you meet the rules, parting with something is a must.
Survival of the business lies on the conductor and driver
For the business to survive you have to employ a conductor who doesn’t eats less and submits more. But it’s unfortunate that matatu owners take home less than half of the profits generated from the business.
What nowadays people do is, have their matatus registered in SACCOs plying long distance routes. This way, they prevent conductors from pocketing most of profit.
Wear and tear
Since most of the drivers know that the vehicles do not belong to them, they will drive with little care, leaving the vehicles in bad condition. It’s advisable you employ a driver who can take care of the vehicle.
Sophisticated
Matatu business is one of the most sophisticated businesses in Kenya. When you own one, you have to sacrifice your sleep as you listen to issues raised by your staff.It’s not an easy business, I can assure you,moreso in issues to deal with accidents,police and carjacking. But all in all, there is no business that lacks challenges.
Ideally,these are the most common advantages and disadvantages of matatu business.If you wish to start,please do.
