Uber and Taxify no doubt has created a new business niche for many Nigerians in Lagos and Abuja. You can make money in the business either as a driver, or as a fleet partner by making your car available for a driver to drive on your behalf. You can also make money as a fleet manager by managing car(s) of other individuals.

No matter how you want to participate, there is money to be made as well as pitfalls to avoid.

1. Lack of knowledge: What Uber and Taxify brought is e-hailing technology. Managing intra-city taxi service needs knowledge on car maintenance, human capital management etc. If you lack these, you are at the mercy of drivers and mechanics. A car needs constant inspection to be in operation. Don't forget that if your car breaks down, a driver can get get a new partner within 2 days.
Carry extensive research on the business by talking to those who are doing the business or those that pulled their cars out of the platform before you invest.

2.Wrong car purchase: Allow a certified mechanic to carry out a pre-purchase inspection on the vehicle you want to put on the platform. Don't buy a "walking dead" as a car and drown yourself in perpetual torture of lost investment. E-taxi drivers have their preferences, ask questions! Getting a good driver depends on the type of car you purchase.

3. Future repairs projection: The cars are virtually always on the move. As mileage increase, so will your repair and maintenance requirements. Don't buy a car that will cost you an arm and a leg, when the need for repairs arise.

4. Lack of protection: Comprehensive insurance cover will save you when an accident occurs or the car is stolen. A very good car tracker could be the difference between a sleepless night and good morning. Get both. Avoid stories that touch. The street is rough.


5. Devilish drivers: You are doomed if the driver you employed has a dead conscience. his share of national cake will continually flow from your asset unless you re-possess. Getting a good driver these days on the platform is difficult, as most of the drivers coming on board are those that jump from partner to partner after reaping them off or those looking for desperate ways to survive.


6.Poor partnership documentations: Cross your T's and dot your I's in your documentations. The difference between 'MY' and 'MINE' will be huge when he involves a "smart" lawyer or policeman.

7. Method of remittances: Monthly payment is a "no-go-area" Cash payments are filled with stories that touch. Weekly payments are out of fashion. Make it seamless. Use daily. Use online banking.

8. High remittances: This is the harbinger of perpetual agony. 120K per month is a fair deal on 1.5 million 2004-Toyota corolla. Your ROI is sorted within 13 months. Trust me, it ain't easy on the streets for the drivers too.

9.Rental plan after 1 year: The full effect of wear and tear shows up after year 1. Implement the hire-purchase deal after first year. This is your leeway to peace of mind as you enjoy a season of profits.


10. Heartless mechanics: Your car will need constant repairs and maintenance while in operation. Monitor who repairs your car and the replacement part they procure. A 'phony' mechanic can replace an AC sensor and bill you for the entire AC system.


twitter.com/autorandinfo

Great Piece

Well Written & Very Educative

Informative

Very educating

Mechanics and drivers are the two major determinants for its success or failure. Anyone who “solves” these 2 “problem” factors will likely succeed in this business.