Starting a ride-hailing business in Kenya today necessitates extensive research into topics such as capital, drivers, and the best vehicle to use.
When selecting a vehicle with which to conduct business, it is critical to consider factors such as;
The goal of any business is to maximize profits while minimizing input costs. The same logic applies when buying a ride-hailing vehicle. What determines whether a vehicle is cheap or expensive?
Most ride-hailing vehicles have similar characteristics and thus have similar purchase prices.
This is the rate at which an engine consumes fuel, measured in miles per gallon or litres per kilometre. The vehicle's engine type determines how much it consumes. With high fuel prices, it is prudent to select a low-consuming engine.
Different types of gasoline, diesel, or petrol are used by different types of cars. Some use liquefied petroleum gas (LPG), which is preferred in the ride-hailing industry.
The nature of the cab business necessitates 24-hour availability. Vehicles suffer from wear and tear as a result of their frequent use.
Consider how long the car will last and in what condition it can be resold for a profit.
Some models are inexpensive to purchase but expensive to maintain, while others are expensive to purchase but inexpensive to maintain, such as a Nissan. Other models, such as the Subaru, are more luxurious and intended for personal use rather than cab services.
A car's appearance makes the client feel warm and comfortable. Subtle colours such as grey and black are preferred for business, rather than bold ones such as red and yellow.
The Toyota Vitz is a popular compact vehicle in Kenya because of its utility, fuel economy, and dependability, which are the key features of a cab vehicle. The Vitz's hybrid drive allows it to run on both gasoline and electricity. The import price of the Vitz varies according to the model. The fuel consumption of the vehicle is an average of 7.8 litres/ 100 km, which is low and affordable compared to other vehicles.
Nissan's Note is a supermini/subcompact hatchback or mini MPV that is manufactured and marketed globally. The first-generation Note, introduced in 2004, was primarily marketed in Japan and Europe, and was manufactured in Japan and the United Kingdom. The import price of the Note is between 1 and 2 million ksh, but one can negotiate for lower prices in the case of a used Note. Fuel consumption ranges from 14 to 26 km/L. The capacity of the tank: 41 liters.
The Suzuki Alto is a kei car manufactured by Suzuki since 1979. The model, which is now in its ninth generation, was introduced in 1979 and has been built in many countries around the world. A brand new Suzuki Alto costs between KSH 1 million and KSH 1.5 million depending on the trim, model, and period of purchase. An Alto's fuel consumption ranges between 22 and 37 km/ liter.
The Mazda Demio is a small subcompact/supermini/B-segment car produced by Mazda since 1996. While sold in four generations in Japan, the Demio nameplate was rarely used outside of Japan, where it was usually referred to as the Mazda2. The import price of this vehicle is dependent on the model but generally ranges from 1.2 to 2.2 million ksh.
The Honda Fit is a five-seat front-wheel-drive hatchback. It has a 1.5-liter four-cylinder engine with 130 horsepower and a six-speed manual or continuously variable automatic transmission. The Kia Soul, Toyota Yaris, and Chevrolet Sonic are among its rivals.
Ride hailing is a delicate business, and much must be considered when selecting a suitable vehicle for the job. As a startup, investor, or individual looking to get into this business, make sure you choose the best vehicle for your needs. Ride with Mobi once you've chosen your vehicle. Look out for our next blog on the best motorcycles to use when starting a ride hailing business.