Equity Finance Required for Expansion of Urban Transport in Nairobi

There is an overall need for extra investments in Urban Public Transport. I’m in need for a partner to eject the much needed expansion funding and share profit on 50/50.

The transport in the urban area of Nairobi is a lucrative undertaking with a very high return on investment.

The targets are Nairobi’s middle and lower middle class who have to commute on daily basis from their estate to their workplace in the city centre or the industrial areas.

The income is the daily net transport collections less the costs of running the transport system.

We expect the expansion to increase the income to over 50% within the course of one year investments increasing by 100% in the second year and 150% by the third year.

We certainly believe initial injections of $50000.00 and increasing the same to $100000.00 by the second year and 150000.00 by the third year will enhance, increase and fully build the business capacity.

The offer to the investor is 50% by 50% from the initial first year to the second and third year respectfully.

Direct and Indirect Competitors
Direct competitors are other scheduled commuters service providers in Nairobi. Some are registered as SACCOS, others are Limited Liability Companies and classic intercity road transport companies operating in Nairobi, as well as individual transporters using vehicles and busses. So far, they have generally failed to provide safe, reliable and genuine quality services to their customers.

Low vague services being the order of the day even for the reputable companies, services remain one of the most unpredictable and unreliable sectors in Nairobi, coupled by chaotic jams, so that commuters can spend several hours wasted on road.
Problems which can be attributed to lack of a clear focus and vision, poor planning, organization and management, with bus owners being interested in making money with no value for the customers who is supposed to be king.

The problems are further worsened by the fact that operators have failed to look elsewhere for solutions and are rather satisfied with the statuesque rather than seeking changes.

Our indirect competitors are the Tax Services Provider, Tuk-tuk and motor cycles’. Who have almost similar problems with the Sacco’s operators and bus companies and are characterized with high fares and aged fleets with a general perception of insecurity being very high. It is also one of the most unreliable means of transport in Nairobi.

Our Advantage
We aspire to be 5 to 15 percent cheaper than our competitors offering the same services, yet at higher quality.

Our passion to consistently deliver genuine quality, pay great attention to even the slightest details, offering world class standards of service excellence makes us better placed to satisfy the needs of our target group offering better and more personalized customer service than competitors.

We are building a brand which has safety and reliability as its primary focus.

Therefore, considerable resources would be channelled in terms of both constant rigorous training's and maintenance to make sure that we achieve a 99.99% mark for safety, reliability and efficiency which no competitor can beat.

Our aim is to make sure that each trip leaves on time, arrives before or on time with no record accident or incident in our operations.

Another advantage is that by using buses rather than our competitors our commuters would be able to reach their destinations relatively faster than those going by our competitors and our customers will have value for their money.

Our target customers demand safe, reliable, efficient and comfortable means of transportation means of transport and have the purchasing power to pay for even the best services. Unfortunately, the current market has failed to provide services which meet the expectations of their clients and have consequently failed to satisfy their needs appropriately leading to a generally poor customer perception of commuter bus services.

We intend to come in, in order to exceed people's expectations and providing them with world class travelling experiences consistently and which keeps getting better each time people use our services.

Creating a strong perception of service excellence and a transport brand they can always rely on.

We would make money through the direct payment of prescribed fares in exchange of bus commuters by us from point A to point B safely and on time. We equally intend to partner with some reputable Company’s so that we can provider Workers Transport Services, which can be a very lucrative Business. Given that this is an agreed contract basis and a sustainable way of sustaining our Business to the next level.

I Have over 20 years of Human resources management both at Profit making Ventures and at Civil services level. Am a thorough trained resources and administrations and I have participated in various High key managerial seminars, for improved productivity.

For over 3 years, I have carried out market research and on the field studies in the in Urban road transport sector in Nairobi where on several occasions I experienced the bad travelling conditions myself when travelling with the feeling I am not getting value for what am pay for.

I have spoken with many people in order to understand their needs and how they could be met I have read a lot about the road culture in Nairobi. Public Transport Sector, the stakeholders in the sector have shared their experiences and what they think the problem is and how it can be solved. And I believe I have what it takes.

This caused me to look for tangible answers which have enabled me to come up with several concepts targeting the various classes of people in society.

The requested funding is needed for the following:
• Total vehicle acquisition cost=$50,000/-
• Total Fuel and services Station leasing and Deposits, Insurances:$50,000/-
• First initial supplier from the dealer of Petrol and Services Products:-$50,000/-
• Staff training and costumes design=$2500/-
• Operating licenses,Rates,Rents,Insurances:$2500/-
• Miscellaneous=$5,000/-
Total= $150,000/-

Only one round of funding is needed.

For Debt investor, Overall loan amount is $150,000/- and investor will receive 40% returns on his investment after two years.

For Equity investment, investor will receive 25% share of the company with his investment refunded after 2 years with no interest.

An experienced silent investor will be preferable but who will play the part of a consultant for the idea.

Debt investor will receive $40000 by the end of the first year and the remaining $120,000/- by the end of the second year. Equity investor will receive $40000 by the end of the first year and $120,000 by the 4th month of the second year.