Keke Hire Purchase Business In Nigeria

Keke Hire Purchase Business

In the case of Keke NAPEP Transportation company is flourishing in Nigeria right now. Keke, which is popularly known as Tricycle is a lucrative business in the country. As Nigeria’s population continues to grow, so does the necessity to relocate people from one area to another. The government’s transportation efforts don’t seem to be able to stop the failures. Bus stops and train terminals are full of evidence of inadequate transportation options. In Lagos, for example, it’s not uncommon to see individuals dangling from trains, commercial buses, etc.

There is no thrill in risking one’s life for the sake of getting home; the urge to go home overrides the danger of hanging on to a moving car. Three-wheelers, also known as Keke Napep in Nigeria, constitute the most common mode of transportation on the streets of many cities in Nigeria. Keke Napep grew increasingly popular when the Federal Government banned the usage of motorcycles (known as okada) in major towns.

See also: How to start a shoemaking business in Nigeria

Is the business profitable in Nigeria?

The Nigerian Keke business is not only profitable, but it is also very straightforward to get started with. Kabu-kabu business and okada have become less popular over time, giving the Keke a standout amongst the best. Old and young alike have turned to the profession as a key source of income and riches.

These tricycles can be found all across Nigeria from Lagos and Abuja to Enugu and Kano, and they are all eager to transport you from one place to another. But you might be wondering if you can make money in Nigeria from the Keke business. Not only will you learn how much it costs to start a business, but also how to raise money to get started.

How much is made from the business?

Profit can be made from Keke hire purchase business in several different methods.

1. You may operate a Keke Napep personally in the most typical method. You may earn N6,000 a day and an average of N130,000 monthly with this method.
2. Keke Napeps are available for purchase, and you may employ a reputable individual to drive it for you, for a daily fee.
3. The Keke Napep transport organization is another option. For example, you may acquire about 8 tricycles, which would then be driven by qualified and experienced drivers. It is possible to pay drivers monthly.
4. Instead, you may start a Keke Napep rental service, whereby you buy a couple of tricycles and donate them to the Keke Napep riders associations or a specific Keke rider in need of transportation assistance. They will continue to make monthly payments until they have recouped their initial investment and some interest.

What is the price of a Keke (tricycle)?

There are several elements that affect the pricing of a tricycle in Nigeria. A decently used car costs between N400,000 and N600,000. Your service quality may be improved if you’ve established yourself as a reliable source of revenue and amassed sufficient funds to develop your firm. Prices range from N900,000 to N1,000,000 for the new Keke Napep.

Best brands of Keke (tricycle)

1. Suzuki

As a worldwide business, Suzuki makes a wide range of products including four-wheel-drive vehicles, cars, motorbikes, and tricycles and others. One of the most popular tricycles on the street is Suzuki. Durability, strength, and efficiency are its hallmarks. Buying this brand of tricycle has the added benefit of having easy access to spare parts everywhere in the country.

2. Bajaj

Throughout the Middle East, Africa, Latin America, and South and Southeast Asia, Bajaj Auto has established itself as a well-known Indian automobile company. It is the world’s fifth manufacturer of two- and three-wheeled vehicles. Despite its low price, the Bajaj tricycle is robust and can withstand adverse weather conditions.

3. Piaggio

Producer of two and three-wheeled vehicles in Italy, Piaggio. To save money on gasoline, Piaggio tricycles have a remarkable capacity to conserve fuel.

See also: 10 Steps to start a video game business in Nigeria

Steps to start a Keke hire business in Nigeria

1. Business Plan

Include in your company strategy all of the money you’ll need to spend. For example, you have to register your vehicle before you can get on the road. Get a tricycle license plate number and join the motor park union. It costs N40,000 for the number plate registrations, but the motor union enrollment is less expensive. To be a part of a park or unhook is to be known and have others rush to your help in an incident.

Also, you need to know which routes you’ll be taking. This tells you which park or union to join. It also provides you with an indication of how much money you may expect to make each day based on the route.

2. Purchase Keke from a certain brand

A durable product is preferable, particularly when it comes to mobility. It should be a brand whose components are readily available. While you may easily break even with a moderately used Keke, consumers don’t appreciate moderately used Keke. As a result, people prefer rip rubber Keke since it will endure longer than the brand new ones.

Due to the nature of your business, you need to strike a balance by purchasing a pretty well-used Keke that has a good body and a reliable engine.

3. Get A Good Driver

Employing a driver requires you to have the greatest managing abilities in order to prevent being taken advantage of. You need to be aware of the potential difficulties that might arise on a daily basis. You should look for drivers who can be controlled, as this is one of the most important aspects of the company.

In business, the sooner you reach even, the better off you are financial. Most hire buy business owners choose moderately used vehicles since they can quickly return their investment through revenues. First-time riders should be allowed to pay 20%.

4. Reach an Agreement

There must be a legitimate and well-written agreement. Make sure you have a written agreement that all parties sign, regardless of whether the buyer is a blood relative. No less than two guarantors, either family and friends who are doing well or public workers, are required to accompany the cyclist.  To ensure that your cash will be returned in the event of a default. There’s no warranty because it’s a hire-purchase arrangement.

5. Inspection

Some individuals believe that married Keke buyers/riders grumble a lot because of the duty before them and that they should not be allowed to participate in Keke rides. Young guys who are just beginning out in life or those who live with their parents are believed to be the greatest candidates because of the limited amount of responsibility they have in their hands.

For safety reasons, you should always check your Keke for damage or maintenance issues. Employ a supervisor. Use the branch’s chairman as your manager. Your firm will be well-managed by them because of their familiarity with the industry.

6. Maintenance

Keke Napep’s company suffers from a lack of management. A lot of people drive it for a long period without bothering to consult a Keke mechanic if it’s in good working order. Routine servicing on the equipment increases its life and reduces fuel use. For example, if the engine is in excellent shape, you may get away with spending just N2,000 on gasoline for the entire day, but if it is not, it will need more fuel. Do not ignore the maintenance since it is inexpensive and components are readily available.

See also: How to start an underwear business in Nigeria and make profit

Conclusion

Getting into the Keke hire purchase business may be a highly lucrative venture. You don’t have to lie in bed and moan about the lack of employment when you can start a company and become a billionaire in no time. As long as you follow the procedures outlined above, the sky is the limit when it comes to this lucrative company.