Taxi driving is a very popular business in Abuja. Kabukabu as it is popularly known employs people in their thousands within Abuja and its environs. Many graduates who are not employed yet venture into this business to make ends meet. ADEOLA TUKURU reports.
The taxi business provides the cab man with a daily income of between N2,000 to N10,0000 thereby providing for his basic needs.
Yusuf Mohammed, 32 an Abuja cab driver who came from Kano leaving his family behind said, If you are driving taxi in Abuja and you are careful with your expenditures, you could live better than most of the civil servants who depend solely on government for their income.
The taxi business is a good one as it has helped greatly in reducing the crime rate in Abuja and Nigeria.
While recounting to Business Starter when he was a staff of one of the leading construction companies in Abuja until he was laid off late last year, he said he used his entitlement to purchase a fairly used Volkswagen golf as it is the most popular vehicle for this business. He said life would have been hell for him, if not for the income from the taxi.
Many civil servants engage in this business to augment their fuel money and other basic bills at home.
Yusuf, who resides in Suleja, explained that while he carries a minimum of four persons from Suleja to Wuse and same on his way back so he earns about N3000 daily .
The taxi business is in two categories- the regular ‘Drop’ and ‘the Along’. The regular drop pays less but keeps the car in a better condition as compared to the along which pays more but gets the car worn out on time. Along, according to him gets the vehicle over stretched.
In the case of the drop, the car picks a person at a time and will not take any other passenger until the former has alighted, but the Along allows you to carry as many as you can and they keep alighting along the road just as the name implies.
A popular along route in Abuja is The Banex- Secreteriate-Area 11-Apo bridge route. Every fare on this along route is between #50 to #100 but for the drop, the minimum fare is #200 per drop.
The taxi business has some great prospects which includes making daily income,being a boss of your own as it gives you the leverage for self development since you are your own boss so you can work at your chosen pace.
The taxi driver meets all classes of people daily giving him avenue for contacts, links and firsthand information.
He said he initiates a discussion and like every other passenger, he shares from their knowledge and gets enriched with information for his self development.
The business with all these prospects has numerous challenges, the societal view of a taxi driver is one of such challenges. the society holds a wide view that a cab man may be a not too refined person as some may have acted in manners deserving of such view.
The challenging state of the economy has affected it greatly. According to a good number of our respondents, passengers do not mind the current fuel price of N145 per liter, they still want to pay the old amount they paid for each trip when it was N87 per litre.
Another challenge is the naira, dollar controversy, this has increased the cost of maintenance of the cars as most vehicle parts are imported.
Yusuf also stressed the challenges they face from Vehicle Inspection Officers, Federal Road Safety Corps officials and the police who are constantly at the trails of taxi drivers looking for any slightest avenue to extort money from them under the guise of law enforcement.
The National Union of Road Transport Workers, Agbero, is another challenge before this young energetic and vibrant drivers but theirs is simple.
How to start a taxi business
Nigeria has seen much of its transport network fall into disrepair in the wake of unprecedented recent economic and population growth, as well as decades of under-investment in critical transport infrastructure.
However, with the emergence of ride-hailing services such as Uber and Taxify, the transportation sector, especially the taxi services sub-sector, shows much potential for wealth creation.
One of the most lucrative businesses in existence today in the transportation sector is the taxi. Even in the technologically advanced world, where people can transact billions of dollars worth of business virtually, there is still a need to move persons or goods from one part of a country to the other.
Uber powered over four billion rides in 2017, while Taxify grew its revenue to about €18m in 2017.
Millions of taxis are waved down the world over on a daily basis, thus generating millions of dollars in income for those who own the taxi companies.
Starting a taxi business may just be the best way to become a millionaire.
Get government approval
Registering a business name is not the same as getting an approval from the government. Getting authorisation here involves licensing from the government for you to be the owner of cab or taxi company and its operations.
It also includes getting the right to paint your cars in the approved colours depending on the city you are situated. You will also need to get the routes that your cabs will ply approved.
All these can be done within a few weeks and the lawyer who helped in your company registration can also do it together with obtaining the government approval for you.
Get cars suitable for a taxi company
You may not need to buy a lot as a beginner; there are people who will be willing to partner with you as a taxi company. Such ones, however, will only bring their cars to you as partners when they see that you already have a structure on the ground.
For now, you may have to start with two or three cabs of your own. Before you go to the auto-mart, what are some of the things you need to give serious consideration? At this stage, care is needed on your part so that you do not go for cars that will constitute problems for you later in the future.
While it may not be wrong to appreciate beautifully designed cars, you are not going into the business so that you can exhibit beauty.
Even if you are an absolute neophyte, take your time to ask around for brands that combine comfort with durability.
Cars that are fuel efficient are your best bet as you will be running on a lot of fuel. You also need to consider if the car you are buying does not attract expensive maintenance. If you have decided on what to buy, take an experienced automobile expert with you so that he will do the final inspection before you pay.
Never go for second hand or used cars. The original owner may hide some faults that the car has from you. More so, taxis are put to use much more than private cars, buying used vehicles will only put your business at risk as they will soon wear out, requiring constant expenses.
That you go for something new does not mean you have to expend all the fortunes on buying cars, it is also important that you look out for something relatively affordable.
Get insurance cover
The business you are about to start attracts a lot of risks; do not attempt to dodge insurance. Every car you buy must have a comprehensive insurance cover. Apart from the fact that the law necessitates that you do insurance cover for your business; getting insurance for them will serve as a protection. While budgeting for your taxi company, it is important that you include funds for budgeting in the business.
