managed by D. Rotich Tukur
Taxi Excel Ltd
First Franchise Business
in Nairobi, Kenya.
OPEN FOR BUSINESS 01/04/2010
The taxi industry in Nairobi, Kenya is very chaotic and poorly managed. Registered and unregistered taxis fight for business on crowded streets, at the airport and popular shopping venues. Cars are often poorly maintained and dirty. Drivers are also very inconsistent—both in their timeliness and overall professionalism.
The official unemployment rate in Nairobi, Kenya is around 30 or 31% (1). That means that up to 1,000,000 people are out of work in Nairobi. However, accurate statistics are hard to uncover given how many “forced entrepreneurs” are working in the informal economy where good records rarely exist.
Many taxi-drivers are well-educated, yet underemployed or unemployed professionals hoping to make a better living any way they can. Whoever they are, whatever their story, there are roughly 250,000 taxi drivers operating in Nairobi, Kenya.(2) The least fortunate among them are left with no other option than to rent a vehicle from a sponsor who often charges daily rental rates that many in the developed West would find extortionate.
The micro franchise model is predicated on two fundamental premises:
Economic development has the most impact when businesses are locally-owned and
The capital those businesses generate stay rooted to the community in which it was earned. This promotes the multiplier effect of helping other businesses to lift the entire local economy.