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As we have seen with Travellerz, starting an interstate transport business in Nigeria requires adequate planning and industry expertise. However, it’s a no-brainer that running a transport business can be profitable.
Statistics show that over 100 transport companies are registered and spread across states in Nigeria. Plus 60% of the country’s population travel by road!
In this article, we will be sharing all the information you need to start your own interstate transport business. These resources will help a great deal even if you have little to no prior experience in the industry.
Let’s get to it
How to start an Interstate travel company in Nigeria
Choosing a vehicle
When you’re starting an interstate transport business in Nigeria, it’s important to choose the right kind of vehicle.
You want a vehicle that will work for your business, but also one that is safe and comfortable for the drivers who will be transporting your goods.
Here are seven factors that should be considered when making your choice:
1. Durability
2. Level of maintenance the vehicle requires
3. Mileage
4. Number of passenger seats
5. Car model
6. Availability of the vehicle spare parts nationwide
7. The amount you have to spend on the vehicle
We recommend you pick a vehicle that is low maintenance with great mileage so it would not break down often. Otherwise, you may end up spending too much money on maintenance and repair.
Also consider how well the car model is in circulation which might influence the availability of spare parts.
However, you can obtain a Travellerz vehicle with us under a lease program. That way, you do not have to break the bank to make an outright purchase. Or, make a hire purchase which is usually risky, especially for beginners.
Related: Online Transport Booking in Nigeria: A Comprehensive Guide
Official Documents You Need as an Interstate Transport Company
If you are planning to start an interstate transport company in Nigeria, then here are the official documents that will be needed for smooth operations.
- Proof of ownership
- The commercial plate number in red
- State carriage paper for branded vehicles
- Third-party insurance
- Comprehensive insurance for incidents when the car is stolen or suffers an accident
Altogether, these papers can take 1 month if processed simultaneously. You can also fast-track the process by getting a learned person, professional. They are not difficult to obtain but, the cost may vary depending on the state where you are operating.
Getting these documents serves as a license that allows you to transport goods across states without having any problems with customs officials or other obstacles along the way.
Related: The 5 Best Online Bus Ticket Booking Apps in Nigeria
Tactics for getting passengers for your transport business
Offline
As a beginner, we recommend you partner with pit owners and loaders when starting. They will ensure that your vehicle loads passengers on time. You can also start as a franchise under a well-known transport company.
If you do not want to partner with them, you can also establish your station in a marketable area that is open and highly populated.
Using public address systems can draw the attention of your customers. Also, flyers are a great way to promote your business. They can be distributed to strategic locations, such as motor parks, populated residential areas, or markets.
Online
Create a website
98% of people with internet access in Nigeria use Google to search for information. We bet you use it too.
Setting up a website or mobile app for your transport business means people using Google to search for their travel or logistics needs can easily find you.
Also, the convenience, which is a huge selling point? Your customers can buy your tickets from the comfort of their homes without making an avoidable trip to your station.
At T40 Technologies, we create a website and mobile app tailored to your company’s needs.
Use social media
Social media platforms are very effective tools for marketing because they allow users to interact with each other, which increases brand awareness and credibility.
You can also set up pages for your business on Facebook, Instagram, Twitter, and Google My Business.
We have successfully sold tickets for our transport partners through social media and website promotions. Click here to get started.
How to Define Your Offered Routes
You need to plan your routes carefully – consider where you will be traveling and when, as well as how long each trip will take.
Also, you need to make sure that the routes you’re planning aren’t too expensive or too risky—and that they won’t leave you with any unnecessary costs or risks down the road.
We recommend that you pick routes with high returns. For example, Lagos – Port Harcourt takes an average of 10 – 12 hours with an average fare of 10,000 NGN per head. While Lagos – Owerri lasts 7 to 8 hours with an average fare of 7000 NGN.
They are both long-distance trips and would last for most of the day. In this instance, it would be wise to pick Lagos to Port Harcourt which would yield a high return to cover refueling and profits.
You can also speak with our experts about how to pick the routes that would benefit your transport business.
Hiring a Driver for Your Interstate Transport Company
If you do not intend to drive your vehicle yourself (first-time managers tend to), then you will need the services of a driver. We recommend that you not only use the services of a driver with experience in interstate trips but also one who understands checkpoint culture and is a courteous one.
Remember they will be the first point of contact for passengers. A rude driver will reduce your chances of getting returning customers. Also, ensure your driver(s) has a valid driver’s license
Partner with intercity.ng
Intercity.ng is your go-to platform for digitizing your transport business in Nigeria. Here are the top benefits of partnering and listing with us:
- Sell Bus Tickets & Earn More: Easily sell bus tickets on our platform and earn commission. The more tickets you sell, the more money you make.
- Reach More Customers: Get your business in front of thousands of customers through our online marketplace. Connect with people looking for interstate travel and logistics services effortlessly.
- Grow Your Fleet with Financing: Need to expand your fleet? We offer growth financing options so you can offer more comfortable and safe trips to your customers.
- Digitize Your Business, Increase Profit: Go digital with Intercity.ng and boost your profits by up to 15%. Manage all aspects of your business right from your mobile device for ultimate convenience.
To partner with Intercity, click here
Expenses to Expect While Running an Interstate Transport Company
If you don’t have a pit, you will have to pay for a ‘pit’ which costs 15k-20k on average. To have a pit, you will need to rent a space which is usually paid yearly. Cost is dependent on how well-known the space is located. Other expenses to consider are loaders fee, fuel cost, and vehicle maintenance.
Use these tips to start your interstate transportation Business in Nigeria
- You need a good customer service system. You must be able to respond to the customers in a timely manner, and they will be able to feel comfortable calling you or sending an email.
- You need good inventory software, like the T40 Operator app. This allows you to issue tickets, manage your inventory, track your operations, and sales, and also interact with your customers online.
- Ensure that all vehicles are insured properly with at least third-party liability coverage. If anything happens on the road due to an accident or poor driving skills from one of your drivers then, there won’t be any serious financial repercussions.
Conclusion
Starting an interstate transport business in Nigeria can be challenging, but it’s not doable and profitable when done right. With the right knowledge, support, and resources at hand, you can be up and running in no time.
Make sure you put in the hard work and use the tips above. Remember, we are here to help you with your interstate transport business – car lease, inventory management, and business consultation. Reach out to us today!