MarketPlace

Matatus rev up race for commuters

matatu

A matatu during an awards event in Nairobi last year. FILE PHOTO | NMG

At the Accra Road stage, a public service vehicles terminal for Embakasi, Nairobi, multi-coloured matatus hoot loudly as touts woo passengers.

On the opposite side of the stage, there are parked quiet minibuses whose exterior only carry the sacco’s name, also plying the same route for lower fares. But it is on the side of the loud matatus that most passengers stand, deciding which one to board to their destination.

“The most popular factor for passengers nowadays as they choose a matatu to board is the customer service and then the bus fare charge. It has become the distinguishing feature and a competitive advantage as matatu ‘wars’ intensify in a bid to impress customers,” says Branden Marshall, a matatu promoter and consultant.

“If a particular matatu is known for having a friendly crew who treat customers well, it is most likely to attract the most passengers and establish a loyal customer base.
The added incentives, which include music, free Wi-fi, comfortable seats, and the general design of the matatu lure new customers, but the good customer service retains them.”

Indeed, research has found that when a consumer experiences good customer service they are very often willing to pay more for it, and will make repeat purchases.

“When a customer receives service beyond expectation, their likelihood of making a repeat purchase increased by 12 per cent, when they received no unpleasant surprises, it increased by 22 per cent, when they had a friendly interaction with an employee, it increased by 25 per cent, and when they received good service, it increased by 32 per cent,” read the research report on the benefits of good customer service by US research firm, Carson Research.

In Kenya, matatus are the most common means of transport with seven out of ten people using them.

Given that on average Kenyans spend 65 minutes in traffic jam daily passengers will sometimes take time to choose a matatu that will comfortably get them to their destination based on what it offers.

This has, over time, become a clear competition point in the industry, as matatu owners’ pimp their minibuses in order to attract passengers.

The popular pimped out matatus contain multicoloured exteriors inscribed with images of famous people, such as musicians or even the logos of football teams, are aimed at giving matatus a competitive edge in the market.

Such designs reverberate well with the young generation, who are the main target market for the matatu owners.

The interiors are also made to look impressive with flashy LED light strips, custom designs, and onboard entertainment that includes loud music, video games, TV, set back screens and even plug-in sockets. To top it off, the most aggressive matatus are notably clean.

Yet, it can cost up to Sh5 million to install the ‘essentials’ and give a matatu a complete makeover. As a result, the return on investment can take up to one year to be realised.
“Take the example of a route such as Ongata Rongai, it has the most pimped out and the best matatus based on design.

Add on to the extra money it makes at the weekends or holidays when people hire the vehicles for either field trips or travel, which could rake in up to Sh70,000 in profit per month.

“Therefore, in one year or less, the matatu owner will have repaid their initial investment,” says Marshall.

These pimped out matatus also include loyalty programmes where passengers are offered free rides or even discounts when one boards a particular matatu often, thus creating a relationship bond between them and the consumers.

- African Laughter