How To Start A Tricycle Business (Complete Guide)

My name is Steven and i have been a into the tricycle business industry for 15 years now. I have decided to partner with this blog to share with readers very important information on how to start a tricycle business – also known as keke napep business in Nigeria.

Before we get into the business of the day, here are 3 main reasons the tricycle business is the future of transportation business in Nigeria and why it has come to stay – which is why you should invest in it.

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3 Reasons You Should Start or Invest In A Tricycle Business in 2024

1. Bikes are slowly going out of style.

Without a doubt, One of the major competitors of the tricycle business in Nigeria is the bike business; also known as the okada business.

But the government is slowly getting rid of it.

For example, in Lagos and I think in Port Harcourt too to mention a few, the okada business is now prohibited.

In as much as one would argue at it not being fair and all of those, the recklessness of the bike men has led to the loss of lives and properties and this is one of the major reasons.

As the population of other states in the country increases, it’s also very like the government of those states would also place a ban on bikes to protect their occupants too.

So if you’re someone who does long-term planning, then you should know this is an opportunity for the tricycles business to grow.

2. Finance and time.

As you may already know, they are 3 major road transport means in Nigeria. Bikes, Cars, and Now Tricycles.

Now that the days of bikes are numbered as a transportation business type, the next in line are Cars.

However, Cars are expensive now. Aside from that, You can’t easily bypass traffic with cars; which makes tricycles a better investment option business-wise because customers, and most especially Nigerians, are always in hurry to get to their destinations.

3. Cost of maintenance.

Compared to Cars, tricycles have lower maintenance costs. If you’re doubting that, do your research on how much it costs to fix a small A-KNOCKED MICRA CAR ENGINE and a tricycle ENGINE. Your body go Dey lol.

So with these few points of mine, I believe I have been able to convince you and not confuse you that investing in the tricycle business or starting a tricycle business is a brilliant idea.

Read Also: For Daniel’s pro tips to starting a lucrative cyber cafe, click here

Note: All of the information here will be based on my experience so far and I’ll advise you to take them very seriously.

Therefore without wasting any time, allow me to walk you through the journey of starting a tricycle business in Lagos, Nigeria.

My intention was to get into the requirements needed for this business, but I feel you should know something very important. In my opinion, it’s mandatory you have an idea of what I’m about to share if you really want to start a tricycle business.

Remember they’re all based on my year’s experience so don’t neglect it.

Ways you can start a keke napep business in Nigeria.

Maybe you’re familiar with this in tricycle transportation business industry already or not…

There are three different methods you can’t get into tricycle business in Nigeria and make money.

And the first is…

Hire purchase

Here, you buy a tricycle and give it to someone interested in the tricycle business. Hire purchase is always based on agreement. It’s all about buying for a particular fee and giving it out for a higher price than you bought it. And the payment is made to you in installments based on the agreement between both parties. That’s between yourself and the person you want to hire the keke too.

Allow me to make this clearer.

For example, let say you bought a new tricycle for ₦400,000. And because you’re busy or for other reasons best known to you, you can’t drive it your self.

After a few weeks, a friend brought you a guy interested in starting tricycle business but can’t afford the keke napep outright. You can make an agreement with the person that although you got it for 400k, you’ll be willing to let him permanently own the tricycle for a total payment of 700k in instalments. The instalment could be weekly or monthly.

However, it should be noted that the tricycle is officially no longer yours when you receive the 700k agreed in full.

Pro Tip: If you’re interested in starting tricycle business via this method, ensure you go for fairly used tricycles. A new tricycle is around ₦700,000 while with ₦400,000 you get a used one in very good condition.

Another reason you should get a used one is this: so you bought a new tricycle for 700k and you intend to let it go 1 million naira which is fair. 300k as profit isn’t too much.

It will be difficult for you to get someone to agree on that deal not because it’s not good, but because the total price is too much.
It may take over a year for you to get back all your money. Which is reasonably too long.
Most importantly, the tricycle ceases to be yours when the driver makes the last and final payment. Or pays in full, and you go out of business. Therefore, you need to save up and buy another tricycle in other to continue your business.

Pros of the hire purchase method in the tricycle transportation business in Nigeria

The driver is fully responsible for maintaining the tricycle. Because they will take the tricycle as theirs and whatsoever spoils is their responsibility.
With the thoughts of the tricycle (keke napep) becoming theirs when they don’t breach the agreement, the driver tends to work harder. However, this, in turn, helps you make back the money faster. And besides, you can invest again if you want.
You also help in reducing poverty by automatically creating employment.

That’s that on hire purchase for now.

2. Daily balance or payment.

This method of starting a tricycle (keke napep business in Nigeria is pretty straight forward.

Here, you also purchase a tricycle or keke napep and give it to someone interested in driving to make ends meet. However, it’s upon the agreement of a certain sum or amount of money by the end of the day.

Pros of daily payment method in the tricycle transportation business in Nigeria

Unlike the hire purchase method that the tricycle ceases to be yours upon the final payment, here the tricycle is yours forever. In other words, as long you and driver are still together, you collecting the amount agreed upon daily for years.

Cons of hire purchase method in the tricycle transportation business in Nigeria

Lack of honest individuals (employees). Let’s say your tricycle will last for 3 years upon an agreement of ₦2000 daily. Do you think you can find a Nigerian, that will keep giving you ₦2000 daily for 3 years without complaints? I’ll leave you to answer that.
You bear the maintenance cost alone. That’s when the keke napep is faulty, you’ll have brought out something for the repairs alone.
There’s no motivation. So the driver tends to act carelessly with your tricycle. Like overloading tricycle at all times and using it for other hard jobs, e.g cement distribution. Because he knows it can never become his.

3. Be your own boss.

This third way or method of starting a tricycle business in Nigeria is the best. Because here, you’re your own boss.

The idea is to buy your own keke napep and get into the business yourself. You do the dirty work and enjoy the profit alone.

Unlike hire purchase, you don’t have to overwork your self to meet someone else’s target. And also unlike daily balance, you don’t have to be an employee for life.

Furthermore, this method gives you the opportunity to plan a decent life for yourself immediately you start the keke napep business.

Pros of being your boss method in the tricycle transportation business in Nigeria.

All the profit is yours alone
You’ll have total control over your business.
Private
Decisions on how to improve your business will be swift and easy.
You don’t answer to anyone. In other words, no one can boss you around

Cons of being your boss own method in the tricycle transportation business in Nigeria

You suffer the loss alone. Unlike the daily balance, here you bear the burden of maintenance cost alone.
In situations whereby you’re down or not around, your business will stop functioning. That means no income for you.

That’s it on the various methods at your disposal if you want to start a tricycle (keke napep) business in Nigeria in 2024.

How to start a tricycle business in Nigeria in 2024

1. Learn how to drive a tricycle

I earlier explain the various methods you use to start a keke napep business or get into the transportation business in Nigeria.

Now if you intend leveraging this business opportunity using the hire purchase method, this first step to starting a tricycle business doesn’t apply to you. As long as you’re not the one staying behind the wheel at all times, then you don’t need to learn how to drive.

However, if you’re the one looking for someone you want to get into a hire purchase agreement with; and become your own boss then you need to learn how to handle a tricycle properly. Besides, it’s very easy to learn. It’s just wanting to have barbershop one day or boutique made of your designs; boutique made of your designs; you need to learn how to give a smart professional haircut and also sew/design clothes respectively.

All you have to do if you don’t know how to drive one is to get a trainer to teach you.

Furthermore, the training duration depends on how fast of a learner you are but within two months, I bet you will be able to drive a tricycle pretty well.

2. Get a drivers license and other necessary documents

Unless you are very good at handling police harassment, then you can neglect this. A drivers license is key to starting a tricycle business in Nigeria. If you weren’t aware of this before now, now you know.

They’re situations whereby those into tricycle business are held up and delayed due to their inability to provide their license. Imagine you started the weekend with the aim of making ₦30,000 as profit that week. And you were held up due to lack of papers 4 times that week for 8 hours. Do you think you’ll able to meet your target? I doubt that.

Therefore to ensure smooth daily operations with is key to running a successful business, you’ll need to work on a driver license. And other necessary paperwork attached to owning and riding a tricycle.

Below are of those key documents needed when Starting a Keke Napep Business or Tricycle Business in Nigeria.

Vehicle License
Hackney Permit/Motorcycle stickers
Certificate of Roadworthiness
Learner’s Permit or Driver’s License
Vehicle Insurance certificate
Certificate of Ownership or Change of Ownership
Drivers Badge
Tricycle Validity Tag

The above documents are required by the Vehicle Inspection Officers (VIO) and the Federal Road Safety Commission (FRSC)

Note: Documents may vary based on your state, location or area of operation.

3. Understand area (plying) route and business policies.

You can’t just hit the road without knowing your destination. That’s pure lack of professionalism. Before you begin operating as a tricycle business rider or owner in Nigeria, improve your familiarity with your desired area of operations.

For example, if you intend to operate around Ikeja in Lagos, you need to be familiar with every route in Ikeja.

You want to know where your service customers are headed and the right cost for such destination.

This will help you avoid

Bad customer reviews
Waste if resources such as time and fuel
Little or no income
And even false accusations

Pro tip: if you’re not familiar with the destination your customer is headed, let him or her know you’ll need directions. And while driving, feel free to remind the customer of you to need help.

A simple madam or Ogar ahbeg we don reach there? won’t hurt you.

If you neglect this, don’t be surprised when you’re accused of attempted kidnap. The fair one will be when they don’t pay you at all for not taking them to their desired location.

Meanwhile, in terms of policies, you need to understand when prices for your services are negotiable and when they’re not.

For example, in Ibadan, at eleyele tricycle part to be precise. Their services from that park to movement, not more than 100 kilometres is at a standard price of ₦100. So even you go just 30 kilometres, 20 or 100, the price doesn’t change. And It’s non-negotiable. This is some of the things you should look at having decent knowledge before hitting the road.

4. Design a business plan.

Don’t let the word business plan scare you. “forget the big grammar”

The idea here is just to have a design that reminds of why you’re into tricycle business and how to keep growing. A business plan could be a reminder of your WHY?

Every successful business started with a strong why. For example, the why behind Facebook was to make communication easier. I know someone who went into business with his mum as his why.

According to him, they were dead broke and his mum cries every day before bed and in the morning. He couldn’t stand it.

What is it you can’t stand right now?

You need to find something or someone that will motivate you to get up for work during cold mornings. Something that will keep you keeping on.

Some people start a tricycle business or go into the tricycle transportation business in Nigeria with the aim of saving up enough money. This is to ensure they start their desired type of business or pursue other things they perceive to be more beneficial to them. Because they don’t have a strong guide that reminds them of why they lost their way and still find themselves in the business for 10 years still struggling. This is without any significant improvement in their life. Sad!

So, that’s how I want you to see a business plan in this type of business.

Unless you’re starting out as an organization, then we can talk of marketing strategies, financial strategy and the likes. (You can leave a comment on a business plan guide if you’re starting as an organization)

Most importantly, the basic things your business plan should carry are

Your long term goals: like what you want to achieve in 3-5 years.
Short term goals: This includes daily, weekly and monthly goals that will make the long term goals a reality.
Maintenance cost: ensure to save up a few bucks weekly for maintaining your tricycle when you start the business. Automobiles don’t announce when they’ll disappoint, so you’ll need to be proactive.

Other costs include monthly union fees, fuel etc.

Finally, embrace flexibility when you want to start a keke napep business. In essence, you can change or adjust your methods and strategies when necessary in other to reach your goal.

5. Source of funds.

After designing your business plan, you need to come up with funds to turn your dreams into reality.

Some of the ways you can adopt to get money to start a tricycle business are

Personal saving
Support from friends and family members
Bank loans or corporate union loan.
Investors

If you currently don’t have any savings to get into the tricycle transportation business in Nigeria, your best bet will be getting a job. A good job can give you the opportunity to save up part of your monthly or weekly income to an extent.

The idea is just to have a reasonable amount of money gotten from your hard work. Because people will ask what you have at hand even if they want to assist. And nothing will be the worst answer to give as you’ll be seen as unserious.

Support from friends and family members is self-explanatory. Also, bank loans aren’t an exemption. But in terms of getting funds from investors, your business plan is very important.

Therefore, be sure to work on a very good business plan because that will do the majority of the convincing on your behalf.

Just in case you’re wondering, people around you know that have the funds in abundance to help you start a keke napep business; Or help you get into the tricycle transportation business in Nigeria can be seen as investors.

6. Buy the tricycle.

You have a plan plus funds to turn the plan into a reality, the next step is to go get the best equipment needed to get to work. And turn that dream into a reality.
Prices of tricycles differ based on the brand of the keke napep.
Needless to say, a good keke is very instrumental to start a tricycle business in Nigeria. Therefore, below are of those familiar brands you should be looking at

Suzuki
Daylong,
Bajaj
Piaggio and
TVS Keke napep brands.

4 things What to consider when buying a tricycle in 2024

1. Brand or manufacturer of the tricycle

Looking out for who makes the best of a particular thing you’re interested is always a wise decision.

And the reason is simply that some brands have a great reputation for high-quality and optimum-performance products.

Just as Mercedes and Toyota have been able to convince us we can rely on them for speed, durable and affordable vehicles when we need one…

…you want to also highlight certain features you desire in your tricycle and then go for a brand that focuses on them.

Most importantly…

During my research, I was made to understand a certain tricycle brand consumes more fuel than others. I believe that’s something you want to consider as such will play aa big role in your over ROI (return on investment).

2. Budget

The total amount of money you’ve set aside to start this business is always a key factor. While someone with millions may be aiming for the best brands of a new tricycle, another individual with a lower budget may be aiming for the best fairly used he can find.

3. Availability of spare parts and good mechanics

Allow me share you a short story to help you understand this point.

So Sometime last year I wanted a new air conditioner. To be specific I didn’t just want any air conditioner, I wanted an LG inverted 2HP air conditioner.

I could remember vividly My friend’s technician advised strongly against it…

…and his reason was that if or when it gets faulty it will be difficult for to get it fixed PROPERLY where I was relocating to in Ibadan

I didn’t heed, today the air conditioner is parked. And that’s because it’s INVERTED. I couldn’t get someone to fix it.

So here’s my point.

One day, your tricycle will be faulty. It’s not a curse, it’s just part of it. When that time comes, you want to make sure the parts of your tricycle are easily available to with capable hands to help you get it fixed.

Prices of brand new tricycles based on their brands

Daylong Tricycle: ₦500, 000 – ₦600, 000
Bajaj Tricycle: ₦600, 000 – ₦850, 000
Piaggio Tricycle (Diesel engine): ₦550, 000 – ₦700, 000

Prices of fairly used price tricycles based in their brands.

Daylong Tricycle: ₦180, 000 – ₦500, 000
Bajaj Tricycle: ₦200, 000 – ₦600, 000
Piaggio Tricycle (Diesel engine): ₦200, 000 – ₦450, 000
TVS Tricycle: ₦180, 000 – ₦550,000

Note: The prices of the tricycles are subject to change. As the prices of goods and services are not always constant.

7. Register your tricycle.

After purchasing your tricycle, you need to get plate number and a couple of paperwork follows up next.

Another registration you need to do before going into the tricycle transportation business in Nigeria is that of the union in your area of operations or plying the route. This registration is about ₦5000 only.

The union registration is highly recommended. This is because you’ll have a body to turn when you need help during the course of your day to day operations on the road.

8. Get to work.

You now have everything in place, so get to like right now.

Remember to put safety first. It’s better to get there late than not at all. so drive carefully, respect your customers and don’t forget your goal alongside your why.

Final thoughts on how to start a keke napep business in Nigeria.

There’s always a lot more to share on topics like this. But I am sure the above is enough for you to start a tricycle business or go into the tricycle transportation business in Nigeria today.

However, your comments could be a source of more important information. So feel free to drop your questions and share your knowledge on what I missed.

Thanks for stopping by chum.

How to start a tricycle business (Complete Guide)