I’ve read and heard much about Bodaboda business being one of the profitable businesses to start. Not being a motorcycle taxi driver myself, I don’t know if I can profit from this kind of business, and whether it is worth it. Please help me understand it – Jack.
Re: Is bodaboda business profitable in Uganda?
Boda Boda business is one of the profitable ventures you can start and profit from without being a rider yourself. The whole concept is very simple when it comes to profiting from the Boda Boda industry. All you need is to procure any number of motorcycles whether on a Boda Banja or cash and find riders who have a riding permit. You choose between weekly payment (retaining ownership) or loaning (giving out the Boda at a loan to the rider).
Whatever you choose, you are able to profit from your business, just like it works in any other type. An example, you buy a used Bajaj boxer BM100 at 2,000,000/= Ugx from Ndeeba or Katwe and give it as a loan at 4M thus profiting 2M within the agreed period. Or, you buy at that same price and the rider pays up between 60,000/= to 70,000/= weekly. The longer you stay as the owner, the more you earn.
And if you are ready to ride yourself, you can easily secure a tuk-tuk or Boda banja from providers like Tugende and ride while you pay the loan. As you make money, you are able to clear the loan while enjoying benefits which helps you kick poverty away and easily.
Honestly, the Boda Boda business is a very profitable venture in Uganda, just like it is in Kenya and Tanzania. Regardless of the announced KCCA changes, motorcycle taxi drivers will still earn more since passengers are available.
Personally, I use a safeboda on a daily basis for my shipments and riding, which makes me think that this business is here to stay. And if you were thinking of joining, it isn’t yet too late to get started.