kymnjoro
Elder Lister
Daniel Muri: Tired of Matatu Chaos, He Set Out to Build a Shuttle Company Where Discipline and Dignity Matter
Many people who aspire to venture into the matatu sector are always attracted to the alluring thought of raking in thousands of shillings daily. However, this is not always the case given the challenges that have tightly gripped this industry.
For example, matatu owners part with over Ksh500 daily in order to oil the palms of traffic police officers and also lose a significant amount to dishonest conductors and drivers. Overall, the monthly insurance charge for matatus is as high as Ksh8,000. Proprietors are also supposed to pay over an estimated 15000 for an annual license to NTSA and part with approximately Ksh11,000 as an advance tax payment.
The said reasons are responsible for the high number of people who have failed in this sector. It is not uncommon to find a previously ambitious businessman left with a wreck of a rotting Toyota Hiace, with all wheels removed and supported with two pairs of stones.
Kangaroo Shuttle Story
Despite the said constraints, one man, Daniel Muri has built a reputable public service company through a meticulous plan.
Daniel Muri is the owner of Kangaroo Shuttle that currently boasts a fleet of over 150 Toyota Hiace minibuses. He is the undisputed king of the Kitale - Eldoret - Nakuru - Naivasha route.
Kangaroo Shuttle was founded around 2010 with a few seven seater vans. The Toyota TownAce vehicles, which have a streamlined front and an elevated rear mimic the shape of popular Australian Kangaroos, hence the name.
It was not business as usual for Muri as he was out to establish himself as a king on the Kitale- Eldoret route. It was a norm that other matatu SACCOs in this route scrambled for customers and overloaded their vehicles. Additionally, most of them led to delays in roads through stopovers and abrupt change of routes.
The then greenhorn Kangaroo Shuttle chose to establish discipline and order. It had booking offices stationed in Kitale, Moi’s Bridge and Eldoret. Passengers were only required to book at the offices and board the vehicles for a smooth uninterrupted express journey.
Around 2012 when Kenya began importing new model Toyota Hiace machines, Kangaroo Shuttle changed from the seven seater vans. The expansion of the company saw it take on a rigorous recruitment exercise for office clerks and drivers.
To ensure competency, before recruitment of drivers, they would take on a road test under the careful watch of a company official. Any driver who did the unexpected along the way would face the chopping board.
It is such strictness that would sometimes see Daniel Muri take on the road just to oversee how his vehicles are being driven. Additionally, office clerks and drivers are expected to maintain etiquette when interacting with passengers.
Outstripping Competitors
Kangaroo Shuttle has prioritized its service delivery and this has seen the company rise to unexpected levels. It has simply created raving fans in the name of passengers. For example, the 14 seater matatus carry only 11 passengers hence giving customers the comfort that was initially only a fantasy. The vehicles are also fitted with alarm buttons that enable commuters to signal the driver whenever one wants to disembark.
But why is Kangaroo Shuttle the darling of many passengers? Here we review the strategy that propels the company into multimillion profits:-
1). Differentiation strategy:
- Kangaroo Shuttle prioritises the comfort of their passengers. There is adequate space to sit comfortably unlike other matatus. Additionally, when one wants to stop, he simply presses a nearby button to alert the driver. Some of the vans also offer a charging port. The company is always upgrading its fleet with newer vehicles while disposing of the older ones.
2). Operational excellence and service differentiation:
- Daniel Muri understands that people are a competitive advantage. The drivers and office attendants handle customers professionally. Unlike other matatus where the crew hurl insults and care less about customer experience, Kangaroo Shuttle understands that customers are the lifeblood of the organisation. With this in mind, sometimes the vehicles leave even before filing to capacity in order to avoid delays.
3). Controlling critical costs:
- By ensuring that he sources his own fuel, Muri uses the strategy of backward vertical integration. This keeps him ahead of competitors as he is able to lower costs through bulk purchases and have a predictable fuel supply.
4). Focus strategy and market penetration:
- Kangaroo Shuttle has been mastering specific routes before gradually expanding. This offers strategic growth rather than aggressive growth. Over the years, it has been adding more routes gradually, only after mastering them.
Many people who aspire to venture into the matatu sector are always attracted to the alluring thought of raking in thousands of shillings daily. However, this is not always the case given the challenges that have tightly gripped this industry.
For example, matatu owners part with over Ksh500 daily in order to oil the palms of traffic police officers and also lose a significant amount to dishonest conductors and drivers. Overall, the monthly insurance charge for matatus is as high as Ksh8,000. Proprietors are also supposed to pay over an estimated 15000 for an annual license to NTSA and part with approximately Ksh11,000 as an advance tax payment.
The said reasons are responsible for the high number of people who have failed in this sector. It is not uncommon to find a previously ambitious businessman left with a wreck of a rotting Toyota Hiace, with all wheels removed and supported with two pairs of stones.
Kangaroo Shuttle Story
Despite the said constraints, one man, Daniel Muri has built a reputable public service company through a meticulous plan.
Daniel Muri is the owner of Kangaroo Shuttle that currently boasts a fleet of over 150 Toyota Hiace minibuses. He is the undisputed king of the Kitale - Eldoret - Nakuru - Naivasha route.
Kangaroo Shuttle was founded around 2010 with a few seven seater vans. The Toyota TownAce vehicles, which have a streamlined front and an elevated rear mimic the shape of popular Australian Kangaroos, hence the name.
It was not business as usual for Muri as he was out to establish himself as a king on the Kitale- Eldoret route. It was a norm that other matatu SACCOs in this route scrambled for customers and overloaded their vehicles. Additionally, most of them led to delays in roads through stopovers and abrupt change of routes.
The then greenhorn Kangaroo Shuttle chose to establish discipline and order. It had booking offices stationed in Kitale, Moi’s Bridge and Eldoret. Passengers were only required to book at the offices and board the vehicles for a smooth uninterrupted express journey.
Around 2012 when Kenya began importing new model Toyota Hiace machines, Kangaroo Shuttle changed from the seven seater vans. The expansion of the company saw it take on a rigorous recruitment exercise for office clerks and drivers.
To ensure competency, before recruitment of drivers, they would take on a road test under the careful watch of a company official. Any driver who did the unexpected along the way would face the chopping board.
It is such strictness that would sometimes see Daniel Muri take on the road just to oversee how his vehicles are being driven. Additionally, office clerks and drivers are expected to maintain etiquette when interacting with passengers.
Outstripping Competitors
Kangaroo Shuttle has prioritized its service delivery and this has seen the company rise to unexpected levels. It has simply created raving fans in the name of passengers. For example, the 14 seater matatus carry only 11 passengers hence giving customers the comfort that was initially only a fantasy. The vehicles are also fitted with alarm buttons that enable commuters to signal the driver whenever one wants to disembark.
But why is Kangaroo Shuttle the darling of many passengers? Here we review the strategy that propels the company into multimillion profits:-
1). Differentiation strategy:
- Kangaroo Shuttle prioritises the comfort of their passengers. There is adequate space to sit comfortably unlike other matatus. Additionally, when one wants to stop, he simply presses a nearby button to alert the driver. Some of the vans also offer a charging port. The company is always upgrading its fleet with newer vehicles while disposing of the older ones.
2). Operational excellence and service differentiation:
- Daniel Muri understands that people are a competitive advantage. The drivers and office attendants handle customers professionally. Unlike other matatus where the crew hurl insults and care less about customer experience, Kangaroo Shuttle understands that customers are the lifeblood of the organisation. With this in mind, sometimes the vehicles leave even before filing to capacity in order to avoid delays.
3). Controlling critical costs:
- By ensuring that he sources his own fuel, Muri uses the strategy of backward vertical integration. This keeps him ahead of competitors as he is able to lower costs through bulk purchases and have a predictable fuel supply.
4). Focus strategy and market penetration:
- Kangaroo Shuttle has been mastering specific routes before gradually expanding. This offers strategic growth rather than aggressive growth. Over the years, it has been adding more routes gradually, only after mastering them.