Is it worth investing in electric three wheeled trucks for transporting soda and purified water in Kenya

Kenya, as a country in East Africa, has multiple manufacturers of soda, purified water, and beer.

Brands include: coca cola, Highlands, Keringet, Tusker, White Cap, Bell Lager, Pilsner, Guinness. Apart from the capital city of Nairobi, there are also major consumer markets such as Mombasa, Kisumu, and Nakuru.

To become a distributor in the beverage industry, besides products, the most important thing is how to efficiently transport and deliver to surrounding markets!

Each branch is an independent warehouse, and to quickly deliver, it is necessary to choose the right transportation method. It is best to use a tricycle for delivery in small supermarkets or restaurants with crowded and narrow roads!

We use Coca Cola glass soda bottles, which can be recycled and need to be emptied for each delivery.

You can pull up to 720 bottles of soda each time, and there are 30 boxes of 24 bottles available. Place 10 boxes on one floor and 3 floors high. Two movers and drivers. We operate a 20 kilometer radius market with approximately 100 supermarkets and restaurants, each with 1 box of 24 bottles. Each car can deliver up to 30 items at a time. A branch should have at least 6 employees and 4 electric three wheeled trucks. In order to ensure the delivery rhythm, one of them is in standby or charging mode. Dinner is an important meal of the day in Kenya, and family and friends often gather together during dinner time to enjoy food and communicate. The time for natural delivery of goods to the restaurant is mainly in the afternoon period.

For markets with poor road conditions and congested traffic, electric three wheeled trucks can move more flexibly on narrow or uneven roads due to their smaller turning radius and strong adaptability of tires, improving delivery efficiency. Meanwhile, the operating cost of electric vehicles is lower than that of gasoline vehicles, which is a clear advantage for cost sensitive distributors. Secondly, the load capacity and space configuration of electric three wheeled trucks are very suitable for small batch and high-frequency delivery modes, which is in line with the demand of about 30 delivery companies in the target market each time, and can achieve rapid response and support the supply demand during dinner peak hours.

Analysis of demand for this scenario in the local market:

Considering Kenya's urbanization process and stable consumer demand for beverage products, investing in electric tricycles for beverage distribution services seems to be a profitable business opportunity. In addition, with the increasing awareness of environmental protection, electric vehicles are more in line with future sustainable development trends and may receive policy support. However, the investment return on electric three wheeled trucks also needs to consider factors such as the actual market acceptance, maintenance costs of electric vehicles, and competition with traditional fuel vehicles. Considering Kenya's infrastructure and power supply situation, the daily operation and maintenance of electric tricycles may face certain challenges.

Estimation of usage and maintenance costs for scenarios:

Assuming the initial investment cost of an electric three wheeled truck is A, maintenance costs include periodic replacement items such as battery decay, brake pads, oil changes, and occasional damage to key components. According to existing information, apart from battery decay, there are basically no other expenses incurred midway, which is beneficial for controlling long-term operating costs. When estimating, the following points need to be considered:

The cost of periodic battery replacement for electric tricycles.

Routine maintenance costs, such as brake pads, oil, tires, etc.

The cost of occasional damage to key components such as motors and half shafts.

The impact of factors such as charging standards, operating mileage, frequency of use, and working hours on battery life and maintenance cycle.

Taking into account the above factors, maintenance cost B can be estimated as the total annual operation and maintenance cost divided by the annual operating mileage or transportation frequency. The specific amount needs to be determined based on actual market research in Kenya and supplier quotations. Assuming the service life of an electric tricycle is 3 years, the total cost C is A+3B. Based on this model, we can make a preliminary estimate of the investment return on electric tricycles. If the investment return exceeds the total cost C and there is a healthy cash flow, then this investment is worth it.

---