Kenya - Business creation project

Describe your project or startup in a few words

Goods sold online need to reach the customer conveniently and at affordable cost .We propose setting up collection centers at gas stations for sellers to drop goods that will be transported to the customer's nearest gas station in groups to reduce cost.

01.01 Describe your project in more detail

My project aims to create a convenient and cost-effective solution for small-scale traders and e-commerce sellers to deliver their products to customers. With high youth unemployment, many people have turned to cottage industries to make a living. Since most cannot afford physical stores, they sell their products online and need a way to deliver them without increasing prices exponentially. Our proposal involves setting up collection centers at petrol stations, where traders can drop off their ordered goods and pay a small fee. These parcels will then be grouped by destination petrol station, and taxi drivers will transport them in exchange for fuel, depending on the weight of the goods. We plan to target taxi-hailing drivers going in the same direction who have available space in their vehicle boots to move the goods.

01.02 What is the main problem you are trying to solve?

The cost of delivery has a great impact on e-commerce. High delivery costs slow purchases, while low-cost shipping options can increase conversions. Delivery expenses affect profit margins, pricing strategies, and customer loyalty. Efficient logistics can help reduce costs and improve competitiveness. To address these challenges, we propose setting up collection centers in gas stations and partnering with taxi-hailing drivers for group transportation to reduce costs. Goods going to the same station will be bundled as a group and transported together. The taxi drivers will be given fuel in exchange of delivery of the goods to the nearest station of the customers.

01.03 Tell us the major benefits and/or advantages of using the product/service that your project intends to provide (at least 3).

Affordable e-commerce offers widening consumer access to products. It fosters competition, driving down prices. Additionally, it promotes market growth and inclusivity, empowering small businesses and consumers alike. My proposal will also lead to more goods being transported by fewer taxi drivers, resulting in the burning of less fossil fuel. This will reduce air pollution and help mitigate climate change. My project will promote affordable e-commerce delivery, creating employment for online sellers and boosting the income of taxi-hailing drivers.

01.04 Please describe who exactly your project is aimed at serving. Who are the targeted beneficiaries?

The cost of delivery significantly influences e-commerce operations. High delivery costs can deter customers and decrease sales. Retailers must balance offering competitive shipping rates while maintaining profitability. Setting up the collection centers and partnering with taxi-hailing drivers will help manage costs. It will also be beneficial to taxi-hailing drivers as they will be able to earn more per trip. Efficient delivery contributes to customer satisfaction and promotes e-commerce.

01.05 When did you start working on your project?

2023-11-07

01.06 How many other partners are associated with your business venture?

1

01.07 Among the other partners, how many are female?

1

01.08 Please describe the profile of each of the other partners (skills, experience, etc.)

My other partner is Maureen Achieng. Her role in the business research and Marketing. She is responsible for assessing the volume of e commerce trade in a certain area and convincing the small scale traders to deliver to their customers via station box.

01.09 If you have a website, a social media page (Facebook, Instagram, Linkedin…), or app, please provide the link here:

01.10 Which industry best describes your project?

a) Energy (equipment, services, sustainable energy and fuel)

02.01.01 My project contributes to the No poverty goal

7 - Strongly Agree

02.01.02 No poverty - Justification

My business proposal aims to enable taxi-hailing drivers to transport parcels in exchange for fuel. This will allow for a combination of mobility and delivery, potentially reducing the cost of goods delivered, especially those sold through e-commerce. The aim is to lower the overall cost of goods. It will also increase the income of sellers as they will be able to sell more, particularly those who operate cottage industries and cannot afford to pay for physical shops. The more people are engaged in trade and have convenient access to customers, the more poverty is reduced. The drivers of the taxis will be able to earn more per trip, boosting their net income. As this industry grows, it will attract more drivers, creating a source of income for many and reduce poverty levels in the region.

02.02.01 My project contributes to the Zero hunger goal

6

02.02.02 Zero hunger - Justification

My business proposal involves combining mobility and delivery into a single ride, which is likely to reduce the cost of food delivery, making food more affordable and convenient to access. Additionally, it will provide employment opportunities through taxi-hailing services, allowing more people to afford food. This approach will also benefit traders, as increased convenience and reduced delivery costs will likely result in higher earnings, enabling more families to feed themselves.

02.03.01 My project contributes to the Good health and well-being goal

6

02.03.02 Good health and well-being - Justification

Many ride-hailing taxi drivers have expressed concerns about low earnings in the gig economy, especially given the current challenging economic conditions and rising fuel prices. This situation could potentially lead to an increased risk of depression and suicide among drivers, as low earnings could affect their mental health. To address this, my proposal aims to increase drivers' earnings per trip by providing them with fuel in exchange for parcel deliveries, thereby boosting their overall earnings per trip.

02.04.01 My project contributes to the Quality education goal

4

02.04.02 Quality education - Justification

02.05.01 My project contributes to the Gender equality goal

6

02.05.02 Gender equality - Justification

Our business proposal aims to prioritize and encourage more female drivers to join the taxi-hailing industry. This will enable them to earn more and cater to the needs of female customers who often purchase goods online, especially clothing, cosmetics, and beauty products. The business also seeks to economically empower female drivers by facilitating higher earnings per trip through the combination of mobility and delivery services.

02.06.01 My project contributes to the Clean water and sanitation goal

4

02.06.02 Clean water and sanitation - Justification

02.07.01 My project contributes to the Affordable and clean energy goal

6

02.07.02 Affordable and clean energy - Justification

Encouraging affordable transportation for e-commerce traders and enabling taxi-hailing drivers to earn more by delivering parcels in exchange for fuel could significantly lower the amount the drivers factor in for fuel. Allowing taxi-hailing drivers to offer both mobility and delivery in one trip reduces the amount of fossil fuels being consumed, promoting environmental consciousness.

02.08.01 My project contributes to the Decent work and economic growth

6

02.08.02 Decent work and economic growth - Justification

To create better and more satisfying job opportunities for taxi-hailing drivers, we seek to assist them in integrating mobility and delivery services to help them increase their earnings per trip. Many of these drivers have often complained about low commissions and having to work long shifts just to make minimum wage. By reducing fuel expenses, we will help them earn more per trip, which will hopefully encourage more people to join the industry and ultimately create more jobs.  

02.09.01 My project contributes to the Industry innovation and infrastructure

5

02.09.02 Industry innovation and infrastructure - Justification

"Through technology, we aim to help taxi drivers to also deliver parcels, allowing them to combine mobility and delivery services. This innovative infrastructure will enable drivers to earn more on a single trip. We also intend to create a convenient location for collecting and dropping off deliveries."

02.10.01 My project contributes to the Reduced inequalities goal

6

02.10.02 Reduced inequalities - Justification

My proposal seeks to allow drivers combine mobility and delivery services, which would lower costs and make it more affordable for small businesses to distribute their goods. This will help them reach new markets and reduce economic inequalities in the society. Many small traders lack the resources to establish physical stores, so we aim to offer convenient and cost-effective solutions to help them access the market more easily and therefore breach the gap between rich and poor.

02.11.01 My project contributes to the Sustainable cities and communities goal

6

02.11.02 Sustainable cities and communities - Justification

For cities to flourish and endure, it's crucial to facilitate trade among their residents. Lowering delivery costs can contribute to the sustainability of cities. For instance, using a single vehicle for transporting both parcels and people can help reduce carbon emissions, thereby promoting sustainable urban environments.

02.12.01 My project contributes to the Responsible consumption and production goal

6

02.12.02 Responsible consumption and production - Justification

The link between production and consumption is transportation and logistics. Allowing drivers to transport both passengers and parcels in the same trip will likely reduce fuel consumption while still maintaining the economic impact. This supports sustainable production and consumption.

02.13.01 My project contributes to the Climate action goal

6

02.13.02 Climate action - Justification

The proposal seeks to reduce the amount of carbon combustion by ensuring that drivers who transport passengers also transport parcels. This is likely to reduce the carbon emission

02.14.01 My project contributes to the Life below water goal

3

02.14.02 Life below water - Justification

02.15.01 My project contributes to the Life on land goal

4

02.15.02 Life on land - Justification

02.16.01 My project contributes to the Peace justice and strong institutions goal

4

02.16.02 Peace justice and strong institutions - Justification

02.17.01 My project contributes to the Partnerships for the goal

7 - Strongly Agree

02.17.02 Partnerships for the goal - Justification

This exciting proposal unites various players from diverse industries to form a collaborative alliance aimed at achieving economic prosperity. It will involve, e commerce traders, gas stations, taxi hailing drivers and consumers. Brining all this players to achieve a certain goal will bring progress in the society.

05.01 There are a large number of customers who already use a product/service very similar to the product/service we envision creating.

4

05.02 The product/service we envision creating represents an entirely new type of product/service.

5

05.03 The product/service we envision creating could be described as a new technology.

4

05.04 The product/service we envision creating is an improvement on an existing product or service.

6

05.05 The product/service we envision creating could be described as an extension of a range of products or services.

6

05.06 The product/service we envision creating responds to a demand or need that has not been satisfied by other products/services.

6

05.07 The product/service we envision creating is a new version of an old product/service.

5

05.08 Justification

Many small-scale traders who sell their goods on e-commerce platforms struggle with high transportation costs. The logistics companies that provide these services often charge steep fees, which can end up being more than the cost of the goods themselves. In response to this issue, my business proposal aims to establish drop-off points where small business owners can leave their orders. Taxi drivers already on the road can then bid for delivery jobs and receive fuel in exchange for transporting the goods to the buyer's gas station.

05.09 Who are your main potential competitors and what makes you stand out from them?

My main competitors will be established delivery companies and local bodaboda riders. The main advantage of using my product is the pricing aspect and privacy for the clients, as the riders or delivery personnel won't need to know the customer's address.

10.06 Are you initiating actions within your community to promote the role of female entrepreneurs?

In an effort to reduce the cost of delivering goods at an affordable rate, I have tried to engage in female entrepreneurs that sell goods online such us clothes, beauty products and electronics to adopt joint delivery initiatives such as the one i am proposing to reduce the cost. I also purchase goods from female owned business as they have better customer relation practices