Easy Coach is currently considered one of the biggest, if not, the biggest bus company in Kenya with over 35 destinations. The Star caught up with the founder and managing director Azym Dossa, who shared insights on the country's transport sector business and the future of bus transport.
How was Easy Coach born and what inspired the forming of the company?
Certainly. My tenure as the CFO of one of Kenya's most successful transport companies (Akamba) gave me not only invaluable experience, but also a unique perspective on the industry. Inspired by a combination of what I saw could be improved and an intrinsic drive to craft an even better enterprise, I decided to establish Easy Coach. This decision wasn't taken lightly. With a combination of self-determination and, I believe, some divine grace, I took on the challenge head-on.
We started modestly, with an initial fleet of seven buses operating a single route between Nairobi and Kisumu. Specifically, we had three buses journeying to Kisumu during the day and the same three returning at night. Additionally, we always kept one bus on standby, ensuring a seamless rotation for regular maintenance and potential rescues if needed.
Not long after our debut, the town of Kakamega expressed interest in our services. To meet this demand, we expanded our fleet by adding four more buses. As word about our brand spread, so did the requests from other towns and regions. It's astonishing to reflect that in just three short years, we grew to operate a fleet of 40 buses serving 15 different destinations. Today, our reach and fleet have more than doubled from that milestone.
With your many years of experience in the bus transport business, what do you think contributes to the numerous road accidents on our highways and what should be done to address this?
Road accidents are a multi-faceted issue with contributing factors ranging from the individual behavior of drivers and pedestrians to the state of the vehicles and the road infrastructure. Some common causes identified by various authorities and observers include speeding, impaired driving due to alcohol or fatigue, failure to use indicators or appropriately signal for road conditions, operation of unroad worthy vehicles, and inadequate or missing road warning signs. All of these elements, in isolation or combination, contribute to accidents.
However, I strongly believe that the cornerstone to improving road safety is ensuring rigorous compliance with rules and regulations. This extends beyond just the drivers of public service vehicles (PSVs). The responsibility lies with everyone who interacts with the road, including private vehicle owners, pedestrians, and even jaywalkers or distracted individuals such as cell phone users, who are often major contributors to road accidents.
At Easy Coach, we have made a concerted effort to address this issue proactively. Our approach encompasses not only continuous practical driver training on the road but also mindset training in the classroom. These training sessions are led by professionals recommended by the National Transport and Safety Authority (NTSA). They focus on promoting a safety-first mentality and responsible behavior while navigating the roadways, whether one is behind the wheel of a bus or walking as a pedestrian. By instilling a culture of respect for road safety norms, we can significantly contribute to reducing the number of road accidents.
Do you go to bed full of anxiety every night because you live in fear of being woken up to be told your bus has been involved in an accident?
Absolutely, the nature of the transport business, especially when responsible for the safety and well-being of countless passengers, inevitably carries a weight of responsibility. Every unexpected phone call during the night does bring about a surge of anxiety, as it could be news of an accident or a breakdown. Even in scenarios where our vehicle may not be directly at fault, the mere occurrence of an accident, especially with fatalities or injuries, is deeply distressing. Once notified, our traffic officers promptly step in to manage the situation, but the initial moment of uncertainty and concern remains deeply ingrained. It's a testament to the profound sense of duty and care we feel towards our passengers and employees alike.
If you were to start all over again, would you still pick transport as a business?
Every business or profession carries inherent risks and offers unique opportunities for both success and setbacks. Having accumulated 17 years of experience in the transport sector, I had become intimately familiar with both its challenges and rewards. I understood the intricacies, the highs and lows, and what it takes to consistently evolve to meet customer expectations. Drawing from this knowledge, I was inspired to redefine the transport experience by introducing amenities like waiting lounges and washrooms in all our branch offices, thereby elevating the customer experience by offering dignity and value-added services. Our commitment to safety, security, punctuality, comfort, and reliability didn't just meet the needs of our customers—it exceeded them. This attention to detail and dedication to customer satisfaction not only garnered us more patronage but also positively impacted our bottom line. My personal passion lies in upholding these standards and continuing to refine and improve them. In retrospect, diving into the transport industry was a decision that I hold in high regard. The sector is labor-intensive, which means it creates numerous job opportunities. Beyond the financial benefits and the satisfaction of our shareholders, there's a deeper reward in knowing that we provide a high-quality service that resonates with our customers. So, to answer your question succinctly: yes, I wholeheartedly have no regrets about venturing into the transport domain.
What is the one big cost in bus transport that you would pay anything to change?
The overall cost of doing business in the bus transport sector has escalated over time due to various factors. One prominent example is the replication of entry fees as buses move across inter-county borders. We also face substantial parking fees at designated stopovers where we pick up and drop off passengers and parcels.
On a more operational level, regular expenditures include refreshments for passengers and crew, quick cleaning routines for our buses, and the maintenance checks for essentials like oil and water levels. Additionally, unavoidable increases in the cost of fuel, spare parts, and tires, along with wage increments and other mandatory deductions, significantly contribute to our operating costs.
While we understand and accept the necessity of certain inflationary increases, the random and unanticipated cost escalations can exert an unwarranted negative impact on our operations. As a company, our policy restricts us from randomly hiking fares to compensate for these rising costs. Therefore, if there were one cost in bus transport that I would pay anything to change, it would be these unpredictable and disproportionate increases in operational costs. Ideally, we would work towards creating a more stable and predictable cost environment, which would ultimately benefit both our company and our customers.
What is your take on electric buses and future plans?
Electric vehicles are indeed the way of the future. They present an environmentally-friendly solution that aligns with global efforts to reduce greenhouse gas emissions and combat climate change. I absolutely recognise and support this transition. However, for long-distance public service vehicles (PSVs), there are certain unique considerations and challenges that must be taken into account before such a transition can be fully executed. Key among these considerations is the range of the vehicle - that is, the distance it can travel on a single charge. This is particularly crucial for long-haul services, where buses are expected to cover extensive distances without frequent interruptions. Furthermore, the infrastructure to support electric vehicles, specifically the availability and accessibility of charging stations along the routes, is not yet at a level where a seamless transition can be made.
Once these two critical issues are addressed and electric buses become more reliable for long-distance travel, we absolutely intend to integrate them into our fleet, starting with our intra-city routes. This decision is not only based on the environmental benefits but also the potential for cost savings in the long run, as electric vehicles, typically have lower operational costs compared to traditional internal combustion engine vehicles. The transition to electric buses for inter-city routes might take a bit more time due to the aforementioned challenges. However, we remain open and enthusiastic about this prospect. We're closely following technological advancements and infrastructure developments in this area. We're also exploring partnerships with electric vehicle manufacturers and energy companies to ensure we're ready to move forward when the time is right. In a nutshell, our goal at Easy Coach is to consistently deliver safe, reliable, and now more sustainable, transportation solutions. So yes, the future of our fleet certainly includes electric buses, and we're actively working towards making this a reality.
How did you survive the Covid-19 period?
The pandemic has been an unprecedented global crisis, and it certainly took a toll on our operations as well. Our profits diminished drastically, and our reserves were significantly depleted during this challenging period. However, it was important for us to make strategic decisions that ensured our business's survival while also taking care of our employees.
In response to the crisis, we had to scale down our staff. But rather than making them redundant, we chose a more compassionate approach. We sent our employees home with advance payments and enabled the encashment of their annual leave. It was vital to us to minimise their financial burden during this difficult time, and we also knew that we would need their skills and dedication once the pandemic receded. Simultaneously, we operated a rotation system for those remaining at work to manage the significantly reduced fleet that was operational due to the various lockdown restrictions. Despite the reduced service, our team showed resilience and adaptability, ensuring we could continue to provide essential transport services where possible.
In addition, some landlords of our external branches demonstrated understanding of the circumstances and graciously agreed to waive a portion of the rent. The word "consideration" truly took on a significant meaning during this time, as we all had to work together and support one another to weather the storm of the pandemic.
In essence, navigating Covid-19 period required a combination of resilience, strategic decision-making, empathy for our employees, and the cooperation of our external partners. These factors, coupled with our determination to continue serving our customers to the best of our ability, contributed to our survival during these extraordinarily challenging times.
We have seen the collapse of some major bus companies, what could be the problem?
The challenges that lead to the failure of bus companies - and indeed, businesses in general are often multifaceted. Central to these challenges are issues related to
strategic planning and anticipation of major hurdles. Some companies may be caught off guard by unexpected obstacles due to a lack of foresight or inadequate resources to navigate them.
Another significant factor can be poor management and hiring practices. The success of any business hinges on its leadership and team, and the absence of competent, visionary leadership or the employment of ill-suited personnel can lead to a company's downfall.
Furthermore, the role of ethics and integrity cannot be overstated. Some businesses falter due to practices driven by greed, which can compromise the company's reputation and longevity. In contrast, a robust commitment to ethical standards can engender trust among customers and partners, contributing to the company's long-term survival and success.
Additionally, we cannot ignore the rapid technological advancements reshaping industries today. Businesses that fail to modernise and digitise risk falling behind in the highly competitive and increasingly digital marketplace. This is just as relevant in the transport industry as it is in any other sector. The incorporation of Environmental, Social, and Governance (ESG) factors is also pivotal in today's business landscape. These considerations can significantly influence a company's reputation, customer relations, and long-term sustainability.
Therefore, my advice to anyone contemplating entering the bus transport industry is to be fully prepared. Comply with all rules and regulations, adhere to your company's policies and procedures, but also maintain a keen awareness of your operational landscape.
Keep an eye on the dashboard, so to speak, and be ready to adapt and evolve in response to the road ahead. In essence, success in this industry, as in any, requires vision, resilience, adaptability, and unwavering ethical standards.
You recently made a bold move from Mitsubishi buses to Mercedes, what informed this decision and how is it playing out?
While it may seem like a significant transition, I wouldn't necessarily label our move from Mitsubishi to Mercedes as a "bold shift." We had always been very content with Mitsubishi buses, and they undeniably played a pivotal role in our success, even during the challenging times of Covid.
However, due to certain supply constraints during the pandemic, Mitsubishi buses became unavailable to us. Given the circumstances, we explored other reputable options in the market. Mercedes presented itself as a well-known and esteemed brand, offering vehicles with a track record of reliability, efficiency, and comfort. Moreover, they were available to us at a special offer, making the decision even more appealing from a financial standpoint.
The transition has been smooth, and the feedback we've received from our customers has been overwhelmingly positive. They've noted the comfort and efficiency of the Mercedes buses and have expressed their appreciation for our commitment to maintaining top-quality services despite external challenges. All in all, the move to Mercedes, while initially driven by necessity, has proven to be a beneficial decision for our company and our customers.
What is your take on the operating environment in Kenya especially after the increase in fuel costs that came with the 16% VAT increase from 8%?
The recent increase in fuel costs due to the VAT hike has had a substantial impact on all motorists, and we, as a part of the public transport industry, are no exception. It has undeniably escalated our operating costs and added a layer of financial strain to our operations.
To mitigate this, fare adjustments upwards are, unfortunately, an inevitable
consideration. While it's a tough decision, it is necessary to ensure the sustainability of our services and the livelihood of our staff, all while meeting the increasing operational costs.
That said, I believe the government could have considered offering some form of shelter to public transporters from this massive increase. The public transport sector is a vital component of the economy, facilitating mobility and connectivity for millions of Kenyans daily. Thus, it would be beneficial for both the transporters and the general public if special considerations were made in such cases.
As we navigate this challenging period, my advice to our team is to remain mindful of our customers. Any increase in fares should be reasonable and proportional to the costs we are incurring. It is critical that we maintain a balance between our need to cover escalating costs and our commitment to providing affordable services for our customers. After all, the public relies on us for their daily commute, and we must continue to serve them effectively and responsibly.
