The feasibility of operating as an independent minibus owner/driver

Abstract

Within this thesis an analysis of a family owned minibus business is performed. This case study is a detailed analysis of a minibus owner/driver who started his business eighteen years ago and now he is in the process of changing his main revenue generating asset. Following this decision the minibus owner/driver has several challenges to face. Apart from the challenges, the minibus owner/driver can opt to sell his minibus together with the permit and trips and be employed as a minibus driver with another local transport company. This dissertation identifies the available minibuses in the local market which the minibus owner/driver can invest in. The main expenses are discussed and detailed calculations of the relevant costs are presented. From the revenue side the expected revenue from the trips is calculated. After evaluating the relevant costs and the expected revenue, and other important considerations the feasibility of whether the minibus owner/driver invests in a new minibus or be employed with another local transport company is discussed. From the result of the study, it transpired that the investment in a new minibus is more beneficial for the minibus owner/driver compared with being employed with another local transport company but a this decision is a bit sensitive to certain variables.