After launching its mobile app, Dingah, which enables customers to share a ride after negotiating the fare with the driver late last year, Dingah Logistics is now inviting people to come onboard and own the business through a franchise model.
Through the new programme, Dingah Logistics – part of Vacation Kenya – wants to create a global village by cutting down barriers to trade by having trade partners buying in to the company as franchisees (or agencies) to enable them trade as Dingah anywhere globally.
Already, the pilot phase of the franchise programme has been deployed in Kenya, with the whole country being divided into 5 regions according to the provinces to be managed by five franchisees.
The five regions within Kenya are namely: Nairobi and its environs; Central Kenya and its environs covering the Eastern and North Eastern parts of the country; Rift Valley; Coast region and finally, Nyanza covering the western side of the country and the surrounding areas.
“A franchisee is responsible for all the operations within his – or her – region and equally becomes a board member and participates in the key decision making of the company. A franchisee owns 60% equity of the region. S/he is then responsible for selling upto a maximum of 2,000 agency contracts at Kshs 10,000 each and 200 super agents at Kshs 100,000) each,” says Steven Omolo, the Dingah Logistics MD. “This will guarantee any franchisee an annual return of Kshs 24 million every year as all licenses are valid for a year.”
The 200 super agents per region can then be spread to the different towns to ensure customer service is facilitated as they offer all the services within the Dingah platform.
The super agents, Omolo adds, can go further ahead and recruit more agents to make their work easier as their equity share is 20% for all businesses under their agency with an additional 10% from all the agents they’ve recruited into the programme.
After enrolling on the scheme, all the agents – including franchisees and super agents – need to get a code which tracks all their individual transactions. Application of the code is done through a one-off purchase of a platinum Vacation Kenya card – which costs Kshs 10,000 – that will then automatically generate an agent code.
And in cases where someone has been referred by another agent or super-agent, then they’ll need to input that code to track their transactions. All agents who refer other agents receive a 3% of the other agents’ business transactions as a bonus.
Apart from the franchise and agency programme, Dingah has also introduced a new system called Dingah Points. Just like other existing bonus schemes, each Dingah Point is equivalent to Ksh 1 and any Dingah user can now transfer the points to other user(s), use it for shopping and payment for all the services within the Dingah eco-system.
To convert the points to cash, a Dingah app user needs to visit a Dingah agent to withdraw or deposit the points in exchange for cash. The transaction costs for both deposits and withdrawals stand at 10% of the value while the transfer costs when making purchases or transferring to another Dingah user stands at 1%. All agents make a commission of 5% during the exchange and are expected to mop up the points from the shops and individuals through withdrawals.
Through the use of the Dingah app, passenger(s) negotiate fare with the driver who decides on how much he wishes to be paid per seat, meaning he can carry four passengers and make more compared to the usual minimum charge of Kshs 200 for other taxi apps in the market.
The Dingah Lift platform does not only target PSV licensed taxis but is open to anyone who has a vehicle that can offer a ride to anyone who is going the same direction as them.