No More Used Cars at JobHouse Fleet Management

We wish to inform you, our cherished Partner, that we are no longer accepting used cars (home used or Ghana used). After managing cars on Uber since January 2017, we have come to this conclusion based on analyzing a lot of data. This new guideline does NOT apply to existing cars under our management.

Why Not Accepting Used Cars Anymore?

We have identified a number of reasons. We will share a few here:

Used Cars are Most Prone to Maintenance Issues

Don’t believe the hype. We have subjected both home used and Ghana used cars to the practical usage on Uber and they have not stood the test. First, most of these home used cars are accident cars. Second, their mileage (odometer) is blatant lie. Before the cars are shipped out, they always reduce the mileage. In addition, most of these home used cars are already nearing their effective lifespan before being brought to Ghana. Almost all of them have weak engines. And once these cars are exposed to the dusty environment in our part of the world, the downward spiral sets in.

I have personally reviewed used cars that certainly passed our (rigorous) checklist. These carS normally look fresh and neat but just 2 or 3 weeks on the road, they get exposed badly; they start giving problems.

Other parts of used cars that need frequent maintenance/replacement on Uber are: brakes, tyres, AC system, battery, etc. Unreliable and sometimes outright fake spare part options don’t help the situation.

Bad Nature of Our Roads Put More Pressure on Used Cars

Even within the capital city (Accra), there are too many bad roads. Onset of the rains have made a bad situation worse. Coupled with the bad roads is inadequate street lights. Meanwhile, majority of our drivers drive partly in the night. Used cars break down quite frequently on these roads. Places like Dome, Sowutuom are in deplorable state for our cars.

Uber Cars Do Massive Mileage Per Week – Five Times More Than Your Private Car

Let’s bear this in mind; Uber cars (under our management) do crazy mileage per week. Our drivers do 1200km to 1500km per week. To put this in perspective, it takes about 620km from Accra to Tamale. This means our drivers do a minimum of Accra-Tamale-Accra each week! This puts enormous pressure on the cars.

As a result, we do oil change (at our own cost) every 3 weeks. You might think oil change every 3 weeks is too short but just two weeks on Uber and the oil turns black and dirty.

What we have found out is that, brand new (tier rubber cars) cope quite well with these excessive conditions whilst the used car options suffer. Some brand new cars have done close to 8 months under our fleet management without any major repair. All we do is oil change (absorbed by JobHouse) and spark plugs (genuine, original brand new ones) every six months. The cars are almost always on road. Car owners of brand new cars don’t lose revenue due to frequent breakdowns.

Partners (Car Owners) Are Not Likely to Meet Their Targets

It is painful but the truth is this: not all used car owners can break-even within 2 years. Whilst some are a bit lucky with their home used cars, others are just not lucky. Aside spending extra monies on repairs, you the Partner will be losing sales at the same time because the car will not be able to work the full 6 days per week. On the average, you will lose one week of sales every month. When you project this over one year, then it become serious.

When you add the lost revenue (one week of loss every month) and the fact that you will have to spend extra fixing the car, the cumulative effect could become challenging. Certainly this is not the case for all Partners with used cars. But a considerable size of used car owners can identify with this.

Way Forward / Salvaging the Situation

We want our Partners to be adequately compensated for their input. Having considered the local conditions under which Uber cars operate in Accra and Kumasi, and having taken into consideration our experiences, we only recommend brand new cars for Uber in Ghana (for now).

You are probably thinking “but do these JobHouse guys know the cost of brand new cars in Ghana?”. Yes we know. But luckily, it is not the “expensive” type of cars we have on our list. We have done the search and found two cars that are brand new and suitable for Uber in Ghana. The better part, these cars are being sold in Ghana.

Recommended Brand New Cars

Hyundai Eon (Brand New)

hyundai-eon-ghana

Overall Rating: 9.0/10
Selling in Ghana: Brand New
Selling Price in Ghana  10,000 USD 
Mileage (ARAI) kmpl 21.1 kmpl
Cylinders 3
Fuel Type Petrol
Engine Capacity 0.8
BHP 55.2bhp@5500rpm
Torque 74.5Nm@4000rpm

This car falls under Brand New option. It is being sold by Hyundai Ghana and we rank is the best car for Uber in Ghana. Our Uber drivers reported that they make savings of 100-160 GHC per week as compared to used car options such as Kia Picanto and the rest.

The car is also  spacious and comfortable than others in the same category.

In terms of design, Hyundai is noted for their sleek designs and the Hyundai Eon is no exception. It is a beauty!

Suzuki Alto (Brand New)

Overall Rating: 9.0/10
Selling in Ghana: Brand New
Selling Price in Ghana  33,000 GHC
Mileage (ARAI) kmpl 14.6 kmpl
Cylinders 3
Fuel Type Petrol
Engine Capacity 1.0
BHP 55.2bhp@5500rpm
Torque 74.5Nm@4000rpm

The new Alto is powered by a three cylinder 1.0-liter petrol engine successfully launched as an engine of the Splash. This unit is light and compact with low friction characteristics. Maximum power output is 68HP (50kW) with maximum torque of 90Nm.

From the feedback we had from both Uber drivers and riders in Ghana, the Alto is a good car for Uber. The fuel economy is only second to the Hyndai Eon. The only drawback is that it is a little bit less spacious and can be uncomfortable for riders especially when there are more than two riders.

But in terms of initial capital outlay (money issues), the Alto is comparatively cheaper and this could be the reason why it is preferred for people looking for low budget brand new options.

 

Probable Questions by Our Fleet Partners

What happens to my current home used car under your management?
Ans: we will continue to manage it in accordance with the contract.

Can I sell my home used car and upgrade to brand new option?
Ans: Yes. If you work out the math, you will realize the money spent on fixing the home used cars could top up to buy brand new one with peace of mind then guaranteed.

Can JobHouse help me sell my home used car?
Ans: No please. We can assist by providing you photos which you can use to post it on Tonaton and other online sources. Due to the pressure on our fleet management team, we are unable to lead the selling of your car.

Are you sure I can get a brand new car in Ghana at GHC33,000?
Ans: Yes. In addition, all the dealers have payment plan for those who meet their criteria.

Who are the dealers of these brand new cars in Ghana?
Ans: For each car, we have identified two companies in Ghana.
Suzuki Alto: CFAO and Silver Star
Hyundai Eon: Hyundai Ghana and Auto Plaza

 

 

0 Comments

Leave a reply

Your email address will not be published. Required fields are marked *

*

©2010-2018 JobHouse Ghana. By Jobhouse Services Limited

Log in with your credentials

Forgot your details?