Project Vroom Moves Ahead

A Modern Quick Lube Facility

Project Vroom is heating up in 2012.  In essence, Project Vroom is about setting up small sales and marketing outposts for a whole range of fleet management projects and services.  The project is managed by a startup headco, and powered by a consortium of medium-sized businesses (ten businesses, mostly American, largest annual turnover $170M smallest $2M) that is looking to provide fleet-management products and services through a chain of bricks-and-mortar franchises we will launch in Africa early in 2012.  These franchises will be joint ventures with existing African SMEs and will improve the quality and accessibility and decrease the cost of transport services in African markets.  While small in physical size (think Quick Lube or Jiffy Lube), the idea is to be able to provide some basic service offerings, but to upsell to a whole range of fleet products and services, from vehicle procurement to tracking and insurance.  All Vroom franchises will be located in key fleet catchment areas, for instance near to mining areas or UN project areas, and few will be inside capital cities.

In Nigeria, we are working on linking Project Vroom with a large leasing entity that has significant presence in the vehicle space in west Africa.  The expectation is that we will launch the first Vroom franchises in Nigeria, followed by Ghana and Mali.  The first franchises will directly address the needs of this partner.  For instance, they already have 1500 vehicles circulating in one Nigerian state, and a poor service network to support them.  Vroom can cater to their fleet support needs and at the same time extend their ability to sell his services more broadly.  I would see the same opportunity in any situation where an automotive vendor is looking to expand its physical footprint internationally in Africa, and wants to do so without a major financial investment.  It will cost approximately 300K USD to set up a Vroom franchise in a new location, against ten times that much to set up a dealership.
Each of these franchises measures its success by how many products and services it can sell on to end users.  The great advantage is proximity to end users, in areas with numerous legitimate volume fleet customers.

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2 Responses to “Project Vroom Moves Ahead”

  1. Andreea
    May 10, 2012 at 5:42 pm #

    Your presentation supported the demonstration that I made in several African countries to show them that investing in high technology demanded large amounts of capital but in return, the efficiency of this high technology benefited in terms of their yields crop, jobs, training of manpower especially women and increasing the independence of the country’s food. Greenhouses, for example, are made to last between 30 and 40 years, thereby sustaining jobs. Moreover, these greenhouses allow higher standards of competence of employees that allows them to acquire a level of education, thus reducing poverty. Richard DAMBRINE

    • mbader
      May 14, 2012 at 2:01 pm #

      Please go to like us on Facebook.com/nuevva

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