Impact of Motorcycle Taxi on the Emergence of other Related Business Activities in Siaya District

Abstract

In Kenya there has been a significant increase of motorcycle taxi business since 2005 to date. This has resulted into diversification in transport industry and the competitive framework amongst the key operators in the industry. Past studies dwelt on the impact of commercial bicycle taxi on the revenue of other industry players yet little is known about the effect of motorcycle taxi on other related business activities in Siaya district. The purpose of this study was to establish the impact of motorcycle taxi on emergence of related business namely: spare parts trade, motorcycle mechanics, filling stations, and other traders within Siaya District. The study objective was to identify new businesses which have emerged as a result of motorcycle taxi. Multi stage sampling procedure was used to determine the sample size. A sample survey of 18 spare parts traders, 9 filling stations, 6 mechanics and 60 other traders were interviewed. Primary data was used for the study which was collected using structured questionnaire. Descriptive statistics were used to show the extent of variable relationship activities. The study revealed a strong relationship between motorcycle taxi and emergence of sale of spare parts, motorcycle mechanics and filling stations activities. This was evident in the fact that 55% of spare parts traders, 27% of filling stations and 18% of mechanics traders agreed that their business was dependent on motorcycle taxi. The study established that many business emerged after the significant motorcycle taxi business and they exist alongside each other as revealed in 38% sale of spare parts, 36% others and 11% motorcycle mechanics. The study concluded that there are many businesses which emerged after motorcycle taxi entry and that they exist alongside each other. Findings of the study will help the government in formulating and implementing policies on issues concerning motorcycle taxi and other related business. Further research can be done in the area of financial management among motorcycle riders.