Running a fleet of vehicles in Nigeria is no easy feat. It’s more than just managing a bunch of cars; it’s crucial for keeping your business moving. First, you’ve got to deal with many headaches, starting with finding good mechanics to keep your vehicles running smoothly. Then there’s the crazy cost of spare parts – it’s like bleeding money. And to top it off, you’re always worried about getting ripped off with bad repairs or cheap parts that break down fast. Finding someone who can fix your vehicle without breaking the bank is like searching for gold.
These challenges not only hit profits but also put your business at risk. This is why Mecho Fleet, a technology solution for businesses by Mecho Autotech, a Ycombinator-backed startup, promises an easy solution to these challenges while boosting your business operations.
In conversation with the co-founder and Chief Operating Officer of Mecho Autotech, Godwin Asuelimen, he explains that the company’s approach of “digitising the repair process, ensuring quality standards across its robust technician network and access to quality inventory, provides the perfect solution for fleet managers and businesses to drive efficiency and save cost”.
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The State of Fleet Management Globally
 Fleet management in Nigeria is changing, but there’s still a long way to go. The global Fleet management market was valued at USD 21.17 billion in 2023 and is likely to exceed USD 86.13 billion in 2036, registering over 11.4% in CAGR during the forecast period, 2024 – 2036. The market’s growth is attributed primarily to how transportation is evolving daily and embracing technology.
With rising inflation in Nigeria and increased clearing costs, businesses cannot procure new vehicles as required for their business operations. They also have to manage rising repair costs. Finding suitable Workshops, affordable parts, and visibility of these costs is critical to their business efficiency. To stay ahead and save money, companies must find partners who understand the Nigerian market and can offer solutions that work, especially solution providers using technology to drive operational efficiency.
How Mecho Autotech Addresses These Challenges
“Mecho Autotech understands that providing a preventive and corrective approach to fleet and maintenance solutions is essential for businesses to get it right with their fleet. We have curated these into specific bundle offerings, enabling a low-cost solution to address vehicle maintenance needs, “Asuelimen said.
The company says with its Mecho fleet product for businesses which operate a SAAS (Software as a service) model, businesses now have a one-stop location for all their expense data and repair records, finding standard technicians across regions or branches in Nigeria, allowing multiple employees use and access to top fleet management best practices. “Our application on Mobile and the web allows a business owner or CEO to see all repair data immediately and track the frequency of part replacement and vendor use across any of its branches. Essentially, businesses can control spending by assigning expense limits for any of its assigned fleet teams on the application,” Asuelimen said.
One of the biggest drivers of customer dissatisfaction is access to quality parts. Many businesses want to know the durability of the parts they buy and that they are genuine products of the brand. Mecho found that 80% of the time, new spare parts were needed whenever a car entered a workshop. Repairs were delayed when these parts weren’t readily available, leading to customer dissatisfaction.
Dissatisfied customers can harm a business like Mecho, which aims to offer Nigerians a more professional and standardised vehicle repair and maintenance.
Asuelimen explained that they’ve learned that the challenges with inventory availability are significantly due to spare parts importers’ breaks in inventory replacements. He noted that the informal nature of spare parts players in the country constrains their ability to access finance from financial institutions required to meet market demand. He said, “Mecho has built partnerships to solve this problem for wholesale importers, providing a platform to connect global aftermarket manufacturers with local importers and providing a digitised underwriting process to allow them to access inventory financing and credit”.
Mecho believes this approach will lead to a steady supply of products and parts for businesses. So far, it has integrated this into its bundled preventive and corrective maintenance offerings. When a company purchases a bundled service plan or schedules a repair through the platform, it can be confident of the durability and consistent availability of the products used for their repairs and maintenance.
Technology and Innovation, the future’s Driving force (I think you can include some comments in this section about the move from fuel to gas in Nigeria)
As the nature of cars continues to evolve with emerging technologies, Digital platforms like Mecho Autotech are changing how vehicles are serviced and services are delivered. The company’s ability to enable customers to schedule appointments, receive diagnostic reports, and pay for services online enhances convenience and transparency. Asuelimen adds that one opportunity to leverage the digital era is the ability to introduce improved offerings at scale as vehicle needs change. He mentioned that the company has been supporting commercial businesses or logistics companies with CNG fleet conversions, growing to become the trusted partner for Diesel or Fuel Truck conversions to CNG-powered Trucks.
According to the company executive, businesses have been able to significantly reduce energy costs by switching to alternative energy, utilising fleet management tools, and accessing repair solutions and workshops through one application.
