‘Technology is helping us bring transport and logistics services to every Nigerian’s doorstep’

Libra Motors, a passenger transport company and its cargo or logistics arm Libmot Express are leveraging technology to reach new customers and clients in unprecedented ways, from the comfort of their homes. In this insightful interview, Marvin Igere-Adjara and Patrick Akali, chief operating officers, respectively, of both companies speak with BusinessDay’s Stephen Onyekwelu about the challenges, milestones and plans. Excerpts

Twenty-one years of operating in Nigeria’s transport market you must have learnt some hard lessons because it is a tough terrain, infrastructure and otherwise. What would be the top three problems you have had to deal with?

Marvin: Indeed we have had some big challenges in the past 21 years of operations and the big elephant in the room is insecurity that we face now, particularly in the southeast. For instance, on Mondays, you cannot travel to the southeast because of insecurity. We are losing huge revenue to this, weekly.

The second challenge is the road infrastructure. It is terrible, especially at night. It means frequent car maintenance costs. Car parts cost more now because they are imported. Bad road infrastructure also leads to more accidents. The contrary could also be true. The bumps, potholes and general bad state of these roads are big sources of concern. They increase the cost of operations.

The third challenge is the devaluation of the naira. The unfavourable exchange rates and rise in the value of the dollar against the naira is a big challenge. With the increase in the value of the dollar and the rising cost of petrol, operation costs rise astronomically and we cannot transfer this cost to customers. We want to be affordable. We can neither directly nor indirectly transfer this cost to customers. We want Libra Motors to be known as an affordable company. The times are already tough for Nigerians.

It is not only about problems and challenges. In these 21 years, you have also reached new levels and achieved milestones. What are some of these achievements?

Marvin: Yes, despite the challenges. We have grown as a business. Nigerians have trusted and allowed us to grow. We started in Mile 2, Lagos, 2003. Now we have 21 branches across Nigeria. We have sister companies such as the Libmot Express.

We have integrated technology into our operations and have transcended the traditional approach where people got to the garage early in the morning and struggled for passengers with competitors. We have embraced technology.

Talking about technology, how has it helped you to move away from the traditional way of doing transport business in Nigeria?

Marvin: From the comfort of your home, today, you can reserve your seat on a particular vehicle based on its schedule. You could also be picked up at designated locations. This has spread our reach and the number of potential customers. We are meeting more people. This is Libra at your doorstep.

When you were talking about milestones, you mentioned Libmot Express, as a subsidiary or sister company to Libra Motors. Why did you go into logistics?

Marvin: We have always done logistics but not as a standalone business. What we have done since 2004, and 2005 was to put the luggage into buses carrying passengers. However, we subsequently decided to separate this and run it as an independent company. This was in November 2019. We endowed it with its manpower, infrastructure and technology.

Tell us about the technology.

Marvin: Libmot Express has a mobile app. You can create shipments from your doorstep and a rider or courier person will come pick it up and deliver it to the appropriate terminal depending on whether it is intra or inter-state. Check us out on www.libmotexpress.com

Interestingly, many of these inter-state transport companies also have a logistics arm. It is a deep market. Where do you see the opportunities and why should anyone bother to patronise you?

Marvin: We have been in business for 21 years and have become a household name. Whatever comfort, safety or assurances we have created in the minds of our customers would make them want to patronise Libmot Express, which has been in operation for five years. There is a difference between roadside logistics and Libmot Express.

Patrick: If I may come in here, you mentioned earlier that logistics is a huge market and you also made reference to traditional courier companies who mostly service corporate clients and other formal businesses.

However, because logistics is a deep and varied market, the traditional courier companies have left out some segments of the market – the informal. E-commerce has also created a big logistics opportunity. Spare parts sellers and importers who need to move their goods from Lagos to the southeast or south-south are also a large segment of the market. This is why many transport companies have set up logistics arms.