Section 4 · Business Plan
Operating Model
The fleet strategy, geographic rollout, infrastructure footprint, dispatch and maintenance, people and organisation, and the operational KPIs.
4.1 Fleet Strategy
Fleet is the single largest determinant of value creation and
investor returns. NRMS’s fleet strategy is built around three
principles: (i) match truck type to job economics, (ii) standardise
chassis and body suppliers to drive down parts and maintenance cost, and
(iii) replace vehicles on a disciplined 7-year or 400,000-km cycle,
whichever is first.
Fleet Composition
The optimal fleet mix balances the high-volume light vehicle recovery
segment (flatbed and wheel-lift trucks) with the higher-margin heavy
vehicle segment (heavy-duty wreckers and rotator cranes). Market data
indicates that 72% of all tow jobs are light vehicles, but heavy-vehicle
recoveries, though fewer, command 4–6x the revenue per job. NRMS targets
the following composition at steady state:
- Flatbeds (56%): Primary workhorse. Best insurer acceptance due to
minimised secondary damage risk. Suitable for sedans, bakkies and light
trucks up to 3.5t. - Wheel-lift units (30%): Fast response, low-cost, ideal for urban
breakdown work and short-range moves. - Heavy-duty wreckers (14%): Medium-to-heavy commercial recovery,
10–25 tonne GVM. Higher capex but higher margin per job.
4.2 Geographic Rollout
The rollout sequence is dictated by economic density (vehicle parc,
insurer claims density) and logistical accessibility. Gauteng hosts
approximately 35% of South Africa’s vehicle parc in less than 2% of the
country’s land area, providing the densest route economics and the
shortest path to operational break-even. The Western Cape and KZN metros
follow in Year 2, and the remaining provinces in Years 3–5.
| Phase | Period | Geography | Fleet (cumulative) | Key Milestones |
|---|---|---|---|---|
| Phase 1 | Mo 0–12 | Gauteng (JHB, Pretoria) | 25 trucks | Anchor insurer contracts signed, break-even at truck level |
| Phase 2 | Mo 13–24 | + Western Cape, KZN | 45 trucks | Multi-province coverage, national insurer panel status |
| Phase 3 | Mo 25–36 | + Eastern Cape, Free State | 60 trucks | National brand, municipal tenders secured |
| Phase 4 | Mo 37–60 | + Remaining provinces | 74 trucks | National coverage, M&A roll-up optionality |
4.3 Infrastructure Footprint
Central Dispatch Centre
A 24/7 central dispatch centre based in Johannesburg will serve as
the nerve centre of the operation. The dispatch centre will be staffed
by 12 controllers across three shifts, supervising all job assignment,
driver coordination, customer communication and insurer liaison. The
centre will run NRMS’s proprietary dispatch software (described in
Section 8) and will be the single point of integration with insurer
claims systems.
Regional Yards
NRMS will operate regional yards in each province of operation. Each
yard combines three functions: secure vehicle storage for recovered
vehicles, driver and truck muster point, and a light maintenance
workshop for daily and weekly inspection work. Yards are typically
2,000–4,000 m² leased industrial sites, with perimeter security, CCTV
and sprinkler-equipped storage bays. Typical yard capex is ZAR
700,000–R1.2 million, including fencing, lighting, office container,
CCTV and basic workshop fit-out.
Maintenance Strategy
NRMS will operate a dual-tier maintenance model: Level 1 (daily and
weekly inspection, tyre rotation, minor repairs) is performed in-house
at regional yards; Level 2 (major service, body repairs, chassis work)
is outsourced to approved OEM-authorised workshops. This model balances
cost, throughput and quality — in-house workshops would require
significant capital for a small number of trucks, while pure outsourcing
loses the daily oversight that catches issues early.
4.4 People & Organisation
The workforce is the operational heart of NRMS. Each truck employs
1.4 drivers on average (to cover shift rotation and leave), and the
operation requires additional controllers, yard managers, maintenance
coordinators and back-office finance and sales staff. Headcount scales
from approximately 52 in Year 1 to approximately 180 in Year 5.
| Role Category | Year 1 | Year 3 | Year 5 |
|---|---|---|---|
| Drivers | 35 | 80 | 105 |
| Dispatch controllers | 6 | 10 | 14 |
| Yard & maintenance staff | 5 | 14 | 22 |
| Sales & contract management | 2 | 5 | 9 |
| Finance & administration | 3 | 7 | 12 |
| Executive & management | 1 | 3 | 5 |
| Technology & IT | 0 | 3 | 6 |
| Other | 0 | 4 | 7 |
| Total headcount | 52 | 126 | 180 |
4.5 Operational KPIs
The business is managed against a small set of operational KPIs that
are reviewed weekly by the executive team and monthly by the board.
These KPIs are the leading indicators of financial performance and the
metrics most closely watched by enterprise customers.
Confidential — this business plan is provided to prospective investors and lenders for evaluation purposes only and may not be reproduced or distributed without the written consent of National Recovery & Mobility Services (NRMS).