Opinion / Columnist
Zupco clings onto unrealistic business model
11 Oct 2015 at 17:26hrs | Views
Poor management blended with a defiance of basic business principles of supporting an unsustainable business model in an era of competition and survival.
This is the scenario which the Zimbabwe United Passengers' Company (ZUPCO) finds itself in.
The public has read the parastatal the riot act, "move with the times or sink".
Inherited from Rhodesia, ZUPCO evolved over the years as the only urban transport provider back then.
Many years later when the urban transport sector was de-monopolised, the company struggled to keep its head above the water.
The story has since evolved to a completely different scenario as ZUPCO has assumed a symbolic presence with no economic benefit for its major shareholder who is government.
But what exactly is the problem? The public lists countless reasons why in its current state, ZUPCO will be shunned by travellers.
The major shareholder, the government, is also worried and wants to re-focus the company's operations in a new direction.
In a bid to get answers from ZUPCO, the ZBC News experienced first hand how ancient the parastatal operates.
It took almost a week soliciting for responses.
Directives to send written questions was complied with but the response never came.
Persistent visits and phone calls could not cut through the company's red tape with the public relations office revealing they first have to apply for permission from the board to respond to media questions.
Of course ZUPCO has a choice to choose a business model of its choice but the path they have selected certainly does not lead to paradise.
For a publicly owned company that owes the taxpayer many explanations, ZUPCO continues with its head in the sand attitude and downright arrogance.
The worrying trend is, however, that not only is ZUPCO spinning headlong into the abyss, it is also threatening to drag the country down under.
This is the scenario which the Zimbabwe United Passengers' Company (ZUPCO) finds itself in.
The public has read the parastatal the riot act, "move with the times or sink".
Inherited from Rhodesia, ZUPCO evolved over the years as the only urban transport provider back then.
Many years later when the urban transport sector was de-monopolised, the company struggled to keep its head above the water.
The story has since evolved to a completely different scenario as ZUPCO has assumed a symbolic presence with no economic benefit for its major shareholder who is government.
But what exactly is the problem? The public lists countless reasons why in its current state, ZUPCO will be shunned by travellers.
In a bid to get answers from ZUPCO, the ZBC News experienced first hand how ancient the parastatal operates.
It took almost a week soliciting for responses.
Directives to send written questions was complied with but the response never came.
Persistent visits and phone calls could not cut through the company's red tape with the public relations office revealing they first have to apply for permission from the board to respond to media questions.
Of course ZUPCO has a choice to choose a business model of its choice but the path they have selected certainly does not lead to paradise.
For a publicly owned company that owes the taxpayer many explanations, ZUPCO continues with its head in the sand attitude and downright arrogance.
The worrying trend is, however, that not only is ZUPCO spinning headlong into the abyss, it is also threatening to drag the country down under.
Source - zbc
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