InvestorsHub Logo

lesgetrich

06/03/19 1:36 PM

#3504 RE: pitacorp #3503

Uber and Taxify both think there's a lucrative market...

Uber and Taxify are going head-to-head to digitize Africa’s two-wheeled taxis

Uber expects uberBoda passenger costs to average roughly a dollar per fare. Lits estimates “there are nearly 2 million weekly boda trips happening in Kampala.” The uberBoda motorcycle service is starting with around 100 drivers.

As they gather research from early activity, both Taxify and Uber in Africa said they plan to look more deeply into motorcycle financing plans for drivers, expanded rider training, and ways to build more safety into the two-wheel taxi markets.

“By forcing Taxify boda boda riders to follow existing rules, like not riding more than two passengers at a time, it will rub off and have the kind of positive market disruption we want to see on the boda boda industry,” said Taxify’s Anoke.

“As we get more data as to drivers’ track records, that becomes a proxy for credit, which we’ll look to roll out to the boda industry,” said Uber’s Lits. As TechCrunch reported, Uber Africa experiments with many things the company doesn’t always do globally, such as cash payments and recently launching moto-rickshaw service in Tanzania.

Other players

Uber and Taxify aren’t the only companies to enter Africa’s motorcycle ride-hail market. Nigeria has startup Max.ng, which is actually more focused on last-mile delivery service...

...As for earning potential of East Africa’s boda bodas, Taxify’s Chisom Anoke referred to a recent study by the Motorcycle Assemblers Association of Kenya. It pegged that country’s 2017 two-wheel taxi revenues at $2.1 billion, surpassing the income of the Kenya’s largest telco, Safaricom.