Denis Opudo
Global competition Taxify and Uber operate motorcycle industry in East Africa. Uber is the second worldwide motorcycle service provider but the first in Africa. Taxify is the first most two-wheel service operator in Africa and 20th in the global market. The uses of the two startups arise due to digitalization of Africa motorcycle industry.
Taxify plans to launch a mass expansion of boda-boda services to many cities and markets across Africa. Uber Africa’s Alon Lits pointed out potential countries likely to enjoy phase one expansion. Entebbe Uganda, Rwanda and other counties in the continent are the beneficiaries. Motorcycle Assemblers Association of Kenya reported that in 2017, boda-boda raised 2.1billion in revenue. Over the last years, regulation of taxi industry via Uber and taxify brought protests. The rift emanated from traditional drivers who could not operate the digital devices. However, time is soon elapsing where nondigital pilots will not survive the competition anymore.
Apart from Taaxify and Uber, there are other companies in the continent motorcycle market.
Nigerian Max.ng startup is interested in the miles delivery products. SafeMotos of Rwanda existed from 2015. It enables operators to locate customers, record miles and enhance payment services. The company also plans to incorporate women motorcycles operations in Rwanda and in Kinshasa DRC.
Besides SafeMotors, a Singapore startup Yego Moto operates in Rwanda. The company has about 680 drivers, covers 2.1 million Km and made 426,382 trips. The company spokesperson gave out the above Yego Moto’s statistics.
According to Alon Lits the Africa’s Uber GM, prominence of motorcycle triggered the launch UberBoda. The startup app will comprise of request icon. The entire Uber driver must have a taxi license and functional motorcycle. Moreover, Uber drivers MUST have 2 helmets plus reflective jackets. He estimated the number of drivers to be 100 with about 2million trips weekly. The average fare per mile is one dollar.
Taify and Uber are looking into possibilities of improving motorcycle ecosystem in the continent. Some of the strategies include regular drivers’ training and enlargement of financial support. The startups regulate motorcycles industry by prohibiting carrying more than 2 passengers.
Based on Chisom Anoke’s survey, the startup establishment in Kenya was due to two folds. The first reason was lack of proper regulation in boda-boda sector. The other fold was to bring convenience in the industry. In Kenya and Uganda, the app has extra Boda button to allow users order taxi services.
He added that the Kenya rates range from USD $ (0.30 to 0.15) per kilometer. Taxy obtaining revenue by deducting 15% of fare per mile covered. Saty-wise, the company hires drivers approved by Kenya’s National Transport and Safety Authority (NTSA). Additionally, the company requires 3 years driving experience. The use of latest motorcycles for inspection purposes is mandatory. Riders will also have two reflective jackets and yellow helmets. Navigation is headphones or direction prompt by the Google maps among others.
