@BusinessDaily

Taxify bets on motorcycles and rickshaws in East Africa

2 months ago, 10 Aug 12:59

By: Reuters

Taxify, an Estonian ride-hailing company aiming to take on Uber in emerging markets, will invest millions of euros in East Africa in the next five years with a strategy focused on motorised rickshaws and motorcycles, it said on Thursday.

In East Africa, that means “boda bodas” and “bajajis”, also called “tuk tuks”, - local terms for motorcycles and rickshaws, respectively.

“Our focus is on providing the most appropriate means of transport for the customers and in East Africa we can see that boda bodas are getting the highest value for us,” Karl Aru, Taxify’s Expansion Manager for Africa, said in an interview.

Funding round

Taxify has picked off business from Uber in central and eastern Europe and major African cities.

It raised $175 million in May in a funding round that included German automaker Daimler and brought its valuation to $1 billion.

The company says it has hundreds of thousands of drivers in sub-Saharan Africa, with roughly a third in East Africa. It also operates in Nigeria and South Africa, and has a total of five million active users on the continent as a whole. Close to half of Taxify’s business is in Africa, the company said.

It recently expanded to Mwanza, a northern city in Tanzania, a country of 55 million people.

Aru said the company was exploring other markets in the region. “We are looking into Ethiopia, and a number of other countries also in East Africa,” he said in a phone interview from Tallinn, Estonia, where Taxify is headquartered.

Challenges the company faces in East Africa include low smartphone penetration, internet connectivity and safety, he said, adding Taxify’s safety features included a “share your ETA (Estimated Time of Arrival)” function.

Competition

In Kenya, East Africa’s richest economy per capita, Taxify also competes against Little, which has a partnership with telecoms operator Safaricom, and the Nairobi-based Mondo Ride.

Taxify differentiates itself from rivals by offering locally popular modes of transport, and also working to take less commission from drivers, Aru said.

“Of course, we have several different products, we have the regular cars, sedans, we have a comfort service or like a premium service and we also have an affordable option, called ‘GO’ which is small vehicles for deliveries and daily pick-ups.”

Aru said Taxify on average took a commission of about 15 percent from drivers, which he said compared with 25-30 percent at competitors.


Read More


Category: business economy news corporate markets lifestyle opinion

Suggested

3 hours ago, 13:20
@StandardMedia - By: Valentine Kondo
Technology set to cause job loses but improve efficiency says Africa Reinsurance

Pan-African reinsurer which is based in Lagos, Nigeria on Tuesday urged Insurers to adopt the use of technology to help lower expenditure and increase ...

Category: business news
3 hours ago, 13:42
@StandardMedia - By: Domnic Omondi
Britam employees charged over Sh23 million attempted fraud

Two Britam employees have been arraigned in court for conspiring to defraud their employer of Sh23 million. ...

Category: business news
6 hours ago, 10:12
@CapitalFMNews - By: Capital Fm
Wednesday Morning Business brief – Tax education in schools, End Poverty Day

NAIROBI, Kenya, Oct 17 - The Kenya Revenue Authority (KRA) and the Kenya Institute of Curriculum Development (KICD) will unveil a needs assessment report Kenya breaking news | Kenya news today | ...

Category: business
4 hours ago, 12:38
@StandardMedia - By: Reuters
How Russia moved into Central Africa

France’s foreign ministry said Russia must strictly respect the terms of its arms embargo exemption to keep the weapons out of the wrong hands. ...

Category: topnews news business
4 hours ago, 12:09
@StandardMedia - By: Steve Mbego
7 things you need to run a successful betting agency

Whether you’re a fan of it or not, it’s impossible to ignore the phenomenon that sports betting has become in Kenya. ...

Category: business news
8 hours ago, 08:52
@CITIZENTV - By: Reuters
YouTube back up after widespread outage

YouTube has said a widespread issue with some of its services has been resolved. ...

Category: topnews news business

@BusinessDaily

Taxify bets on motorcycles and rickshaws in East Africa

2 months ago, 10 Aug 12:59

By: Reuters

Taxify, an Estonian ride-hailing company aiming to take on Uber in emerging markets, will invest millions of euros in East Africa in the next five years with a strategy focused on motorised rickshaws and motorcycles, it said on Thursday.

In East Africa, that means “boda bodas” and “bajajis”, also called “tuk tuks”, - local terms for motorcycles and rickshaws, respectively.

“Our focus is on providing the most appropriate means of transport for the customers and in East Africa we can see that boda bodas are getting the highest value for us,” Karl Aru, Taxify’s Expansion Manager for Africa, said in an interview.

Funding round

Taxify has picked off business from Uber in central and eastern Europe and major African cities.

It raised $175 million in May in a funding round that included German automaker Daimler and brought its valuation to $1 billion.

The company says it has hundreds of thousands of drivers in sub-Saharan Africa, with roughly a third in East Africa. It also operates in Nigeria and South Africa, and has a total of five million active users on the continent as a whole. Close to half of Taxify’s business is in Africa, the company said.

It recently expanded to Mwanza, a northern city in Tanzania, a country of 55 million people.

Aru said the company was exploring other markets in the region. “We are looking into Ethiopia, and a number of other countries also in East Africa,” he said in a phone interview from Tallinn, Estonia, where Taxify is headquartered.

Challenges the company faces in East Africa include low smartphone penetration, internet connectivity and safety, he said, adding Taxify’s safety features included a “share your ETA (Estimated Time of Arrival)” function.

Competition

In Kenya, East Africa’s richest economy per capita, Taxify also competes against Little, which has a partnership with telecoms operator Safaricom, and the Nairobi-based Mondo Ride.

Taxify differentiates itself from rivals by offering locally popular modes of transport, and also working to take less commission from drivers, Aru said.

“Of course, we have several different products, we have the regular cars, sedans, we have a comfort service or like a premium service and we also have an affordable option, called ‘GO’ which is small vehicles for deliveries and daily pick-ups.”

Aru said Taxify on average took a commission of about 15 percent from drivers, which he said compared with 25-30 percent at competitors.


Read More

Category: business economy news corporate markets lifestyle opinion

Suggested

3 hours ago, 13:20
@StandardMedia - By: Valentine Kondo
Technology set to cause job loses but improve efficiency says Africa Reinsurance

Pan-African reinsurer which is based in Lagos, Nigeria on Tuesday urged Insurers to adopt the use of technology to help lower expenditure and increase ...

Category: business news
3 hours ago, 13:42
@StandardMedia - By: Domnic Omondi
Britam employees charged over Sh23 million attempted fraud

Two Britam employees have been arraigned in court for conspiring to defraud their employer of Sh23 million. ...

Category: business news
6 hours ago, 10:12
@CapitalFMNews - By: Capital Fm
Wednesday Morning Business brief – Tax education in schools, End Poverty Day

NAIROBI, Kenya, Oct 17 - The Kenya Revenue Authority (KRA) and the Kenya Institute of Curriculum Development (KICD) will unveil a needs assessment report Kenya breaking news | Kenya news today | ...

Category: business
4 hours ago, 12:38
@StandardMedia - By: Reuters
How Russia moved into Central Africa

France’s foreign ministry said Russia must strictly respect the terms of its arms embargo exemption to keep the weapons out of the wrong hands. ...

Category: topnews news business
4 hours ago, 12:09
@StandardMedia - By: Steve Mbego
7 things you need to run a successful betting agency

Whether you’re a fan of it or not, it’s impossible to ignore the phenomenon that sports betting has become in Kenya. ...

Category: business news
8 hours ago, 08:52
@CITIZENTV - By: Reuters
YouTube back up after widespread outage

YouTube has said a widespread issue with some of its services has been resolved. ...

Category: topnews news business
Our App