S07 CAF 1 2021 Apps and content_Layout 1 29/01/2021 04:37 Page 20
APPS AND CONTENT
TAXI-HAILING APPS
Boosting the ride-hailing business in Kenya Photo: Lubo Ivanko, Adobe Stock
With the growth of smartphone ownership in Kenya, it's having a transformative effect on the ride-hailing businesses, as Mwangi Mumero finds out.
View from passenger seat when riding a tuk tuk. Malindi, Kenya.
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ENYA’S ONLINE TAXI business has increased in popularity due to the greater availability of smartphones and the ease of access, seamless ordering and easier payment processes they permit. The statistics explain this trend. At least 23 million Kenyans use the internet on a regular basis, according to the Communications Authority of Kenya. The country’s 3G and 4G networks have a reach of over 90 percent of the country. Not only that but over 52 million people – 98 percent of the population – have a mobile connection; most urban dwellers own a smartphone. In turn e-commerce has become entrenched in Kenya in recent years, according to Jumia Kenya, an online shop. It’s little surprise, then, that young techsavvy professional Kenyans have been keen to take up various taxi-hailing service apps being offered by an increasing number of service providers. Another reason for this is that traditional taxi services have been accused of poor service – and even security issues; in recent years, there have been stories of taxi passengers being robbed of cash and other 20 Communications Africa Issue 1 2021
Technology has revolutionised the industry, putting many of the older taxi operators out of business. valuables by drivers. “With due diligence carried out on owners and operators of these taxi-hailing online providers, these vehicles are safe and traceable compared to traditional taxis,” observes Ms Jane Kioko, a Nairobi-based banker and a regular user of the online taxi hailing service. Cab drivers have had to move with the times. Technology has revolutionised the industry, putting many of the older taxi operators out of business, especially in Nairobi and Mombasa. With at least 33,000 active riders in Kenya, Uber remains the market leader in the country as well in the East African market. In Nairobi, Uber vehicles are easy to spot – some with big logos on their sides as they move through the streets and suburban areas of the city.
In a recent development, Uber and Suzuki Corporation agreed a memorandum of understanding to expand the fuel-efficient Uber Chapchap vehicles across sub-Saharan Africa. The small white Uber Chapchap vehicles are a common sight in Nairobi. They have given thousands of driver-partners and riders a chance to venture into the online taxi business and earn a living. Uber has also partnered with Stanbic Bank Kenya to finance over 500 vehicles under the Uber Chapchap name as demand for the fuelefficient vehicles expands. The Uber Kenya app is available on Google Play Store for Android users and has a userfriendly interface that works well. Launched in Nairobi in 2016, Bolt – formerly known as Taxify – is another app that has made waves across the country. It has in recent years expanded to other cities including Mombasa, Nyeri, Meru, Kilifi, Nanyuki and Malindi. Bolt is a ride- sharing platform backed by Chinese vehicle for hire company Didi. It is also available in Kampala in Uganda, and other major cities in Africa. Bolt’s most significant feature is the app’s intuitive interface; it is also considered www.communicationsafrica.com
