AFRICA: Taxify Operates In More African Cities Than Uber.

Ride-hailing company Taxify is taking the fight for market share in Africa with Uber to places where Uber isn’t.

The Estonian company which has grown to become Uber’s biggest rival in Africa is pursuing an expansion strategy that’s focused on not only operating in major cities across Africa, like Uber does.

Taxify has also been expanding to smaller cities and now operates in more African cities than Uber.

In Nigeria, in addition to Lagos and Abuja, the only two cities where Uber currently operates, Taxify has launched operations in Ibadan, Nigeria’s largest city by land size, and Owerri, a bustling commercial center in the southeast.

While neither city matches Lagos or Abuja as urban centers, they have sizable business districts and populations of over 1 million people each.

In Tanzania, while Uber has stuck only to Dar es Salaam, Taxify operates there as well as in Dodoma, the nation’s capital and in Mwanza, a tourism hotbed on the shore on Lake Victoria.

In South Africa, Taxify continues to compete with Uber in Cape Town, Durban, Johannesburg and Port Elizabeth but has also expanded to Polokwane.

It is set to also launch in East London later this month—a move that will see it surpass Uber for the number of African cities operated in. It will also mean Taxify operates more cities in South Africa than anywhere else.

Much of Taxify’s expansion has been bankrolled by its recent $175 million capital raise—a funding round which valued the company at more than $1 billion.

Taxify’s backers include Daimler, the German car giant and Didi Chuxing, the dominant ride-hailing business in China which is also known for backing Uber’s rivals elsewhere.

As it continues to grow and attempt to win over riders, Taxify’s lower commissions on fares are also a tactic to win over drivers.

For its part, Uber, which has now operated in African cities for five years, is also eyeing more expansion with Rwanda, Ivory Coast, Senegal and Mauritius among potential targets.

And showing a willingness to adapt to local markets, it has also introduced lower cost ride-hailing options with rickshaws in Kenya and motorcycles in Uganda.


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AFRICA: inDriver From Russia Is Uber’s Latest Competitor In Africa

Global ride-hailing giant Uber has gone from having no competitors in Africa to having more than 50.

While it mainly contends with Taxify, the Estonian ride-hailing service, which is now in more African cities, Uber also faces competition from homegrown options like the Safaricom-backed Little Cabs in Kenya and regional players like Careem across North Africa.

In fact, it tried to merge with Careem this year, but Egyptian regulators warned against the deal.

The latest market entrant is inDriver, a Russian ride-hailing company, which has launched in Arusha, Tanzania, its first market on the continent.

The five-year old company operates in nine other countries across South and Central America as well as Europe. Long-term, inDriver hopes to differentiate its service by allowing drivers and riders haggle over final fare prices while it sets base fare price.

inDriver is also hoping to rapidly grow its driver pool by charging no commissions on driver earnings for six months after which it will begin charging 5% to 8% in commissions—much lower than either Uber or Taxify.

Drivers will also be able to view both pick-up and destination points before accepting rides.

inDriver’s play for drivers is not entirely new as incentivizing drivers has already proven to be a major part of the scrap for ride-hailing market share in Africa.

But what it offers in driver incentives, inDriver will likely lack in financial might compared to the biggest players on the continent. It raised $10 million in its Series B funding round earlier this year. Uber and Taxify are both billion-dollar unicorns.

Neither is showing any signs of slowing down on growing its Africa operations either. Taxify is eyeing ten-fold growth in the next two years and already operates in more African cities than Uber.

For its part, Uber is looking to add Rwanda, Ivory Coast, Senegal and Mauritius among potential targets to the eight African countries in which it already operates.

Uber has also shown a deeper interest in fitting into local transport ecosystems and has launched lower cost ride-hailing options with rickshaws in Kenya and motorcycles in Uganda.

It’s now looking to roll out a new service in Nairobi to allow users book spots on commercial mini-buses—locally known as matatus—which remain the most common form of transport in the city.


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UGANDA: Taxify And Uber Drivers Stage Strike

Uber and Taxify drivers are on strike demanding higher fares to meet rising fuel costs that have negatively affected their incomes.

Fuel prices in Uganda have risen more than 20 percent since the start of the year but drivers say fares have not grown at the same rate, making it difficult for them to meet expenses despite working longer hours.

The drivers under their association Smart Online Drivers Association are demanding for a review of rates and working conditions.

Smart Online Drivers Association spokesperson Mercilus Kantiba says the drivers are struggling to survive because of the low charges and the huge percentages of Uber and Taxify operators take from each trip made.

The drivers demand minimum rates for both Uber and Taxify increased from Shs 4000 and Shs4500 to at least Sh7000 or higher to cater for vehicle maintenance, Airtime, mobile data and insurance cover.

As well as charges for a Kilometer increased from Sh500 to Shs 1500 and the waiting charge from Shs 100 to Shs 400.

Kantiba adds that pick up charges and compensation charges for Taxify drivers whose journeys are always undervalued need to be introduced.

The rising cost of fuel, caused by higher oil prices and a weak shilling, is the latest setback for drivers already operating on thin margins. Their incomes have plunged over the past one year after Uber and Taxify cut incentives to boost profitability.

When incentives were high many drivers quit well-paying jobs and took out loans to buy cars in the hope of higher earnings. As more drivers joined the platforms and the supply of cars increased, the companies started scaling back on incentives.

Some drivers say they are forced to work for up to 16 hours a day to make enough to pay interest on their loans, meet expenses and provide for their families.

Smart Online Drivers Association has over 1000 registered Uber and Taxify drivers.


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SOUTH AFRICA: Taxify And Uber Drivers Dissapointed And Continue With Strike

The drivers’ most outspoken protest leaders say they are being treated like slaves.

The ongoing unhappiness of many Uber and Taxify drivers continues, with a new statement calling for an intensification of protest.

Thabiso Sithole and Vhatuka Mbelengwa said that after they handed over their memorandum on Tuesday, Uber allegedly blocked some of the protesting drivers.

Sithole and Mbelengwa now describe Uber as a global anarchist that disrespects South African law.

They have organised a further march to get their drivers unblocked, and started gathering on Friday morning.

Drivers have become increasingly disenchanted with what they claim to be the ride-hailing companies’ push for profits at their expense.

Despite the fact that petrol prices have increased, the companies have allegedly not increased tariffs and drivers allege they’re increasingly getting a smaller share of what passengers pay. The companies allegedly take at least 25 percent.

Uber and Taxify drivers were at Zoo Lake on Tuesday morning to begin a strike organised by the eHailing Association of South Africa (Ehasa) alongside a group calling themselves the General Task Team (GTT).

Other grievances include the two company’s admission of too many new drivers and safety concerns.

Mbelengwa, who claims to be a spokesperson for GTT, says one of the main aims of the strike is to get the two companies to stop accepting new drivers.

What is known as the onboarding of new drivers in the industry has severe consequences for existing drivers, according to Mbelengwa.

We’re looking at an initial spend on a vehicle of R300 000 and we want the maximum return on our investment of assets as is.

The continual adding of new drivers means that to compete, we need to run so many trips that our vehicle depreciates to the point that we can’t get that return.

This also compromises vehicle safety, which in turn compromises rider safety and forces us to perform excessive maintenance on the vehicle.

When approached for comment about the strike on Monday, specifically about allegations that they refuse to adapt prices to rising fuel costs, Uber sent a generic statement explaining why this is the case.

We respect driver-partners as valuable partners with a voice and a choice and we want driver-partners to feel they can talk to us about anything at any time, read the statement.

We constantly monitor fares and examine consumer price sensitivities to ensure fares are correctly priced so that riders continue to take trips and drivers have access to more fare paying passengers.

If fares were to increase, then riders may take fewer trips which will ultimately lead to lower earnings,” the statement continued.

Mbelengwa said they completely rejected the company’s explanation.

Uber must stop calling us partners when they don’t consult with us. Who have they consulted with? he asked.

Despite protests from some drivers, it has remained possible to use both ride-hailing apps and their services.

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KENYA: Uber And Taxify Drivers Go On Strike

Drivers of Kenya's digital taxis shut down operations Monday in protest of what they term as exploitative corporate practices.

They say the firms are charging low rates to their clients, yet imposing high commissions on the drivers, leading them to work longer hours with little pay.

The Digital Taxi Association of Kenya, representing more than 2,000 digital taxi drivers, is in the fourth day of a protest that has seen drivers switch off their services, stalling transportation in the country.

The drivers say client charges have reduced over time as more digital taxi apps enter the market, but their commissions to the taxi firms have remained the same.

The drivers are demanding a review of their rates and working conditions. Through their association, they want the digital taxi services to double their client rates and reduce driver commissions to the companies so they can earn decent wages.

The fare itself, it has been very low from the word go, said Anthony Maina, an Uber driver in Kenya. The percentage after they get their commission, we get very little returns.

The main digital taxi services in Kenya are the American brand Uber and Estonian Taxify, as well as at least three others.

Uber charges a 25 per cent commission on each ride, while apps like Taxify charge 15 per cent. The drivers want rates at least doubled per kilometre, and commissions slashed to 10 per cent.

Kenya Digital Taxi Services director David Muteru is calling on Kenya's ministry of Transport to resolve the issue.

All these things are happening where we have government agencies who can take care of all these things without having pressure from us, Muteru said.

It is not our wish to come here and start demonstrating. Our demand is that we must have regulations. The pricing is very skewed in favor of the app companies to the detriment of drivers.

Maina says Uber reduced the maximum working hours from 18 to 12 in an effort to better the working conditions, but drivers overwork to earn more to meet expenses.

We cannot afford daily maintenance, he said. An example, each and every day you have to fuel the vehicle, you have to wash the car, and if you happen to be in the city center, you have to pay the city council.

All those expenses, when you put them together and maybe you do not own the vehicle yourself, you have to pay the partner and you know fuel has been going up every day and they are not adjusting their commission or fare. So that has been a big problem for us.

Earlier in the week, Uber drivers in South Africa also went on strike to protest the 25 per cent fee charged by Uber.

Digital Taxi Association representatives in Kenya are in negotiations with the taxi firms and Kenya's ministry of Transport as their strike continues.


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UGANDA: Little Ride Taxi To Launch In Kampala

A new online taxi-hailing app Little Ride is set to launch its services in Uganda this month, bringing competition to Uber and Taxify who have been enjoying a duopoly.

Little, developed by technology firm Craft Silicon, says its Uganda expansion plans earlier announced in 2016 had been delayed until this year to enable it firm up its Kenyan operations.

We had a plan to launch in Kampala last year. But we felt that we must strengthen our position in our home ground before we go out, Kamal Budhabhatti, Craft Silicon founder said.

In Kampala, by mid of May, we would be up, he added.

As at October last year, the company had on its app about 5,000 drivers, who would at the time clock in over 13,000 rides during peak periods at the weekends.

The firm is also planning to expand into Nigeria, a populous nation it has set sights on since 2016.

Nigeria, is in plan. But I would also be able to tell you the launch date in a few weeks after we roll out Uganda, said Mr Budhabhatti.

The foray into the two nations is expected to effectively transfer further afield the taxi price wars that Little has sparked locally among its rivals including giant American Uber and Estonian-based Taxify .

Little Ride launched in Kenya in July 2016 sparking off a price war that pitted it against Uber and Dubai-based Mondo Ride which responded to the increased competition by slashing their fares.

Uber, the San Francisco-based taxi e-hailing giant, launched its services in Kampala, Uganda in June, 2016.

Uber rolled out its operations in Lagos, Nigeria in August 2014 while Taxify entered Uganda in 2017 to tap the fast growing demand for city transport services.

Nigeria is where we have our biggest continental operations as Craft Silicon and so we believe we have leverage there.

The same applies for Uganda where we are also based, Budhabhatti had said.


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KENYA: Taxify Expands To Mombasa

Taxify has launched its new high-capacity taxi service that accommodates up to six passengers in the coastal town of Mombasa, a week after unveiling it in Nairobi.

The base fare for the service dubbed TaxifyXL is set at Sh100 with each kilometre and minute priced at Sh45 and Sh5, respectively, rates that are pricier compared to Nairobi.

In Nairobi, the TaxifyXL base fare is set at Sh100 with each kilometre and minute priced at Sh40 and Sh4 respectively.

The minimum fare for the TaxifyXL in both cities is set at Sh250.

Mombasa is Kenya’s tourism hub and taxi hailing apps are popular with international travellers who may have used the service in other cities across the world.

The firm said, during launch, that the XL service would cater for a more diverse customer base like includes groups requiring larger capacity vehicles.

We have recognized that as our customer base expands people are now moving to a point where they want vehicles that can carry more than four passengers at a go, said Taxify head of Kenya operations Chisom Anoke.

Taxify has launched a motorbike hailing service as it moves to tap into the mode of transportation popular for its convenience in Nairobi.

The new Taxify Boda service has a minimum fare of Sh50 per trip.

For longer journeys, users will be required to pay Sh30 base fare, Sh15 per kilometre and Sh3 per minute.

Taxify Kenya Operations Manager, Chisom Anoke, said that the firm had developed the new service in response to a growing demand for safe, organised and reliable motorbike services.

Rising use of motorcycle riders for public passenger transport is a reality that we have to live with particularly in Nairobi where traffic jams and clogged roads delay movement.

Mr Anoke said that by providing a smartphone application linking passengers to motorcycle riders, Taxify Boda is contributing to the overall structuring of the informal transport economy, estimated to already ferry at least 10,000 people daily in Nairobi alone.

We want to help the motorcycle drivers formalise their businesses by providing them with a platform to track trips, earnings and even plan for personal development initiatives such a saving with a sacco.

Since they are already trying to establish formal groupings, Taxify Boda will greatly raise their operational focus and even eventually make it easier for them to afford to purchase new motor cycles, Mr Anoke said.


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Taxify, UBER, Little Cab Compete For Kenya Market

UBER in Kenya will feel the competion wind in its face as the first of two more App based taxi hailing services, 'Taxify' has now launched services with some 400 drivers, just days ahead before Safaricom supported 'Little Cab' will launch next week.

Taxify intends to rapidly roll out into Mombasa too, UBER's second Kenyan destination but has already announced that more towns across Kenya will be added rapidly like Kisumu, Nakuru and intends to have as many as 7.000 drives on call when fully operational.

Taxify has announced fares of 50 Kenya Shillings per kilometre and 5 Kenya Shillings per hour, the latter - given the notorious traffic jams in Kenya's capital, no doubt a form of charging reflecting the time one stands on the city's roads rather than moving on them.

This is seen as a direct challenge to UBER which, when demand outstrips supply of cabs, applies a 1.5 factor on fares.

Plenty of choices now how to move around Nairobi though hotel limousines remain another convenient option as they are charged directly on to a guest's room account eliminating the need to carry too much cash.