Payment system a challenge for ride-hailing firm

QUESTION. What are your views on ride-hailing business in Tanzania?

ASWER. Tanzania is a huge and thriving market for private urban transport. We launched our services in Dar es Salaam in December 2017. We continue to provide Tanzanian citizens with a source of income and a business opportunity to invest in, as the rate of employment in the country continues to demystify.

Can you give a regional performance of your company and how Tanzania is faring?

Taxify currently operates in 18 cities in Africa. We have hundreds of thousands of drivers on the platform and more than 7 million passengers on the continent as a whole. Our key focus is on providing the most appropriate means of transport across the region. In East Africa, we operate in five cities in Kenya, Uganda and Tanzania. We recently introduced Boda service in Dar es Salaam, Mwanza and Dodoma in response to the growing demand for safe, quick and convenient transportation.

Can you give concrete numbers in drivers, bodaboda and Bajaj operators enrolled so far?

We cannot but we have hundreds of thousands of drivers on the platform and more than 7 million passengers in the continent as a whole. The number grows steadily by 20 per cent month on month.

How is the company coping considering the fact that the mode of business is still new in Tanzania and that another operator was already in the country when you introduce your services in Dar es Salaam?

We entered Tanzania with a promise to provide better services and boost competition. We are putting more value on being a responsible corporate citizen and taking care of its drivers. We believe in treating drivers with respect, allowing them to earn more than with other platforms and providing a range of safeguards and features that help them work in the way that suits them best. We have also launched local means of transportation like bodabodas or tuk tuks to introduce new standards of safety in an otherwise largely unregulated industry. This means we’re tapping into the local market while also driving up the standards.

Taxify has cut down prices. How do your drivers cope when Uber ones were lamenting low prices?

First our pricing strategy is driven by the goal of making drivers earn sustainable earnings driving for us, while at the same time, providing an affordable and convenient service for customers. We price the service at a place that strikes this balance. Due to the added advantage of efficiency that the service brings, we are able to price our services below street prices. Hence, customers have affordable ways to get around, but not at the expense of driver earnings.

Recently, Taxify expanded its services to Mwanza and Dodoma. What is the potential of those cities and what could be the next city/town in your targets?

Taxify has been highly successful in Mwanza and Dodoma, with business growing steadily at around 20 per cent month on month. We are continuously researching all potential regions and are definitely planning to expand to more cities across to meet the growing demand for safer, reliable and organized motorbike services.

You also extended services to passenger motor bikes…what is the potential of bodabodas bearing in mind that such mode of transport is perceived risky in Tanzania?

We released Taxify Boda to meet the rising demand for efficient and effective transportation. We observed a lot of inefficiencies and lost opportunities for bodaboda drivers. Having each driver vetted and issued with protective gear such as helmets and reflector vests, trained on safety and regulations also ensures trips are safer. We also provide medical cover in cases of emergency.

Are there any challenges that Taxify face in the market globally? Any specific challenges for Tanzania?

So far Africa hasn’t been a priority for most US companies. We have been, first movers in some of the countries and with some of the markets have been hard for us to offer everything we are offering in other markets. So one of the things we are working is payments infrastructure, so we wanna roll out local methods for customers.

One of the biggest challenges is the payments infrastructure. We hope to be one of the first ones to solve the problem. We are localising the service to fit the locals best. One of the ways is providing various payment methods e.g. M-Pesa in Kenya.

Other challenges are smartphone penetration, lack of internet connection, safety. Most companies are not ready to do the hard work of localisation.

How did you find yourself in Taxify? Can you give your short profile and how your experience led you to this kind of work?

Prior to joining Taxify, I worked as a senior auditor at PwC Tanzania for three years. It’s been an exciting time since we first launched in December 2017, from the introduction Taxify Bajaji (motorised three wheeled rickshaws), Taxify XL (6 seater vehicles) to newly launched Taxify Boda (bodaboda). The company has continued to grow expanding to two more cities: Dodoma and Mwanza. This fast and consistent growth is what keeps things interesting at Taxify.

I was also wondering why you jumped from a seemingly stable job to launch taxify? Is it rewarding?

Taxify’s commitment to empowering the lives of Tanzanians is what attracted me to work here. We solve real socio-economic problems such as streamlining the informal transport sector, creating employment while retaining the money within the Tanzanian economy.

What are your future plans in the business especially in East Africa?

As we continue to improve the technology; we expect to see ride-hailing become cheaper, more efficient and more practical than owning a personal vehicle or motor bike.

We are also looking into regional expansion, to open up new cities and markets and adding more products such as Taxify Tuk Tuk and Taxify Boda (bodaboda). We have since expanded into two more cities: Dodoma and Mwanza. We are also exploring partnerships to foster the economic independence of our drivers such as vehicle financing and boda leasing.