Ethiopia ride-hailing builds up Sh2b war chest, storms sector
Thursday, October 1st, 2020 00:00 | < 1 min read
TAXI: Ethiopian taxi hailing startup, Taxiye, has entered the local market, seeking a slice of the pie in the highly competitive industry.
The firm’s chief executive Eve Maina said they will invest Sh2 billion in the business by enlisting “boda boda” riders and taxi drivers and providing them with motorcycles and vehicles through a lease to own business model.
Formed in 2019, the start-up has partnered with ‘boda boda’ Association of Kenya (BAK) and Kenya Taxi Cab Association, with plans to supply the BAK members with 300,000 motorbikes in the next five years.
“We are partnering with the operators in a bid to give them the opportunity to participate in the company’s decision making process by supplying them with motorbikes and cars on a lease to own model at competitive rates,” said Maina.
She added that for as low as Sh250 daily, “boda boda” operators will be able to own their own motorbikes and a smartphone for their operations.
Payment period for “boda boda” riders will range between three to 18 months, while that of drivers has been pegged at three years.
BAK chairman Kevin Mubadi said the partnership will create additional employment opportunities to the over 1.2 million people the sector currently supports.