App aims to transform freight industry in Kenya
In the business of transport and logistics globally, time and safety are critical. Such is the sensitivity in this line of business that all players in the value chain invest on the latest trends in technology to minimise losses and enhance efficiency.
As Africa rises to prominence as an investment destination, the role of transport and logistics has taken on greater significance, either through moving resources off the continent or bringing goods and services inward, Africa’s future growth and development will depend on the quality of its infrastructure and the efficiency of its transport networks.
While South Africa tops the list for having the most developed transport and logistics sector in Sub-Saharan Africa placing it at par with some of the world’s industrialised countries, logistics companies are looking to the rest of Africa for investment opportunities.
Enter Kobo360: a revolutionary e-logistics app threatening the status quo of handling logistics business through a promise of efficiency and effectiveness.
West meets East
Borne out of Nigeria in 2017 by two friends, the mobile platform with a strong footprint in West Africa has for the past five months found a home in Kenya and Uganda. “We saw a gap and endeavoured to create opportunities. Logistics business particularly in East African region is growing fast because there are so many infrastructural projects taking place gradually in the block. Kenya being a trade and finance hub, it made perfect sense to bring Kobo here,” says Kagure Wamunyu, the Africa Region CEO.
The overall target of the application is aggregation of transport providers with global industry standards via a transparent platform. Kobo360 connects end-to-end operations to help cargo owners, drivers, and cargo recipients to achieve an efficient supply chain framework. In less than six hours, the app matches a user’s request with a selection of quality trucks of all categories, any time with guaranteed service delivery: no need for telephones, opaque and vague pricing or expensive middlemen.
Kobo360 (slang for money all the time in Nigerian lingo) currently has access to over 3,000 trucks and 4,000 drivers. The company has partnered with firms in the haulage business including Bidco Africa, Union Logistics Limited and Intraspeed ARCPRO Kenya Ltd as well as serving big millers such as Bakhresa Group, Rafiki Millers and McNeel Millers and has a current reach in Eastern and Southern Africa key towns.
Adding value
“It is an aggregated single system, which offers services around quick trip scheduling and monitoring of movement. Essentially, we are keen to add value in the logistics systems and in the future, a full throttle adaptability and embracing digital waybill 100 per cent,” adds Wamunyu.
Kobo, through its financiers TLcom Capital LLC and Chandaria Capital, is on a mission to reduce costs on logistics by 20 per cent, while, at the same time, improving haulage. “This is a sensitive business that needs not only expertise, but also sincerity. We want to show our clients that we are the one stop shop through partnerships that make sense to both ends. This was the ultimate mission of the developers of the app. Even investors saw the value input of the company. This is why at the moment we have an increment of at least 80 per cent new users of the service monthly,” she offers, adding that they will look at truck financing, an opportunity to partner with banks and truck assemblies in Kenya and copay product for financing trips in Kenya.
According to Wamunyu, the sector is full of opportunities and as a tech solution provider they see a lot of potential and promise. “This is a Sh15.6 trillion industry with a lot of inefficiency particularly in the developing world. In Kenya, we complement the Standard Gauge Railway, and our stand is to grow with the country and its operational policies. As a technology company, we are a solution provider and ours essentially is to make the sector reliable and convenient for users,” she offers.
