How to compete with global ride hailing leaders in Africa

While it may feel impossible for startups to compete with big market players, the market statistics and ongoing government support of the ride-hailing industry show that there is space for new apps to be launched. You just need to position yourself on the market properly, and this article is here to help you do that.

What is the difference between ride sharing and ride hailing?

But first, let’s clarify the terminology. 

Ride-hailing is a service offering personal drivers, where users “hail” a car to take them from a specific place and deliver them to the desired destination without stops in between. The vehicle isn't shared with other riders on the way.

Ride-sharing, as the name suggests, is like carpooling. In this service, one car is shared by several people, so it's not a personal ride and the vehicle will make stops on the way to pick up other riders.

Top ride hailing companies in Africa

Let's first quickly go through the 5 best ride-hailing companies in Africa, and then move on to the tactics you can apply to compete with them.

One notable thing about leading market players like Uber, Bolt and Yango is that they successfully adapted their apps to local preferences and needs. They offer local payment options, and multilingual support, carry out the driver verification process, and partner with local businesses. 

They often collaborate with local governments and communities to navigate regulatory issues and build trust among their users. However, as it tends to be with larger companies, those apps require much more time to adapt to customer’s requests and can't stay as agile as startups. 

The current list of the biggest ride hailing companies in Africa includes:

1. Uber

Uber is the global ride-sharing company that has become the most well-known alternative to traditional taxicabs. Relying on smartphone technology for dispatch and fee payment, Uber, as the best ride app in Africa now, offers fair prices, quality standards and increased convenience. Uber is now operating in 15 major African cities and has 60,000 drivers in the base. 

2. Bolt

Bolt is known as Uber's key competitor and has been operating in South Africa since its 2016 launch. Working in cities like Johannesburg, Cape Town, and Durban, Bolt acts as a ride hailing service that offers affordable, fair pricing and convenient driving in five categories, including Go, Bolt, Comfort, Premium, and Van.

3. Yango

Originally launched in Ghana in 2018, the Yango mostly focuses on Francophone West Africa and has become a market leader in Senegal, Côte d’Ivoire, and Zambia. One thing that makes Yango notably different from competitors is that the company collaborates with local registered taxi firms, so they empower other businesses instead of competing directly against them.

4. inDrive

With a headquarters in the USA, inDrive was launched in Côte d’Ivoire in 2018 and has quickly expanded across multiple African countries. InDrive empowers users to negotiate fares directly with the drivers, fostering a sense of transparency and attracting loyal customers and drivers.

5. SafeBoda

Launched in 2014 in Uganda and partially funded by Google, this startup has quickly gained Africa’s attention and now stands in the same list as Uber and Bolt. Offering SafeCar and SafeBoda (motorcycle) services, SafeBoda now also has a strong presence in Kenya, ranking behind Uber and Bolt.

Strategies to compete with established market players

Now, let's explore tactics you can consider to compete with larger companies. Then, we will move to examples of apps that implemented some of them and successfully established their names on the market. 

Finding your niche 

Standing out from the competitive crowd means being original. Even though there is definitely enough space for simple car hailing apps in Africa, it would be hard for those companies to get closer to big players in terms of recognition and revenue. 

So ride hailing startups should first find what can make them unique and focus on underserved segments. For example, you can consider building a service that offers pet-friendly rides and kid-friendly services, or, as one of the most profitable spaces, women-for-women apps that focus on safety and comfort for both riders and drivers. 

Services that are specifically designed for tourists and specialized vehicle types like motorcycles can help you carve out a unique position in the market. You may also want to find ways to attract drivers since passengers are only one side of the business. For example, some ride hailing companies work with drivers who already have cars, and others offer cars to drivers so they can easily increase the number of loyal workers.

Leveraging local knowledge and culture 

One of the must-have things to carve out your market share is to understand, and most importantly, adapt the app to regional languages and consumer behavior. Here are key factors to keep in mind:

• Internet availability significantly varies across the continent, and data costs are high. So make sure you optimize your ride hailing app for low-bandwidth environments and offline functionality where possible. With the Onde platform, you get Web app for such cases.
• Poor road infrastructure in many African cities so the app should account for variable travel times, have different types of cars so they suit regular and rough roads, and provide detailed mapping in places with less-developed infrastructure.
• Cash is still the dominant payment method in Africa but digitalization is becoming more widespread. Make sure you cover both options and offer different payment methods.
• Africa has a pretty diverse and complex regulatory system so it's best for a ride hailing business to partner with local authorities to learn regulations, licensing, vehicle requirements 
• High crime rates in some African cities mean companies should have a no-crime policy on drivers’ backgrounds and protect drivers with strong identification systems that users must pass to register.

Use local tech media and events for promotion 

Promote your business through channels that resonate with African audiences. Consider participating in local events to attract attention, share your business values with people through media resources, and attend startup meetups to increase your visibility. 

For example, becoming a speaker for podcasts that focus on increasing African innovation and entrepreneurship can also be a great way to tell people about your business story and boost brand awareness.

Build strategic partnerships 

Every ride-hailing app requires a constant flow of passengers. Consider integrating with hotels and restaurants to expand your reach and get regular customers. Collaboration with tourist agencies and pharmacies is also a great idea. 

You can also offer additional services, like delivery or a car pick up service, to get more customers. This way your app will be called a multi-app, or a Super App, and offer much more value to residents.

Invest in localized marketing & community engagement 

Developing a strong brand reputation is crucial for long-term success. So you may want to invest in local marketing efforts resonating with your target audience. For example, you can partner with local influencers and engage with customers through social media, where you can create community events, or host get-togethers with your drivers. 

Showing your interest in joining the local community and promoting ride hailing business, you can quicker build user loyalty and organize a positive brand image.

Ensure exceptional customer service 

Exceptional customer service is also essential, particularly in the African market. You can stand out by offering safe drives, an option to choose a driver where users can check their rating and photo, and personalized and responsive customer support. 

It is also recommended to ride with competitor’s drivers to identify what can be improved and how. Your ride hailing app can offer different vehicles based on comfort level. The better the comfort level - the better the customer service. 

The same applies to driver’s care. Good conditions for drivers could mean higher pay, more flexible working conditions, benefit packages, or additional support services which can help you attract more motivated and satisfied drivers.

5 best ride apps successfully competing with market leaders in Africa

1. HerRyde

HerRyde is one of the best ride services for women. As a Nigerian-based ride hailing app, it tries to solve safety concerns women face when using ride hailing services. HerRyde, built on the Onde platform, offers female drivers for only female customers. 

HerRyde’s unique niche, marketing via local channels, focus on safety and women's empowerment, this app has quickly gained market recognition and attracted local media attention.

2. LEFA

Another app built using the Onde platform for quick project kick-off, LEFA, is a Namibian ride hailing app that has brought significant improvements in a market where public transportation was limited. 

LEFA is a great example of a multi-app that aside from being a cab booking app also offers a range of additional services, including airport transfers and city tours designed specifically for tourists. Its user-friendly mobile Customer app focuses on customer experience and reliability, allowing LEFA to build a loyal customer base in Windhoek and other Namibian cities.

3. Shilu ANA

As the first of its kind ride-hailing service in South Sudan, Shilu ANA was launched with the goal to give customers a service they’ve been waiting for a long time. The company values user experience and safety, implementing two rounds of interviews where drivers submit statements of conduct, are examined on knowing the city and safe driving to then be trained in at the company’s headquarters.

Focused on reliable transportation, available through a handy app in just a few taps, Shilu ANA was designed using the Onde platform so the company has quickly entered the market, benefiting from speed and convenience. 

4. Yookoo Ride

Yookoo Ride is a South African cab booking application focused on providing more affordable and reliable transportation options. Yookoo Ride offers various services for any needs, from standard rides to premium ones. 

Yookoo Ride is favored by users because of its competitive pricing and strong emphasis on customer service. Its growing popularity in South Africa shows that there is space for newcomers to thrive in a market dominated by international companies.

5. Intigo

Intigo is a Tunisian ride hailing app that stands out with its eco-friendly alternative to traditional rides. Focusing on sustainability, Intigo uses electric scooters for its ride hailing service, being a pioneer in that field in Tunisia. 

Not only does the startup provide a greener option for transportation but also helps reduce traffic congestion in urban areas. Such a unique approach helped the company attract needed attention once it entered the market and successfully established its name.

Wrapping up

Africa’s ride hailing market offers a place for startups to thrive and grow revenue. Most of the challenges associated with starting ride hailing or multi-category business are slowly resolved either by software solutions, governmental support, or unique ideas that power the current market.

Ride hailing Africa's market attracts more startups each year, and at the same time, the leading market players spread further and further. This is why standing out from competitors is preferential if you enter the African ride-hailing industry. Consider offering unique solutions, partnering with hotels and restaurants for delivery services, attending local events, and, most importantly, adhering to local needs and preferences.

In addition to looking for your smaller niche, don't forget about the app’s localization, choosing suitable payment methods for the city you plan to operate in, properly using mapping, and keeping up the needed balance of drivers and customers.