advertisement

Rwandan cab hailing app launches Zimbabwean version, 263 Taxi – is it a transport solution or an angle for investment?

advertisement
263 Taxis, Uber Africa, transport apps, cab services, on demand services, uberification, Rwandan startups

Uber, the ride-hailing startup and multi-billion company has inspired a number of similar services with its on-demand approach to transport.

advertisement

It’s been reported that one such Uber-inspired taxi service, Rwanda’s 250 Taxis which was launched in early 2016 recently announced its entry into the Zimbabwean market with the launch of cab hailing service called 263 Taxi.

According to its founder and CEO Afshon Wallace, this ties in with his “long-term goal of having his company touch every nation in Africa, as an African entrepreneur, and create employment within the continent.”

advertisement

Operating in essentially the same way as 250 Taxi (and as such, Uber) 263 Taxi works through a mobile app that gives users the option to hail a cab just at the press of a button.

The app uses GPS to give the user the closest 263 taxi registered cabbies in the vicinity, after which the user selects a driver and if the driver accepts the request they can then locate their prospective client. Payment is made either with cash or via a credit card.

The app also provides 263 KidsCab which provides school children transport  to and from school. It is monitored by a 24/7 service center.

You can download the Android version of the 263 Taxi app by following this link here

Credible cab competition or another clone playing the continental presence game?

In a sense 263 Taxi’s entry into the Zimbabwean market speaks to the opportunity that exists to disrupt the local cab industry.

Onboarding taxi fleets onto an easy to use mobile application that enhances the chances of securing clients for the drivers and getting a cab for the clients has proven to be a bankable concept elsewhere, so in some fashion, Zimbabwe ought to be a good test as well.

This is the same opportunity that’s being chased by owners of local apps like GTaxi and Hwindi. However, as much as the market seems underserved and prime for disruption there are other dynamics that all these startups have to consider.

Public transport, specifically in urban areas where cabs are commonplace, is currently dominated by mini vans called kombis and mshika-shika  – the horde of pirate taxis that offer metropolitan shuttle services.

African Transport, Ride Sharing Economy, Uber Africa,
Taxi in Zimbabwe

At the same time, all taxis are providing a service that is increasingly becoming expensive as macroeconomic conditions worsen.

This makes any Uber-like service a preserve of a limited segment of the market which is already limited in size by dynamics like smartphone and internet access.

Perhaps 263 Taxis is betting it all on this very same niche market, a growing cashless culture, our dollarised economy, (I’m not sure how that will play out with bond notes now) and maybe its kids transport solution.

All if this justification, however, still doesn’t answer some other questions around a launch in Zimbabwe.

250 Taxis, the Rwandan big brother to 263 Taxis was launched in February 2016 and looking at metrics like app downloads (it has 1,000 downloads on Google Play) it doesn’t look like it has to give a fair shake to dominant Rwandan ride-hailing  service SafeMotos which relies mostly on bikes rather than cars.

After struggling to gain market dominance in Rwanda with 250 Taxis is 263 Taxis an attempt at another virgin market or a retreat from its own competitive backyard?

Or is this an effort to enter Zimbabwe ahead of Fone Taxi – another Uber like service that just launched in Rwanda, Kenya and Uganda with plans to launch in Zimbabwe at a later stage?

Such a case would mean that these services are using Zimbawe as a go-to market for establishing greater continental presence (it sounds great for an investor pitch) without really paying any attention to the market dynamics and the problems that need to be solved there.

Then again, all this is presumptious. For now though, what will be worth the watch is how all these services like 263 Taxis figure out how to execute especially since startup growth and success is never about the app but all in the effective implementation of a working solution.


Quick NetOne, Telecel, Africom, Econet Airtime Recharge


WhatsApp Discussions

Click to join a Techzim WhatsApp group:
https://chat.whatsapp.com/JNwyJnIM6aD0Vv3AstzYjp

If you find the group full, please notify us on +263 715 071 199 and we'll update the link.


2 thoughts on “Rwandan cab hailing app launches Zimbabwean version, 263 Taxi – is it a transport solution or an angle for investment?

  1. “After struggling to gain market dominance in Rwanda with 250 Taxis is 263 Taxis an attempt at another virgin market or a retreat from its own competitive backyard?”

    Businesses are affected by a cocktail of factors. I will just give my take on only one, using the case of Zimbabwe as a proxy for comparable African countries.

    My opinion is that these etaxi companies attraction to Zimbabwe is our smartphone penetration figure, which Techzim estimated at between 20-24% sometime ago. At a higher level assessment, that is a good and fine basis for investment (all things being equal). However, people on the ground understand how our smartphone use is largely dominated by whatsapp/facebook. I also suspect that mobile banking platforms are experiencing low subscription rates for their apps.
    Also noting that most African countries are similar…its possible that these etaxi players are facing similar challenges elsewhere – Low downloads of their app becoz the average smartphone use is not ready for the next level of technology beyond and whatsapp/facebook.

    This is an app based service. No downloads. No business. Also note that X downloads will never imply a 100% service utilisation by the downloader.

    My theory is that, such companies keep expanding into new markets because of low barriers of entry and no significant capital requirements apart from minimal investment in a control/admin centre for expansions. Transport sector (unlike banking) is not tightly regulated.

    These expansions are not really our normal business growth curve but rather survival strategies on the realisation that the markets may not be ready for the technology.

Comments are closed.

%d bloggers like this: