InDriver, the global ride-hail startup has launched its app-based service in Kampala, Uganda. The online taxi company now operates in four African countries: Kenya, Uganda, South Africa, and Tanzania.
Founded in Russia and now headquartered in New York, InDriver’s mobile-app allows passengers to name their own fare for nearby drivers to accept, decline, or counter. The startup operates in 200 cities, is used by 26 million people, and has raised $15 million in two rounds from Leta Capital.
InDriver entered Latin America and Tanzania in 2018. The startup sees a value proposition for Africa based around urbanization, demographics, and some of the unique characteristics of its platform.
“We think Africa is going to be a big market for us because there’s a lot of cities and high population [areas] that still don’t have access to ride-hail applications,” InDriver’s Chief Marketing Officer Egor Fedorov told TechCrunch on a call.
He believes InDriver can reach an additional market segment in African cities—one that may overlook other ride-hail options that require cards to sign up or don’t feature bidding. The startup’s mobile-app allows for cash-payment and InDriver views itself more as an IT service than a taxi company, according to Federov. The company does not directly finance or brand cars in Africa. InDriver charges a percentage of each ride to generate revenue and doesn’t currently take a commission from drivers in Africa, though it does in other markets.
For now, InDriver will stick to car-based taxi service in Africa (with no immediate plans to enter the motorcycle taxi space) or add things it does in other markets, such as truck rental services.
On marketing outreach for Kampala, InDriver will rely primarily on word-of-mouth gained by (what it projects) as cheaper prices and bringing price-negotiation (common to the continent’s taxi markets) to a quick and controlled online process.
