High cost of living impact on ride hailing industry

The economic impact of taxi-hailing apps in Africa has been multifaceted. The high cost of living in Africa further complicates matters, as it can affect both drivers and consumers using these services. Ronald Mahondo, CEO, Maramoja Taxi joins CNBC Africa for more.

Thu, 21 Dec 2023 10:53:19 GMT

Disclaimer: The following content is generated automatically by a GPT AI and may not be accurate. To verify the details, please watch the video

AI Generated Summary

The challenges faced by the ride-hailing sector in Africa include macroeconomic factors like weakening currency and rising fuel costs, new taxes, and regulations impacting drivers and consumers.
Regulatory impact surveys are essential to assess the effects of regulations and ensure the protection of driver earnings, calling for a level playing field against dominant platforms focused on value extraction.
Maramoja Taxi's initiatives for driver empowerment, such as the Rent to Own Program, aim to provide vehicles to drivers, leveraging platform data for financing, while focusing on training, data security, and ESG strategies like electrification and route optimization to reduce emissions.

The economic impact of taxi-hailing apps in Africa has been multifaceted. The high cost of living here on the continent further complicates matters, affecting both drivers and consumers using these services. Ronald Mahondo, CEO of Maramoja Taxi, discussed the challenges and opportunities faced by the ride-hailing sector in 2023. He highlighted macroeconomic factors like the weakening of the shilling, rising fuel costs, new taxes, and regulations impacting businesses and individuals, reducing disposable income. Mahondo emphasized the importance of regulatory impact surveys to assess the effects of regulations like commission caps, striving to protect driver earnings. He called for a level playing field to empower newer players against dominant platforms focused on extracting value from Africa. Mahondo outlined Maramoja Taxi's initiatives for driver empowerment, such as the Rent to Own Program, aiming to provide 3,000 drivers with vehicles by 2025 and 10,000 by 2027, leveraging data within the platform to facilitate financing. He stressed the importance of using technology to empower people and build a mobility platform for the future while addressing training and data security. The company invests 30% of revenues in driver training and partnerships to enhance customer service and vehicle quality. Mahondo discussed ESG strategies, particularly in electrifying two-wheelers and reducing emissions through route optimization with AI, emphasizing the commitment to environmental sustainability and contributing to SDG goals.