Business Weekly (Zimbabwe)

Harare taxi services undergo transforma­tion

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HARARE’S taxi service landscape is going through a revolution, driven by the expansion of online taxi services. The online taxi service providers are using technology to connect riders with drivers, in a more convenient alternativ­e to traditiona­l taxis.

In the past, fares for services were often negotiable, but lacked transparen­cy and could vary greatly. The online taxi services have changed this by providing riders with app-based platforms to book rides instantly, with clear pricing and real-time tracking.

This week, Bolt, a major ride-hailing platform, announced the launch of a pilot programme in the capital, Harare.

This marks its entry into the city’s taxi service landscape, adding to the competitio­n already establishe­d by services like Rida, iDrive, Vaya, TaxiF, Toda, iTrans and G.Taxi.

The move comes as part of Bolt’s ambitious US$500 million expansion drive in Africa, aiming to increase its presence and create job opportunit­ies across the continent.

In Harare, the company has already onboarded 300 drivers, making them available for immediate hire through the app. Both Bolt and Rida operate as online taxi services, connecting riders with drivers through their respective mobile applicatio­ns.

They offer similar features like fare estimates, real-time tracking, and cashless payment options.

However, there are also some key difference­s. Bolt currently utilises a fixed commission structure, whereas Rida employs a unique bargaining model, allowing riders and drivers to negotiate fares directly. On the other hand, Bolt boasts a wider global presence compared to Rida, which primarily focuses on Zimbabwe.

Bolt Boom

Bolt offers mobile solution connecting drivers and customers. Customers simply request a ride through the app, picked up wherever they are and taken to their destinatio­ns.

Drivers, meanwhile, can unlock earning opportunit­ies by accepting fares through the platform.

Joining the Bolt driver community requires a car or motorbike, along with local licenses.

“We are excited to be piloting our services in Zimbabwe,” Laurent Koerge, head of expansion at Bolt, said.

“Our goal is not only to offer our drivers higher revenues per hire, but also to ensure a high demand due to competitiv­e prices. Our commission is significan­tly lower than that of our competitor­s.

“As a result, our drivers earn more and the service fees are attractive. We have been committed to profitabil­ity and fairness towards our drivers from the very beginning because we firmly believe that happy drivers lead to happy customers.”

With pilots in Zambia and establishe­d operations in South Africa under its belt, Bolt’s its sights on Zimbabwe, marking its latest entry Southern African expansion.

Offering both individual and corporate ride-hailing options through Bolt and Bolt Business, the company emphasises its dedication to improving its regional mobility. Bolt is offering commission-free driving for the first six months after singing up.

Bolt’s entry into Zimbabwe aligns with its US$542,8 million investment plan in Africa, aiming to expand its reach and create over 300 000 driver partner and courier jobs.

From its South African debut in 2016, Bolt has become a major player in African mobility, now serving over 150 million customers across 45 countries with three million drivers.

Founded by Markus Villig in 2013, the company has expanded to 12 African nations, Ghana, Nigeria, Kenya, Zambia, Tanzania, Uganda, Tunisia, Mozambique, Mali, Cameroon, South Africa and now Zimbabwede­monstratin­g its commitment to the continent’s transporta­tion landscape. In some countries, like Kenya, Bolt charges a standard 18 percent commission, without an additional booking fee.

The Bolt platform has made significan­t strides in enhancing the safety of its services for both riders and drivers. Recognisin­g and addressing various safety concerns, Bolt took the decisive step of suspending over 10 000 drivers in Nigeria and Kenya during the last six months of 2023. This demonstrat­ed the firm’s commitment to providing a safe and secure experience for everyone using their platform.

Ride with Rida

Similar to Bolt, Rida provides customers with a fresh alternativ­e to traditiona­l taxi services, potentiall­y improving both convenienc­e and affordabil­ity. Unlike traditiona­l competitor­s, Rida operates on a unique bargaining model. Instead of relying on fixed fares, both passengers and drivers have the freedom to negotiate and mutually agree on prices.

This approach aims to ensure transparen­cy and fairness for both parties, with passengers potentiall­y enjoying lower fares and drivers retaining a greater share of their earnings.

Rida’s founder, Tawanda Nyagwaya, expressed his enthusiasm for launching in Harare, calling it a “bright opportunit­y” to provide the city with safe and reliable ride-hailing options. He said that Rida goes beyond just being a taxi app, hinting at future innovation­s.

“We are thrilled to introduce Rida to Harare. This is a bright opportunit­y for us to bring safe and reliable ride-hailing products to the market. Our platform is more than just a ride-hailing applicatio­n,” Tawanda Nyagwaya told local media last year.

“Rida is a game-changer, providing our customers with convenienc­e, safety and the power to set or negotiate their own fares directly with our drivers. During the beta testing period, the use of Rida will be completely free for drivers.

“Since the ride is paid by the passenger directly to the driver, compensati­on is made on the spot, in full.

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