When it comes to countries like the United States, the United Kingdom, China and India, the landscape of location-based cab service applications has reached its point of saturation. The saturation, however, is not about forming a plateau, but more about growing in a linear fashion. This growth is bound to happen and this market will give rise to new players occasionally. It is possible that they will find success; However, the big players who have already established their presence in the market will enjoy relatively greater patronage. Therefore, it might be a good idea to look at other markets that are emerging. One of the least expected names in this spectrum is the African market. Always stereotyped to be economically downtrodden, Africa is emerging like a Phoenix from the Ashes and creating its mark in the market.
Africa - The Emerging Market Africa can be called as a market that has already emerged but is yet to see the light of the day. Ride sharing has been always famous in Africa. There are a lot of global companies like Uber and Lyft that have already marked their presence in the massive continent. In fact, considering the quantities like internet penetration and mobile device-count, Africa is a statistically better market than the United States and Europe. Lyft’s Connection with Africa It is quite known that when Lyft started its operations in the United States, it was called ZimRide. however, little do people know that the name was a passive and silent tribute to one of the best countries in Africa - Zimbabwe. What Opportunities Does Africa Hold? Throughout history and especially during the era of colonization, Africa was looked at as a gold mine! Today, the same notion can be carried to the ride-sharing market. The probability of finding success in the African market is quite high. Given below are a few factors that establish the fact that Africa is an amazing market for ride-hailing app and ride-sharing services. Lack of Public Transportation Infrastructure The African continent is comprised of two kinds of countries. One of them is where public transport is developed but the fares are higher. The other is the set of countries that lack proper public transport infrastructure. Both these cases present a lucrative opportunity for ride-hailing and ride-sharing applications. They could present themselves affordable transportation solutions and it is bound to work in a continent like Africa where economic options are considered with utmost enthusiasm. The Rapid Mobile Penetration The number of mobile users has been steadily growing in Africa. A massive increase is predicted, especially for sub-Saharan Africa. The number of users is expected to almost double between 2017 and 2025. Since mobile devices form the backbone of app-based businesses, the projection that Africa throws for the future seems quite positive and promising. Entering a market where mobiles are already mainstream means that the business does not have to go through the hassle of changing the habits and lifestyle of the users. Low Car Ownership Rates Contrary to mobile devices, car ownership rates have been steadily dipping ,from an already low number. Owning a car in Africa is an expensive affair. Although the fuel prices are relatively low, the cost that goes into maintenance and protecting the car through insurance policies makes it extremely tough for the common people of Africa to own a car. All the attributes of Africa seem to converge at a point that shows a bright future for ride-hailing and ride-sharing businesses in the continent. It cannot be denied that people on mobile devices and consider public transport and car ownership a bit too expensive. Therefore, the best option for them is to avail location-based ride-hailing services. A Few Living Examples In Africa It is to be noted that the African markets do not just show the projections. We have seen living and breathing examples of ride-hailing and ride-sharing services find their success in Africa.
Spelling Success In The African Market There is no question that the probability of finding success in the business of ride-sharing in Africa is almost close to 1. However, to increase the possibility, it is important to learn the requirements of the African market and act according to the findings. Personalization & Customization The discrepancy in the income levels in Africa would mean that it might not be easy to sell a single service across all the people belonging to different demographics. Therefore, it is important to offer different services that people can choose from. The illusion of choice goes a long way in making people feel pampered. Enabling Cash Payments The African economy is primarily a cash-driven economy. Unlike the other markets, cash should not be just an option but should be available to everyone. More than 50 of Africans do not have a bank account. This would mean that they might not be able to make their payments using credit or debit cards Make The Rides Affordable Africa is a market that looks at utility and not luxury. They care for the value for money and are quite likely to constantly check the return they get for the money that they Pay. Therefore, it is important to ensure that transportation options are economical and affordable. The Opportunity For Ride-Hailing Business If companies were to consider the factors above, they have already proved that success is inevitable. Uber had launched UberCHAPCHAP in Kenya where people could take short rides by just paying $1. Africa Ride, a South African transportation company offers a variety of payment options and also includes subscription plans for weekly and monthly services. The Conclusion If we look back at what we have read, it comes down to a single notion. There is a market for ride-hailing in Africa and it just needs to be looked at differently than the other markets. The Skeleton for the technology remains the same. This would mean that there is a lucrative opportunity for any business to Mark their presence in Africa by utilizing a clone of Uber. White label uber clone is effective in terms of both cost and time. If you would like to create a business by capitalizing on the market opportunities in Africa, you can get in touch with our team. They will guide you through the process, and gather your requirements and give you a perfect app to launch a business in the promising African market.
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