The motorcycle taxi industry is a billion-dollar market in most African economies where the two-wheeled taxis operate as an affordable and reliable source of transport, Karanvir Singh, chief executive and founder of Yego Innovision, has observed.
The rapid increase in the population most primarily cities and towns has led to high market demand for the cost-effective mode of transport, despite facing challenges and stiff competition from other taxi firms.
Yego Innovision, a Singapore firm made its official debut in Rwanda with the launch of Yego Moto, a platform which monitors public transport services in the country. The company sought to make travel efficient in the capital of Rwanda offering better transport services for the customers and business people.
The taxi industry has proved to be a source of employment, especially among the youth, though the business faces challenges. Accidents and fatalities have increased which has prompted the firm to step up to address the issue and improve the industry.
“About 70 per cent of the accidents involve motorcycle taxis and about 80 per cent of the fatalities involve a passenger or a driver from a motorcycle taxi. So this is something which is not just in Kigali, but it’s throughout most of the Sub Saharan Africa,” said the CEO of Yego Innovision, which was recently named the Best App in Africa for Mobility and Transport at AfricaCom in Cape Town, edging its competitors
The company studied the taxi industry for a couple of months to understand more about the sector and the challenges between taxi drivers and customers. In the end, the company came up with a platform that feeds the government on the information about the taxi drivers, Singh records.
“Whatever the government has in terms of paper trail, the company puts it all together into one repository for the governments to access. Plus we put on to all of these motorcycles, devices which are sending up information every 30 seconds. So now you know not only who the driver is, where he is driving, on which motorcycle, time, speed, place, how many passengers, how many rides and we have this data live for the government,” he added.
Yego Innovision has invested over $6.5 billion in the Rwanda market and seeks to extend its reach to Uganda and Kenya where the motorcycle taxi industry has a potential for investment.
The company has looked beyond the transport sector to facilitate e-commerce industry. Last year, MTN Rwanda and Yego Moto Company entered a partnership that saw Taxi Moto customers pay their transport fares using mobile money platform. The cashless growing economy opened the business opportunity for both companies to come together to offer better payment methods to the esteemed customers.
Singh added the ease of doing business in Rwanda was a factor behind the success of the Yego company in the sub-Saharan market.