The transportation market in Nigeria and its neighboring countries is booming, attracting global investors. As smartphone use grows steadily, ride-hailing services become more popular. By 2029, the number of users in the ride-hailing market in Africa is expected to reach 268.20 million.
With big names like Uber, Bolt, and InDriver present in the market, getting into the ride-hailing race might seem not worth the risk. At the same time, ride-hailing services in Nigeria enjoy high customer demand for affordable transportation options. For instance, the anticipated number of active ride-hailing service users is estimated at around 42.88 million by 2029.
Almost every market has a successful local player with a distinctive niche and a unique value proposition, catering to their loyal customers. How to become one of them?
Let’s look at 3 inspiring examples of companies that managed to carve their market share in a highly competitive environment and see what makes their strategy a winning one.
Define Niche Unique Value Proposition: ZEV Taiwan
ZEV Taiwan is an electric vehicle (EV) based business that aims to save the planet by providing more zero-emission transportation. Jerry Wang, the CEO, explains: “Our environmental concern is a good reason for customers to choose ZEV over any other Uber-like app. Most of our drivers speak several languages—a great advantage for the traveling public.”
Targeting eco-conscious consumers is a smart move for most African countries, too. The latest report by ITDP Africa emphasizes the desirability of the so-called “High-Shift plus Electrification” scenario. In this scenario, better mobility in the continent is reached by both the transition to electric vehicles and the improvement of sustainable transport systems like rapid transit networks and cycle tracks.
As ZEV Taiwan wanted to make more than just a loud claim, all the platform’s surplus gets converted into green energy and returned to the passengers in the form of dividends. This way, the company’s first profits were immediately reinvested into green energy ventures.
The user-friendliness of ZEV’s driver- and passenger software powered by Onde has made it the public’s favorite. In-app promotion for growing loyal users and driver base helped the company to grow from 5 to 100 vehicles in just one year. Their next step is to offer EV ride-hailing and delivery.
Solve Customer’s Real-Life Problem: PinkTaxi
Defining a specific target market and crafting the perfect value proposition for these people is at the core of women-for-women ride-hailing services like PinkTaxi (Cairo, Egypt). The service makes transportation safe for local women, children, and female tourists.
PinkTaxi was on time to profit from a trend of making urban mobility in Africa more inclusive towards women. In a saturated market, marketing your ride-hailing services to a niche customer segment is often the most profitable solution to the how-to-become-a-market-leader question.
A strong marketing strategy helped the company to attract initial customers and build brand awareness naturally. Recognizable vehicle branding in bright pink helped the cabs stand out in traffic. Promotion of the mobile apps of PinkTaxi in locally relevant outlets went hand in hand with positioning in tourist guides such as TripAdvisor and Lonely Planet.
The result: a steady rank as a luxury service provider in the Egyptian ride-hailing market.
Diversify Local Mobility with Cutting-Edge Software: SafeBoda
The motorcycle service of SafeBoda (Uganda) is another inspiring example of a well-defined UVP playing perfectly into the trend for low-carbon, congestion-reducing urban mobility. The company’s focus is safety: trained and trusted drivers, top-notch booking software, and the general swiftness of motorcycles make the magic happen.
The company offers more than just trustworthy transportation by motorcycle: in their quest to become a market leader, SafeBoda has launched package delivery and has started the promotion of mobile apps offering services like money transfer, mobile payments, and more. These moves fit the super-app trend in the African market perfectly.
Yet another unique proposition of SafeBoda is their Women-On-Wheels program, launched in collaboration with Women Rising for Africa. In this program, women get access to motorcycle loans, comprehensive training on road safety, motorcycle operation, smartphone use, self-defense, customer care, and acquisition of driving permits. This initiative has now promoted over 50 women to financial and employment independence.
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