KENYA – Uganda-based motorcycle ride-hailing and delivery company SafeBoda is set to resume operations in Kenya next month, three years after it shut down its operations in the country.
SafeBoda closed its operations in Kenya in November 2020 at the height of the Covid-19 pandemic to focus on its successful operations in Uganda.
The company had taken a major hit after the pandemic put transportation to a near halt due to movement restrictions, including the months-long dust-to-dawn curfew.
“While Nairobi is seeing some economic recovery from Covid-19, boda transportation has been hit hard. This has meant our business cannot sustainably operate in this environment and unfortunately, the timeline for a full recovery is not certain,” the firm announced at the time.
By the time of its closure, the company had a network of more than 4,000 boda boda riders. It is estimated that there are more than 1.8 million boda boda riders in Kenya, making it a major source of livelihood.
SafeBoda first launched in Nairobi in 2018 and immediately embarked on wooing customers by offering cheap rates for rides across the city. Before it launched in Nairobi, the firm had operated in Kampala for four years.
Yet, the market SafeBoda is coming back into is quite different from the one it exited just over three years ago. Competition has gone a notch higher in the ride-hailing business, and as such, the Ugandan entity will have its work cut out to wrestle market share from leading players such as Bolt.
It is also coming back at a time when the government has accelerated taxation to increase revenue collection, straining firms.
On the other hand, the number of boda boda riders has grown significantly during the period as the service increasingly becomes a go-to source of self-employment for millions of youth.
Bosta secures investment
Meanwhile, Axian Group, a leading investment firm, has recently announced its strategic investment in Bosta, the pioneering Egyptian startup revolutionizing the delivery processing and logistics landscape in Egypt and Saudi Arabia.
Leveraging cutting-edge technology, Bosta’s platform optimizes first, middle, and last-mile delivery, providing unmatched efficiency and convenience to its users.
Bosta’s unique delivery model relies on a network of independent drivers who are compensated for each successful delivery, effectively handling the first and last mile. The middle mile, for inter-city couriers, is managed through a fleet of leased vans.
Following a successful pre-Series B fundraising round, Bosta expanded its operations to Saudi Arabia in 2022. This significant milestone was achieved through a strategic investment round led by Khwarizmi Ventures, with participation from existing investors and Hassan Allam Holding.
Fez Delivery launches automated lockers
And in Nigeria, logistics startup Fez Delivery has launched Fez Safe Lockers, a network of automated lockers designed to transform last-mile delivery in Nigeria.
Founded in 2018, Fez Delivery has built a last-mile delivery platform that bridges the gap between businesses and markets.
The startup raised seed funding last year and launched a line of e-bikes, and has now launched a network of automated lockers offering businesses and individuals a secure, convenient, and cost-effective way to send and receive parcels.
With cash-on-delivery still dominant in Nigeria, lost or stolen packages remain a major pain point. Fez Safe Lockers offers a secure option for online shoppers, eliminating the need for cash-on-delivery exchanges and minimising the risk of theft.
The lockers provide seamless pickup options as they are strategically positioned in high-footfall areas like filling stations. User-friendly touchscreens and unique access codes streamline package drop-off and retrieval, while real-time monitoring, CCTV, and secure locations ensure packages are safe from theft or loss.
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