Uber has seen some spectacular success with its app-based transportation service which operates in many cities around the world. Following its successful launch in seven African cities, albeit with a few hitches especially in Kenya, the company is set to leverage mobile money services as part of its expansion and diversification strategy.
The service has been successfully launched in Cape Town, Johannesburg, Durban, Pretoria, Lagos, Cairo and Nairobi. But the decision to explore the mobile money route may be due to the slow adoption and penetration of cardholders outside of South Africa. Uber’s current approach is to target credit card holders with a cashless service.
In the East African country of Kenya, transactions are facilitated either in cash or through mobile money services, commonly via the M-Pesa system. When Uber launched recently, online users expressed their frustration over their inability to use M-Pesa with the service seeing as Kenya’s public transport system has a cashless system that uses M-Pesa.
“We can confirm that we are exploring the possibility of integrating the M-Pesa service in our system, but we don’t yet have expected time when this is likely to roll out. Uber is the ‘gold standard’ when it comes to consumer safety and this is all because of the technological innovation in the app,” said Alastair Curtis, a manager of international launches for Uber.
This statement was made in order to address consumer dissatisfaction and allay concerns over the safety of users of the service following Uber-related scandals reported in other countries. In most African settings, the transport system is not well regulated, and taxi drivers have been involved in criminal activities, but Uber says it provides the safest, most affordable and reliable rides.
To improve security, Uber says the drivers go through rigorous criminal background checks, and it provides customers with driver information, a live GPS-enabled map that can be tracked by friends and family, rider feedback and driver safety by ensuring the service is cashless.
Apart from providing reliable and affordable services, Uber says it will provide employment to young people in the seven cities.
“Uber’s lead generation software facilitates a powerful entrepreneurship opportunity; every month going forward, Uber’s mission is to empower many young entrepreneurs to become small-business owners,” Curtis added.
Uber’s pricing model, which is based on distance and time spent in the taxi, may be reviewed due to unusually high levels of traffic congestion in African cities. This can restrict the growth of the service in some cities.
Consistent with its long term stance, Uber insists it is a technology company and not a taxi or transportation company, and that it does not employ drivers or own any vehicles. This is expected to quiet any potential disharmonies among taxi operators in the region.
By Emmanuel Iruobe
