Safeboda recently announced the resurgence of its acclaimed bike-hailing service in Kenya, and barely two weeks into its return, the company is already gearing up to expand its offerings. A notable addition to its services is SafeCar, a new taxi-hailing feature set to debut in Nairobi, Kenya, this week.
Initially introduced in Uganda in 2023, SafeCar has witnessed significant growth and is poised to become a strong competitor against established names like Uber and Bolt, particularly given its local roots. Reports suggest that the SafeCar ride-hailing service will be integrated into the existing Safeboda app, transforming it into a comprehensive mobility application.
This upcoming taxi-hailing functionality aims to mirror the convenience and user experience of popular services such as Uber and Bolt. Users will have the ability to open the app, enter their destination, choose from various payment options, and select their preferred ride, streamlining their travel experience in Nairobi.
Safeboda is making a vigorous comeback in Kenya, marking a significant resurgence in a market where it previously held considerable influence. At its zenith, the company boasted a strong presence across several countries, including Kenya, Uganda, and Nigeria, commanding a substantial share of the e-mobility markets in these regions.
Unfortunately, in November 2020, Safeboda had to withdraw from the Kenyan market, a move attributed to the challenging operational and sustainability issues brought on by the COVID-19 pandemic’s impact.
Safeboda continued its operations in Uganda and Nigeria until it made the decision to exit the Nigerian market in December 2022. The company attributed its departure to the bike-hailing economy in Nigeria not being “economically viable” at that time.
This decision came as a surprise to many, especially considering that Safeboda had completed over 3 million rides within a few months, which was widely regarded as a successful stint. Furthermore, the company had the distinction of being the inaugural recipient of the Google Africa Investment Fund. This investment was intended to fuel growth in its Nigerian operations.
In its departure announcement, Safeboda explained that the Nigerian market, in its then-current state, did not present an economically viable opportunity. The company pointed out the need for substantial investment during a period marked by global economic challenges. Consequently, Safeboda redirected its focus and resources towards expanding its presence in the Ugandan market.
Recently, two weeks ago, Safeboda made headlines again by announcing the relaunch of its bike-hailing services in Kenya, with services set to officially resume on February 5. While the return to Kenya marks a significant step for the company, it remains uncertain if Safeboda has any plans to re-enter the Nigerian market. Given the economic challenges that have persisted since December 2022, the viability of such a move is still subject to debate.
SafeCar and its expanding offerings.
In addition to unveiling the SafeCar taxi-hailing feature, Safeboda is ambitiously planning to enter the food delivery sector, despite the challenging landscape of the African market that has led to the withdrawal of significant players. For example, Bolt Food announced its departure from both Nigeria and South Africa in December 2023, citing difficulties in securing a substantial market share despite considerable investment efforts.
In a discussion with Techmoonshot, representatives from Bolt Food shared insights into their decision to exit these markets. Despite three years of significant investment aimed at capturing market share through low commission rates to broaden selection and incentives designed to attract customers, Bolt Food struggled in Nigeria, achieving less than 5% of the market share. “Over the last 3 years, we have heavily invested in these markets, investing in low commissions to increase selection and incentives to encourage customers to move over to Bolt Food. Unfortunately, in Nigeria, these investments haven’t been successful and have only managed to achieve less than 5% market share,” Bolt Food explained to Technext.
The venture into the food delivery domain by Safeboda will be closely watched, given the recent exits of other market players under similar conditions.
Moreover, Safeboda is reported to be expanding its service offerings further by introducing shopping and delivery partner services. These additions are expected to be integrated into the Safeboda app, enhancing its value proposition and making it a more comprehensive platform for users. The success of these new ventures, particularly in a market that has proven challenging for others, will be an intriguing development to follow.
