MORE THAN A BIKE-HAILING PLATFORM, CANGO IS BUILDING THE FIRST SUPER APP IN CENTRAL AFRICA

 In Investor News

Africa’s large cities share systemic vulnerabilities mainly resulting from urbanisation, all of which have grown into a long list of challenges that have not been completely resolved. However, due to technological innovations in most climes, the effect of these issues on the populace has been largely reduced.

For example, not minding the somewhat abysmal state of existing transport infrastructures in Lagos, the hassles that accompany transportation in the city may have truly been cushioned by a variety of public transport options available such as the Bus Rapid Transit (BRT), medium-sized buses, taxis, tricycles, and motorcycles.

Also, embracing app-based platforms offering cab-hailing/pooling, bus-hailing, and bike-hailing services has further reduced the challenges associated with movement. Although true for major cities in South, West, and East African nations, it is not the case for those in Central Africa. This inspired Barrett Nash and his Kenyan colleague, Peter Kariuki to start an on-demand bike-hailing platform in 2014 which has evolved into CanGo.

After over a decade of residing in Africa, this Canadian’s passion for Tech in Africa’s emerging market, combined with his co-founder’s expertise as a software developer, saw him create the platform that operated first in Kigali, Rwanda. After a successful outing there, they decided to scale into the largest city in Central Africa, Kinshasa.

“What we’re doing is providing a safe, convenient, and affordable transportation solution. We allow you to move around the city with ease and also bring the best of the city’s services to you,” says Nash.

The first-mover advantage

At a time when the duo worked on deepwater cameras in an MIT lab in Rwanda, their evening commute was nothing to look forward to given the bad roads and risky rides. This was what birthed the idea for a motorcycle-taxi platform, SafeMotos, in Kigali in 2014. This idea got its first backing from an accelerator program in Ireland that lasted for six months, after which the founders returned to Kigali in 2015 to initiate the concept.

As the only motorcycle-hailing business in the country that used helmets and tracking devices, adoption was quick and encouraging. In three years, the startup has recorded about 500,000 trips, hence the confidence that it is ready for an even bigger market. In 2018, Nash and Kariuki relocated to Kinshasa, Democratic Republic of Congo (DRC). After months of investigating the city, they found out that though highly populated, it had only a few transport options and bad road networks.

According to him, an intervention is highly welcome because there’s a high awareness that a lot of risks come with moving around to access services in the city, either from the bad roads, crash-prone means of transport, or shared buses. “Kinshasa is the third largest city in Africa. There is good 3G/4G Internet in the sky but there’s almost not much use of technology yet. It’s almost like pre-tech,” he affirms.

 

If we go by numbers, only 16% of DR Congo’s population are active on the Internet. This is quite low in comparison to Nigeria where half of the population uses the Internet. Even so, Nash reckons that the challenges that come with this huge opportunity would not last for long given the startup’s current progress. ”We launched our first trips in Kinshasa in August, 2019 based on the lessons we learnt in Kigali, and now make close to 1,200 trips per day. I think this is growth.”

Value proposition

CanGo operates ride-hailing and on-demand logistics services. The startup’s model has riders register their bikes on the platform, get onboarded after verification, and then linked with customers through the mobile application. And as is common with ride-hailing platforms, CanGo riders pay a commission on every trip.

“We take a commission for every trip/order. For ride-hailing, it’s 20%, while for other on-demand services, it’s about 5% which varies based on the product moved. Although 50% of our rides are discounted at the moment,” explains Barrett. According to him, traditional bikes cannot be considered as a competition to CanGo especially with respect to price and coverage.

https://techpoint.africa/2019/12/02/cango-operates-in-kinshasa/

 

 

 

 

 

 

 

 

 

 

 

 

 

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