Russian ride-hailing startups inDriver challenges Uber and Bolt Market Dominance.
- July 10, 2019
- Posted by: Lead Contributor
- Category: Uncategorized
Uber and Taxify are multibillion-dollar companies and are the top competing rivals in over 20 cities on the continent of Africa, for both the car and motor-cycle hailing market share.
Several months ago, inDriver, a five-year-old Russian based ride-hailing company, who recently launched in Arusha, Tanzania last November has since expanded into Nairobi, Johannesburg and Cape Town.
inDriver is aiming to launch in more African countries like Nigeria, Kenya, Ghana, Zimbabwe, Uganda and Namibia.
Unlike the established model used by Uber and Bolt, which includes estimated fares and automatic pairing between drivers and riders,
inDriver, on the other hand, is differentiating itself with the element of increased choice. inDriver allows riders to propose fare for their trips based on pre-approved rates. Close-by drivers who receive notice of the ride request can accept the price or respond with counter-offers (an old trading method known as price haggling). A prospective rider will only proceed to pick a preferred driver based on their agreed fare or driver rating.
The company said it aims to boost its driver supply with several incentives rapidly. InDriver pitch to drivers was an initial six-month period without charging any form of commissions after which is estimated to cost the drivers just 5% to 8% in commissions, and this rate is lesser than what Uber (around 25%) or Bolt (about 15%) offers.
The rivalry to lure drivers is a fundamental part of the ride-hailing model given the lack of uniqueness. Drivers can sign up for competing platforms; this allows them to work longer and grow their revenue with ride-hailing companies that offer the best incentives.
The never-ending competition for drivers also comes with a warning as winning them over is only through incentives, and will likely entail long-term subsidizing for customer rides with promotions to improve drivers’ earnings at the company’s cost. The Uber’s filing documents before its blockbuster IPO showed, the company’s most significant expense amid massive losses globally is its “cost of revenue,” this is a category that includes incentives paid to drivers.