The unexpected catalyst — digitized Boda-Boda transportation.

Getting you where you need to go…

When I think of a motor-bike (commonly known as a boda-boda), I think of quick option for when I have an emergency and need to get across town within a few minutes!

According to the World Bank, Africa’s population is predicted to reach 2.8 billion by 2060, which will exert more pressure on already stressed governments to develop and strengthen transport networks. “The public transport systems in African countries are still inadequate and poorly developed, and consequently, two-wheelers are becoming a key mode of transport in urban and rural areas,” says the report titled Africa Two-Wheeler Market 2011–2021.

A new report by consultancy firm TechSci Research indicates that motorcycle manufacturers and assemblers are seeking to increase their presence on the continent, where the business is projected to more than double from $4 billion to $9 billion over the next five years.

The report shows that South Africa, Nigeria and Tanzania are the largest motorcycle markets, followed by Kenya, Algeria, Uganda, Egypt, Morocco, Angola and Ethiopia.

Despite being one of the more popular means of transport, due to its ease to navigate through impassable roads, boda-bodas have been associated with social evils like road accidents, cold cases, increased crime rates and traffic rules violation.

With the increased penetration of smartphones, we are now seeing the emergence of app-based ride-hailing companies focused on motorcycle(boda-boda) taxis. Renown examples include Safe Boda, Taxify and Uber, which provide services in Uganda and Kenya and Yego Moto in Rwanda. These services are accessible even by those at the bottom of the pyramid.

These companies’ innovations comes after multiple failed attempts by several governments to better regulate this highly informal industry and address the challenges mentioned earlier in this article.

These organizations give the drivers a branded helmet and a smartphone that acts like a tap and pay POS.

Then they partner with MNO’s within their respective countries or payment service providers like Beyonic to provide rails for passengers to able to pay for rides from their mobile wallet.

For the riders, passengers and governments alike the digital boda-boda hailing solutions provide unmistakable benefits across the board:

· Digital trails that provide reference for of the riders them to access other financial services like insurance and credit facilities.

· Registration and Identification of the riders captured not only to guide on the regulation by Government but also for traceability in the event of crime emergencies like theft, murder and terrors as have happened in the past.

· Passengers using a verified driver with a recorded and clear pay-as –you go model, provides for a sense of security. Customers are able to predetermine the details of the transaction like distance of the journey, destination hence saving both the rider and customer the time spent in bargaining.

· Riders rid themselves of the risk associated with receiving and holding cash

· The boda-boda business provides for extension across multiple sectors promoting the habit of using cashless solutions.

· These platforms also record complaints, incomplete rides -key information that helps financial service providers ascertain individual risk — thus building a behavioural profile of the rider that they might lend to or insure.

· Continuous innovation to narrow the financial inclusion gap for example: Yego Moto in Rwanda revolutionized the ride-hailing sector by introducing a solution that allows people without smartphones to book a ride.

· Customers now prefer using these app options because it is convenient and cheaper by far as compared to the usual unregistered rides. They offer up to 30% price discount as compared to the traditional usual boda-boda riders hence leaving the customer with a saving.

· The customer is saved from the fear of moving to look for the boda-boda rides in places that are sometimes not safe.

· Motorcycle riders are forced to save some of their money, because the money from the rides paid with credit is only given to them at the end of the week. Given that most of them are youth whose saving culture has been poor, thus improving their livelihoods.

As we continue to search for the appropriate vehicles to promote financial inclusion, solutions that address day — to –day challenges that break the barriers of geographical location, social & economic status, will definitely be one way to achieve that objective.