Quarterly Survey 4: Apps are out, revenues are up
In the first week of April, Lubyanza Research Group conducted and finished its fourth quarterly boda survey.
In collaboration with Safe Way Right Way and Urban Action Lab, Makerere University, the research group was able to bring to light a few dynamics of the motorcycle taxi business in the Greater Kampala Metropolitan Area (GKMA).
With a few minor adjustments across the year, Lubyanza Research Group mapped out 28 spots in the GKMA that have been used for roadside observations as well as interviews with the bodaboda operators.
In the 4th quarter, we observed 5,600 bodas and had 280 interviews with boda riders across the five divisions of Kampala and three municipalities in Wakiso District: Nansana, Kira, and Makindye Ssabagabo.
Motorcycle ownership lower for lubyanza
While lease-to-own schemes now account for 60% of the market, there is a significant difference for drivers at stages and drivers working lubyanza — without a stage. Particularly, around three times more lubyanza riders are on rental contracts compared to stage drivers. This is likely because when new riders join the sector, they often start by renting, without a stage, as they don’t have the social or financial capital to get a stage or loan. Additionally, some lease companies require letters from stage chairmen, putting lease-to-own out of reach for lubyanza riders. However, ride-hailing apps such as SafeBoda often work together with asset financiers, delivering lease-to-own bikes to Lubyanza drivers.
Helmet usage dropped outside City Center
Though boda riders in the interviews mostly claimed to be using the helmets, observations showed otherwise. Though helmet possession among boda riders is still high across the GKMA, helmet usage dropped by 3% in both KCCA and the suburbs, returning to the level seen in October 2022. This was likely due to the movement of police towards the entry points for the CBD (such as Nansana-Lubigi roundabout and Spear Motors), leaving riders elsewhere facing less pressure to conform to the law.
App usage has stagnated
Seven out of ten riders in Kampala have never used a ride-hailing app, and of those who have, half have stopped using the apps. This is particularly common farther from the city center: of the 23% of riders who tried using apps outside of KCCA, three-quarters have left them.
Since passenger and rider usage goes hand-in-hand, when either drops off, the distance to meet gets further, making the service less convenient to all. This is worse in lower-density, lower-income suburbs.
Stages compete with roadside pickups
Boda stages have become places for resting. Their purpose as passenger-pick-up points has drastically reduced as passengers increasingly choose to go with the lubyanza. This has resulted in stage-members working the lubyanza-style and going back to the stages mainly to have a break, as reported by over 54% of the interviewed boda riders. In addition to that, nearly a quarter of all bodas complained the number of bodas had increased, and another 5% said customers had become fewer.
Passenger trips continue to dominate.
While riders overall did just over 12 daily trips, there was little difference for lubyanza or on-app riders. However, lubyanza tended to do twice as many deliveries and slightly more trips overall.
Overall, it seems riders tend towards a similar number of trips per day. Lubyanza may have less choice in selecting trips, thus taking more deliveries others would avoid.
Earnings were up
While almost all boda riders in the interviews decried lower income, results reveal a general 12% increase in earnings. On average, riders made nearly 5,000 per day more during the first week of April than the first week of January. App users also earned on average 48k vs 41k for non-app users, though this is before taking into account commissions.
This may be partly explained by a significant rise in earnings on Monday and Wednesday, when rains created jam and people took bodas. There is an irony to this: people take taxis (matatus) and cars to avoid the rain, but the increase in traffic jams also makes passengers want to take more bodas. Future surveys should help us find how much of this is daily, seasonal, and per neighborhood.
The survey was designed by Tom Courtright with input from James Kalungi, Geofrey Ndhogezi, Paul Mukwaya, and Peter Kasaija. It was carried out from April 1–8 by Geofrey and Kalungi. Insights above are a result of all team members. If you have any ideas or questions you’d like answered, send us a message!
