Why We Invested in MARAMOJA: Improved Ride-hailing for the East African Market

Founded in 2013, MARAMOJA is one of the first digital ride-hailing services in Kenya, a harbinger of the mobile revolution that would soon revolutionize the country’s taxi industry. More than ten years later, the company has managed to withstand competition from international giants like Uber and Bolt, thriving in a competitive industry through its unique emphasis on local networks, reliable drivers, and high-quality service.

In 2013, Kenya’s taxi industry was ripe for disruption. “At the time, I had a bad experience with taxis in Kenya. Everyone had these similar horror stories with transportation,” says Founder Jason Eisen about his initial decision to launch MARAMOJA. Eisen was not the only one who spotted the opportunity; soon, other companies joined the mobile ride-hailing industry as well.

MARAMOJA has always set itself apart from companies like Uber by relying on social media contacts and personal recommendations. Users can create lists of preferred drivers and access their friends’ lists, bridging the trust gap between drivers and passengers — replicating existing cultural models of transport access via trusted connections.

The company prioritizes treating its partner drivers well. Eisen says, “We value our drivers and know they have clients they can bring onto the platform.” The company offers a rent-to-own program that provides affordable asset financing and a clear path to vehicle ownership to provide more value to its drivers.

Today, MARAMOJA operates across key cities in Kenya and aims to expand its offering nationwide.

Impact

Kenya’s ride-hailing sector has faced numerous challenges amidst an oversupply of drivers estimated to be around 150,000. These challenges range from poor service quality to concerns about safety and reliability.

These challenges impede progress toward Sustainable Development Goals (SDGs), including decent work & economic growth and sustainable cities & communities. Historically, the industry has been mired in a vicious cycle stemming from earlier price wars that disproportionately impacted driver earnings.

Through their innovative program, drivers can cut out intermediaries and achieve vehicle ownership at costs comparable to their current leasing expenses.

This initiative empowers drivers and enhances their passengers’ overall quality of service, fostering sustainable urban mobility. By providing these services, MARAMOJA aspires to improve the ride-hailing experience for drivers and passengers, treating drivers more like respected entrepreneurs and incentivizing them to offer reliable, high-quality service.

Drivers who own their vehicles can also keep more of their earnings, allowing them to better support their families and communities.

“By providing access to new vehicles and facilitating ownership, we are not just transforming mobility, but also enriching lives,” says Michelle Middii, MARAMOJA’s Digital Manager. “As an organization that places paramount importance on inclusivity, this initiative aims to uplift drivers and open doors to increased financial independence. We recognize drivers’ pivotal role in our ecosystem, and ‘MARAMOJA Rent-to-Own’ underscores our dedication to their well-being.”

Smart Asset Financing™ with MARAMOJA

Untapped has partnered with MARAMOJA to acquire additional vehicles to expand its rent-to-own program. Each car has a real-time tracking device, which the company uses to keep track of their vehicles. This is particularly useful in areas with weak GPS signals.

“MARAMOJA provides a homegrown solution to the challenges that face drivers and riders in the mobility space in Kenya. The company is making a positive contribution to the industry, and we are glad to play a part in nudging them ahead,” says David Kleiterp, Head of Investments Africa (excl. South Africa) at Untapped. “We look forward to a fruitful and impactful partnership.”

Untapped Global invests in tech-enabled, asset-heavy businesses across Africa and other emerging markets. Through its financing model, Smart Asset Financing, Untapped uses data from productive assets such as ride-hailing vehicles to assess the business’s health and de-risk investing in emerging markets.

This enables Untapped to make informed investment decisions while supporting impact-driven companies like MARAMOJA that improve mobility and facilitate economic growth in emerging markets.

“Regarding our partnership with Untapped, it’s a perfect fit. We share a vision of transforming the mobility landscape in Kenya and beyond. Together, we aim to enrich the lives of drivers, offering them not just vehicles but also the path to ownership and financial independence. This partnership underscores our commitment to driver welfare and community impact,” says Ronald Mahondo, MARAMOJA’s CEO.

About Untapped Global

Untapped is reshaping profitable investing in emerging markets. We offer data-driven investment opportunities for global investors to finance high-growth businesses across emerging markets. Our innovative Smart Asset Financing investment model tracks productive assets’ usage and revenue streams in real-time, offering investors transparent, secure, and profitable opportunities to invest and grow community wealth in emerging markets.

We provide asset financing for tech-enabled companies in emerging markets. For more information, reach out to our team at info@untapped-global.com