Ride hailing app safeboda had announced its’ exit from the Kenyan market by November 27th, 2020. Last week it began issuing refunds to its customers who had some balances in their wallets.
The firm through a statement said the decision has been influenced by the impact of the coronavirus disease which has affected the business operation in the region. The Ugandan firm ventured into the Kenyan market in 2018 with operations in Nairobi, expanding to Mombasa last year.
SafeBoda has however said that business will commence well in Nigeria and Uganda and is dedicated to empowering its communities thrive.
While business for SafeBoda is doing well in Uganda, in Nairobi the company is temporarily closing shop. In whats seems to be a thriving business for other companies like Bolt, Uber, and Glovo during this pandemic it things for SafeBoda Kenya have been going downhill.
According to reports, SafeBoda users have been complaining that riders accept their rides but do not pick their calls. Others pick, accept, come to you, and bargain for a different price not stated in the app. In worse case scenarios some Safeboda riders would allegedly go away with the goods that they are supposed to deliver.
Meanwhile, motorcycle riders are also feeling the pressure of tightened regulations to contain an industry that is largely seen to have gone rogue amidst rising competition that has seen earnings plummet.
Motorcycles emerged as a main means of transport in Africa with a report by TechSci Research showing the two-wheeler market in the continent forecast to cross $9 billion by 2021.
South Africa, Nigeria and Tanzania are the largest two-wheeler markets in Africa, followed by Kenya, Algeria, Uganda, Egypt, Morocco, Angola and Ethiopia.
In Kenya, a taskforce has come up with a report of the challenges in the sector and a raft of recommendations, some of which operators say will increase their cost of doing business.
