EDITORIAL: It’s a positive trend in ride-hailing business
Yesterday, we reported on ride-hailing services in Tanzania, noting that the business is still nascent. Starting with the Uber launching in Kenya in 2015 – which then expanded to Uganda and Tanzania in 2016 – the business is burgeoning fast in the east African region.
Tanzania is already home to four international ride-hailing companies. These are the US-based Uber, Ping Rider from Senegal, Taxify from Estonia, and Moovn, owned/operated by a Chicago-based Tanzanian, Godwin Gabriel.
A fifth company – operating in Kenya under the rather odd name and style of Little – is on the verge of launching its services in Tanzania as well.
Briefly, ride-hailing is the activity of asking for a car driver to drive to where you are and take you where you desire.
This is achieved by using a special ride-hailing app.
Smartphone ride-hailing is rapidly changing the face of public transport worldwide, in developed and developing countries alike. Indeed, the technology has boomed into a global multi-billion dollar industry within the last decade.
Ride-hailing is immensely cheap compared to other transport services, including commuter buses and traditional taxi-cabs. In the event, the system is already posing stiff competition to other transport operators, especially in urban settings.
This notwithstanding, however – and, especially, considering that fair competition on a more-or-less level playing field is healthy for business – we heartily welcome investments in the innovative ride-sharing sub-sector of the economy, all things being equal.
We are not saying that ride-hailing will surmount the myriad transport challenges in the country. Nor that the operators should be condoned if and when they act contra-extant regulatory frameworks. Our view is that Tanzania needs more ride-hailing investors, but with the relevant authorities always ensuring that everything is conducted within the letter and spirit of the relevant laws.
