Ride-hailing company Taxify is taking the fight for market share in Africa with Uber to places where Uber isn’t.
The
Estonian company which has grown to become Uber’s biggest rival in
Africa is pursuing an expansion strategy that’s focused on not only
operating in major cities across Africa, like Uber does. Taxify has also
been expanding to smaller cities and now operates in more African
cities than Uber.
In Nigeria, in addition to Lagos and Abuja, the only two cities where Uber currently operates, Taxify has launched operations
in Ibadan, Nigeria’s largest city by land size, and Owerri, a bustling
commercial center in the southeast. While neither city matches Lagos or
Abuja as urban centers, they have sizable business districts and
populations of over 1 million people each. In Tanzania, while Uber has
stuck only to Dar es Salaam, Taxify operates there as well as in Dodoma,
the nation’s capital and in Mwanza, a tourism hotbed on the shore on
Lake Victoria.
In South Africa, Taxify continues to compete with Uber in Cape Town, Durban, Johannesburg and Port Elizabeth but has also expanded
to Polokwane. It is set to also launch in East London later this
month—a move that will see it surpass Uber for the number of African
cities operated in. It will also mean Taxify operates more cities in
South Africa than anywhere else.
Much of Taxify’s expansion has been bankrolled by its recent $175 million capital raise—a
funding round which valued the company at more than $1 billion.
Taxify’s backers include Daimler, the German car giant and Didi Chuxing,
the dominant ride-hailing business in China which is also known for backing Uber’s rivals elsewhere. As it continues to grow and attempt to win over riders, Taxify’s lower commissions on fares are also a tactic to win over drivers.
For
its part, Uber, which has now operated in African cities for five
years, is also eyeing more expansion with Rwanda, Ivory Coast, Senegal
and Mauritius among potential targets.
And showing a willingness to adapt to local markets, it has also
introduced lower cost ride-hailing options with rickshaws in Kenya and
motorcycles in Uganda.
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