Uber entering Africa can be ordinary news for a layman. However, from an entrepreneurial perspective, there’s a vast unexplored market that can turn into a hub for on-demand services in the upcoming years. With on-demand taxis becoming more prominent among people worldwide, even the West African countries like Senegal, Ghana, Guinea, etc., have also experienced a healthy reception for ride-sharing apps. Apps like SamaTaxi are occupying a predominant market share in regions like Senegal.
However, the market is still in its nascent stages and can house multiple players to offer the best-in-class experience to people in the region. Are you an entrepreneur aiming to launch a taxi app in Senegal? If so, you need to be wary of your existing competitors, the market growth, and the challenges faced in establishing the on-demand taxi app. Besides, we’ll also look into the features to consider while developing an app like SamaTaxi.
How’s the market faring?
With enhanced smartphone penetration, West African countries are transforming themselves to adapt to the on-demand wave. Let’s discuss the market stats to consider their growth.
According to Statista,
- The total revenue for the ride-hailing and taxi segment in West Africa will reach a significant value of $447 million in 2020.
- During the forecast period of 2020-2024, the market grows with a healthy double-digit CAGR of 20.3%.
- The above stat could mean that the market will grow to a whopping $939 million in 2024.
- Besides, the Average Revenue Per User (ARPU) in West Africa is approximately $37.70.
Who are the top competitors in the region?
Your success formula in the on-demand taxi market is simple – staying one step ahead of your rivals. Let’s discuss some of the top competitors who have successfully established their taxi brands in the West African market,
- Uber: On any given day, Uber is one of the most formidable rivals when it comes to ride-hailing, primarily due to its vast business operations. Uber made its presence in Nigeria in 2014 and Ghana in 2016. Uber was the very first taxi company to explore the West African region.
- Bolt (Formerly – Taxify): When compared in terms of popularity and, by some means, revenue, Bolt is one of the biggest rivals of Uber. The Estonian-based taxi startup has made its presence in almost 15 countries across the world. Bolt is one of the famous taxi apps in several West African countries, including Nigeria and Ghana.
- Oga Taxi: Considering the success of Uber and Bolt in the region, various localized taxi platforms emerged in West Africa. Oga Taxi is one such Nigerian-based startup that competes with Uber in the region. The platform is known for its customer-centric features, growing in revenue and popularity since its inception in 2016.
- SamaTaxi: Focusing explicitly on Senegal, SamaTaxi has become a significant hit among the local audience. Since its launch in 2018, the taxi platform provides hassle-free taxi services on both Android & iOS platforms. The platform is known for its user-friendly ride-hailing services at economical prices.
What are the challenges that lie ahead?
Hurdles are inevitable in every business. A successful entrepreneur tackles these challenges effortlessly by providing the utmost care and attention to specific crucial elements. They include,
- The need for an efficient payment system: Both drivers and customers aren’t well aware of the payment system of taxi apps. Drivers tend to go offline and bypass the commission structure. Similarly, customers aren’t well aware of multiple payment options using which they can pay for their rides. Hence, formulating an efficient payment system becomes a necessity.
- The all-important safety: Incidents regarding robbery, theft, etc., have been sprouting up time and again in the West African nations. Cultivating trust among riders and passengers is crucial to set the tone for your taxi platform. Integrating an SOS emergency button can lead to better security in the taxi ecosystem.
- Striking a balance between riders and passengers: Many a time, taxi platforms in the West African countries tend to provide enticing discounts to customers, leaving drivers unsatisfied. As a result, it is up to the entrepreneur to strike the chord between customer and driver satisfaction.
What are the features worth-considering during app development?
Now that you have identified the market scope, challenges, and competitors, it is time to launch your on-demand taxi platform. Some of the features worth-considering in your ultra-modern on-demand taxi app solution include,
- In-app chat/call
- Multiple payment options
- In-app wallet
- Real-time analytics
- Book via web/SMS
- Multi-lingual support
- ‘Book for others’ feature
- Car rental options
The West African ride-hailing market experiences exponential growth in upcoming years. Capitalize on the demanding situation and roll out an on-demand taxi platform that is robust, resilient, and reliable. Take care of the challenges mentioned above and integrate cutting-edge elements in your taxi platform to gain the upper hand in Senegal’s flourishing taxi market.