SafeBoda set to exit local market as coronavirus rattles businesses
Boda Boda hailing start-up SafeBoda has announced an exit from the Kenyan market effective November 27 over harsh business environment.
In what is a drawback to a surge in start-ups in Kenya, Covid-19 shocks are being fingered, following its knock-on effect on the transport industry affecting the firm’s efficacy.
The Ugandan ride-hailing start-up said in a statement yesterday that the pandemic had weighed heavily on its operations making the business untenable.
“While Nairobi is seeing some economic recovery from Covid-19, Boda transportation has been hit hard.
This has meant our business cannot sustainably operate in this environment and unfortunately, the timeline for a full recovery cannot be certain,” SafeBoda said.
The firm’s exit will hit hard some 4,000 riders who leverage the ecosystem and business value chain. They may opt to seek customers using other platforms or to independently negotiate with customers on payment terms.
Currently, the firm is working with drivers by encouraging customers to empty funds in their SafeBoda wallets by either taking rides or sending packages.
SafeBoda began its operations in Uganda in 2015 and has grown in three years to be the top indigenous African motorcycle ride-hailing company, with market presence in Kenya and more recently, Nigeria.
SafeBoda offers three major services, commuter rides, delivery services and low-cost food delivery.