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LETTERS: Tech-savvy companies have chance to expand – Business Daily


Letters



The market is dynamic. FILE PHOTO | NMG
The market is dynamic. FILE PHOTO | NMG 

Uber has come a long way from its founding in 2009 to be the poster boy of how technology can disrupt an industry. Other companies have tried to have a piece of the cake.

We have amongst others Carrem in the Middle East, Didi in China, Grab in Asia, Ola in India, Taxify in Europe and Lyft in US etc. Here in Kenya we have amongst others Little. The market is dynamic, but we have barely scratched the surface in Africa.

Local digital companies have their work cut out for them if they are to gain and keep a foothold in the future transport industry. Globalisation has ensured that from anywhere in the world a business can serve local needs. To compete, they have to look beyond.

First a formidable app, backed by cutting edge technological support is a necessity. It’s not enough to have an app whose threshold is 50,000 requests a minute and crashes if more requests are made. What is needed is an app that can comfortably handle four million requests (and the attendant transactions) at a go.

That’s the approximate population of Nairobi and we are ever on the move. Anything less, while it may work currently will not make the cut in the future. An agile technical knowhow will be a definite advantage as it can be tinkled to suit the various diverse transport needs.

The second will be the relationship with drivers. In this age of outsourcing, employing the drivers permanently may not work. But as valuable partners, companies should strive to work with them to create value for all concerned. For instance, pay their National Hospital Insurance Fund dues with few conditions attached so that they don’t miss out on health.

Let them nominate garages and vehicle repair shops, petrol stations and even banks. Then go ahead and create partnership with the nominated entities to offer discounts etc. Offering to pay their sacco contributions then deducting after work is done (with no interest or commissions) will boost the drivers.

Have a long-term strategy. It is well known that Uber sees its future in driverless and autonomous vehicles.

Unless that is the local companies’ goal, they must find ways of profitably meeting transport needs. Engage with the matatu stakeholders, traditional taxis and motorcycles.

Transport is one of the biggest employers and is here to stay especially in Kenya and Africa in general. There are many pain points in local transport and they can be profitably harnessed without necessarily jeopardising people’s incomes.

Being aggressive and ambitious will also come in handy. You don’t emerge victorious even in sports by just being there. Sadly, some of our companies are known to be complacent and offer lukewarm customer service, driver support and even advertising.

Use our ‘peculiar’ and awesome African-ness to your advantage. We are known to value community and are open and friendly.

Uber and Taxify are already here. Didi from China has started global expansion with Mexico. The difference between being swallowed and thriving will be ambition, hunger and passion.

James Kariuki Wagathuitu via email.



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