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I think there are two challenges with ride-hailing in Africa.
1. Drivers are squeezed in pricing to entice riders.
2. Allowing drivers to take cash & pay the company later puts them in debt. Recovery is done on the next cashless trip, they feel cheated when the co collects.
1. Drivers are squeezed in pricing to entice riders.
2. Allowing drivers to take cash & pay the company later puts them in debt. Recovery is done on the next cashless trip, they feel cheated when the co collects.
So the motorcycle taxi driver decides to use the app to get the customer but collects money outside the app, in cash. When the trip isn't registered as taking place, the company has no cut.
A trip can cost up to 2X if one isn't using the app. The driver is aware that the app provides massive advantages and more revenue with increased trips from visibility. So drivers use the app, offer the same pricing but ask to cancel the trip on the app, and receive cash.
They benefit from the app by getting more trips, but don't pay the company powering the whole process.
It's not true that they hate cashless in itself. They hate accountability and paying the app provider, who is already pricing trips at half of their normal cost outside the app.
Also, it's not true that drivers aren't paid in time. Most ride-hailing apps now offer instant settlement on your wallet. And you can cash out at will.
Uber’s dilemma is two-fold. They allow cash and cards. Drivers take lots of cash and do not remit Uber’s cut. Uber only collects when a customer uses a card. They reconcile and try to recoup the money they're owed from cash trips.
Drive to hate this and feel cheated by the ”free trips.” When they realise that you're a card customer, they do not show up.
Uber only lets them know the payment method when they're close to the passenger. To avoid refusing the job because of the method.
So they drive, get very close to the passenger, check the payment method, and if it's a card, they ignore the trip until the passenger cancels. When the passenger cancels, they get paid for time the passenger wasted by not showing up.
Meanwhile, they're parked nearby, ignoring the passenger.
That is business in Africa!!
That is business in Africa!!
