Rwanda to phase out gas motorcycle-taxis for e-motos – gpgmail


The government of Rwanda will soon issue national policy-guidelines to eliminate gas motorcycles in its taxi sector in favor of e-motos.

The country’s president Paul Kagame previewed the plan last week. “We will find a way to replace the ones you have now. We urge taxi-moto operators to help us when the phase-out process comes,” he said speaking at a youth forum.

The Director General for the Rwanda Utilities Regulatory Authority Patrick Nyirishema confirmed Kagame’s comments were ahead of a national e-mobility plan in the works for the East African nation.

“The president’s announcement is exactly the policy direction we’re in…it’s about converting to electric motos…The policy is prepared, it’s yet to be passed..and is going through the approval process,” Nyirishema told gpgmail on a call from Kigali.

Motorcycle taxis in Rwanda are a common mode of transit, with estimates of 20 to 30 thousand operating in the capital of Kigali. The country has come a long way since the 1990s, becoming a test-bed for drone-delivery and prioritizing initiatives to become an African tech hub.

Rwanda motorcycle taxisNyirishema explained that converting to e-motorcycles is part of a national strategy to move Rwanda’s entire mobility space to electric. The country will start with public transit operators, such as moto-taxis, and move to buses and automobiles.

“Once the policy is out, we’ll no longer permit any motorcycle that is not electric to be added to a fleet,”  Nyirishema said, adding that the country’s regulators will need to create an appropriate transition period and program for taxi operators to move to e-motos.

The news comes as Africa’s motorcycle taxi markets — worth an estimated $4 billion — have seen a flurry of tech investment and expansion. Uber and Bolt got into the motorcycle taxi business in Africa in 2018.

Norwegian (and Chinese backed) browser service Opera’s recent $50 million backed West Africa product expansion included linking its new payment app to ORide, a motorcycle ride-hail venture it launched in Nigeria.

Nigerian motorcycle taxi and delivery startup MAX.ng raised a $7 million Series A round with participation from Yamaha. The company is using the funding to pilot e-motorcycles in Africa powered by renewable energy.

Another local moto-taxi ventureUganda’s SafeBoda—received outside capital in a Series B round co-led by the venture arms of Germany’s Allianz and Indonesia’s Go-Jek. 

The Director General for  Rwanda’s Utilities Regulatory Authority Patrick Nyirishema prepared to confirm partners for the country’s e-moto conversion.

One startup that says it will be involved is Ampersand, a Kigali based venture that has already begun to pilot EVs and charging systems in Rwanda.

The company has worked with a feasibility study for implementing electric vehicles across Rwanda since last year, according to CEO Josh Whale. “We’ve also got a grant from the government…and it’s been tied in really well with the feasibility study,” he told gpgmail.

Copy of Bike Rebero Ampersand eveningAmpersand has shaped its own e-motorcycle model, building the batteries and fitting them into new motorcycle chassis imported from Asia. To keep the taxi-moto riders consistently moving—vs. delayed while recharging—the startup has developed a battery swapping system and station.

One motorcycle ride-hail startup that’s been testing an Ampersand e-moto is Cango. Founded in 2015, the company has app-based, on-demand taxi-moto fleets in Rwanda and Congo.

“We intend to be among the first to switch our fleet, as the [Ampersand] bikes are ready,” Cango co-founder Barrett Nash told gpgmail in a message from Kinshasa.

Ampersand CEO Josh Wale sees electricity changing the micro-economics of motorcycle taxi markets. He estimates taxi riders in Rwanda spend $2000 a year on fuel and oil-charges for their gas machines.

“Looking at it from a driver point of view, from day one they are paying less for the bike and the battery by going electric,” he said.

 

 

 


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Africa’s ride-hail markets are hot spots for startups and VC – gpgmail


When it comes to VC, vehicles, and startups, Africa’s ride-hail markets are becoming a multi-wheeled and global affair.

The big players such as Uber and Bolt are competing in Kampala and Nairobi—where in addition to car-service—they offer rickshaw taxis. On-demand motorcycle startups are multiplying and piloting EVs with funds from international partners. And many ride-hail companies in Africa are adapting unique product solutions to local transit needs.

In this analysis, I take a look at the leading startups in the mobility space and how the future of transportation on the continent will increasingly come from new entrants.

Africa’s in the midst of digital innovation boom

Africa’s in the midst of digital innovation boom, the components of which are intersecting rapidly across its 54 countries and 1.2 billion people.

Smartphone penetration is improving and in 2017, the continent saw the largest global increase in internet users—20 percent.

By Partech data, the continent surpassed the $1 billion VC mark in 2018. And greater connectivity and venture funding are fueling thousands of startups in every imaginable sector, including digital-transit.

While reliable markets stats for the size and potential of Africa’s ride-hail markets are sparse, there are some indicators of the sector’s potential.

Car ownership and cars per capita in Africa is among the lowest in the world. Parallel to that, any eyes and ears survey of the continent’s big cities reveals that shared transport by buses, cars, or motorcycles is big business that’s already ingrained in consumer culture. Millions of people daily pay fares to pack onto East and West Africa’s Mutatu and Danfo minibuses and Okada and Boda Boda motorbike taxis.

As Africa continues to urbanize, converts to smartphones, and discretionary consumer spending continues to rise—it all adds up to suggest strong potential for conversion to on-demand mobility services.

Unsurprisingly, the most active markets for ride-hail startups and investment in Africa align with the continent’s top spots for VC and tech activity: primarily Nigeria, Kenya, and South Africa.



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