When you look at maps of micromobility across the world, it appears there’s not a ton of activity throughout Africa. Well, that’s because there’s not, Gura Ride founder and CEO Tony Adesina said at TC Sessions: Mobility.
In Africa, there are “very few” micromobility operators, Adesina said. “Almost non-existent.”
That’s why launching bike and scooter share in Africa, and specifically Rwanda was strategic, he said. In Kigali, there are many bike lanes and cycling is quite popular in Rwanda, Adesina said. But bikeshare and scooters are “completely new to them.”
Gura Ride has been in operation for the last couple of years and says people are generally receptive to the idea. Still, it hasn’t attracted the same type of market activity as other places.
“Africa is quite unique,” Adesina said. “I don’t think it’s somewhere where you can bring an existing model, maybe that worked in the States or the UK and just dump in a country like South Africa or Rwanda. You have to understand the culture and the people you’re dealing with. It takes quite some time. You have to study the terrain and make sure the model you run in the U.S. or the U.K. can actually fit. Another thing is price. The buying power is not as heavy as you have in the States. So the numbers have to make sense and you have to make sure that the market you’re going into can meet your projected goals.”
That’s partly why Voi, which has gained a stronghold across Europe, has yet to launch in Africa. Voi CEO Fredrik Hjelm noted how the cost of supply and operations is pretty much the same wherever it operates, so in markets where there is less willingness among riders to pay higher costs, it makes it “very, very difficult to operate profitably,” he said.
Once Voi can bring down the costs of operations, it will be easier to launch in more markets and operate profitably there, Hjelm said.
“So there is definitely a time where we will be able to make markets with lower willingness to pay, such as Africa, profitable, when we go there,” he said.
What’s key to micromobility becoming more mainstream in Africa is infrastructure, Adesina said.
“I think the biggest issue (in Kigali) is that the roads are quite narrow, so how do you share the road so you don’t have a lot of hit and runs,” he said.
On the other hand, micromobility is thriving so much in Europe because of the infrastructure, Hjelm said. So, infrastructure can really make or break the industry.
“The infrastructure is better than anywhere else,” Hjlem said. “Culturally also, we’re much more used to bikes to mopeds to vespas to scooters — to all kinds of alternatives to cars. So I think that fundamentally, Europe is the world’s most attractive market.”