Over the past decade, more than 2,500 local ride-hailing apps have tried to usurp the dominance of Uber and Bolt in Nigeria. These global competitors—flush with funds and advanced technology—have asserted dominance as major competitors in the industry, with newer entrants like inDrive also gaining traction.

Local ride-hailing alternatives have struggled due to economies of scale, network effects, funding constraints, and driver retention challenges. Take Oga Taxi, Nigeria’s first indigenous ride-hailing app, for example. Launched in 2014 by Michael Nnamadim, it struggled to scale and eventually shut down.

T-Cab Rides, another homegrown platform launched in 2018 by Samuel Ogunwus, operated on a model similar to inDrive, allowing passengers to negotiate fares. However, the company appears to have ceased operations, as its social media accounts have been inactive since 2019.

Oga Taxi and T-Cab are just two of many Nigerian ride-hailing startups that have tried—and failed—to compete with Uber and Bolt.

While multiple factors have led to their collapse, Nigeria’s ride-hailing sector has become even more challenging in recent years. Rising living costs have weakened riders’ purchasing power, while the removal of fuel subsidies has significantly increased operational expenses for drivers. The cost of vehicle maintenance has jumped by 200%, slashing driver profits by as much as 300%. Many drivers—already burdened by platform commissions and regulatory fees—are either quitting or reducing their working hours.

Yet, these challenges haven’t deterred new local entrants. Earlier this month, a group of Nigerian ride-hailing drivers launched SimpliRide. Platforms are also adapting their models to accommodate drivers’ needs. For instance, Lagos State’s government-backed ride-hailing service, LagRide, is shifting towards a salaried structure for drivers, an unconventional approach in the industry.

The battle for ride-hailing dominance in Nigeria is far from over. However, local startups will need stronger financial backing, better driver incentives, and strategic marketing to stand a chance against their global competitors.

While over 2,500 local ride-hailing apps have tried—and failed—to stage any serious threat to giants Uber and Bolt in Nigeria, the story is different in South Africa. 

In February 2025, Wanatu, a local ride-hailing startup, launched and has quickly garnered over 30,000 users as it takes on the large industry giants in the South. Despite its wins, the company’s hiring policy—preferring only drivers who are Afrikaans speakers—has triggered a debate.

Yet, its gig-driving model differs in a few ways from Uber, Bolt, and inDrive. The biggest change is that Wanatu employs its drivers full-time instead of treating them as independent contractors. Drivers earn a basic salary plus tips, a setup that provides them with more financial stability than what Uber or Bolt offer.

Another major difference is pricing. Unlike Uber and Bolt, where trip costs can rise due to traffic, delays, or longer routes, Wanatu sticks to the fare displayed when a ride is booked. That means no unpleasant surprises for customers who might otherwise see their bill increase after drop-off.

Security is another selling point. Every Wanatu vehicle is equipped with live-monitored dashcams, an in-car panic button, and voice recording features—tools designed to prevent misconduct by drivers and passengers.

Is Wanatu a real threat to Uber and Bolt? The jury is still out. For now, it’s still much smaller and has fewer drivers, which means availability can be a challenge. But with plans to expand and a business model that’s winning over customers, it’s clear that Wanatu is making its presence felt in South Africa’s competitive ride-hailing market.

M-PESA’s market share continues to shrink, marking its fifth straight quarter of decline. The latest data from the Communication Authority of Kenya (CA) shows M-PESA’s share fell to 91% in Q4 2024, down from the previous quarter. In contrast, Airtel Money’s share grew from 7.6% to 8.9%, driven by aggressive promotions and lower transaction fees.

M-PESA is still the dominant player, but competition is getting tougher. Airtel Money has been attracting users with cheaper transaction costs. For example, sending KES 1,000 ($8) to another network costs KES 11 ($0.085) on Airtel Money but KES 13 ($0.10) on M-PESA. Withdrawal fees are also slightly lower on Airtel Money. These small differences add up, especially for frequent users.

Another factor hurting M-PESA is increased interoperability. Since 2022, mobile money users have been able to send and receive money across different providers more easily. This means customers who once felt locked into M-PESA can now explore other options without much hassle. Being a competitive market, the switching cost for customers is lower, which creates an opening for Airtel Money.

Airtel Money has also been working to close the gap in agent numbers. It has partnered with supermarket chains like Naivas to expand deposit and withdrawal points. M-PESA still has the largest network, with over 160,000 agents, but Airtel’s efforts are making its service more accessible.

Despite losing ground in a market it has had a stronghold for years, M-PESA could yet face more challenges. The Central Bank of Kenya plans to introduce a Fast Payment System (FPS) that will allow instant transactions across all banks and mobile money services. If successful, this could reduce M-PESA’s grip on the market even further.

This week, Kenyan logistics software-as-a-service (SaaS) provider Leta raised $5 million in seed funding. The round was led by European venture capital firm Speedinvest, with backing from Google’s Africa Investment Fund and Equator. (March 18)

Here’s the other deal for the week:

• Egyptian pharma startup Grinta raised an undisclosed amount in funding. The funding round was led by Beltone Venture Capital and Raed Ventures. (March 19)

Follow us on Twitter, Instagram, and LinkedIn for more funding announcements. Before you go, read our State of Tech in Africa review for 2024. Click this link to read it.