Exclusive: Uber increases base fare in Nigeria to ₦1,200
Uber has adjusted its base fares. The ride-hailing company says the adjustment was due to the fuel subsidy removal. TechCabal can exclusively report that Uber has increased its base fares. In an official communication from Uber to its drivers seen by TechCabal, the company adjusted the minimum fare on Uber X from ₦850 to ₦1200. This price adjustment means customers will now pay N25 per minute. Part of the statement to drivers read, “We are confident that these changes will have a positive impact on your earnings opportunity, and we will continue to work on initiatives which help in making Uber the app of choice for you while maintaining an affordable service for riders.” Tope Akinwumi, Uber’s Country Manager for Nigeria told TechCabal in an email, “Following an in-depth review of the current fuel subsidy removal, Uber updated fares on the 3rd and 9th June on the app to reflect existing economic conditions. We believe these changes have helped better support drivers in increasing their earning opportunities. Furthermore, we lowered the service fee in February 2022 from 25% to 20% to help enable better-earning opportunities for drivers.” He added that the fare increases are designed to help drivers cover the recent increase in fuel costs, not the entire fuel cost. An official of the Amalgamated Union of App-based Transport Workers of Nigeria (AUATWON) confirmed the fare increment. Comrade Idris Shonuga, a national trustee of the union, told TechCabal, “Yes. We are aware. But we are still consulting because the new prices do not reflect the drivers’ demands. So we are still consulting.” A driver on Uber who spoke to TechCabal also confirmed the new fares. According to him, “The new fares are not 100% okay, but at least they have made some adjustments, so we would go out to work. The rest now is for us to regulate our cars and think about how to conserve fuel.” This move by Uber is a significant concession because base fares are a bone of contention between drivers and ride-hailing companies. Last week, drivers asked that Uber and Bolt should increase base fares by 200%. The new ask was in response to the removal of fuel subsidies in Nigeria, which led to an increase in the price of fuel from around N169 to N490 per litre. The midweek protest by the AUATWON saw the drivers ask ride-hailing companies to also reduce their commission. The same week, Uber’s rival Bolt offered drivers a daily bonus of N6,000, amongst other incentives. But the drivers who spoke to TechCabal kicked against the bonus, which had several conditions.
Read MoreTelkom profits plunge by more than 76%, company blames loadshedding
According to Telkom’s annual results, the company’s profits are down by 76.6%, and the company blames loadshedding among other factors. South Africa’s third largest mobile network operator by subscriber base, Telkom, has recorded a 76.6% dip in headline earning per share (HEPS)—from 575.3 cents to 134.6 cents—according to its annual financial results released this morning. HEPS is the main profit measure used in South African capital markets, and refers to a company’s income from operations, trading, and investments only, and excludes one-time charges, write-downs, cost-cutting. . According to the company, the significant dip in profitability is a result of a tough operating environment caused by inflationary pressures and South Africa’s lingering power issues. “Significant market changes and economic factors, including accelerated loadshedding, low economic growth and a high interest rate environment, coupled with fast-evolving technologies, have had an adverse effect on the group [‘s profitability],” the company said in a statement. According to Telkom’s Q3 results for the period ending December 2022, the company incurred over R150 million in additional costs to tackle loadshedding. Some of the loadshedding-induced costs that South African telcos have incurred include installing solar panels, batteries, and deals with independent power producers. Elsewhere on the company’s financials, revenue was up marginally by 0.9%, while EBITDA (earnings before interest, taxes, depreciation, and amortisation) margin, which measures a company’s operating profit as a percentage of its revenue, was at 22.1%, and customer base was up by 7.8% to 18.3 million subscribers.
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👨🏿🚀TechCabal Daily – Safaricom gets $257 million
In patnership with Share this newsletter: Lire en Français اقرأ هذا باللغة العربية Good morning TC Daily has a new look! Quite a number of things have changed, including the overall layout of the newsletter, language options, content tags and share buttons. The most exciting change, though, is the referral system. You asked us to incentivise sharing the newsletter and it’s here! Starting today, everyone who signs up with your unique link will bring you one step closer to winning cool gifts. You can read more about the changes here. In today’s edition Tango denies all allegations Safaricom receives $257 million from IFC E-hailing drivers strike in Nigeria TC Insights: Fraud risks in Africa’s virtual cards The World Wide Web3 Event: The Moonshot Conference Opportunities Crime Tingo denies all allegations Days after a report by US investigative firm Hindenburg Research accused it of fraud and misrepresentation, Tingo Group is denying all allegations. ICYMI: Last Tuesday, the research accused Tingo and its CEO Dozy Mmuobosi of several fraudulent activities including lying about creating Nigeria’s first payments app, falsification of a PhD degree from a Malaysian university, and photoshopping its logo for TingoPay on other POS devices. Dozy Mmuobuosi, CEO of Tingo Hindenburg also alleged that Tingo’s claim of generating $128 million in revenue in the first quarter of 2023 via its telecoms business is false. Another claim, that its agritech business Tingo DMCC was on track to deliver over $1.34 billion in 9 months, was also reported false. The company’s share prices dropped by 55% within hours of publication of the story. What’s more, Hindenburg published the report a day before Tingo was set to hold a shareholder meeting. The aftermath: Last Friday, Tingo responded, denying all allegations made by Hindenburg. The company, in one press release, refuted all the claims, calling them misleading and libellous. In a second statement, it announced that it would undergo independent research with transnational law firm White & Case LLP at the helm of its investigation. The company also noted that the Hindenburg team made no attempt to verify the claims it made, and that the report was an attempt to “damage its reputation maliciously”, at the expense of shareholders. While Tingo Group is yet to refute the claims with any hard proof, the group states that it will do so in “due course”. Moniepoint ranked 2nd fastest-growing African company Moniepoint is Africa’s second-fastest growing company, as shown in FTs latest report. We also processed 1 billion transactions worth $43 billion in Q1 alone. Read all about it here. Funding Safaricom receives $257 million for Ethiopian expansion Safaricom’s expansion into Ethiopia is getting a major boost. Last week, the International Food Court International Finance Corporation (IFC) announced that it would invest Ksh21.8 billion ($156.9 million) in Safaricom, in exchange for 7.25% of the company’s equity. IFC will also loan Safaricom a further Ksh13.9 billion ($100 million). Safaricom in Ethiopia: In May 2021, Safaricom won a bid to become the first external—and second overall—telecoms company in Ethiopia. Prior to Safaricom, state-owned telecoms Ethio Telecom had a monopoly of Ethiopia’s telecoms market, with 54 million subscribers. Image source: Peter Ndegwa/LinkedIn In 2021, Ethio Telecom sold part of a 40% stake to Safaricom for $850 million. By October 2022, Safaricom launched in the country, acquiring 2.8 million subscribers by March 2023. Seven months later, in April, it announced that it had paid another $150 million to obtain a mobile money licence in Ethiopia. With it, Safaricom will launch M-Pesa to compete with the Telebirr service presently offered by Ethio Telecom. The company’s launch of M-Pesa partly drives the IFC’s investment. Per Kenyan publication The Standard, Safaricom will use the investment to drive 4G and 5G functionality across rural and urban areas in Ethiopia. Zoom out: While Safaricom has spent a lot on its expansion into Ethiopia, it has seen significant interest in its business including a Ksh69.5 billion ($500 million) loan which has not been finalised. The company also recently bought M-Pesa Holding Company Limited (MPHCL), the company that manages all M-Pesa deposits, to Safaricom from Vodafone for $1. The acquisition also means Safaricom has €1.2 billion ($1.3 billion) in customer funds, which it could invest in short-term securities. Mobility E-hailing drivers strike in Nigeria Image source: TechCabal Ride-hailing drivers in Nigeria are bumping fists heads with their companies. What’s up? Fuel prices are! In his inaugural speech, Nigeria’s new president, Bola Ahmed Tinubu, announced the removal of fuel subsidies. Subsequently, the cost of fuel skyrocketed to over ₦600 ($1.60) per litre from ₦185 ($0.40) Days later, logistics companies announced that customers should expect a 20–50% increase in delivery prices. Bolt, for example, increased its base fare from ₦650 ($1.4) to ₦800 ($1.7). Uber increased its from ₦700. ($1.5) to ₦800 ($1.7) while LagRide instituted a 16.6% increase. It’s not enough: For the drivers, though, these price increases don’t reflect the economic realities on ground. Per the Amalgamated Union of App-Based Transport Workers of Nigeria (AUATWON), if the price of fuel has tripled, so should fares. Last week, the association asked all ride-hailing companies to institute a 200% increase with ₦2,000 ($4.3) as the new base fare, a position which corporations like Uber and Bolt, in rejecting the notion, said would reduce demand for their services and cost the drivers even more. The drivers , last week, embarked on a nationwide strike until the fares are increased. Alongside the 200% increase in base fares, the drivers also asked for Bolt to reduce its commission fees from 20% to 10%. While it looks like the corporations will not budge on the situation, Bolt, on Friday, offered its drivers an incentive—a ₦6,000 daily bonus if they complete 7–9 trips, accept 90% of orders, and work at least seven hours per day. The drivers, who are unimpressed with the offer, responded, asking Bolt to instead organise a roundtable with the drivers—or their reps—and hear their terms. This week, though, the drivers returned to work despite their needs being unmet. Experience
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TC Daily has a new look. Here’s what’s different
It’s been almost three years since we redesigned TechCabal Daily, our primary newsletter, to excite our audience by making it more readable and informative. Since December 2020, when TC Daily relaunched, we’ve grown in vision, size and quality. The newsletter now has over 150,000 subscribers—about 10x the number we had in December 2020—a more robust team, and a renewed focus on bringing Africa’s most important tech news to everyone’s inboxes by 7 am WAT every weekday. Why is it changing? Since 2020, the team—led by senior editor Timi Odueso—has added a number of new features and functionalities which were not part of the original design. We’ve added Crypto Market—which is now changing, more on this further on—to provide daily crypto updates, share buttons to help readers share the newsletter with their friends, anchor buttons, language options, and of course ads. We’ve also received some critical feedback from users, some of whom don’t like our memes—sorry guys, memes are here to stay. All-in-all, we’ve redesigned TC Daily to create a seamless experience for our readers, clients and ourselves. Or we could say we redesigned to fit “present macroeconomic conditions and realities”. What’s changing? Our growth, design and tech teams—led by Stephanie Alozie, Osaz Ehiabhi, Tuntamilore Tawak, and Dare Tunmise—have been hard at work for the past couple months. Here’s what you can expect with the new TC Daily: First, we’re changing platforms from MailerLite to Beehiiv. Beehiiv offers us a lot more flexibility and features that fit in with our overall goals. We can track our audience better with it, and run more tests. Like a wedding gown—or a nascent Kenyan startup with significant funding—TC Daily is now mostly white . We’ve reduced most of the blood-orange #F23204 colour that ran through the padding and most of the newsletter. Our overall design is minimalistic and fluid. Over the past three months, we’ve been testing out language options for our Francophone audience and it’s been a huge success with over 40% of clicks attributed to the “Read this in French” button. In the new update, we’re adding an Arabic language option for our North African readers too. So TC Daily will be offered in three languages. Share buttons are moving from the bottom of the newsletter to the very top. In the old design, we weren’t making great use of the real estate on the top of the newsletter, but we’ve now optimised the top for functionality. We received feedback from users who said they didn’t get enough prompts to share the newsletter and now, they will. Each edition—and each news blurb—will start off with a small “Share this edition” prompt. Share buttons and prompts We’ve also added [content] tags to each of the news blurbs. Every news will be identified by whichever sector it belongs to: fintech, cybercrime, global news, etc. We’re only working with content now, but we may add location tags in the future. If you haven’t noticed, “Crypto Market” has now morphed into “The World Wide Web3”. We launched Crypto Market last year, at a time when the crypto world was falling, to help our readers keep up with price trends, spikes and dips. This year though, we have a renewed focus on covering the Web3 space on the continent. We’ll achieve that with “WWW3”—no affiliation with WW1, or WW2. The segment will still cover crypto price changes—including a new 30-day change feature—but you can expect to see more Web3 content and analysis. The World Wide Web3 on TC Daily We’ve heard feedback about the anchor buttons and how users should be able to click on the news titles in the lede and get linked to the news. The good news is that this feature works for Apple and Yahoo Mail. The bad is that we haven’t found a workaround for Gmail—web and mobile—users. Google is a tough nut to crack, but we’ll get there. On Ads, we’re taking off the “partner content” tags from our ads. Ads will now have a red outline while our everyday ads will have black outlines. Ads on TC Daily Penultimately, we are adding at least two new interactive content styles in H2 2023 but we can’t leak the news yet. What we can say is that we’re looking to engage our readers and the tech community more. And one more thing : Our referral programme is back! Last year, we launched V1 of our referral programme to incentivise our readers to share the newsletter. We got hundreds of sign ups within weeks but the system had a few bugs. We’re happy to announce that we’ve squashed the bugs and now have a more functional referral programme which we’ve tested within the team, and outside of it. Most of this is thanks to Beehiiv which has an in-built referral programme that’s easily customisable (no, this is not an advert, we just really like fun, cool, no-code tools). What this means is that all of our subscribers can now refer family and friends to TC Daily and win. The premise is simple: if you love TC Daily, tell someone about it, and we’ll give you something in return*. And don’t worry, the gifts will be items you can actually use, like Showmax subscriptions or mobile money. Image source: Aderemi Adesida/TechCabal For now, only subscribers domiciled in Nigeria can redeem their rewards but we’re working to extend to readers in other African countries. (Other terms and conditions here). Unfortunately, we haven’t been able to find a unified rewards system that works cross-borders so it’s been a bit difficult to find a system that works across countries like Kenya, South Africa or Uganda where most of our users live. Netflix doesn’t offer gift cards and neither does Jumia. We are, however, still searching for options. If you have an idea of how we can make this work, please let us know at newsletter@techcabal.com. We’re super excited for everyone to try out and read TC Daily, and not just because we make money from it
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Africa’s data problem is an aversion for learning
Cet article est aussi disponible en français <!– In partnership with –> <!— –> More and better data is good, but not enough. The why and what happens after are equally, if not more important. Last week, my colleague at TC Insights, the research arm of TechCabal, penned this brilliant read discussing how a lack of data in Africa might impact the prospects for African startups. Writing about data availability and accessibility pushes a lot of the right buttons and some of our readers wrote back with insightful comments. Victor Mosengo, a data scientist complained about the hurdles facing anyone who attempts to close the data gap: For example, in a jurisdiction where trade administration is a regional function, a company/org seeking to utilise trade data will now need to either: Seek permission to be a data processor only in the administrative units they have engaged Lobby the national government to kick off a process of data custodianship, which then opens a debate of regional autonomy, and after all this, then hope the national government can allow them to be a data processed Rely on surveys and desktop research; most fall back on this as the most practical approach. As someone who dabbles in market intelligence beyond desktop research, I fully understand Mosengo’s point. Navigating all of this complexity makes research expensive and laborious, especially if you seek to build representative intelligence. With some capital and political savvy, you could find a workaround. But you would not have solved the data problem. Because getting data is still on the lower rung of the bigger problem, which is creating fit-for-purpose solutions. The bigger problem lies in what happens after you have data. Unless this “huge gap is fulfilled, collecting and gathering a mountain of data will yield no benefit or result,” Naushad Kermalli, a Dubai-based banking and capital markets consultant wrote to us in a response to last week’s essay. Here’s one manifestation of this problem. Partner Content: This Wealth Management Startup, Twinku is helping Nigerians Organize, Plan, Manage their Financial life Better How many people live in Lagos? In the previous week, I followed (as I’m sure some of you will have) the debate, if you could call it that, about how many people live in Lagos. Everything from the staid rational to the weirdest extrapolations has been offered by experts and online trolls. The debate about the population of Nigeria’s commercial nerve centre inspires wild responses because of what happens after this data point is established. Why exactly do you need this data as a government? Why does Business X need this data? Why does Organisation Y need this data? Unfortunately, the answer and primary use of data points like this in Nigeria (and a handful of other African countries) is political and the business lobby is largely uninterested. If Lagos has more people than Kaduna (a northern Nigerian state), then it gets more political representation and, ostensibly, more capital resources from the national government. If Nigeria has more people than Egypt, Nigerian diplomats can use the phrase “most-populated African nation”, even though it means nothing and carries little significance, geopolitically speaking. Because this is the central aim for collecting basic foundational data, the incentive to be accurate may not be a priority. One effect of this is often that the data collected is not extensive enough. How could it be if the main (unstated) aim is political bragging rights? And this is only about basic foundational data. Data relating to market opportunity, like income levels and how they change over time in response to, or to cause, economic shifts also suffers from the challenge of what happens after. The answer a lot of the time is nothing. This dislocation between data and policy or decisions is a symptom of another problem. This problem is that we do not appear to care much for learning as a core activity for social progress. Partner Message VivaTech is only a few days away! It’s not too late to book a pass and meet Africa’s leading innovators at Europe’ biggest Startup and Business event. Get tickets now The learning problem Learning means the ability to modify behaviour, acquire skills and develop preferences based on new knowledge. It is an inbuilt human function. Literally! Your skin, eyes, ears, nose and tongue are foundational learning tools built into our sense of being and human function. Learning is also a great discomfort. Who hasn’t stubbed a toe, suffered an indigestion or struggled with some maths? Learning is the why we collect data—to acquire skills and develop preferences. If we have a data problem in Africa, it is because we have a failure of systemic learning. At the higher academic levels, how much learning happens relative to Africa’s societal ambitions? Do we even have enough social ambition as a collective? In business, the story is not much different. In everyday life, learning often happens organically. In business you will often have to seek it out intentionally. Partner Message In 5 minutes, you can get your health insurance, motor insurance, and life insurance on the P2Vest app. Available on Google Play & App Store. Get InsuranceParasol Learning is found in translation We focus so much on the problem of collecting data and very little on the easily solvable problem of translating what we already know into structures that can be used. Granted a lot of the time, what is already known is only known by a few people/organisations who are often physically and mentally divorced from the challenges that they could help solve. Very often it is basic data that is essentially useless because it cannot form a narrative that is coherent enough for public policy or private enterprise. The World Bank says Statistical Performace Indicator (SPI) scores are “strongly correlated with several leading development indicators, such as GDP per capita and indicators of human capital or government effectiveness.” This means that the extent to which a country collects and uses data will show in development
Read MoreKenya to fix FM transmission limitations with new technology
Digital sound broadcasting (DSB) is a better technology than FM and has many advantages. However, it is unavailable to most Africans but is accessible in South Africa and Tunisia. Kenya’s ICT regulator, the communications authority (CA), has announced plans to pilot digital sound broadcasting (DSB) anytime from September 2023. DSB is a technology that uses digital signals to transmit audio content. It is a more efficient use of spectrum than traditional analog broadcasting. According to the regulator, which hosted a media workshop highlighting its mandate and plans for the ICT industry, DSB will be useful in tackling the issue of limited FM broadcasting frequencies. This is important because sound broadcasting is a key source of information, education, and entertainment in Kenya. 98% of homes in the country have access to devices that receive sound broadcasts, with nearly 200 licensed broadcast services. However, frequency allocations for FM are close to saturation, meaning there is no more room to add new FM stations. Therefore, DSB provides an opportunity to introduce new sound broadcasting services in these areas. FM is also an older technology and is marred by several issues. As said, FM broadcasting airwaves are becoming saturated, leading to increased interference and poor signal quality. The lack of capacity for new services is also a problem. With so many stations already on the air, there is no room for adding new ones. The difficulty of innovating and offering new and unique services is another problem, not to mention the relatively poor audio quality of FM broadcasting. Kenya has already developed a framework for digital sound broadcasting to pave the way for the launch. The regulator mentioned that it is getting a budget to purchase all the necessary equipment for DSB pilot tests. Consumers will also be asked to purchase new receivers capable of processing DSB signals. However, the regulator will not phase out FM signals because they are still important to Kenyans who prefer consuming news and entertainment on their transistor radios. DSB receivers are also capable of processing FM signals as well. Digital audio broadcasting (DAB), the most widely used type of digital sound broadcasting, is being tested in Tunisia and South Africa. Tunisia, for instance, began using the technology in 2008. In 2010, it installed additional transmitters, covering 25% of the population. In 2019, four more transmitters were added, covering 51% of the population. In 2020, coverage increased to 71%. The North African country aims to have 98% coverage by the end of the year. Sudan has also expressed interest in deploying digital sound broadcasting to its people. It remains to be seen how Kenyans will respond to the new technology because they will want to use their FM receivers for longer. The regulator has also not mentioned how it plans to sensitize the government to avail DSB receivers. The cost of rolling out the service could also be high, which is one reason it has taken so long to launch it. Lastly, some digital sound broadcasts will be premium services, meaning they will attract additional costs to consumers who are used to FM, which is free.
Read MoreMeta appeals Kenyan Court ruling that calls it the “principal employer” of content moderators
A June 2 court ruling found that Meta is the principal employer of 184 content moderators. While Meta appeals the ruling, Sama, its former content partner, is caught in the middle. Earlier this month, an Employment and Labour Relations Court ruled in favour of 184 moderators fired by Sama, Meta’s content reviewer in Kenya. The 184 moderators also told the court that when Meta moved its content moderation contract to another firm called Majorel, the social media giant asked Majorel not to hire any moderator who had worked with Sama. The court blocked the firing of the moderators and mandated Sama and Meta to extend their contracts until the final determination of the suit. Meta will now appeal the ruling. Part of its argument is that the moderators are not Meta’s employees. It will also argue that the court’s demand that it extend contracts of the 184 moderators amounts to the court writing a new contract on its behalf. While Meta appeals, it remains to be seen what work Sama will provide the moderators with. Sama, which the court described as an “agent for Meta,” told TechCabal that the ruling was confusing. The content reviewer laid off the moderators in January 2023 after its contract with Meta had expired. Concerns over the disturbing content reviewers often had to watch prompted the company not to seek a renewal of the contract. The June ruling now means that despite having no existing contract with Meta, it must keep the moderators employed. The Ruling also acknowledges that the work of content moderation is inherently hazardous. #FacebookContentModerators pic.twitter.com/Gy0n2lHBWT — Mercy Sumbi (@MercyMutemi) June 5, 2023 The company told TechCabal via email, “The recent ruling from June 2 is confusing and, in many cases, contradictory. Sama fully exited the content moderation business earlier this year and did not have work to give the moderators. We care deeply about the health and emotional well-being of our team. We invested in creating a working environment that supported our content moderators’ needs.” The buck stops with Meta Sama’s position is straightforward. Without a contract to review content for Meta, it has no work for the moderators. Instead, the court ruling places responsibility on Meta’s shoulders as it determined that Meta is the “primary employer of the moderators. And because Meta moved the content moderation contract to another company, the Court “found that the job of content moderation is available” and that “the applicants will continue working upon the prevailing or better terms in the interim.” While Meta appeals, it remains to be seen what work Sama will provide the moderators with.
Read MoreRide-hailing drivers in Nigeria resume work despite unmet demands
Ride-hailing drivers in Nigeria return to work after last week’s strike. They’ll take small wins from their protest, such as reinstating some drivers whose profiles were deleted from ride-hailing platforms. After a midweek protest across Nigeria last week, ride-hailing drivers return to work today. Today’s resumption will happen despite drivers saying ride-hailing companies have not met their demands. According to two key members of the Amalgamated Union of App-based Transport Workers of Nigeria (AUATWON), continuing the strike was unreasonable because many drivers need daily income to survive. The Union’s general secretary, Ibrahim Ayoade, told TechCabal, “The decision is for our members to return to work today. They can seek tips from riders if the ride doesn’t favor them. ” An insufficient silver lining? Last week, Bolt offered the drivers a daily bonus of N6,000, amongst other incentives. But the drivers kicked against the bonus, which had several conditions; many drivers TechCabal spoke to called the bonus insufficient. Yet, the striker scored a critical point: a reinstatement of drivers’ profiles who were deleted from Bolt’s platform. The National treasurer for the Union, Comrade Jolaiya Moses, told TechCabal, “We gave (ride-hailing platforms) an ultimatum for the review of accounts blocked arbitrarily. They unblocked some profiles, and we started seeing testimonials from different drivers. Part of our demands is that these things should not be done unilaterally. They won’t be the only ones to review. Let’s check everything together to see which is genuine and immaterial. There are so many unjustified blocking, suspension and sanctions of drivers by app companies.” Unmet demands The demands of the Union, a 200% increase in fares, remains unmet; instead, Bolt and Uber increased fares by 30-40%. It is an acknowledgment of Nigeria’s market reality. Any steep increase will undoubtedly lead to a dropoff in demand. Yet, the Union remains optimistic. National treasurer Moses is hinging his hopes on the promised engagement between the Union and the ride-hailing companies, which occurred last Friday in Lagos and Abuja. Another impasse during those engagements will likely lead to another strike. According to Moses, “We plan that going forward, we will use a window of seven days to analyze all the immediate responses we have been able to get. While we are analyzing that, we expect that some of the app companies that promised to do something within the next seven days would have done those things and gotten back to us for further discussion on those demands. It is not over yet until our demands are met. Most of our demands currently are not met. They have however done some things in the interim— like unblocking drivers profiles.” Bolt is careful to increase prices as it tries to navigate rider sentiments to get a cost-effective approach. Moses acknowledges this fact but states that drivers suffer from the fuel situation. “Currently, we are driving with it to see the profitability. I can tell you that all the feedback we got is negative. It is eating into our profits. We are actually selling below the cost price, and definitely we have to embark on the strike if nothing is done about it within the next seven days,” he explained. Chairman of the media and publicity committee of the Union, Comrade Jossy Olawale, hinted that there may be another strike on June 16 if their demands are still not met.
Read MoreTermii raises $3.65 million to reimagine digital communication in Africa
This startup imagines communications in Africa should be radically different. So they are getting their hands dirty, with fresh support worth millions of dollars. If things were up to Termii, a pan-African communication platform-as-a-service (CPaaS) startup, digital communication in Africa would be decades ahead, in terms of innovation. The YC-backed startup has the goal of reimagining communication between African businesses and their users—and it has just raised $3.65 million to achieve this. Coming off the back of a $1.4 million seed funding in January 2021, Termii’s latest capital raise—led by Africa-focused VC firm Ventures Platform—signifies investors’ confidence in the under-funded CPaaS sector. “Not many companies in this space are raising capital, but Termi is doing many things right. Our product is not a nice-to-have; it’s a painkiller,“ said Gbolade Emmanuel, the company’s CEO. The round welcomed participation from other investors including Fintech Collective, Launch Africa Ventures, Nama Ventures, Aidi Ventures, Ralicap Ventures, Now Venture Partners, Vastly Valuable Ventures, NOA Capital, Assembly Investors, Probability Ventures, Adamantium Fund, MyAsia VC, Uncovered Fund, and Afropreneur Angel Group. Angel investors such as Aubrey Hruby of Tofino Capital and Eamon Jubbawy of Onifido also wrote their way into Termii’s cap table. Founded in 2017 as a messaging product that allowed businesses to communicate with their users across multiple platforms, Termii has evolved its product suite to function as a one-stop shop that powers interaction between businesses and their users. If you’ve ever waited for an OTP text message when trying to make payment through a fintech gateway—such as Paystack’s—then chances are that you’ve experienced Termii in operation. Termii’s infrastructure powers the fast and secure messaging that allows users to interact with about 9,000 fintechs, including Moniepoint, Chipper Cash, and Piggyvest. Gbolade believes his startup’s function in the day-to-day activities of African fintechs is a prime advantage that is of interest to investors—such as Fintech Collective, the global fintech-focused VC firm that participated in the round. Termii claims its list of over 10,000 clients is filled up by businesses across several sectors, including logistics and healthtech. According to Gbolade, one of Termii’s propositions that won investors over was Termii Go, the company’s latest product which he described as a “game-changing unified communications app”. Set to be publicly launched this month, Termii Go is a step up from Termii’s usual stealth infrastructure operations. The app aggregates Termii’s extensive network of clients across Africa into the platform, enabling swift, real-time, engagements between businesses and users. For businesses, this combines a CRM tool with a mobile comms infrastructure. Termii Go also innovates over the usual text messaging that could be intercepted or accessed by rogue players, ensuring that sensitive information is not compromised even when a device gets lost or stolen. Through partnerships with phone manufacturers like Tecno and Infinix, the product is able to bypass third-party messaging gateways and ensure more instantaneous delivery of messages. Perhaps, the most exciting thing about Termii Go is that it plugs into existing mobile virtual operators to enable users to make and receive calls or access the internet through a globally responsive electronic SIM card. This bit remains a B2B play, expanding the scope and affordability of communication between teams. Speaking about the product over a call with TechCabal, Gbolade said, “There’s no product like ours in the African market. We are bringing world-class innovation to the communications sector which has historically been controlled by a few mega players. Our goal at Termii is to redefine communications and optimise it for Africans, and we’ve only begun to scratch the surface.” Revenue in the global CPaas market is projected to reach $34.75 billion by 2026, growing at a CAGR of 38%. In Africa, the market is still taking shape, dominated by players such as Termii, Africa’s Talking, Beem, and SendChamp. In terms of funding, Kenya’s Africa’s Talking takes the lead with over $8.6 million raised to date. But Gbolade dismisses the notion of having direct competitors. “With this new play, we’ve been able to zoom past our regular competitive landscape. What we have now are fractional competitors—players across different sectors who are offering some parts of our one-stop-shop solution,” he said. In a press release sent to TechCabal, Samantha Wulfson, an investor at Fintech Collective, said: “In conversations we had with African businesses, Termii’s solution was cited as the fundamental piece of their infrastructure powering day-to-day business operations. Termii has been a game changer throughout the industry in ensuring the delivery of OTPs and transaction-related messages with a higher degree of certainty than ever before, and is still only scratching the surface of their vision as a communication layer.” Gbolade told TechCabal that this “higher degree of certainty” is made possible through a proprietary internal technology called ICS, which works intelligently to detect downtimes before they occur and direct traffic to alternative routes. Following its capital raise in 2021, Termii expanded to Algeria and launched operations there, but a tight regulatory environment forced the company to double down on other expansion zones, especially francophone Africa, where it is now deepening its roots. “With its recent fundraise, the company looks to further its expansion efforts, particularly in francophone Africa with a focus on Ivory Coast,“ the release reads in part. To make money, Termii operates a per-billing wallet system. Businesses preload the wallet which gets debited as calls and messages are sent to their customers. This model underscores the need for efficiency with the CPaas model, as businesses generally spend on customers before they’re onboarded. This means that an unreliable communications provider would incur customer acquisition costs for customers that could churn at their first contact with the business. For Termii, growing their adoption also means engaging the tech ecosystem. With its annual Termii Elevate programme, the startup brings developers, users, and stakeholders together to drive conversations on building world-class communications solutions. With technical founders—Emmanuel Gbolade and Ayomide Awe at the helm of Termii affairs, this move almost mirrors the playbook of Africa’s fintech giant, Paystack. But according to the CEO, “Termii
Read MoreTikTok’s sister app LetsChat wants to become the WhatsApp alternative for Africans, but users aren’t convinced yet
TikTok’s sister app LetsChat is expected to compete with WhatsApp and Telegram, but users believe the data-saving app isn’t a worthy challenger. When Yusuf Balogun first downloaded LetsChat after seeing its ads in online comedy skits, he had high expectations of the messaging app, which promises exciting features such as free voice and video calls, zero pop-up ads, and in-app games. But after a few days of using the app, he uninstalled it. “Though it was an interesting experience because it doesn’t consume data like other apps, I’m not sold on it,” he told TechCabal over a call. Launched in 2021 by Beijing-based tech firm and TikTok owner ByteDance, LetsChat was designed for young African users to compete with bigger rivals WhatsApp and Telegram. LetsChat’s entry into the African market has all the makings of a company looking not to keep up with the existing competition but to crush it. To pull this off, the Chinese app engaged influencers—including comedians—to spread its word. A check on Google PlayStore shows that the number of its downloads has exceeded five million. A worthy opponent? Depending on who you ask, young Africans want social content applications such as chat and video. WhatsApp is easily the most popular messaging app on the continent because of its features: voice and video-call functionality, group functions, stickers, and status updates. I used LetsChat for two days and consider it a direct challenger to WhatsApp, and it comes with more offerings. For example, the ‘”People nearby” feature allows you to connect with users in your present location, while “Lifie” captures real-time moments with a dual camera. From my experience, making voice and video calls on LetsChat—the selling point of the app—didn’t require data, but you’d need to turn on your data to stay connected. The calls weren’t seamless, but not bad for a two-year-old app. Like Yusuf, users who spoke to TechCabal confirmed that LetsChat has cool features but they stopped using the app for different reasons—chief of which were technical glitches. “My experience using the app was below average because of the jamming of calls and unrecognised numbers calling you. I think they need to work on the features. Sometimes when you make a call, it won’t show whether it’s ringing. They still have a long way to go,” Omojolade Michael, who used LetsChat for a few days, said. Susan, who has been using LetsChat since the beginning of the year, says she only uses it whenever she takes a break from WhatsApp. “My major problem with the app is that it keeps suggesting complete strangers to connect with. At least on WhatsApp, I have control over my contacts,” she said. For some, like Adam Opeloyeru, a digital marketer, these features make LetsChat unique. “I like the Lifie feature. Also, I can call 30 friends at the same time and be able to talk to them without any extra charges. There are also games on the app, just like iMessage. You know iMessage is designed for iOS phones, but for LetsChat, you can play games with anyone with the app,” he told TechCabal. Despite its appealing features, some see LetsChat facing an uphill struggle to retain users. “I won’t consider it a formidable competition to WhatsApp or Facebook Messenger. Even if WhatsApp isn’t an option, I’d still settle for Messenger. It could get better with time, but at the moment, I don’t see it as a close competition. The stakes are way too high,” Yusuf said. However, Adam is quite optimistic about the app’s success if the makers return to the drawing board. “They just need to upgrade those features to meet the expectations of people, and they need to do more research beyond the reviews on Apple Store and meet the users to know the kind of features they want,” he said.
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