Kenya’s taxi hailing space is a very attractive one to many investors. We have seen a number of players get into this space, some have left and some have decided to stick around. At the moment, the market is dominated by Uber with Safaricom-backed Little taxi following closely.
Even though some people may say the market is saturated, Sendy did not think so when it ventured into this space a while back. Sendy offers last-mile package delivery and logistics services and allows customers to send packages and documents within Nairobi and its environs using a mobile application that connects them to motorcycle riders, and drivers of vans and pickup trucks who are otherwise doing other work but sign up to make such deliveries in their free time. The company saw that it already has a platform and channel that it can use in the taxi hailing space.
When it ventured in the taxi hailing space, Sendy used both Boda Bodas (motorcycles) and the normal cabs to ensure it covers all the needs of consumers. Having an extra service that players such as Uber didn’t have was seen as a clever move by the company to differentiate itself on the market.
Well, it looks like this did now work for Sendy as the company is pulling out of this space according to TechWeez. In response to questions by TechWeez in regards to the future of their Taxi hailing business, Sendy’s Alloys Meshack said, “Yes, we have suspended the pilot as we focus on our core logistics business where we have seen a spike in demand and complex customer needs that we have set out to solve – Keeping our logistics promise”.
Price was right, customers weren’t there!
When it was offering its taxi hailing services, Sendy got the pricing part of the business right but even this did not bring in the customers. The company used to charge a minimum rate of Ksh 300 for the first 3 Kilometres and Ksh 70 for every Kilometre after that.
For its boda boda service, Sendy used to charge Ksh 240 as its base fare for the first 7 kilometres, every kilometre after that was Ksh 30.
By exiting the taxi hailing business, Sendy will now focus on its core business that is logistics.
Also Read: Sendy Is the First Company to Benefit from Safaricom’s Spark Fund
