Uber Will Finally Face A Rival In Africa It Won’t Be Able To Beat So Easily

8 years, 6 months ago - 13 June 2016, Quartz

In Africa, local taxi companies and startups have been working hard to compete with Uber but the ride hailing company has managed to outmaneuver most of them. Uber, now in 10 sub-Saharan African cities, it might now be facing its first real challenge in Safaricom, East Africa’s largest mobile phone network.

Safaricom—best known for the creation of world’s most used mobile money platform, M-pesa—is launching a ride-hailing service in Kenya that will equip cars with free wifi, M-Pesa payment options, and connectivity on the Safaricom network. It will be called Little Cabs, according to the company’s chief executive Bob Collymore.

“It is effectively a rival for Uber,” Collymore said in an interview with Reuters this week. “It is a local competitor which will be cheaper and better for the local community.”

In response to the news, Samantha Allenberg, a spokesperson for Uber Africa told Quartz, “We do not focus on competitors but rather spend our time thinking about how we can better the experience for riders and driver-partners. However, Uber loves choice as it creates competition and a better experience for the consumers.”

“It is effectively a rival for Uber,” Collymore said in an interview with Reuters this week. “It is a local competitor which will be cheaper and better for the local community.”