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Ugandan Startup Debuts new Business Model for Africa’s Boda Boda taxi industry

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Boda-bodas (or motorbike taxis) are a part of everyday life for many Africans. And in Uganda’s capital Kampala it is no different, with some estimates indicating well over 100,000 boda-bodas are operating in the city.

Motor Taxis crossing a round about in Kampala

Motor Taxis crossing a round about in Kampala

However, they come with huge risks.

According to a 2010 study by Mulago Hospital, boda-boda accidents contribute to 75% of traffic-related trauma cases. This suggests a need for a safer boda-boda experience, and that is exactly what a new start-up is trying to build its competitive advantage around.

Launched in November 2014, SafeBoda connects customers with drivers that have been trained in road safety, customer service, motorbike maintenance and first aid through a partnership with the Ugandan Red Cross. Drivers also provide passengers with road-worthy helmets, which the World Health Organisation estimates reduces risk of death by 40% and severe injury by 70%.

It typically costs passengers the same amount to use a SafeBoda taxi as it would to use any other boda-boda hailed on the street. Drivers then pay a subscription fee to be part of the service.

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The company already has close to 100 drivers, with ambitious plans to grow to 1,000 by the end of the year.

Uber for Kampala

SafeBoda makes use of a mobile phone app that connects its users with the company’s closest drivers. While the service has been likened to Uber’s, there are a number of differences – a result of specific market needs.

For example, currently all payments are made by cash, rather than through cards. According to Alistair Sussock, one of three co-founders of SafeBoda, it doesn’t make sense to build a service around card payments when its penetration is so low in the country.

“It’s a very cash-based model right now because that’s what is has to be. But obviously people here use mobile money a lot,” he added. “So we are looking at [incorporating] that in the next three to five months.”

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The app is also a simpler technology. Customers can use it to locate a SafeBoda driver closest to them, which they can then call to organise the pick-up details and negotiate a fee. Unlike Uber’s technology, the app does not use maps. One reason behind this is to save on data usage, which remains expensive for the majority of Ugandans. Another is the lack of a reliable physical address system in some areas.

“It is a very simple app that was deliberately designed for the market here… and it deliberately does not have a map on it like Uber does, at this stage, because Ugandans don’t use maps that frequently,” explained Sussock.

“But we are developing our tech platform and we have a newer version of the app which will come out soon. It will [allow] customers to rate drivers and some other functionalities too – like a ‘log in’ functionality so we know who our customers are and they can share their experience as well.”

Traditional model still dominates

Sussock reckons around 20% of people in Kampala use smartphones, with adoption growing fast. However, only around 15% of SafeBoda’s business is directed through the smartphone app, with the rest coming from the traditional boda-boda taxi “stages” located across the city. SafeBoda drivers are clearly identified and customers can usually find one waiting at one of these stages.

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“[Boda-boda stages] are kind of the life of the city – that’s how people get around. So we need to work within that structure.”

Beyond Kampala

At the moment the service is predominately located in central-northern Kampala, and Sussock said  the goal is to capture the entire city before moving into other locations. He noted there is a long waiting list of drivers who want to undergo the safety training and join the service.

“And then we are looking at a number of countries that also have a strong motorcycle taxi market – there is a big presence in East Africa like in Tanzaniaand Kenya.”

There are also millions of motocycle taxis across the rest of the continent that present further opportunities, he added. “So we kind of want to start there.”

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AIRTEL MONEY PARTNERS WITH PRUDENTIAL UGANDA AND TURACO TO LAUNCH ‘HOSPITAL SENTE’, AN AFFORDABLE HEALTH AND PROTECTION PRODUCT.

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Airtel Mobile Commerce Uganda Limited (AMCUL) has today announced a strategic partnership with Prudential Assurance Uganda Limited and insurtech Turaco Insurance Brokers LTD to provide ‘Hospital Sente’, a low-cost hospital cash insurance product with Funeral Benefits, aimed at increasing access to insurance for underserved communities, and low-income individuals and families.

The cover aims to ease Airtel Money’s customers’ financial burden associated with hospital admissions and bereavement. Hospital Sente offers beneficiaries a cash pay-out if they are hospitalised.
It is designed to provide affordable coverage for unserved individuals and families conveniently through Airtel’s Mobile money platform by dialing *185*7*6#.

The product which is underwritten by Prudential Uganda is offered through Airtel Money powered by Turaco, a micro-insuretech that is changing the face of micro-insurance in Uganda.

“We are excited to partner with Prudential Uganda to offer this innovative and affordable insurance product to our customers,” said Airtel Mobile Commerce Managing Director, Japheth Aritho. “We believe that this partnership will help increase access to insurance for low-income households and help protect families against unexpected events.”

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“We are proud to partner with Airtel Mobile Commerce Uganda Limited (AMCUL) to bring this important product to the Ugandan market,” said Prudential Uganda CEO, Tetteh Ayitevie. “We believe that this partnership will help us reach more customers and provide them with the financial protection they need.”

Hamza Mutebi, General Manager, Turaco said: “Most Ugandans today remain unreached by mainstream insurance, all while being the most vulnerable to financial shocks caused by illness, accidents, and death. Strategic partnerships like these remain critical to enabling underserved Ugandans access to affordable insurance that provides a safety net in their times of need and ultimately peace of mind. I thank Airtel Money and Prudential for joining us in driving mass market insurance adoption in Uganda”.

The product comes in three affordable plans; –
The Platinum plan comes with a funeral benefit of UGX 4Million, a hospital cash pay-out of UGX 100,000 per night of admission at a premium of only UGX 5000 every month. The Gold plan provides a funeral benefit of UGX 2Million, a hospital cash pay-out of UGX 60,000 per night at a monthly premium of only UGX 3000. The Silver plan offers a funeral plan of UGX 1Million, and a hospital cash pay-out of UGX 40,00 per night of hospitalization at a monthly premium of UGX 1000.

Hospital Sente is available to all Airtel Money customers. For more information, customers can visit the Airtel Uganda website or contact customer service.

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Parents Urged To Let Children Learn French Language

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Alliance Francaise Kampala hosted its 2023 #FranceJobFairUg which was held on Saturday, 18th March at International French School which is located in Lugogo in Kampala.

The French Job Fair Uganda is organized by the Embassy of France in Uganda.

Both continuing university students and those that finished attended workshops on resume and cover letter writing, and mock job interviews, to prepare themselves for the competitive job market. They have also interacted with company representatives thus having the opportunity to strengthen their networks.

Addressing campuses, was the head of Cooperation and Cultural Affairs Mr. Yves Mercier who said that in the professional environment, French is a necessary asset and so he encouraged parents to take their children to learn the language.

He also added saying that training that includes different partners will create a platform for dialogue and the free exchange of ideas about our lives.

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Women Emphasized To Know The Importance Of Creating Exciting Content To Reach Targeted Audiences-Rita Arinaitwe Digital Lead At Zeus The Agency

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To celebrate Women’s Month, Private Sector Foundation Uganda (PSFU) and Mastercard Foundation successfully hosted Season 2 of the Annual Women’s Katale, a women-focused event held at the UMA showgrounds. The event brought together businesses from both the public and private sectors to showcase their products and services, drawing people from all walks of life.

Attendees benefited from business clinics facilitated by various institutions, covering topics relevant to business growth. Among the expert facilitators was Zeus The Agency, a dynamic marketing agency based in Ntinda that has won two consecutive awards for Best Digital Agency of the Year. Despite being a young agency, Zeus The Agency boasts extensive experience across various industries covering creative services, digital marketing, production, media, and PR.

At the event, Zeus provided attendees with valuable insights and knowledge on digital optimization for business growth. The agency emphasized the importance of businesses having a robust digital presence to reach untapped markets, highlighting the need for a strategic approach to digital marketing. Through their participation in the Annual Women’s Katale, Zeus The Agency reinforced its commitment to helping businesses thrive by providing innovative solutions that drive meaningful results.

Rita Arinaitwe, the Digital Lead at Zeus The Agency, emphasized the importance of creating exciting content and understanding audiences to fully reach targeted audiences.

“Effective content creation is crucial in modern digital marketing. At Zeus, we take a data-driven approach to develop high-quality content that resonates with our clients’ target customers. Our team of experienced writers, designers, and digital marketers work together to create impactful content that drives results,” she said.

Zeus the Agency also offered to set up and optimize social media pages for the SMEs at the event. The team provided guidance on creating effective content and engaging with their audience to empower these SMEs to grow their online presence and take their businesses to the next level. “Through initiatives like this, we hope to make a positive impact on the local business community and help businesses thrive in the digital age,” Rita added.

The event organizers promised and delivered networking opportunities for the thousands of revelers in attendance, with unique discounted products brought closer to potential customers, and business skills shared. The skills learned at the event motivated more women to venture into businesses they hadn’t thought of before, while the knowledge shared had most admitting it was the push they needed to start.

Angela Bagaine, a PSFU board member, also urged women to adopt innovativeness, cut out plagiarism in the business, and give their consumers options. The guest of honor, Hon Hajjati Minsa Kabanda, Minister for Kampala and Metropolitan Affairs, lauded the great work of PSFU and the various exhibitors for setting the pace of women’s entrepreneurship in the country.

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The event was capped off with wonderful performances from local divas, Winnie Nwagi and Etania, in an epic climax to what was a successful event.

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