inDrive launches e-hailing service in Ibadan following its name rebrand

Mobility and urban ride-hailing platform, inDrive, has launched its services in Ibadan, the Oyo State capital, making it the second city in Nigeria where it operates.

The Business Development Representative at inDrive, Nigeria, Timothy Oladimeji, said that the development is an excellent time to extend the ride-hailing service to Ibadan. In referencing the recent strike action by drivers on ride-hailing platforms, he noted that inDrive provides a viable alternative in the sector.

“The recent driver strikes suggest that there is a need for an alternative approach to ride-hailing. That’s where we come in; our model allows drivers and passengers to negotiate a fair price, rather than having an algorithm dictate this. We believe this offers a viable solution to many of the problems facing ride-hailing in Nigeria at present.”

Timothy Oladimeji

The ride-hailing app which launched in Lagos in 2019, sets itself apart in allowing drivers and passengers to negotiate fares, instead of the price being set by an algorithm. It also becomes one of the few e-hailing platforms to have their operations in the city which features platforms like Bolt, Uber and AFRICAR, which was recently launched by Governor Seyi Makinde

According to a statement released by the company, they explained that with the app, the passenger provides details of the trip they wish to make and offers a fare, which drivers can accept, decline, or respond to with a counter-offer – without being penalized if they refuse a trip.

“Passengers can then choose from the available offers, taking into account the fare, car model, estimated arrival time, and the driver’s rating. Similarly, drivers can choose those requests that they deem cost-efficient, profitable, and convenient. As such, the app empowers both passengers and drivers. In addition, inDrive typically charges a substantially lower service fee than most mobility apps; in Ibadan, this is currently set at zero, so that drivers keep the full amount earned,” Oladimeji said.

The statement further explained that drivers applying to inDrive must go through background checks, including verification of necessary documents, licenses, and permits. It also encouraged passengers to rate their rides to provide feedback on driver behaviour and service quality.

“The app has built-in safety features: passengers can share their trip details with friends or family, with real-time GPS tracking during rides. The app also features an emergency button to contact authorities, and has a dedicated support team on hand 24/7.”

Read also: inDriver e-Hailing App Allows Passengers and Drivers to Bargain and Agree on a Fare

inDrive ready to challenge competitors in Ibadan

The ancient brown-roof city of Ibadan has naturally established itself as the closest substitute or alternative to Lagos, boasting modern infrastructure and a lifestyle which supports every class and stature in contemporary society.

The city’s large market, which allows all to play and feature, however, might be the primary factor in why ride-hailing businesses and other industries view the city as a good place to invest. Because of the relative easiness, size and diversity which are similar to those of big cities throughout the world. everyone is drawn to conduct business.

Perhaps, the recent strike action by drivers on e-hailing platforms like Bolt and Uber has become the needed push and spur the company needed to finally make its debut in the city. Recently, the association of Ibadan e-hailing drivers embarked on a 5-day strike to protest the unmatchable increase in fares by Bolt which they claim does not match the current realities of the nation.

InDrive overcomes these issues and provides a superior alternative for both drivers and passengers with its distinctive approach that permits negotiations between drivers and passengers to determine fares.

InDriver is different from Bolt and Uber in more ways than one. Besides the pricing model, the commission charged is much lower than what is charged by the competition. While inDriver charges an 8% commission on rides, Uber takes 25% off fares and Bolt charges 15%. This and the freedom to bargain and set fares ahead of trips mean that commuters will likely pay less if they book rides with inDriver.

Another unique offering for the e-hailing platform is that drivers can cancel rides on inDriver if they do not feel satisfied with the fare offered without fear of being sanctioned. This is one less protection than what the competition offers. The sanction given to drivers for cancelling trips they agreed to provides some assurance that people who book rides will not be kept waiting because the drivers cancel rides.

On its app, users can set the price for their trip from their end of the app, while the drivers can choose the most profitable and convenient orders. The app uses a Real-Time Deals model, according to the company, to negate the algorithms used by other ride-hailing companies including Uber and Bolt, which rack up prices because of peak hours, traffic and request history.

With its sojourn into the largest city in Nigeria, Ibadan, together with its model of allowing people to negotiate fares like the traditional system of transport in the state, InDrive might just have the needed advantage to snatch a sizable chunk of Lagos’ ride-hailing market.

Recently, the company raised $150 million by initiating a debt instrument with repayment linked to the company’s performance. The unique debt round gives the ride-hailing platform flexibility on repayments based on the profits generated over time.

Read also: InDrive raises $150m in unusual debt round to develop new services