At a time when the e-hailing industry in Nigeria is undergoing turbulence, with leading e-hailing companies struggling under the weight of the high cost of operation, increasing driver agitation and steeply falling ride orders due to low purchasing power, launching a new e-hailing app would seem non-conformist.
Yet, Moyosore Oladeinde, a serial entrepreneur and United States-based developer is launching a new e-hailing company. Called Drop, the company seeks to tackle the myriad of problems bedevilling the ride-hailing space is set to launch in November 2024.
Speaking to Technext, Founder and CEO of Drop, Moyo Oladeinde mentioned that her inspiration came in 2021 when she visited Nigeria and requested a ride on Bolt.
Before then, she had heard stories about how rude the drivers were especially to female riders. She experienced the rudeness firsthand upon her visit:
“When I see situations like that I just try to create a solution to it. I have built a lot of business that way. So, when I experienced that I told myself that this has got to stop and I have to do something about it. People can’t keep experiencing these situations where they do not feel safe and where drivers are rude.”
Moyo also realised that the process of reporting incidents of abuse to the ride-hailing companies was cumbersome and access to customer service was limited. Even where they exist, reporting issues typically yield little or no result.
These issues compelled her to embark on building an app that would address matters of safety, customer service, commissions and overall earnings of drivers. “So, I started planning in 2021 to change how the rideshare and ride-hailing space works in Nigeria“, she added.
Explaining the origin of the new company’s name, Moyo recalled that the name “drop” was a popular terminology for traditional ride-hailing in Nigeria: “Growing up then, we used to call taxis Drop. So the name just dropped. We are creating some amazing features which apps like Uber, Bolt and InDrive do not even know about,” she explained.
Driver verification down to residences, car cameras and other security gadgets
The first step to solving the safety problem is to verify both drivers and passengers. This has been a bone of contention as ride-hailing companies present degrees of verification requirements for drivers.
But Moyosore said that Drop’s KYC (know your customer) process will be very rigorous and total.
“The verification process for drivers is a lot. We are going as far as going to their house. There will be a code sent to the house. The drivers will have to imput that code to the system and then they are verified. That proves that that is where they live, their address is legit and they are not lying about it. We are really keen on security. The security system in Nigeria is poor. Everything I am doing is based on my experience,” she said.
She added that once a driver has been onboarded, the company will install a camera and a tracker in his car.
“If you want to work with us, this is mandatory and not optional. The cameras will see both outside and inside. We need to know what transpired between you and the rider and we can access the videos. The cameras will automatically enable when the driver picks a ride on Drop and disable when the driver is on other apps,” she said.
While every platform undertakes driver verification, this is not the case with rider verification even despite several calls for it by drivers. Indeed, Bolt is the only company that enables rider verification although it is optional and can only be done on its app.
But, Moyo indicated that the company will make verification mandatory for riders because the safety of drivers is as important.
“We are verifying riders too and it is not going to be optional. I am all about safety. If you want to use our platform, if you do not feel comfortable giving us your information and have your data verified the same way banks will verify the customer, if you do not want us to do that then you don’t have to use our platform. It is a choice thing. It is either you verify or you do not use it. And there is nothing we can do about that,” she said.
She added that to be onboarded, drivers will be tested beyond their driver’s licenses. And, drivers and riders found guilty of misconduct will be kicked out of the app.
Drop will be charging a 10% commission while offering drivers bargaining power
Drivers have been embroiled in an ongoing tussle with app companies like Uber, Bolt etc over commission which has generally been pegged at 25 per cent. To the drivers, 25 per cent is too much for the app companies to charge. This is in light of the fact that the drivers own the vehicles, they do the maintenance, they fuel the cars and buy data/airtime.
Ultimately, they bear the bulk of the operational costs while the app companies simply aggregate.
Moyosore Oladeinde said that the matter of commission is one of the things her new app will address. She said the app will be charging a 10 per cent commission to help with running the application and other 24-hour services like its customer service which will guarantee instant responses.
She also said her company will implement other revenue-generating services to augment its revenue.
“We are charging 10 per cent. This is because there are other areas we will be making money too. We have a rental service, we have a personal chauffeur service. I had this idea after I got a driver to drive me for 4 days and we ended up having an accident. And I was like, if it is that difficult to get a driver in Nigeria, maybe I can incorporate that service. Most Nigerian drivers don’t know how to drive. Being able to move a car from point A to B is not driving,” she said.
She also agreed that drivers should have the leverage to decide what they charge and what they earn. She noted that the app’s algorithm is already set such that, compared to other apps, the suggested fare already reflects an increase in how much to be charged per kilometre, per minute, wait time and all that.
Beyond that, drivers will be able to negotiate how much they will charge on the app.
Drop will offer vehicle financing/hire purchase
Moyosore also said the company will offer vehicle financing and hire purchase options. The problem with car financing run by app companies is that they limit drivers to particular apps. Moove restricts drivers to Uber. Lagos Ride on the Lag Ride app etc.
The drivers on these services say the restrictions limit how they will make money.
Asked if her vehicle financing and hire purchase service will go the same way, the CEO said it will because it remains a major way of getting and keeping drivers on its app. And the riders will always come where the drivers are.
“To be candid, if we want to be fair, you can’t eat your cake and have it. I can’t be providing a service for my company the reason why being that I want more drivers to use my application. Do you think if I allow them to use other applications they will use mine? The more I get them to use mine, the better. This is the business part of me. As a business owner, it is just logical to restrict that service to Drop only. If you ask anybody in business they will do the same. That way I can even track how much they are making,” she said.
In conclusion
Every app company claims to consider drivers as the heart of what they do. However, the drivers do not feel way. Neither does Drop CEO, Moyosore Oladeinde. She believes that in the bid to make money, most ride-hailing companies only look out for drivers while some others look out for their customers.
She insists that her innovation will be the only one that looks out for both.
“These companies only care about making money without caring. I am in this to make money too but not to make life uncomfortable for other people. Everything I am incorporating in Drop is because of what I have experienced in Nigeria. Everything that I see other apps lacking, I am doing it. One thing I want everybody to know for sure is that by using Drop you are safe. Using drop, these are verified humans. Using Drop this is a company that cares about your safety and wellbeing,” she concluded.
Technext Newsletter
Get the best of Africa’s daily tech to your inbox – first thing every morning.
Join the community now!
