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(Author of this post)

ARE YOU AWARE OF UBER’s RECENT DEALS?

  • Strategic partnership with Toyota?
  • Saudi Arabia funding?
  • Uber’s progress in Nigeria?

Uber launched in Nigeria barely 16months ago. Under the management of Ebi Atawodi (Uber’s general manager), Uber has already captured 30% of the Lagos market. Lagos is significant for Uber because it is the largest city in Africa with a population of about 21million people.

 Strategic partnership with Toyota.

Over the last two weeks, I have wondered about the impact of tech in the life of the average Nigeria. The use of taxi-hailing apps has become very popular as companies like Uber, Gett, amongst others are dominating this space. Uber has been able to remain the market leader in this space and they are expanding rapidly all over the world in spite of fierce competition by Gett.  On the 24th of may 2016, Gett taxi (Uber’s main UK competitor) signed a partnership deal with Volkswagen, I don’t know if the deal must have threatened Uber but before the end of the day, Uber announced her partnership with Toyota. A trend has begun to emerge in recent times; startups are signing multi-million dollar deals with established and bigger corporations. For example, Lyft signed a partnership with General Motors and China’s own taxi app company Didi Kuaidi recieved a $1B investment from Apple to battle Uber in china.

What’s your take on the latest partnerships between these startups and established Car manufacturing industry? Please Comment below

The  funding from Saudi Arabia.

The funding from Saudi Arabia is an initiative of a public investment fund. The Saudi government has an economic reform programme that has $1B in illiquid assets; they have sought to diversify their economy

Reasons why UBER got the funding

  • The attraction to Uber was as a result of Uber’s record in broadening transportation.
  • The Saudi government was looking for great investment opportunities.
  • In a bid to get advice and diversify their economy the Saudi government sought the expertise of investment advisors like David Plouffe, amongst others. David Plouffe sits on the board of Uber. 
  • To encourage entrepreneurship.
  • The Saudi government believes the move will also encourage and empower the women thereby helping them achieve their goal in  bringing 1.3m women into the workforce
In light of the above actions by the Saudi government, a few questions came to mind:
  1. How much ‘diversification funds’ have been set aside by the Nigerian government?
  2. Does Nigeria have diversification plan?
  3. What strategies are in place to bring those plans to life (if any)?
  4. Does Nigeria have long-term goals and how accessible are these goals?

Uber’s progress Report

Uber has begun expansion to other parts of Nigeria like Port-Harcourt and Abuja. Uber also has presence in other African countries including South Africa, Kenya, Ghana and Uganda. Uber plans to capture the whole African market seems to be in motion.

Uber’s African expansion is going strong. “…We’re very happy with the results so far and very bullish with the prospects in current and future markets…”

Alon Lits, the GM of Sub-Saharan Africa

In conclusion, I cannot help but question our unending loyalty to imported businesses and products. It is my observation that imported business/products seem to be well accepted immediately they come into Nigeria. For those who don’t know, OgaTaxi a Nigerian company is doing exactly the same thing Uber is doing. At the rate Uber is growing  in Nigeria I wonder what OgaTaxi’s market share will be.

Share your Uber experience as a customer and a partner?

What do you think the long-term impact of Uber will be on Nigerians/in Nigeria over the next 10years? Share your thoughts below.

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 Sources

  • www.ft.com/cms/s/0/ee9b880a-2990-11e6-8b18-91555f2f4fde.html#axzz4Anqr7yBt
  • http://lookslikelagos.com/for-uber-lagos-could-be-bigger-than-london/
  • http://www.volkswagenag.com/content/vwcorp/info_center/en/news/2016/05/Gett.html
  • http://www.forbes.com/sites/tobyshapshak/2016/03/31/uber-growing-in-africa-as-nigerian-capital-abuja-named-its-400th-city/#142ab39414bf 

Jumoke Fagbola: startupdemands.com

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