Ride-Sharing in Ghana and the way forward.
By: Franck Nana Addae
Tags: Ghana, Bolt, Ridesharing, Uber

Ride hailing across the globe is not perfect but it does make life a bit much easier and comfortable.

A couple of years back most people would have to go to the roadside to get a taxi if they need a ride to get to a specific destination. These days, with the emergence of the smartphone, fast speed internet and some innovation in the transportation industry, people just pull out their smartphones, push a button and wait for a car to come get them. Who would have thought Ghanaians would actually wait patiently for a ride to come pick them up? This was the question on the lips of many Ghanaians since Uber launched successfully in 2016.

It used to be a scene to watch passengers and taxi drivers argue over the cost of transport fares and how it took drivers so long to get the passenger to his or her destination although taxis played a key role in the economy and in the mobility of people, goods, and services as well as creating jobs for some many Ghanaians and their households.

Uber was met with much excitement when they officially launched in Ghana as Uber Ghana in 2016. The brand Uber was already known all over the world and people couldn’t wait to try out the new experience. It was quite interesting to see how Ghanaians embraced Uber especially when EasyTaxi (an equally good ride-hailing service) had exited Ghana after not gaining much traction and attention Uber did.

Uber was the hottest trend in town since it appealed to the lifestyle of the Ghanaian people. It was new and everyone wanted to try it because it was living up to the hype at the time. All users had to do was download the Uber app on the app store or play stores, get their location and destination and call a car. Compared to the price of local taxis, Uber seemed like a better experience.

Fast forward, 2018 saw competition from both local and foreign ride-hailing companies. Companies like Taxify (now Bolt), Enshika, Ga Rides, Fameko, Yenko, Uru, Dropn and currently making waves Yango are various ride-hailing companies competing with Uber for the Ghanaian market share. Amidst the competition, Uber seems to be very popular among Ghanaians because of probably the “first to market advantage” they enjoy.

Key Players

Uber controls a significant portion of the market share in Ghana followed by Bolt and thirdly Yango. One can say that these three ride-hailing companies are the biggest in Ghana right now. Most ride-hailing companies offer similar service however, the only competing factor here is price and Yango seems to be leading with price competition. Yango launched in May 2019 and as a way to capture the Ghanaian market, they charge the lowest for requesting a ride. While Uber and Bolt charge Ghc 5 per ride for the shortest distance, Yango charges Ghc 2. this and huge advertisement is helping Yango capture the attention of Ghanaians.

Drivers of these ride-hailing apps have no option than to alternate between these three apps.

Branded Yango vehicle.

Not only does Yango beat Uber and Bolt in terms of price, they beat them again with the commission they charge drivers. Whiles Uber and Bolt charge a commission of 25% and 15% respectively, Yango charges 5% commission on every ride. Drivers argue that higher commission is not motivating enough for them to accept rides as a result, most of them are migrating to Yango because the commission is less and payment flexible.

The average weekly sales generated by an Uber driver ranges between Ghc 600–1,000 and with the introduction of Bolt and Yango, some averages around Ghc 1,200 to Ghc 1,500. One can say indeed it is a lucrative business for the drivers as compared to taxi drivers.

Challenges

Just as the Taxis had their own challenges and drawbacks, ride-hailing in Ghana also has been met with some criticism that someway or somehow threatens the ride-hailing industry and poses a disadvantage for new entries in the industry.

The challenges in the industry are in two folds; one is the complaints from users about the drivers and the second is from drivers about the difficulties they face with these ride-hailing companies. There is also the general challenge of coverage for the app useful as it is currently only available in just 2 cities (Accra and Kumasi).

Complaints from Users

There have been reports of drivers not knowing how to use their google map application.

Drivers falling asleep at the wheel; a very critical issue at night.

Female riders being harassed by drivers; drivers calling to ask them out or visiting their place of residence.

Drivers starting ride before arriving.

Opposition to the use of visa/debit card by drivers.

Flouting local Road laws.

Failure of companies to respond to and address complaints.

Complaints from Drivers about the Companies

Failure of the companies to pay them on time for rides completed; for this, Yango pays drivers per the number of rides completed which seems to be favorable to the drivers.

Companies charging higher commissions with little or no incentives.

System charging lower fares for long trips.

App Malfunctioning/Bugs

Way forward

The ride-hailing across the world is not perfect, and in the case of Ghana, it’s definitely not a replacement for public transportation looking at how our economy is structured but it does make life a bit much easier and comfortable. Users no longer have to haggle with taxi drivers over price or hassle to get a ride to get to their destination or get a trotro (commercial vehicle) if their destinations are close enough to use a ride-hailing app.

Nevertheless, there are a few things like customer service, proper training for drivers on how to navigate using the google maps, and payment options like mobile money. Though Uber and Bolt are trying to get users to pay with visa/debit cards, there seems to be a challenge in that space since most people prefer mobile money transaction rather than card payment.

Addressing these issues would ensure the success of ride-hailing companies in Ghana since Ghanaians have accepted ride-hailing apps as a means of transportation.