Uber, the leading ridesharing app is currently testing the “Uber Chap Chap”, service in Nairobi, Kenya.
According to Reuters, the introduction of the new service became necessary when the platform noticed people were using Uber for errands, such as sending packages from office to office or for bank runs and aims to tap into this new segment of the city’s active ride-hailing market.
The selling point for this service is the price point that is very affordable and attractive to do these shorter errands. This low price is possible because the Alto Suzuki car is, at 25 km per litre, twice as fuel-efficient as the average car an Uber driver uses.
Uber has also partnered with a local Alto Suzuki dealer that imported 300 cars. The Kenyan bank Stanbic arranged the financing so drivers with high ratings could opt for the new service and own their Alto cars in three years.
Janet Kemboi, regional executive of Uber said
“With the launch of Uber Chap Chap, some of our driver partners will now be business owners and own brand new vehicles which are fuel efficient.”
Nairobi is the first city in Africa in which Uber has piloted this low-cost, quick-trip option using small, brand-new vehicles and more than 200 Altos have already hit the roads if the positive response is sustained, Uber will consider introducing Chap Chap platform across other countries including Nigeria.
Less than 3 years of entry into the Nigerian market, the Uber has about 267,000 riders who actively utilize the app/service and 7,000 drivers, the country is the third largest market for the ride-sharing app in Africa.
If Uber Chap Chap eventually finds its way into Nigeria, it is will be another way to offer users commuting prices that are even lower than before as well as appeasing driver partners by making sure they have cars that use very little fuel to keep costs down, and also employment opportunities for young Nigerians.
