Ride-sharing platforms have grown significantly across Africa over the past decade. Companies like Uber, InDrive and Bolt have transformed taxi services and created many new jobs.
Last week, InDrive expanded into Lesotho. For six months, the company will remove service fees so drivers retain all earnings. Afterwards, standard fees will resume. This expansion builds on InDrive’s growth across the continent.
InDrive differs from competitors by letting drivers and riders negotiate fares rather than using algorithmic pricing. This unique model provides solutions to challenges in the African ride-hailing market, according to InDrive.
“There is a clear need for a new ride-hailing approach. We believe our method addresses challenges in this market,” said InDrive’s Business Development Representative Vincent Lilane.
“Passengers suggest a fare, then drivers can accept, decline or counter offer without penalties,” InDrive explained about their peer-to-peer pricing model.
The app first launched in South Africa in 2019, competing with Uber, Bolt and local taxi apps. Now, in January 2023, InDrive became the first ride-hailing app in South Africa to offer zero-rated data usage, free for users.
Beyond South Africa, the InDrive service is active in six other African countries. It debuted in Tanzania in 2018, then expanded to Nigeria, Kenya and Botswana in 2019. Ghana followed in 202,1 and Namibia in 2022.
With rapid expansion across Africa, InDrive hit a milestone in early 2021. The company attained “unicorn” status after securing a $150 million investment round. This round was led by Insight Partners, General Catalyst and Bond Capital, valuing InDrive at $1.23 billion. This major funding highlights the company’s impressive growth and potential in the African ride-hailing market.