₦airaland Forum

Africar is an online ride-hailing start-up currently operating in Ibadan.

It was officially launched in Ibadan on Thursday, 4th August 2022 by Governor Seyi Makinde, who was represented by his Chief of Staff, Mr. Segun Ogunwuyi.

At launch, the company was paying salaries to drivers but adopted a subscription model in January 2023, which will enable the drivers to own the Bajaj Qute quadricycles after a certain period.

One of our own subscribed to the model from 17th February 2023 to 5th June 2023.

These are our findings:

Pros:

Creates employment and empowerment
Creates an opportunity to own a quadricycle

Cons:

Poorly maintained vehicles
Inadequately developed app

Subscription Amount

The total subscription amount is N11,700,000 (eleven million, seven hundred thousand naira) to be paid within five years.

The subscription amount includes car value (N3.5M), interest of 25% for 5 years (N4.375M), maintenance cost at N30,000 for 60 months (N1.8M) and general administration at N20,000 for 60 months (N1.2M).

Subscribers are required to pay dues of N7,500 daily for 26 days of the month plus VAT.

Other days are free when the dues are not paid except VAT.

Agreement

An agreement was signed by each subscriber and the company.

However, at the time of putting together this piece, the subscribers' copies of the agreement have not been given to them.

Patronage

The Africar app enjoys very high patronage with more than 100,000 downloads on Google Playstore.

Due to its affordable pricing, many residents of Ibadan make use of the app to move from one place to another.

App

The app is well-developed but with some inadequacies.

The driver cannot cancel a ride without getting to the location of the rider.

This wastes time and fuel on the part of the driver, which reduces his profitability since he is the one buying fuel.

Also, the app does not add a considerable amount to a rider's fare when there is an extension in time of the trip due to traffic jam or bad road.

For example, for the four months under review, an additional time of 15 minutes results in the addition of N100 to the fare while a normal trip of 15 minutes costs about N700.

Vehicle Maintenance

The company handles the maintenance of the vehicles, which is grossly inadequate.

On many occasions, parts are not available to fix issues with the vehicles.

At the time of putting together this piece, there are many broken-down vehicles in the company's workshop in Ibadan begging for repair.

Read more: https://naijapost.com.ng/2023/06/21/africar-drive-to-own-subscription-model-review-is-it-profitable-for-subscribers/

Modern day slavery.

N11,700,000 to be repaid for this tiny little piece.

Keke napep pro for 11.7m?
Anyone that agrees to this is mentally deranged..
With an already purchased Keke, I can do a better job..
Fun fact: do you know that the regular Keke napep is more spacious than Africa?

The cost
The maintenance

And availablity of parts did the strong thing to the business model,
How much does innosen sedan cost

neutralmind:
Modern day slavery.

N11,700,000 to be repaid for this tiny little piece.

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