A storm is brewing in the matatu sector as three technology companies plan to introduce mass transport apps.
Little Cabs, Safiri Express and Egypt-based Swvl have vowed to disrupt the matatu sector.
The three tech firms are testing ways to get customers to destinations with fewer stops, at affordable prices, while maintaining high quality and safety standards.
About 30,000 matatus get into Nairobi CBD, with an average capacity of 25 passengers. They spend about one and a half hours in traffic to carry 750,000 Nairobians in and out of the CBD during rush hour.
This means the sector transports 1.5 million Kenyans every three hours during morning and evening rush hours. The rest of the human traffic is taken in and out of Nairobi during off-peak hours.
According to the Star, Little Cab CEO Kamal Budhabhati revealed they have set aside more than Sh40 million to unveil Little Cab’s e-shuttle service to the public before the month ends.
“We have noted a lot of chaos and inconsistency in the matatu business, despite them providing good transport,” Budhabhati said. “They are not organised.”
The craft silicon founder currently runs Little e-shuttle services from Kahawa Sukari to Westlands, Bomas to the CBD via Upper Hill, and Kinoo to South B routes.
Also planning to carry out a pilot is Safiri Express, which intends to launch before this quarter ends. This will be their second pilot. Swvl has already launched into the market after piloting along Thika Road.
“The top three issues we noted in our first pilot were unpredictability, poor transit experience, and price fluctuation on the demand side,” Zulekha Mwanzi told the Star. Mwanzi is the co-founder and CEO of Sure Corporation, the parent company of Safiri Express.
On the supply side, she said the problems faced are lack of revenue assurance and integrity, poor operating environments in the saccos, poor capacity utilisation, poor fare economics with lots of undercutting, and harassment.
Swvl has raised about Sh3.8 billion in funding to support its expansion to different parts of the world, including Nairobi, where drivers reportedly recorded empty trips on the first days of piloting.
Head of operations Shahzeb Memon said they have pumped about Sh5 billion into the Kenyan market and intend to employ more than 100,000 drivers.