Introduction
Ridesharing has advocated and propelled the transportation industry to greater heights. A sharing economy underscores people’s need to commute or travel from one point to another as conveniently as possible.
Through this system, opportunities for making extra cash have increased rapidly. Still, it has faced several challenges in Nigeria, the leading ridesharing force in Africa and globally.
The idea behind ridesharing is to offer passengers cheaper transportation services than what they would get from traditional transport providers while providing drivers with earning opportunities.
This is achieved by taking advantage of empty seats in private cars.
In developed countries like the United States, this strategy has enjoyed success. In an estimate by the Pew Research Center, 23% of Americans use ridesharing services.
The success of this model is attributable to the fact that most Americans own cars and the availability of GPS solutions which makes it possible to track drivers and passengers.
Nigerians also want access to cheaper transportation, and drivers want a way to earn money from their cars.
So it is not surprising that ridesharing startups have been popping up in Nigeria in recent years. These startups are trying to replicate the success of foreign ridesharing companies for Nigerians.
But this strategy faces several challenges in Nigeria which prevent it from achieving its goal of providing Nigerians with cheap and efficient transportation services:
Poor Road Network
While it is easy for riders to book a ride from their smartphone or computer, the bad roads will still be there. The Nigerian roads are not motorable enough for smooth rideshare operations, especially in Lagos and Abuja.
The Guardian reported that Lagos state has about 2 million cars and over 5 million motorcycles.
As the number of cars and other vehicles on the roads continues to rise, it becomes essential for infrastructure to be developed in order to reduce traffic congestion.
Ridesharing services heavily depend on good road networks to run smoothly. Nigeria’s roads are sadly not in the best shape, making it difficult for drivers to access most areas.
The issue with the roads is that they have not been maintained well over the years, which results in them becoming very bad. Most roads are now riddled with potholes making it difficult for people to go about their daily activities without experiencing stress or having issues with their cars.
Lack of Awareness
Most times, people don’t know about ridesharing services, and even when they do, they don’t know how to use them. The lack of awareness in Nigeria regarding ridesharing is caused by a lack of proper advertisement. They should make more efforts to advertise to educate people on using their services.
Lack of Trust
Another challenge that ridesharing is facing in Nigeria is the lack of trust. People are sceptical about using ridesharing services because they don’t know the drivers, and they don’t know how safe it is.
Instead, they would use a taxi service where they can meet the driver and know his background before getting into the car.
This problem can be solved by doing a proper background check on all drivers before joining any ridesharing service.
There is a system in place in other countries where previous users of these ridesharing services can rate the drivers after each trip. This helps prospective passengers select only the best drivers for their trips.
Poor Internet Connectivity
Ridesharing platforms rely heavily on internet connectivity as most users use their smartphones or computers to request rides.
However, internet penetration in Nigeria is still low, which can affect the adoption of ridesharing platforms in the country. According to the Nigerian Communications Commission (NCC), only 50% of mobile phone subscribers have 3G and 4G networks.
This means that many Nigerians are still using 2G networks which are slower and more expensive. This will be a challenge for ridesharing platforms that want to grow in Nigeria.
Unavailability in Certain Locations
The next challenge is that these ridesharing services are not available in most locations in Nigeria. If you are located in a bit of town, there might not be any ridesharing service within your area.
You would have to go to a bigger city before you can access these services. These companies should make more efforts to expand their reach to increase the number of customers and increase their revenue.
High Fare Prices
Ridesharing might seem cheap, but it is actually more expensive when you compare it with other transportation means. The price may even increase during rush hours when many requests ride. This is due to what is called “surge pricing” by ridesharing services.
High Cost Of Operations
The high cost of doing business in Nigeria has been a source of concern for businesses seeking to start or expand operations.
The Federal Government needs to provide the necessary infrastructure and reduce the cost of doing business so that ridesharing platforms can operate smoothly in Nigeria.
Conclusion
Ridesharing is starting to become an alternative mode of transport in the driving-friendly cities in Nigeria. These cities have many young and affluent customers, ridesharing services are a great business case.
As ridesharing companies continue to grow and attract more users, it’s essential that the government is on the ground to regulate taxi access, provide road network infrastructure support along with some policies that will propel the industry forward.
The current challenges faced by the industry can be reduced through proper legislation and enforcement of existing regulations and laws.
Like any business model that currently exists anywhere, these ridesharing firms are designed as profit-making companies. Therefore, they can be made to work for the benefit of everyone involved by proper regulation by the national government or regulatory agencies.
The Government has a chance to be at the forefront of these innovative developments in the transport sector and reap all benefits brought about by the league of disruptive technologies known as the on-demand economy.
A lot needs to be done in getting people to trust the concept of ridesharing. With growing incidents of carjacking and kidnapping, Nigerians are turned off from sharing vehicles. The Government need to step in and create laws that will bring order to the industry and protect the rights of drivers and riders.