SafeBoda - a Uganda-based bike-hailing startup - is among the continent's promising startups going by their expansion and driver growth metrics. Though it describes itself as venture-backed, it is not clear how much SafeBoda has raised to date because the startup has been extremely secretive about its fundraising. Though, per our estimates, the amount is within the range of $1.5 million to $2 million.
Last year, we reported that the startup had raised $1.1 million in funding from a group of investors including Johannesburg-based CRE Venture Capital. According to CB Insights, Singapore-based BEENEXT also participated in that particular round before going ahead to add them an undisclosed post-Seed investment in August 2018.
Since then, SafeBoda has been on a rampage to deploy the funds through a couple of different initiatives. In September 2018, the startup unveiled its Training Academy in Kampala, Uganda with the aim of professionalising the boda-boda industry.
However, two months earlier in July 2018, they had also finalised expansion to neighbouring Kenya with a launch in the capital Nairobi. SafeBoda also went ahead and hired a team of around eight software engineers based in the Spanish City of Barcelona.
It has been reported that SafeBoda was considering expansion to several other African countries including Nigeria. Though, to date, according to the startup, they only have operations across Kampala, Nairobi, and Barcelona.
Also read: Two of Africa’s leading boda-hailing startups are backed by the same investor
According to a recent job position posted by one of the startup's co-founders, Alastair Sussock, in a closed forum, SafeBoda is expanding to Tanzania.
The particular job position states that they are looking for a Head of Operations to kick-start their activities in the East African country immediately. Alastair also pointed out that they are also looking for a Country Head at the same, though there were no details regarding that job position. [We reached out to Alastair for a comment, but we are yet to hear from him].
We reached out to some people familiar with the Tanzanian tech-ecosystem, and all said that they hadn't seen any SafeBoda's in Dar es Salaam. But, like many companies or startups that expand across Africa, the target is usually the capital cities. Therefore, SafeBoda will likely kick-start their operations in Tanzania's capital, Dar es Salaam.
In Uganda, SafeBoda enjoyed a first mover's advantage, the expansion to Tanzania will be met with stiff competition from existing players especially Uber with its Uber Poa service for Tuk Tuks as well as Taxify which also operates a boda-boda service. There are also other local players in the market, though - according to someone familiar with the market - they are mostly insignificant and "are kind [of] struggling".
Unlike Kenya, Uganda and Rwanda, Tanzania has a wide-spread of Tuk Tuks as a means of transportation - which is why Uber chose to launch Uber Poa (for Tuk Tuks) instead of Uber Boda. Yet, according to the individuals that we spoke to, boda-bodas are starting to take off. "I can't say scientifically using data and facts, but from my observation, people use more boda-boda," one of them said.
SafeBoda is looking at potentially offering both boda-boda and tuk-tuk services according to a section in the job description. "The Operations team are at the heart of SafeBoda and are responsible for ensuring SafeBoda rapidly grows its boda driver and potentially bajaji/tuk-tuk community," the part reads.
The Tanzanian market has been known for being hostile especially to foreign companies and investors.
In September 2018, it was reported that the Tanzanian government denied Sylvia Mulinge a work permit. Vodacom, one of Tanzania's leading telecom companies, was looking to hire Sylvia as its CEO effective June 1, 2018. In 2017, Aliko Dangote was also reported to have criticized the Tanzanian President John Magufuli of implementing policies that are unfriendly to foreign investors.
There are also a couple of other challenges that might await SafeBoda in its expansion including road regulations and policies. "They will need to lobby with authority for some things to happen," one of the individuals advised.