Uber CEO Dara Khosrowshahi recently identified the Middle East and Africa (MEA) as a key region for the future growth of the company. Within Africa, Nigeria is a key economy, being home to half of West Africa’s population which amounts to more than 202 million people, as well as one of the most youthful populations globally, according to the World Bank.
Some of the stumbling blocks for the country when it comes to converting that potential into greater economic growth includes a high unemployment rate (23% as of the end of 2018), low levels of vehicle ownership as well as a high failure rate of start-ups at a reported 75 percent.
The latter is problematic because like many of its African neighbours, start-ups and SMEs account for the majority of jobs in Nigeria and besides being vital for job creation, these businesses, particularly in the technology sector, are adept at creating innovative solutions to community problems, such as inefficient mass transport systems. Many Nigerian entrepreneurs are already taking up this challenge and building sustainable businesses on the back of this need. These include tech companies such as Emerald Hills Digital, which provides digital marketing solutions for hyper-growth, as well as Haulr, a logistics company that help teams become more efficient, effective and profitable.
More is still needed though. This is where the co-creation of value by partners such as Uber becomes vital to cities and locals as its technology and platform is used to provide more affordable, safer and reliable transport for the citizens of the country, as well as to generate sustainable earnings for drivers and self-starter entrepreneurs.
I was recently in Nigeria to speak at a Co-Creation Hub event around the theme of technology, entrepreneurs, and building a business for millions. With this speaking opportunity, I was given the chance to provide some guidance to prospective entrepreneurs around how to employ technology to help make their venture more efficient and reach a greater customer base amongst other tips. The first of these is making big bold bets, the majority of which paid off hugely at Uber due to the fact that we worked hand in hand with regulators.
We have also learnt from our experience in Nigeria and have adapted our strategy to better ensure that drivers continue to have paying passengers. Our support channels also create an avenue for drivers to provide critical feedback, a necessary factor in ensuring that the Uber app continues to work better for them.
Adapting to local needs
Another key ingredient to our success has been our growth mindset. We value ideas over hierarchy. We believe that the best ideas can come from anywhere, both inside and outside our company. Our job is to seek out those ideas, to shape, improve and adapt them through candid debate, and to take them from concept to action.
Last but definitely not least is the need to remain customer focussed from the start of your business throughout its lifecycle. At Uber, we are customer-obsessed and work tirelessly to earn our customers’ trust and business. This is done through solving their problems by ensuring we adapt our business to the local demands.
For instance, launching a two-week boat service alongside the executive governor of Lagos, Babajide Sanwo Olu at Lagos State Waterways Authority complex in Falomo, provided travellers in the Lagos megacity of around 20 million people, with an easy and affordable form of transport to get in and out of the city’s business districts. In addition, we strive to localise our products while maximising the earnings of our driver-partners by assisting in lowering their costs.
Another example of adapting to the local market is the availability of Uber Lite. This version of our app enables users to make savings in terms of both storage space as well as data usage and consequently cost. Uber Lite has been specifically designed for easy learning with newbies, and also to work well within areas of low-connectivity and restricted data connectivity speeds, a common issue in many emerging economies like Nigeria.
Experiment, experiment, experiment
Don’t be afraid to experiment. You will never know if something is going to work without trying. Pilot programmes are essential to your business, its continued success and growth, so take educated risks, collect data, look at competitors, define a strategy and go for it. Anytime you use technology to make something better, easier-, more cost-effective- or seamless for your customers or simply to solve a real-world problem, then you are closer to success.
As already demonstrated by the launch of UberBoat, Nigeria holds a lot of potential for a diversified means of transportation, a feat already piloted with great success by Uber in other markets. Uber Bus, for example, has been tremendously successful in Cairo, the capital of Egypt, creating low-cost and reliable alternatives to public transportation and broadening avenues for wealth creation in the process. One can only look at Lagos’ current intercity transportation set-up 80 percent of which is dominated by buses – and see the enormous opportunity presented in that area. The enthusiasm and willingness of the government to reduce congestion and create a more efficient transportation system also provides room for long-term and sustainable engagement for players like Uber, and this can only mean great things for the state as it aspires to a true mega-city status.
Through these services, we continue to delight our customers while supporting our partners in their own ventures, leading to greater loyalty on both ends. This commitment to our partners and relentless focus on our mission to ignite opportunity by setting the world in motion, has resulted in tremendous growth, not only in Nigeria but across the continent.
Across the country of Nigeria, and indeed the African continent, we are helping to address public transportation problems for less, while building a business for thousands of entrepreneurs across the region.
Local start-ups and SMEs can achieve greater levels of success by maintaining a growth mindset that involves constant innovation with their business processes as well as offerings (products/services). They must also remain customer-focused from a product development and communications perspective, and employ technology to do things quicker, more economically and more effectively, whilst promoting experimentation and quickly learning from successes as well as failures.
ALON LITS
Lits is the General Manager, Sub-Saharan Africa
