Abacus Wealth Management

An ‘Uber’ for Kenya? Sendy Is A Startup With A Unique Transport Solution

Uber is a company based in San Francisco, California, United States it connects passengers with drivers of vehicles for hire. This is done via Uber’s smartphone application. Sendy is a start up company that has set out to connect Kenyans with bodabodas (motorcycle taxis) through its mobile app. It offers a customised Kenyan transport solution and presents an opportunity for those who desire to invest in it.

Erik Hersman co-founder of ihub Nairobi and Senior Ted Fellow writes:

Those who live in large African cities know how inefficient driving a car around the traffic-plagued metropolises can be. With the bad roads, traffic and high cost of fuel, motorcycle deliveries are a natural path.

In almost every town in Kenya you’ll find thousands of motorcycle guys sitting by the side of the road, ready to courier a package or serve as a taxi. They ride inexpensive $800-$1200 Chinese and Indian motorcycle brands, are generally not trained very well and have little safety equipment.

Motorcycles in downtown Monrovia, Liberia

 

How it Works

1. Download the Android app, or sign-in to the web app at Sendy.co.ke
2. Click the button that you have a delivery (or pickup) to be made.
3. You can see the map for where the rider is

 

 

4. Give him the package and directions

 

There is a GPS transponder on the motorcycle, and you get an SMS update when the delivery rider gets within 50m of the delivery zone. Once the package is delivered, there is another confirmation that the rider sends to Sendy, that comes to you as well. Payment is then made automatically by either credit card or M-pesa. At the end, you can rate your delivery rider, so that the best are known and get more business.

 

Challenges and Opportunities

With Africa’s growing need for logistics around eCommerce, Sendy presents a natural option for everyone from online shopping operators such as Jumia to your local supermarket. Motorcycles are already an accepted means of delivery for non-traditional business and large enterprises alike. The idea of capturing a large portion of this, without all the baggage of a normal courier company setup, is good for both Sendy and the everyday bodaboda/courier guy.

 

There are a couple hurdles to overcome to make this a simple process to onboard new customers, receive payment and then send payment to the courier riders. Unlike the US or EU, not everyone has a credit card, and the mobile payment options don’t allow for “pull” billing (instead, the customer has to “push” a payment to your service).

Sendy has corporate accounts such as BRCK and Ushahidi. For large businesses, finding a good payment process isn’t a problem. However, there will need to be some creative thinking for individuals and small businesses in order to make Sendy as painless as it promises to be.

The service verifies the courier riders, keeping their records on file, and providing the necessary technology for both tracking of motorcycle and communications with the rider. This means that qualified riders are picked, lessening the chance of getting robbed, and the ability to rate a courier creates a system that builds trust over time.

Sendy is raising a seed round of investment. If this opportunity is interesting to you, you can reach out to them here. To read more on what Erik says about Sendy, click here.

 

 

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