3 Oct 19

VW banks on ride-hailing to break African market

VW launches ride-hailing service in Africa

Low purchasing power and a lack of available finance puts new car ownership out of reach of most Africans. In answer to that, Volkswagen has invested $50 million in a business built around ride-hailing and car sharing in Rwanda’s capital Kigali.

The project was launched in Kigali in December 2018. Since then, the app for VW’s Move ride-service has registered over 23,000 users but only around 2,200 are active. However, in July the service averaged 384 rides a day, a figure VW finds encouraging.

VW's African boss bullish about the future

Critics of the service question whether the German automaker can seriously compete with the likes of Uber and Bolt, neither of which is making money from their services right now. Still, VW’s African boss Thomas Schaefer was quoted in a Reuters article saying that he’s determined to give it a two-year test run.

Authored by: Alison Pittaway