Uber eyeing more new markets in Africa

The Uber app is steadily spreading across Africa, although the company admits it will continue to face challenges with GPS and traffic congestion. File picture: Kerem Uzel

The Uber app is steadily spreading across Africa, although the company admits it will continue to face challenges with GPS and traffic congestion. File picture: Kerem Uzel

Published Jul 14, 2016

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Harare - Mobile transport sharing application Uber – which is expanding in Africa – is warming up growing interest by tech-savvy travellers in the app in South Africa, Tanzania and Kenya although the company said there were always challenges with GPS and mapping as well as traffic congestion.

Read also: Cash puts us at risk, say Uber drivers

Uber said “smartphone penetration and network quality” in its Africa markets was propelling its service reach and popularity as it lined up more new markets in Africa.

“The citizens of Nigeria, Kenya, South Africa, Ghana, Tanzania and Uganda are progressive and tech savvy and love products that are cool and offer a new experience,” Uber said in e-mailed responses to Business Report questions.

It said it had moved about 500 000 travellers and covered a distance of about 93 million kilometres in South Africa alone between 2013 and the first quarter of this year.

Uber is however facing problems with about 500 of its 4 000 Uber drivers in South Africa joining the SA Transport and Allied Workers’ Union (Satawu) this month.

There are indications that Uber could face labour disputes with the drivers under Satawu as the drivers “are unhappy with their working conditions”, according to union spokeswoman Zanele Sabela.

“The drivers say the rates Uber is charging are too low. These are not competitive rates and the drivers are not getting much out of it,” Sabela said.

Samantha Allenberg, a spokeswoman for Uber in Africa, said the company was “working hard” to “connect riders and drivers” using its platform and to have them enjoy the ease brought about by technology.

Technology

Support from telecoms companies, which are also key in the company’s operations, had also seen the application run well.

“There are always challenges when launching a new city – GPS and mapping, traffic congestion and ensuring there is enough supply to meet the demand,” Allenberg said.

Owing to firming demand and interest for Uber services in Kenya, the company has expanded to Thika, a town that is about 40km north-east of Nairobi.

There have been indications this month that Uber is foraying into the food delivery business through UberEats as an additional platform. The company has already advertised for the post of manager for the new platform, having invited for applications for posts in South Africa.

“This is an intense business start-up role, and you will work with the UberEats operations teams along with the headquarters based engineering product and process teams. You will have direct responsibility for the growth of the UberEats business,” reads one of the job advertisements that ran earlier this month.

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