More than two years after launching in Kenya, Mondo ride, the Dubai taxi hailing company, has raised $2 million to expands its services across Africa.
The company got a seed investment which was sourced mostly from investors in Egypt and the United Arab Emirates. This brings its total seed investments to about $5 million. One of its anchor investors in this round of fundraising is iSON Group, a Lagos based IT firm that operates in 25 countries.
“This funding round will enable Mondo Ride to provide even more rides for busy, active people across the fastest growing cities in Africa. We currently have operations in five cities across Africa, and plan to open six new cities by the end of 2018,” said the company.
Currently, Mondo has about 6,000 drivers in five African cities where it operates. With this investment, it plans to expand its services to six new cities including Kampala and Dar es Salaam.
Taxing hailing businesses over the years are becoming a lot more competitive. Companies are now struggling to come up with better services that would be better than what their competitors are offering.
Mondo for instance focused on allowing riders to hail a bodaboda motorcycle taxi in Nairobi or the three-wheeled rickshaw tuk-tuk taxi in Mombasa. It also created a solution that allows companies to hail rides for employees and clients and to track their spending on both an individual and department level. Customers are also able to go on long-distance travels to other cities after setting up a predetermined price.
In January, Uber launched UberCHAPCHAP in Kenya, which allows riders to go on short trips and run errands around the city center for just 100 shillings ($1). Uber also partnered with Kenya Airways by giving 25 percent off rides to people travelling or arriving Kenya via Kenya airways.
In 2017 almost all the taxing companies constantly reviewed their prices. Taxify introduced a surge pricing to draw more drivers to its application while Uber introduced a fee on passengers that keep their drivers waiting.