Uganda’s ‘Uber’ for safe motorcyles, SafeBoda, has recieved £160,000 ($229,000) from London-based socent-focused GIF to bring sanity on Kampala roads, reduce motorcycle accidents and create jobs for the city’s youth!
GIF is supported by the Department of International Development in the UK, the United States Agency for International Development, the Omidyar Network, the Swedish International Development Cooperation Agency and the Department for Foreign Affairs and Trade in Australia and has over USD $200 million to invest in such startups over the next five years.
With the £160,000 convertible note-meaning it can later be converted into either a loan or equity, SafeBoda is two-pronged-Reducing motorbike accident deaths and injuries in Uganda and creation of jobs to the youth.
In their investment overview, SafeBoda say there is a 60% of the surgical budget at the Mulago Hospital, Uganda’s biggest healthfacility is spent on treating motorbike crash injuries. There is also a 50% increase of income for SafeBoda drivers who are trained on road safety.
SafeBoda adds that there are 80,000 motorbike drivers in Kampala, Uganda’s capital but only 1% of them currently wear helmets leading to more than 60% of the surgical budget at the main Kampala hospital being spent on treating motorcycle crash injuries.
It therefore aims to create a commercially viable network of safe taxi motorcycle drivers, by training them and making sure they wear helmets. Using financial incentives and peer pressure, SafeBoda fuel’s behavioural changes in motorbike drivers’.
GIF’s convertible note will help fuel SafeBoda through their pilot phase, while they iterate their revenue model and prove demand for their services.
“SafeBoda is a high-potential innovation whose testings offers valuable lessons for the entire sector. SafeBoda’s model creates clever incentives for behaviour change. SafeBoda has adapted some of the lessons from the success of group lending in microfinance to road safety. Just as borrowers want to recruit safe money managers to their loan group, SafeBoda drivers want to recruit safe drivers to the network,” GIF concluded.