Safaricom-backed courier firm Sendy has terminated its online taxi hailing service, According to Business Daily this was done in a bid to concentrate on its core logistics business at a time when competition in the cab sector is growing.
According to the Business Daily, Sendy Ride, the on-demand taxi and motorcycle service offered by Safaricom, was shut down last month after just two months in operation.
The tech start-up was launched in September 2014 linking parcel senders to a network of transporters using motorcycle, van and pick-up trucks to deliver goods.
Sendy, which received Safaricom support in November last year through its Spark Fund, ventured into the taxi business in August while also expanding its logistics business to Kisumu, Mombasa and Thika.
Business Daily reports that Meshack Alloys, the Sendy chief executive officer, said the company was piloting the taxi business and the decision to pull the plug on it will enable the company expand its courier services.
Competition in the taxi hailing business has been growing since San Francisco based Uber launched in January 2015, with companies like Mondo Ride, Little Ride, Taxify, Easy Taxi and Pewin now offering similar services.
Mr Alloys told the Business Daily that the pilot was suspended in October due to the demand from customers in the core logistics business. The company’s mobile application allows senders to keep track of the goods in transit through live updates.
The company has a fleet of 800 vehicles which include motorcycles, trucks and pick-ups.