UAE’s cab hailing startup Mondo Ride, which launched
in Kenya in 2016 to take on Uber, Maramoja Transport has raised $2 million in funding today to bring to $5 million its total funds raised as the firm struggles to beat Taxify, Little and Uber in Kenya’s aggressive taxi market.
Since its launch in Kenya, Mondo Ride
has played at a distant number four app behind Taxify, Uber and Little, beating only Maramoja Transport which failed to meet the demand thereby losing its then loyal customers. To survive Mondo Rides banks heavily on corporate deals which are proving to be a sensible model for the cab hailing firm in the market it operates in.
On revenues, the firm claims a double-digit monthly revenue growth, interviews with drivers on major roads show Mondo Ride is not among their top three apps they use, with most of them preferring Taxify as their number one and Little as number two while Uber at number three. A good number of drivers have heard of Mondo Ride but haven’t cared to try it out because Taxify and Little have them sorted.
With these cash, Troels Andersen, CEO and Co-Founder of Mondo Ride says the firm will be able to expand across Africa and as well use it to beef up its technology. Mondo Ride is active in 5 major cities in Africa but it only has 5000 drivers on its platform. Little
has those in Kenya alone.
“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, significantly increasing ride numbers. We were overwhelmed with interest in the funding round and plan to take many of the positive engagements forward to the Series A round planned for H1 2018,” said Andersen.
Despite the raise led by investors from the UAE and Egypt, Mondo Ride will struggle it it can’t grow its user-base in Kenya where it started its operations. Mondo Ride will shut shop soon if Andersen and team cannot motivate the lay person to drive or hail a Mondo Ride. The team also needs to turn around its growth and actually have more drivers on the road than just app downloads-something the team has mastered. App downloads should convert to monthly active users, and paying users, not those using the app for maps and pricing.
Mondo Ride is more of a briefcase company in Kenya. No one wants to invest their time and vehicles into such a company that’s trying to be lean that it doesn’t even exist to the real users. Mondo Ride teams should go to the people by doing both ATL and BTL marketing then after that compete its competitors on having real cars on the road than Taxify’s and Uber’s Phantom cabs which increase user wait times and high cancellation rates.