Electric mobility company Roam has signed a supply arrangement deal with fintech platform M-KOPA in an agreement that will see the sell electric motorcycles on credit, a move they believe will decrease the barrier to entry for potential buyers by providing more manageable payment plans.
This is the first supply arrangement of this magnitude for electric bikes in Africa.
Roam plans to have its fleet by end of 2022 as mass deployment to begin early in the year 2023, a move the company says is significant in helping them achieve its goals of making electric vehicles available to the larger consumer base.
M-KOPA enables underbanked customers to access a wide variety of products and services without the need to provide collateral by integrating the power of digital micropayments with the Internet of Things (IoT) technology. Through its unique ‘Pay-As-You-Go’ business model, M-KOPA will be able to contribute to the distribution of the motorcycles. It grants buyers immediate access to things while gradually establishing ownership of those products through flexible micro-payments.
“We intend to deliver appealing environmental and economical solutions for markets that have not yet participated in the shift to electric vehicles. Given the expanding market size and relevance for low-income earners not only in Africa but globally, we believe that the motorcycle taxi business is one of the most influential places to begin our work. Our relationship with M-KOPA will be propelled toward realizing our joint vision of cleaner transportation. Co-Founder and Chief Commercial Officer of Roam, Mikael Grange.
The fleet of Roam electric bikes has improvements over the pilots that came before, such as better performance, greater efficiency, and a stronger design. The motorcycles are suitable not only for personal use but also for the transportation of freight and use in taxi services. In addition, they are pre-assembled with a detachable twin battery pack, reducing the time spent in downtime while also enhancing rider freedom.
The distribution of electric bikes will be streamlined thanks to our partnership with M-KOPA will streamline the distribution of the electric bikes with the possibility of expanding Roam’s market reach across Africa in regions in which M-KOPA already has a presence, beginning with Kenya. Customers will be able to save their operational expenditures by more than 70 per cent. It leads to an increase in daily income by fifty per cent arise that can radically affect the drivers’ livelihoods.
Commenting on the partnership, M-KOPA Mobility and M-KOPA Labs are managed by David Damberger, the company’s Managing Director said, “This deployment will have a revolutionary impact on the day-to-day incomes of businesspeople while simultaneously reducing the environmental footprint of commercial activity. It maintains its expansion in markets that are quickly expanding.”
“This agreement is an incredible catalyst for the adoption of electric motorcycles in developing markets, and it affirms our vision of having to release a locally designed product that outperforms the expertise of traditional fossil fuel motorcycles while maintaining a price point that is comparable to those motorcycles”. added Mikael.
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