This archive report was first published on 26 September 2019.
German Automaker Tests Ride-Hailing in Rwanda ¶
September 26, 2019
Thomas Schaefer, Volkswagen's Africa boss, has launched a $50 million experiment in Rwanda to overcome the continent's low demand for new cars. The project, called 'Move,' uses ride-hailing and car-sharing services to make vehicles more accessible to Africans.
The service, launched in December 2018, has seen over 23,000 registered users in Kigali, with around 2,200 active users. However, the daily average of 384 rides is modest, and Volkswagen aims to double this figure.
Industry experts are divided on the merits of the plan, with some questioning whether Volkswagen can compete with established players like Uber and Bolt in Africa. Critics argue that Kigali, where Uber and Bolt are absent, is not an accurate gauge of conditions in bigger markets.
Michaella Rugwizangoga, CEO of Volkswagen Mobility Solutions, believes that the company will eventually need around 800 cars on the road in the city for ride-hailing and sharing. Volkswagen plans to introduce its E-Golf electric vehicle into the mobility fleet next year.
The company hopes to make its investment in Rwanda worthwhile by combining new car sales, ride-hailing, car-sharing, used car sales, parts, and service. Schaefer believes that if Volkswagen focuses only on selling new cars, it will eventually close business in Africa.
