This archive report was first published on 1 October 2019.
Little Shuttle, a local tech firm, has been ordered to cease operations by the authorities, effective October 1, 2019.
The firm's CEO, Kamal Budhabhatti, revealed that they received a directive from the authorities, stating that the licenses used by their partners were not valid, despite being properly registered.
Budhabhatti expressed concern over the move, warning that it would lead to mass job losses among riders who rely on the service for their livelihood.
He also questioned the motives behind the directive, suggesting that it could be a result of pressure from cartels in the transport sector.
Little Shuttle has received a significant investment of Sh1 billion from its parent firm, Craft Silicon, and other unnamed shareholders.
The firm's e-shuttle system allows riders to book a seat and board at specific times, with a frequency of every two hours, targeting riders who would otherwise use their personal cars to move around the city.
Little Shuttle has partnered with some matatu saccos to onboard their buses to the application, offering a clean and safe service at a rate about 10 to 15 per cent higher than the normal commuter fare.
