This archive report was first published on 20 November 2019.
On November 19, 2019, Nigerian-based startup Opay launched its new ride-hailing service, OCar, in several cities across the country.
The launch comes just a day after the company raised $120 million in Series B funding, a significant boost to its operations.
Opay's ecosystem already consists of various services, including OFood (food delivery), ORide (bike-hailing), OList (classifieds), OTrike (hailing three-wheelers), and OBus (bus-hailing).
With OCar, Opay aims to provide safe, affordable, and comfortable rides to its users, with prices starting at 200 Naira ($0.55) per ride.
As seen in the tweet below, the company is promoting its new service with a massive discount, which might attract a large number of customers from competitors.
The Day we've all been waiting for is finally here!?? OCar has arrived!? Go anywhere with OCar in Lagos, Owerri, PH, Abuja, Benin, Kaduna, Abeokuta & Ibadan for just 200 Naira. Now, you can enjoy safe, affordable & comfortable rides at the tap of a button. #GetOCar #RideOCar pic.twitter.com/8yue6jNTiD — ORide (@getoride) November 19, 2019
Opay's super-app approach mirrors one of the strategies adopted by Meituan-Dianping, one of its investors, which dominates up to 40% of China's food delivery services.
However, the company's entry strategy, which involves offering massive discounts, raises questions about its sustainability. Attracting a large number of customers might not necessarily translate to attracting drivers, who may shy away from low income.
