In two weeks ahead, Indian Company based in Rwanda “Yego Innovision Limited” will start a countrywide operation of installing electronic devices equipped with a new technology on all taxi moto operating in Rwanda. The technology will hopefully provide solutions about how effective price payment can be done.
During the recently concluded Transform Africa 2017, Mr Karanvir Singh who is the CEO of “Yego Innovision Limited” said that before being committed to invest in this project, they made field research on transportation market in Rwanda.
“We came up with ‘Yego Moto solution’ for over 1.2 million people living in Kigali. We found that it is most likely that motos make a means of transport for busy people who need to get at work early and make sure their job is done on time.
“One of the challenges that passengers face is to hire a moto and bargain with the driver about the transport fee. If you are a Muzungu like me, it becomes harder to understand what the driver needs and he/she faces the same dilemma. A Muzungu can pay four times a price that was meant to be paid for one time if both of them understood each other. So we said why can’t we charge by meter?” he added.
With this technology, a passenger will have to go on street, take a moto without negotiating the price, when they reach to the destination point the meter will calculate the distance travelled and issue a bill.
Mr Karanvir Singh spoke to Umuseke business editor on their project and investment behind it.
Umuseke: How do you intend to implement your project?
Karanvir: We are rolling out just after Transform Africa, from next week we are rolling out, so the first roll out its 250, the next roll out is 750 bikes and then we are going two thousand bikes per month. By December we will have finish 15 thousand bikes operating in Kigali, it is estimation but we will have finish by then.
Umuseke: After Kigali how do you plan to expand to other cities?
Karanvir: We are looking at finishing Kigali first, and then there are other nine large cities in Rwanda, so we want to cover all of them. It will depend. Sometimes we are told also there may be a market even upcountry.
As long as we are confident that people using that people using motos are careful enough about the welfare of the motos with its related devices, we will go there. We will be happy to go everywhere.
So, our idea is to equip about 70 thousand motos in Rwanda, at the moment we finish Kigali we will go in other cities as well.And we are expecting that January 2018 we will be going out to other countries as well.
Umuseke: Is the Government of Rwanda supportive to your project?
Umuseke: Usually, Taxi Moto operators do not support such new innovations, they always complain about the cost of the devices and implementation of the projects, did you consult them?
Karanvir: We are not selling anything, they are getting them for free, everything is for free, and they have to worry about nothing.
Umuseke: Interesting, so how will you earn money from that project?
Karanvir: We basically provide the complete platform, we give the devices, we give the simcard, we pay for the data, we give the full face helmets, we put GPS in, we do everything but what we do is that all the money that’s been earned by the motos, we will take a small percentage from as to be able to pay for the platform.
Umuseke: When you say ‘a small percentage’ what do you mean, how much?
Karanvir: It is not decided yet, it is still being negotiated but of course government and all regulators are in, but it will be fair, transparent for both. It is harmless to all sides involved.
Umuseke: What impact do you think this project will make in the cities and in Rwanda generally?
Karanvir: I think it will have multiple impacts, one will be for passengers, it will make it very convenient,…for people to be able to take a moto without having to think, without having to negotiate, just imagine the number of minutes per day they spend negotiating, and even after you negotiate you always feel ‘I could have got the right for less’, the moto driver also feel frustrated because whenever he negotiates, he feels ‘I could’ve got more’, so this new technology will help removing that feeling because it is transparent.
It makes it faster and smoother , because all data that we’ve got in real time, in speeding, and bad behavior all that goes back to the government, so enforcement can be there, so we hope the rate of accidents will also decrease.
Cities authorities will also benefit from this new technology as it will help them acquire data, useful for future urban and housing planning.
Umuseke: Is the Yego Moto an Indian company or local company?
Karanvir: It is a local company, “Yego Innovision Limited” we started last year.
Umuseke: How much money did you invested?
Karanvir: Fourteen million US dollars (USD 14,000,000), this is approximately 11 760 000 000 Rwandan Franc.
Mr Karanvir is aware of the challenges they will face, including managing the expectations of both moto drivers and passengers because there are those who think that they are better at negotiating than others.