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Ride hailing market gaining momentum in Ghana—Report

BY: Graphic Business
Ride hailing
Ride hailing market gaining momentum in Ghana

Ride-hailing appeared in Ghana a few years ago. Since, four major actors have been sharing this very lucrative market: Bolt, Uber, Yango and Accra Cab.

Is the impact these actors have to facilitating urban mobility in Accra really visible?

In this article, based on answers provided by a representative audience of the population of Accra on the CINT consumer panel, we propose a line of thought based on four main axes: accessibility of services, state of competition and democratisation of services

Accessibility of services

Studies have shown that the appearance of ride-hailing services of which Yango arrived to the market the latest in 2019, has greatly contributed to making the riding service offer more accessible, particularly in terms of tariffs.

One point that clearly stands out in the opinion of those surveyed is the cost considered accessible for latest actors’ service offers.

In fact, 71.4 per cent of the 156 people surveyed believe that those services are within reach of any middle-class individual.

Also, 22.2 per cent of our panel think that even low-income people are able to afford ride-hailing services. This trend is confirmed in the over 45 age group, who are all convinced that a middle-class person can afford these services (100 per cent).

60.1 per cent think that ride-hailing service offers meet their quality requirements. Here again, women are definitely the most satisfied with the services offered (73.9 per cent). Conversely, only 50 per cent of the more than 45 categories think that services meet their quality requirements.

At the same time most customers aged 45 plus are convinced that since Yango arrived on the market, the offer has become more balanced and diversified.

State of competition

Ride-hailing market remains very competitive in Africa and in Ghana in particular, which is evidenced by a recent study which revealed that many Ghanaian users have at least two applications of riding service providers on their mobile devices.

Added to Bolt, Uber, Yango and Accra Cab are the popular so-called “Trotro” transports. Many users choose their service provider according to the route or itinerary and especially according to the time of day.

The “Trotro” beats the competition at peak times. In the opinion of many users, it is more convenient to save time in traffic jams.

The answers collected clearly showed that the ride-hailing market is dominated by Bolt - 55.2 per cent of people call it the most affordable service with Yango taking second place in the poll with 17.7 per cent and Uber coming third with 16.9 per cent.

The interesting part here however is that users who actually have used Yango are convinced that its tariffs are the most affordable from their first try (up to 41.3 per cent).

As for regular Yango users, they are definitely convinced - 60.7 per cent of them call Yango the most affordable service. With Uber and Bolt users the results are not that noteworthy. So, we guess that if you haven’t tried out Yango yet – it’s high time to make your first ride.

Democratisation of services

Ride-hailing activity is highly dependent on ICTs. And in this regard, Ghana has a comparative advantage.

Indeed, it is today the country with the highest mobile penetration rate in West Africa with 55 per cent.

The answers collected from users also confirms that the rate of Internet users via mobile terminals is changing at practically the same rate as that of users of taxi services.

It is respectively 75.8 per cent and 64.1 per cent.

Better still, these two rates are substantially equal for female users (73.9 per cent and 75 per cent).

Taking the age categories into account, we note the highest rate of mobile Internet use in those aged 45 plus (100 per cent) and that of the use of taxi services in those aged 35-44 (68 per cent).