wnp_v0elkku-elijah-henderson

SA Taxi-owned Zebra Cabs has raised just over $21.6 million from Futuregrowth Asset Management to expand their owner-driver scheme in Johannesburg, and to take on Uber and Taxify. Their big hairy audacious goal is to have 3 000 cabs on the road by 2020.

This development has got us wondering how many players Africa’s ride-sharing market can sustain. There must be easier ways to make a buck, but it seems the prospect of carving out a chunk of what is potentially a multi-billion dollar industry is clearly too much to pass up for VC’s like Futuregrowth. The FOMO is real!

It’s going to be interesting to see how quickly Zebra Cabs burns through their newly-found cash. Will they withstand the fierce price war that’s almost guaranteed to ensue? How long will their financiers be willing to wait before they turn a profit? And will more funds be forthcoming when Zebra Cabs needs to extend their runway further down the line? Only time will tell.

 


Editor’s Note: African Tech Roundup is a weekly podcast, hosted by Andile Masuku, that covers technology, digital and innovation highlights from across Africa and beyond. This episode first appeared on africantechroundup.com.

Read this next
More From TC

Social media giant, Twitter is setting up its first African office and it will be in Ghana. The announcement was made through a tweet by Twitter CEO Jack Dorsey where he thanked the president of Ghana Nana Akufo-Addo. The tweet also included a link to a post on Twitter’s official blog written by Kayvon Beykpour, […]

The directive of the Nigerian Securities and Exchange Commission (SEC) issued on the 8th of April, 2021 has been met with consternation and a straightforward (but hopefully simplistic) interpretation that the government is out to stifle innovators – again. These perspectives aren’t unfounded, as innovators of all shades have taken a heavy beating lately due […]

Last week, Ampersand, Africa’s first electric motorcycle company, secured a $3.5 million investment from the Ecosystem Integrity Fund (EIF). This is the largest ever e-mobility investment by a venture capital fund in Sub-Saharan Africa and could hint at a turning point in African electric transport. Based in Kigali, Rwanda, Ampersand assembles and finances electric motorcycles […]


TechCabal is a Big Cabal Media brand



Copyright © 2013 - 2021
All rights reserved

Privacy & Terms
X