The ride-hailing industry in Nigeria is facing some serious challenges. With high operational costs, unhappy drivers, and low purchasing power leading to fewer ride requests, it’s a tough environment out there. So you might think launching a new e-hailing app right now would be crazy. But that’s exactly what Moyosore Oladeinde is doing. She’s a serial entrepreneur and developer based in the United States, and she’s set to launch Drop in November 2024. This new app aims to tackle all the problems currently plaguing the industry.
A Personal Experience Sparks Change
Moyosore's inspiration for Drop came during a visit to Nigeria in 2021. After experiencing some rudeness from drivers—especially towards female passengers—she decided it was time to create a solution. "When I see situations like that, I just try to create a solution to it," she explained. Moyosore has built many businesses by identifying problems and addressing them.
One major pain point for her was the cumbersome process of reporting incidents through existing apps and the lack of accessible customer service. So she set out to build an app that prioritizes safety and effective customer service.
The Innovative Features of Drop
Drop is designed with several unique features aimed at enhancing safety for both drivers and riders. For starters, it employs an extensive Know Your Customer (KYC) process that verifies both parties using biometric data.
A Fair Commission Model
One of the most contentious issues in the ride-hailing industry is the high commission rates charged by app companies. Drivers often bear the bulk of operational costs while app companies take up to 25% of their earnings. Drop addresses this issue head-on with a fair 10% commission model.
Moyosore explains that this low rate allows drivers to keep more of their hard-earned money while ensuring enough revenue remains for effective customer service operations.
Additional Services for Drivers
Drop also offers vehicle financing options but has implemented an interesting restriction: drivers are only allowed on its platform. Moyosore argues this ensures a steady supply of drivers but raises ethical questions about market fairness.
Summary: Is Drop The Future?
With its focus on safety, driver welfare, and fair commission rates, Drop has positioned itself as a potential disruptor in Nigeria's traditional ride-hailing landscape. By directly addressing current challenges and implementing innovative strategies, it aims to create a safer environment for all users.
So is Moyosore's vision for Drop going to succeed? Only time will tell if this new fintech disruption will gain traction—but it's certainly an interesting proposition.
