All Taxi And Bike-hailing Operators In Uganda To Go Digital After The Pandemic

Nothing would ever remain the same again in most countries of the world after the coronavirus pandemic. Uganda is one of the countries leading this school of thought already. The country is proposing to phase out, completely, traditional boda boda (commercial motorcycles) and taxi operators. Government through the Ministry of Kampala has proposed strict guidelines to compel boda-boda and taxi operations in Uganda ‘s most populous city, Kampala to go digital or cease to exist when the virus-induced lockdown is finally lifted.

Kampala Capital City Authority (KCCA)’s head of Public and Corporate Affairs, Mr Peter Kaujju
Kampala Capital City Authority (KCCA)’s head of Public and Corporate Affairs, Mr Peter Kaujju

“What I can confirm to you is that there was a meeting. We are basically mooting plans to improve mobility of taxis and boda-bodas and streamline the entire transport in the city. These are just proposals and Cabinet will make a final decision. There shouldn’t be cause for alarm,” Kampala Capital City Authority (KCCA)’s head of Public and Corporate Affairs, Mr Peter Kaujju said.

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Here Is All You Need To Know

  • According to Kampala Lord Mayor Erias Lukwago, quoting the framework paper sent to him by Ms Benny Namugwanya Bugembe, the State Minister for Kampala, Mr Lukwago, Kampala Capital City Authority (KCCA) and the Ministry of Works and Transport have already issued guidelines to enforce the new transport changes.
  • By the terms of the guidelines, all boda-boda motorcycles shall operate under digital companies (use of apps like Safe Boda, Uber, Bolt among others). This, Lukwago said, would be done in the first week after lifting the coronavirus induced lockdown.

“Boda-bodas will only be allowed to operate up to 7pm (curfew time) for 21 days until all of them are registered,” Lukwago said, who noted that there would be boda-boda free zones in the city although he didn’t offer more details.

Taxi drivers in Uganda soon to go digital. Ride-hailing startups in Africa are increasing and governments are also learning how to regulate them
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Concerning passenger service vehicles, Mr Lukwago disclosed that the KCCA and the Ugandan Ministry of Works are planning to ban taxis in the city after the lockdown for three weeks so that they could first register with the ministry before they would be allowed to operate again.

  • He said that government will only allow registered taxis to operate in Kampala after 42 days, but under strict measures.
  • According to Lukwago, the intention of the proposed guidelines is to entirely kick out taxi drivers and boda-bodas from the city.
  • Nevertheless, he also blamed the technocrats for coming up with laws without engaging city leaders and transport stakeholders.

“This is not fair at all because we already have boda-boda and taxi ordinances in place but government has instead overlooked them. How do you come up with such policies when you haven’t engaged leaders of taxis and boda-bodas! Should we really be discussing such yet Kampala is literally suffering with the impact of Covid-19?” Mr Lukwago was quoted as saying.

Motorcycle transit ventures are vying to digitize a share of Africa’s boda-boda and Okada markets (the name for motorcycle taxis in East and West Africa) — representing a collective revenue pool of $4 billion (now) that’s expected to double by 2021, per a TechSci study.

Uber began offering a two-wheel transit option in East Africa in 2018, around the same time Bolt (previously Taxify) started motorcycle taxi service in Kenya.

 

Charles Rapulu Udoh

Charles Rapulu Udoh is a Lagos-based lawyer who has advised startups across Africa on issues such as startup funding (Venture Capital, Debt financing, private equity, angel investing etc), taxation, strategies, etc. He also has special focus on the protection of business or brands’ intellectual property rights ( such as trademark, patent or design) across Africa and other foreign jurisdictions.
He is well versed on issues of ESG (sustainability), media and entertainment law, corporate finance and governance.
He is also an award-winning writer.