Kenyan ride-hailing startup Little began as Little Cab in January 2015 and has now expanded to four other East African countries: Uganda, Tanzania, Ethiopia, and, as of last week, Somalia. There are presently 1 million active users of Little, with 60–70% of them residing in Kenya, the company said in a statement.
Little Is Now A Super App
Previously known as Little Cab, the startup claims the name change reflects a shift in focus as it competes with the two international ride-hailing giants, Bolt and Uber.
Before the Covid-19 pandemic, the company was merely a ride-hailing service, according to founder Kamal Buhabhatti. In response to the situation, he noted that Little began delivering takeaway meals, drinks, and groceries through the same app. On the Little app, users may arrange a doctor’s visit as well as order a Covid-19 test from the comfort of their own home. Customers can also book and pay for movie tickets, more akin to a super-app.
Because its parent company, Craft Silicon, is a major provider of payment solutions, it was extremely simple to make this the foundation of the Little platform.
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Customers, drivers, and merchants can all benefit from the payments integration, according to Buhabhatti. For instance, he stated that drivers can fill up their automobiles at a gas station without using cash. He also said that Little does’small ticket’ loans of up to US$50.
Another strategy has been to offer corporate ride hailing, with payment connected into the company’s ERP system.
As both Bolt and Uber have tightened the screws on ride-pricing, the multi-service approach is intended to broaden its revenue streams. Little has also tried bus excursions, but the market is too challenging for it.
The Company stated that the bus excursion offering did not fare well. There were numerous issues with local bus operators, and Little CEO stated that the company did not have the money to continue to subsidize the travels.
Its most daring move, arguably, is the rollout of e-bikes and e-scooters on multiple large-scale university campuses today. This appears to be a test of how well this distinctively European city product will perform in the more gritty environments of African cities like Nairobi.
The company is profitable, but it requires further investment to keep up with its expansion plans, the CEO said.
He stated that the company is now bootstrapping, despite the fact that competing with larger players such as Uber and Bolt is always a problem. He stated that the firm cannot compete solely on price. He, however, believes that the solution is to localize the product and innovate.
Little ride-hailing Somalia Little ride-hailing Somalia
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 write