Is Uganda’s SafeBoda Digging Its Own Grave With New Data Mining And ‘Unfair Terms’ Allegations?
SafeBoda, one of the leading bike-hailing startups in Africa, is under some serious accusations in Uganda, its original place of birth in Africa before it expanded to Nigeria, and to Kenya (which it had since abandoned). In a volcanic eruption of anger, the startup’s users in the east African country have taken to the internet to haul some unsavory words in its direction.
The anger stemmed from SafeBoda’s newest terms and conditions under which it removed itself from a lot of responsibilities.
“We have no responsibility whatsoever for the actions or conduct of any service providers or users. We have no obligation to intervene in any way in disputes that may arise between drivers, riders or third parties,” a section of the new Terms & Conditions reads.
In the terms and conditions, SafeBoda also announced that it would no longer be responsible for any damages, direct, incidental, and/or consequential, arising out of its use, including without limitation, damages arising out of communicating and/or meeting with its other participants.
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In simple terms, the implication of Safeboda’s new terms and conditions is that the company has removed itself from being dragged to court or to any dispute resolution panel, if a driver on its platform, for example, lands a major blow on one of its users for using cashless. The new terms and conditions also mean that none of the company’s users now has the ability to bring a case in court, for example, to recover any damages for loss of life or property, injuries, etc., which was caused by any of its drivers.
One way a critic summarizes the effect of the startup’s latest policy is the one below:
But the company has yielded. In a series of tweets on Monday, a week after it released the new terms and conditions, it said it was going to step back and review them.
Mired In A Data-Sharing Scandal
Apart from contending with a sizeable number of its users who must accept the new terms and conditions or stop using its app, Safeboda is also presently embroiled in a data-sharing scandal. According to National Information Technology Authority — Uganda (NITA-U), an Ugandan agency mandated to coordinate, promote and monitor information and technology developments in the country, the boda boda ride app, failed to disclose information to its users that it was collecting and sharing their data with CleverTap, a US-based data processor.
“The SafeBoda privacy policy and data protection policy versions of 2017 and 2019 respectively did not provide information on recipients with whom its users’ personal data will be shared,” the report partly reads.
The NITA-U investigation also found that Safeboda revealed users’ email addresses, telephone numbers, first and last names, operating system for mobile devices, version and type of application, as well as user login status to CleverTap. NITA-U further noted in the report that while CleverTap committed to keeping user data confidential, as mandated by the data protection law, there were no security measures to ensure the confidentiality of the data.
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However SafeBoda said it maintains a contract with CleverTap for the purposes of knowing consumer behaviors on the app for behavioral analysis.
“We are working on this to make sure that customers can find our policies more easily on both the website and our app. This is something we strive to do to improve service to customers,” Ricky Rapa Thompson,SafeBoda co-founder.
The company has since updated its data collection policy on its website.
After a plea from a complainant to the Office of the Speaker of Parliament in 2020 alleging that the Safeboda app had been involved in an investigation report, NITA-U launched an investigation into SafeBoda’s data privacy policy, accusing it of exchanging personal data of users with third parties without the consent of clients. However, the report — until the recent finding by NITA-U — noted that there was no proof to show that SafeBoda was selling data to consumers.
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In 2019, Uganda passed the Data Security and Privacy Act to protect Ugandans from businesses collecting information that is later sold or used to intimidate owners. The law also regulates collection and processing of personal information in and outside Uganda. By the terms of the law, users must be told that their personal data are being transferred to one or more third parties.
Failure to address and comply with NITA-U directives could attract prosecution under section 35 of the Data Privacy and Protection Act 2019.
Read also: SafeBoda Is Gone In Kenya! A $1.3m Ride-hailing Business Threatened
A Startup Hanging On A Cliff
While Safeboda’s latest ordeal could best be described as self-inflicted, the startup has in recent times been shaken by the city of Kampala, home to about 1.5 million people, which attempted to do what Nigeria’s most populous city — Lagos — did to its famously known okadas back in February last year — the city’s government banned them from operating on its highways.
A widespread agitation against the directive banning commercial cyclists from accessing the Kampala city center and surrounding places had, however, led to the suspension of the proposed ban.
Nevertheless, Safeboda’s latest terms and conditions of use are a threat to the startup’s core business model, which preaches safety for riders. One of the reasons why the startup recently shut down its Kenyan operations was because its drivers allegedly became so powerful and unchecked. Similar complaints are now gradually creeping up in Uganda. For example, a SafeBoda rider preferring anonymity recently told Daily Monitor that the company had ceased to give them ‘appropriate’ earnings arising from the ‘wallet’ payment option beginning at the end of 2020.
This, coupled with SafeBoda’s recent deficiencies in regulatory compliance, if care is not taken, may severely cut deeply into its remaining life in Africa, although President Museveni had during one of his Covid-19 addresses in June 2020 tagged the startup as “organized.”
In Nigeria, where SafeBoda’s remaining life outside Uganda is, the future is blurry, and all is tied to government’s body language. Currently, the startup is now operating in Nigeria’s south western city of Ibadan.
The ban, in Lagos, on bike-hailing nevertheless still remains a deadly blow on ride-hailing startups in Nigeria. Lagos holds about 15.2% of Nigeria’s entire internet population (14,192,283 subscribers).
SafeBoda has up to $1.3 million in funding with most of the investments coming from Allianz X, the digital investment unit of international financial services provider Allianz Group. Go-Ventures, a venture fund whose cornerstone investor is the Indonesia-based “Super App” company GO-JEK also participated in that investment. Investment in Safeboda was Allianz X’s first ever investment in an African-headquartered company
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
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