{"id":84730,"date":"2024-09-17T12:53:35","date_gmt":"2024-09-17T12:53:35","guid":{"rendered":"https:\/\/www.africa-press.net\/rwanda\/all-news\/is-bike-sharing-an-unrealistic-business-model-in-rwanda"},"modified":"2024-09-17T13:10:00","modified_gmt":"2024-09-17T13:10:00","slug":"is-bike-sharing-an-unrealistic-business-model-in-rwanda","status":"publish","type":"post","link":"https:\/\/www.africa-press.net\/rwanda\/photo\/is-bike-sharing-an-unrealistic-business-model-in-rwanda","title":{"rendered":"Is bike sharing an unrealistic business model in Rwanda?"},"content":{"rendered":"

Africa-Press – Rwanda. <\/strong><\/span>Nearly three years after launching a bold initiative to roll out shared bikes in Kigali, GURARIDE, a local start-up, says it is currently running the business as a mere Corporate Social Responsibility (CSR) because it does not bring in any profits.<\/p>\n

GURARIDE\u2019s bikes first hit the road in late 2021 as the company deployed them across various locations including Kimironko, Gisimenti, Camp Kigali, and around City Hall.<\/p>\n

In April this year, however, the company announced that it was temporarily halting operations, though it did not share details regarding the reason behind the development.<\/p>\n

When The New Times reached out to Ike Erhabor, GURARIDE\u2019s president on Monday, September 16, he clarified that the break was for bike maintenance, though he also admitted that the business is not making profits and is essentially run as CSR.<\/p>\n

GURARIDE\u2019s bikes first hit the road in late 2021 as the company deployed them across various locations including Kimironko, Gisimenti, Camp Kigali,and around city hall.<\/p>\n

\u201cYou know that we are self-funded; we don\u2019t get any funding from anywhere. The little tokens that folks are paying don\u2019t do anything for us. So currently, this is just like Corporate Social Responsibility for us,\u201d he noted.<\/p>\n

The bikes have since returned to various parts of the city, including the car-free zone, City Hall, and Camp Kigali. However, GURARIDE is not expecting profits from the initiative.<\/p>\n

A ride costs Rwf 300 and the clientele varies in different parts of the city. For example, areas like Kimironko see between 80 to 90 riders a day, while the Central Business District (CBD) attracts about 60 riders.<\/p>\n

\u201cWe thought we could make money from it, but discovered that we have to raise prices,\u201d he said as he pointed out that if prices are raised, it defeats the purpose of having an average Rwandan riding the bikes.<\/p>\n

\u201cWe looked at everything and said \u2018no.\u2019 If we do this (raising prices), it is going to make a lot of Rwandans not to ride, so we just left it that way,\u201d he added.<\/p>\n

Moving forward, GURARIDE is exploring new revenue streams to offset bike-related costs. One idea is to introduce electric bikes, which will be priced higher and are expected to generate more income.<\/p>\n

\u201cWe can make money from there (from electric bikes),\u201d he said.<\/p>\n

Challenges facing shared bike business<\/b><\/p>\n

Erhabor pointed out that the market has not fully adapted to shared bikes, particularly women, who are less likely to use the service. He hopes the introduction of electric bikes will encourage more women to participate.<\/p>\n

GURARIDE\u2019s bikes first hit the road in late 2021<\/p>\n

Umar Luzinda, an economics lecturer at the University of Kigali, believes the Rwandan market, driven largely by youth, is unique and open to innovative projects like shared bikes. However, he emphasised the importance of data-driven decision-making in ensuring project success.<\/p>\n

\u201cIt is market research that drives data-based decisions which correlate with the consumer behaviour,\u201d he noted.<\/p>\n

The future of shared bikes in Rwanda<\/b><\/p>\n

Looking ahead, Erhabor says that NGOs or the government may step in to support shared bike initiatives, similar to models in Europe, where public funds help sustain such services.<\/p>\n

\u201cWe think at a point, a couple of NGOs or even the government might look at this and say, look guys, you have been doing this for four years, we see that you have struggled and it is not profitable,\u201d he noted.<\/p>\n

In addition to the potential profits from electric bikes, GURARIDE hopes to generate revenue from electric vehicle (EV) charging stations.<\/p>\n\r\n