A Conversation with Ilya Gusakov: Insights from inDrive’s EMEA Chief

Q: How is the ride-hailing business doing in Africa?

A: The ride-hailing sector in Africa is experiencing a remarkable surge. In a continent enriched with a youthful population, this growth is not merely numbers—it’s a lifesaver for many. It is reshaping the transportation landscape, enabling individuals to traverse their cities with newfound speed and accessibility. Given the diverse cultures and varying geographical challenges, there’s immense potential to explore tailored mobility solutions that resonate with local needs.

For instance, during a recent trip to Lagos, I witnessed firsthand how this innovation empowers daily commuters. The vibrant streets, bustling with energy, suddenly offered a more manageable transportation option. A question lingers: How can further adaptations enhance this landscape? This is a pivotal moment for ride-hailing in Africa, and it’s only the beginning.

Through our pioneering peer-to-peer pricing model, we empower passengers and drivers to negotiate fares directly. This approach not only fosters transparency but also caters to price-sensitive markets. Consider this: with a nominal commission rate of just 9.99% in monetized cities, inDrive fundamentally shifts the financial dynamics for drivers, enabling them to earn more. This has become especially crucial in markets grappling with high operational costs. Our platform has introduced groundbreaking features like multi-driver dispatch, ensuring full ride transparency, and granting passengers the power to make informed choices. Such innovations have stirred the industry, prompting competitors to rethink their strategies. InDrive is more than a service; we’re a cultural catalyst, actively shaping the future of mobility.

Q: What could be the issue affecting the market?

A: Several factors significantly impact the ride-hailing market, with two of the most pronounced being currency inflation and escalating fuel prices, a situation exacerbated by recent subsidy removals. As we entered the African market, we found ourselves in a position to challenge the status quo, especially the unfair pricing that many competing platforms had imposed.

Unfortunately, maintaining stable prices amid fluctuating fuel costs poses its own difficulties. Through our model, we have shifted the power dynamics—allowing drivers and passengers the freedom to negotiate their fares. We’ve created a level playing field where discussions can flourish, fostering mutual respect and cooperation. But isn’t it fascinating to consider how similar dynamics might play out in varying sectors beyond transportation?

Q: How many countries could you be operating in within the next two years?

A: Presently, inDrive operates in 48 countries and over 888 cities globally. While I can’t pinpoint the exact number of new African countries we plan to incorporate, our primary focus is consolidating our services in existing markets. We aspire to do more than just expand; we want to deepen our impact, enriching the lives of those we serve.

Beyond ride-hailing, our model encompasses a rich tapestry of transportation options, including intercity travel, freight delivery, and courier services. Our journey of growth extends through Africa, the Middle East, and Eastern Europe. With recent expansions in Zambia and Zimbabwe, we remain committed to placing ourselves where affordable and equitable mobility solutions are most urgently needed.

Q: In which other strategic ways is inDrive actively investing in Africa’s growth and development?

A: At inDrive, our dedication to Africa’s growth runs deep. We’re launching initiatives that not only support our business but also uplift communities. Our new venture arm—comprising the inDrive New Venture Department—aims to fund innovative projects in countries where we operate. Through strategic investments or potential mergers and acquisitions, we hope to foster local talent.

Additionally, our commitment to youth empowerment and gender inclusivity manifests in programs like the Aurora Tech Award, which bolsters women-led tech startups. Meanwhile, our Beginit initiative introduces schoolchildren to computer science and digital literacy, igniting curiosity and skills in the next generation. When we contemplate our mission to challenge injustice, it becomes evident that these efforts are not mere add-ons—they’re integral to our vision of positively impacting over a billion lives by 2030.

Q: Will you make some acquisitions to support this expansion?

A: While acquisitions are certainly a part of our developmental strategy, I don’t have specific updates to share. Our horizon isn’t limited to acquiring companies; we are also investigating strategic investments in initiatives that can complement our overall model. For instance, our recent investment endeavors in grocery projects in Pakistan and Kazakhstan illustrate our varied interests.

Our overarching aim? To facilitate local companies in securing funding—after all, limited access to finance continues to be a profound injustice across many African countries. As a burgeoning startup in such a vibrant market, we see a unique opportunity to attract investors eager to support emerging innovations.

Q: For highly competitive markets like Africa and the Middle East, can you share some challenges and opportunities to look out for?

A: In competitive landscapes, user acquisition and retention represent formidable challenges. Established players command a notable market presence, while infrastructure limitations and safety concerns complicate operations. Nevertheless, inDrive’s unique model allows us to differentiate ourselves. We champion fairness, lowering commission rates and adapting to local needs to ensure that both drivers and passengers feel valued.

Interestingly, our foray into courier and intercity services positions us favorably to tap into the growing demand for logistical solutions. Can we truly claim success if we merely adapt, or must we continually innovate in ways that are meaningful?

Q: How do you measure growth in Nigeria?

A: Nigeria represents a cornerstone of our growth strategy. As we witness the enthusiastic adoption of our peer-to-peer model, we’re excited about our prospects in this dynamic market. Bold marketing campaigns and vibrant community engagement illustrate our commitment to connecting with users on a deeper level.

How does inDrive leverage technology and data analytics to improve user experience and safety?

A: Technology is foundational to every aspect of inDrive’s operations. Through data analytics, we optimize routes, detect fraudulent activities, and enrich user experiences. We study trip patterns, identify peak times, and balance supply and demand to the benefit of everyone involved.

Safety is a foremost concern for us. Our AI-driven security measures include real-time trip tracking, driver and passenger verifications, and emergency alert systems. Moreover, predictive analytics help identify high-risk areas, enabling us to collaborate with local authorities to heighten safety for all.

Q: But reports say transport revenue declined. How did inDrive still grow?

A: Nigeria’s vast youth demographic is a powerful driver for our growth. With a population exceeding 200 million, a significant portion falls within the youth bracket, eager for modern transportation solutions. While we certainly don’t cater to every individual, the market potential remains vast. Two key factors underscore our growth: the youthful populace and an overwhelming appetite for ride-hailing services. By allowing drivers and riders to negotiate prices freely, we enable a market balance that supports our growth trajectory. Are we witnessing a movement towards more egalitarian transportation solutions?

Q: Are you planning to deploy electric vehicles (EVs) or CNG-powered vehicles in your ride-hailing fleet, particularly in markets like Nigeria or South Africa?

A: The importance of electric vehicles is indeed growing on a global scale. In countries such as India and Pakistan, we’re already integrating EVs into our operations through strategic partnerships and infrastructure development. In contrast, while the interest in EVs is rising in Nigeria and South Africa—bolstered by supportive government policies and local innovations—we currently do not have firm EV implementation strategies. However, our eyes are on the market developments, and as infrastructure improves, we’ll be prepared to align our services with the sustainable and accessible mobility that our mission embodies.

In conclusion, the trajectory of inDrive in Africa speaks to a broader narrative of change and opportunity. Our journey—filled with challenges and triumphs—continues to redefine mobility, placing emphasis on each individual’s right to choose and navigate their own path. After all, isn’t the essence of progress inherently tied to our ability to adapt, innovate, and uplift those around us?

Edited By Ali Musa
Axadle Times International–Monitoring.