Sendy joined the online taxi hailing space about two months ago. This was a move to diversify from its initial logistics business. Sendy Ride was meant to be an on-demand taxi and motorcycle service. The competition in the taxi hailing market has been stiff especially with the presence of big wigs such as Uber and Little Ride, a brainchild of Craft Silicon and Safaricom Limited. For two months, Sendy Ride tried to settle in the market. Things didn’t go as expected and Sendy is terminating its Taxi hailing service.
According to Sendy this move will enable it to expand its courier service. It will give the firm more time to concentrate on its core logistics business. It is interesting to note that Sendy was just piloting the taxi business. Depending on the market outcome then they would be in a better position to make judgement whether to roll it or pull the plug on it. Well, it seems the market behaviour warranted the latter response.
The following are the remarks from Sendy CEO as recorded in a telephone interview with Business Daily:
“We have suspended the pilot since October. This is due to demand from our customers in the core logistics business which has been expanding. We will use the data collected during the pilot to determine a way forward in the passenger business.”
-Meshack Alloys, Sendy Chief Executive Officer
Sendy is a beneficiary of Safaricom’s Spark Fund. This happened in November last year. It ventured into the taxi business in August while also expanding its logistics business to Kisumu, Mombasa and Thika. Sendy Ride was charging motorcycle clients Ksh.200 per kilometre for rides less than seven kilometres and Ksh.30 for longer trips. On the other hand it was charging cab passengers Ksh.300 for up to three kilometres and thereafter Ksh.70 per kilometre.