There is a New Taxi Service in Town: Heetch!

This post was updated on the 14/07/2019 to include the following:

• Heetch confirmed its arrival to the towns of Douala and Yaounde via its newly created Facebook page.
• Their visuals on the Play and the Apps Store have been updated, giving clues to the prices they will practice in the country.

---

Popularized by giants like Uber, TNCs have literally revolutionized the way we move around. Comfort + cheaper price, have proven to be a winning combo in the domain of transportation. So much so that in a country like France, it is estimated the market value of the TNC sector will reach 3.9 million euros. However if in a country like France the market is saturated with competition, it isn’t the case in Africa where TNCs are still new, hence a market to conquer, especially francophone Africa where the giant Uber is still absent, after 6 years of presence on the continent.

"The demand for VTC services is much higher in Africa than in developed countries or Europe, due to lack of public transport and low car equipment," - Markus Villig, CEO of Taxify.

Two years ago, the French start-up Heetch lived a nightmare with French justice. Heetch was found guilty of complicity in the illegal practice of the taxi business, deceptive marketing practice and the unlawful organization of a system for connecting clients with non-professional drivers according to Le Monde. This earned the company a 200,000 euros fine - a harsh punishment for a start-up.

"We manage to convince investors by growing in a market like France, which is quite competitive, without spending too much money. I think we are the only platform that attracts more passengers and drivers without giving bonuses all-out, without making discounts every four mornings, " - Teddy Pellerin, co-founder of the company.

However, this is the past now. Following their legal battle, Heetch underwent a transformation - from a private transport start-up to a transport network company - operating 1000 drivers in Belgium and France. They didn’t stop there, pushing their presence to Morocco, since 2018. Now, the company wants to be more present in Africa, with countries like Ivory Coast (where their service is already in test in Abidjan), and Algeria, starting with Cameroon, and Senegal. For this, the company was able to raise 23 billion XAF thanks to investors like Total Ventures just to name these.

[Update of the 14/07/2019] Heetch recently opened a Facebook page to promote their activities in Cameroon. Via this page, they confirmed their arrival in the country, though no specific dates have been communicated. I contacted them with this inquiry, and I am waiting for their response.

But at what cost? 

Teddy Pellerin, Heetch’s co-founder already assured the practiced price will be higher than what is being already practiced locally. Indeed, you may already have seen these advertisements a little bit everywhere on the internet (in my specific case, Instagram), which prompts you to do a survey for an upcoming transport company in Douala and Yaounde. If you did the survey, you will eventually see the proposed costs are VERY high. For example, they propose to pay 2,400XAF for Carrefour des Immeubles in Kotto and Maison H, or 1,900XAF between Tradex Yassa and Belavi Ndokoti. In either case, both prices are 5 times more expensive than what is being practiced locally, hence not adequate to the purchasing power (or maybe we aren’t the target customers?). However bear in mind that this is just a survey, hence the prices displayed are just speculations.

[Update of the 14/07/2019] A little tour of the Heetch app on the Google Play Store and the Apps Store of Apple, reveals the French company updated the visuals of its app to reflect its arrival in the country. One of these visuals gives us a clue about the price that will be practiced in Douala and Yaounde. The app will propose you to spend 1,100XAF for a 4min ride between Maison H, and Polyclinique Bonanjo (a total distance of 1.9km). With the locale yellow cabs, this will cost you 250XAF, which represents an inflation of 850XAF. I, therefore, doubt locals will be ready to spend this much.

Translation: Reliable and safe application

Among others, Heetch promises to offer trips in less than 7 years old vehicles, air-conditioned, which arrives at your door, with just a 5 minutes wait, driven by trained and certified drivers. But also, they promise to push their service to motorbike riders (bensikin), which is reminiscent of a similar service from Uber and Taxify in East and South Africa. Bensikin 2.0? I will like to see what it gives. But I doubt it will take off well. Bensikins are popular among Cameroonians for their very cheap price tag. I doubt locals will want to disburse more in the name of comfort. For now, Heetch will have to compete with already present TNCs in Cameroon, notably the Cameroonian start-up Easy Ride, or the newly introduced WYBAP, Vairified, etc. I can't wait to see what therefore this will give.