Arab Finance: Egypt's ride-hailing market is booming, expected to reach over $137 million by 2024. It is a fast-growing sector with a strong demand for convenient and affordable transportation.

So, in this interview, Arab Finance talks with Max Osipov, Head of Business in MENA at inDrive. He explores inDrive's unique approach, how they are winning over riders and drivers, and their plans for continued success in the dynamic Egyptian market.

1-Can you tell us about the history of inDrive? And how has it evolved into a global company?
The inception of inDrive traces back to 2012 New Year’s Eve in the Siberian city of Yakutsk, the coldest city in the world.

Temperatures dropped to -45°C, and local taxi companies responded by doubling their rates, leaving many locals stranded in the cold. These collusive and unfair price hikes angered people, who began to band together on social media to request, offer, and, most importantly, agree on fair prices for their rides.

Today, the ride-hailing (RH) market is super unfair, with high commissions, incomprehensible algorithms, etc. It was time to change the situation, and inDrive did it and became a global player in the ride-hailing industry.

We always provide transparent conditions and the lowest possible commissions. This approach is perfectly suited to the conditions of the global crisis. People provide services (e.g., RH, masters, etc.) at a price that they agree on among themselves.

2- How does inDrive prioritize safety for both passengers and drivers?

In addition to prioritizing business metrics, as is customary for large international corporations, we place significant emphasis on enhancing the user experience.

Of course, a crucial part of this experience is safety. Ride-hailing applications, in general, are a good option for safe transportation within and between cities.

In inDrive, we value safety even more. First, both passengers and drivers can choose whom they want to take a ride with based on their rating and the number of trips they have done before.

Second, we have safety features like live ride details sharing and the save our souls (SOS) button in our application during the ride.

Third, we always provide quick support to users in any unexpected situation and work closely with authorities to solve the situation quickly.

3- Can you discuss the inDrive app and how it simplifies the process of ride-sharing, delivery, and freight services?

inDrive’s main concept resolves around facilitating negotiations between users and drivers to reach a mutually agreeable fare for trips or orders (whether courier, cargo, or service), ensuring the lowest commission in the market for all verticals.

Beyond ride-hailing, when we enter a new market, we stay non-monetized for a long period of time, giving drivers chances to earn more money.

inDrive simplifies the process of ride-hailing by offering the lowest commission rates for drivers and the most competitive fare prices for users.

Regarding courier and freight services, these services are applicable for users and the B2B industry since some companies and enterprises require delivery for parcels or big items without logistics and contract hassle. They can order courier and freight 24/7 to fulfill their business needs.

4- What sets inDrive apart from other ride-hailing and delivery services like Uber and Lyft?

While most companies are moving toward putting algorithms in charge, we give people this freedom. A good example is pricing, where companies completely control in other cases. It means that these platforms interfere in the relationship between driver and passenger.

We, however, provide a platform for them to communicate and make a deal. We recommend a price, but we do not control it.

I believe that today, while a lot of areas of life are being controlled by technology, people need this freedom to be able to make their own choices.

5- How has inDrive adapted to the unique challenges and opportunities of the Egyptian market?

The most important part of adaptation is having local experts on the team. When companies are expanding to different continents and cultures, it is difficult to keep up with local specifics.

Our strength is a strong local Egyptian team that we rely a lot on. We operate in different functions in Egypt, from business leaders to HR and PR.

Moreover, we adapted our business model to Egyptian specifics. For instance, we have launched moto service in high-traffic cities. We also put a special marketing focus on seasonal tourist cities during the summer.

6-How does inDrive work with local regulations and partners in Egypt?

We applied for a license in Egypt. Since our launch in September 2021, in alignment with the Ministry of Transport, we are now legal.

And for partners, we entered into partnerships with CarGas and Gastec, the automotive natural gas companies for vehicles. The cooperation involves CarGas providing drivers with special features and facilities for free.

These could include benefits or advantages for inDrive drivers using natural gas, potentially in terms of cost savings, convenience, or environmental benefits. inDrive has taken on the responsibility of promoting Cargas' services and products. Additionally, inDrive is attracting drivers to training sessions.

7- How is inDrive marketing itself to riders and drivers in Egypt and the Middle East?

Our marketing strategies vary depending on the specifics of the country, culture, people, and landscape of our competitors.

I strongly believe we have one of the strongest marketing teams in the industry, excelling in both high-quality and local markets.

In general, we use all channels, from digital platforms and influencers to offline initiatives and partnerships. Our efficient marketing campaigns allow us to keep our economy in good shape and bring in more fair service fees.

8- What is the inDrive approach to customer satisfaction? And how does it impact that company’s future decisions?

We monitor customer satisfaction on a daily basis, tracking special metrics. Based on dynamics, we can adapt our actions accordingly.

For example, if our survey data indicates a need for better cars, we implement a comfort class. It is very important to link satisfaction metrics with real actions.

9- How does inDrive plan to stay competitive in the ride-hailing and delivery markets?

inDrive faces challenges and seizes opportunities the market offers:

Challenges:

• Competition: The ride-hailing and delivery markets are highly competitive, with new entrants and new services entering the space. We need to innovate to stay ahead.
• Regulatory Issues: Ride-hailing services often encounter regulatory challenges in different regions. Regulations can vary greatly from place to place, and adapting to these local regulations can be complex and costly.
• Driver and courier Turnover: Driver retention can be a challenge due to concerns about income stability, benefits, and the changing dynamic between drivers and companies.

Opportunities:

• Expansion into New Markets: Expanding into emerging markets and regions where ride-hailing services are still nascent.
• Last-Mile and Public Transit Integration: Integrating with public transportation and offering last-mile solutions can enhance the role of ride-hailing in urban mobility.
• Partnerships: Collaborating with other businesses, such as car manufacturers, can provide opportunities for growth and innovation.

10- How do you measure success? And can you share some metrics and factors that reflect that success?

Success in the ride-hailing industry can be measured in various ways. The main metric can be market share, and we proudly announced recently that we are the number one player in Egypt by market share.

In addition, the company has been named the world’s second most downloaded ride-hailing app in 2023. However, it is very important not to forget about the financial health of a business. Some companies might pursue quick share gains and sacrifice too many resources for this.

We focus on a healthy balance between investments, growth, and long-term goals.

11-With such a strong presence across Egypt, including major cities and regional areas, how has inDrive been able to achieve such a dominant market share?

inDrive operates in six countries, with Egypt being our biggest market. As previously mentioned, inDrive has become the number one ride-hailing application in Egypt for the second year in a row in 2023.

Egypt’s market is extremely important for us, and we believe that our services will bring innovation and employment to the Egyptian market. We do not only operate in major cities like Cairo and Alexandria; we also operate in Upper Egypt, the Delta area, and the Canal cities.

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