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What is the total addressable market for on-demand ride sharing in the Egypt?
Hello! Thanks for your request to find the total addressable market for the ride sharing market in Egypt. The most useful sources I found to answer your request are from Recode and Daily News Egypt. The short version is that there is fierce competition between the leaders in the ride sharing industry in Egypt with growth of an average of 6100% from Q1 of 2015 to Q1 of 2016. Below you will find a deep dive of my findings.
METHODOLOGY
I first consulted market analysis tools and databases such as Statista.com for insight regarding the ride sharing market in Egypt. Considering how the ride sharing industry in Egypt is fairly fresh, limited information regarding revenue and market values have been disclosed. I then directed my research towards case studies and press releases about the local leaders in the industry.
Currently the most downloaded taxi app globally, Easy Taxi was founded in Rio De Janerio, Brazil back in 2012. Easy Taxi entered the Egyptian market back in 2013 after being funded by German incubators Rocket Internet and the European telecoms operator Millicom. They received a total equity funding of $77 million from African Internet Holding, iMENA Group, Latin America Internet Holding (LIH), Mobily Ventures, Phenomen Ventures, Rocket Internet and Tengelmann Ventures.
UBER
Founded by Garrett Camp back in 2009, Uber has an estimated total of 2000 new drivers every month in Cairo, Egypt. Cairo became Uber’s busiest and largest city. They have over 30 000 driver partners. Uber plans to increase it's investment in Egypt by $27 million. Uber states that many of their drivers were unemployed before being accepted in the Uber workforce.
CAREEM
Careem is a ride sharing company founded in Dubai back in 2012. They entered the Egypt market back in December of 2014. They received funding of $72m from Abraaj Group and STC Vendors. They announced last year that they will be investing $100 million over the next five years for research and development focused around UAE, Pakistan and Egypt.
OUSTA
A locally developed app for ride-sharing released back on March of 2016. Their strategy for competing with ride-sharing giants Uber and Careem is to completely eliminate surge rates, lower fares and add even more safety features for riders. Considering how Ousta was founded in Egypt, more locals have preferred it over the competition for patriotic reasons . The app boasts 1 download and one ride booked for every minute. Ousta also claims to have grown by 30-40% over the course of 3 months since release.
GO-GO Car
Go-Go Car is another ride sharing app launched on March of 2016. What sets them apart is how they target customers or tourists who need to book or share rides for long-distance trips. They have a female-only service since a lot of the female demographic in the share-riding industry have shunned away from similar services due to many cases of abuse.
According to our sources, from Q1 of 2015 to Q1 of 2016, Easy Taxi suffered a contraction of -16% in Egypt, while Careem and Uber grew by 6031% and 6213% respectively. In the same period, Careem saw 330 times growth in active users in Egypt.
CONCLUSION
To wrap it up, the competition between the leaders of the ride sharing industry in Egypt will prove to be a challenge for new entrants to face. Ride sharing companies in Egypt that have just emerged are focusing on unique strategies such as a service focused more on long road trips or lower overall rates and better safety.
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