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Easy Matatu Learning Report

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Easy Matatu Learning Report

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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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EASY M ATATU

Travel made safer and faster

Learning Report
1
Introduction 3
Today’s Minibus Taxi (Matatu) Industry 3
Aim of Report and Key findings 3

The Easy Matatu solution 5


Easy Matatu and reforming the status quo 5
Easy Matatu and the Commuter Experience 5
Easy Matatu and Minibus Taxi Operations 6
Easy Matatu and Government Regulation 6

Easy Matatu Survey Results 8


Design and Data Collection 8
Demographics 8
Characteristics of Easy Matatu’s drivers 2

Commuting with Easy Matatu 3


Minibus taxis were the most common alternative before Easy Matatu 3
Commuters want reliable and safe journeys 3
Faster and more reliable journeys 4
Cost reduction and budgeting 5
Meet Melissa Mutoni – an Easy Matatu Customer 6

Driving for Easy Matatu 7


Drivers opinion about Easy Matatu 7
Working with Easy Matatu 7
Earnings with Easy Matatu 7
Safety with Easy Matatu 8
Meet John Magala – a Driver with Easy Matatu 8

Potential Impact and The Way Forward 9


Market challenges still needing addressed 7

2
Introduction external and government solutions have so
far been challenging to implement and faced

Today’s Minibus opposition from incumbent stakeholders,


due to a lack of infrastructure in Kampala to
Taxi (Matatu) support large-scale reforms and a powerful

Industry
matatu industry, which employs upwards of
100,000 people.

Informal transport dominates transport


in Greater Kampala. The backbone of this
unofficial transport system is a fleet of
over 16,000 14-seater minibus taxis which
account for more than 50 per cent of all
paratransit journeys in Kampala. They
are preferred for their flexibility, extensive
coverage and affordability. This informal
system has contributed to the high traffic Aim of Report and
Key findings
congestion seen along Kampala’s roads.
Despite their popularity, minibus taxis are
often dirty and poorly maintained, risk of
robbery is high around terminals and routes
This study aimed to understand the impact
are also often inconsistent and unreliable.
of formalizing the minibus taxi industry
These minibus taxis are privately owned through Easy Matatu’s service offering
and prior to the COVID-19 pandemic, were which introduces a mobile booking platform,
largely unregulated by the Government scheduled rides, transparent pricing and pre-
of Uganda. Prices are set by individual vetted and trained drivers. The key findings
operators or fragmented associations and from this study include:
fluctuate frequently depending on market
circumstances. Operators are also under
1. There is a clear need for more reliable
no regulatory obligation to meet minimum
and safer public transport in and
safety and cleanliness standards. Operators,
around Kampala.
who are mainly drivers and conductors,
usually have little or no formal education
and must work long hours to meet the high
running costs and make any profit in a highly 2. Scheduled rides can improve minibus
competitive industry. taxi efficiency, reducing travel times
and indirectly reducing greenhouse gas
Among other costs, traffic congestion in emissions.
Kampala costs the economy 2.5 trillion
Uganda shillings ($682m) annually. Through
the Ministry of Works and Transport (MoWT)
and the Kampala City Council Authority 3. More transparent and stable pricing in
(KCCA), the government is seeking to reform the minibus taxi industry can lead to
the informal transport sector in a bid to better significant transport cost savings for
organize and decongest a rapidly growing commuters.
city. Government proposals to introduce the
new Bus Rapid Transit system and expand
the existing Uganda Railway Corporation
4. Platform based paratransit can improve
commuter service along major city routes
working conditions and incomes for
are likely to cause the loss of more than
minibus taxi operators.
50,000 jobs in the paratransit economy. Any

3
The Easy Commuters
scheduled and reliable rides

Matatu
faster journeys
clean and comfortable rides
transparent pricing

solution
trained and trusted drivers

Drivers
guaranteed earnings
Easy Matatu and improved working conditions
training and support
reforming the respect and community
automated record keeping
status quo
Owners
Established in 2019, Easy Matatu is a platform transparent revenue collection
connecting commuters to safe, reliable assured driver payments
and clean transportation in Kampala. It vehicle tracking
enables passengers to pre-book seats on increased vehicle utilization
scheduled rides operated by vetted and better vehicle maintenance
trained operators whilst providing minibus
drivers an opportunity to increase their
income and to work in a formal and less Government and police
stressful environment. As of February 2021, solve public transport dilemma
more than 8,000 users have used an Easy compliance with government
Matatu taxi operated by one of 50 vetted licensing and dues collection
and trained Easy Matatu drivers. Easy Matatu reduced road incidents & violations
has received $525,000 in grant funding from
Total and Shell Foundation to support the
business as it looks to refine and scale-up its
service offering.
Easy Matatu and
There is an opportunity to reform public
transport in Kampala through transportation
the commuter
solutions that harness existing informal
transport services whilst improving
experience
livelihoods and adequately meeting the Traditionally commuters access minibus
growing demand for transport. The use of taxis by standing on the side of the road and
tech-enabled solutions is a scalable and flagging one down, or by queuing at a minibus
efficient method to accomplish this, and taxi stage or terminal which can take from 15
while the minibus taxi industry has historically minutes to several hours depending on the
been resistant to reform, a solution that time of day.
improves the system from within may cater
to the interests of different stakeholders to Commuters travelling with Easy Matatu
open the path to change. download the Easy Matatu app and use it
to reserve a seat on a scheduled ride. Easy
Easy Matatu’s solution delivers benefits Matatu harnesses data to schedule rides
to several key stakeholders including to effectively match demand with supply,
commuters, drivers, owners, police and and provides a toll-free number and USSD
government. application for commuters.

4
Easy Matatu and vehicle inspection to ensure roadworthiness.
Drivers receive free road safety, customer
minibus taxi care and vehicle maintenance training,

operations
mitigating traffic offences and other
incidents. All journeys are digitally logged
and trackable, helping to deter robberies
Informal minibus taxis usually operate and kidnappings. New measures have been
specific routes with intermediate stages proposed by the government to streamline
determined by users’ destinations and activities in the minibus taxi industry, all of
individual requests along the route, with no which Easy Matatu is already compliant with
formal timetable or route mapping. Drivers or is in process of implementing.
work long hours 6-7 days a week to meet
high operational costs, whilst daily revenues Easy Normal
ACTION
fluctuate significantly due to external factors Matatu minibus taxi

like weather, traffic conditions, as well as an


Allocation of route
extremely competitive environment. charts  

Easy Matatu trained drivers accept and Registration and


issuance of route  
complete scheduled trips through Easy number
Matatu’s digital platform. Drivers earn a
Verification of PSV
fixed amount per trip irrespective of the licence & driving  
number of passengers or any external market permit

conditions, and do not have to pay any fees.


Booking system  
Since commuters are pooled through Easy
Matatu’s platform drivers don’t street-hail for Mandatory vehicle In progress 
inspection at SGS
passengers, thus shortening commuter times
and improving fuel efficiency of journeys.

Easy Matatu and Easy Matatu


government
regulation
Survey
The minibus taxi industry remains largely
Results
unregulated with several unlicensed
minibus taxis and drivers operating illegally. Design and Data
Collection
Ungazetted stages exist on nearly every
major highway in and around Kampala,
contributing to increased traffic and
congestion. With more than 16,000 minibus This study collected qualitative and
taxis, enforcement of traffic rules and quantitative data from Easy Matatu’s users
regulations has been difficult for an under- and drivers. A questionnaire was shared with
resourced Police Force. more than 7,000 Easy Matatu users, and
352 responses were received. Two focus
Easy Matatu presents an opportunity to group discussions were held with randomly
change this narrative for the government. selected Easy Matatu users. Discussions
To join the Easy Matatu platform drivers were conducted virtually with 22 participants
must provide valid identification and license across two sessions. Six drivers were
documents and minibus taxis also receive a interviewed over the phone.

5
Demographics Commuters want
Characteristics of Easy Matatu’s users
reliable and safe
journeys
Gender Minibus drivers are almost always
male. Of the 100 drivers and conductors
Over 60% of respondents indicated that
surveyed, only four were women.
reliability and safety drove them to ride with
Age The majority of drivers Easy Matatu followed closely by cleaner
17% vehicles, demonstrating the value proposition
are between 25-39 years 18-24
of age with a significant 39% of its service offering.
number of drivers over >40
44% For commuters on Entebbe road, reliability
40 years old, indicating 25-39 is a major concern given it is a 35km
it is a lifelong occupation.
journey to and from Kampala and there are
fewer options for longer distance journeys
compared to shorter routes.

“The Kampala-Entebbe route has


been a hell journey where people
have had to fight for cars at Railway

Commuting
Station in the evening and the
morning at Children’s Park which has

with Easy
been torture”
Easy Matatu user

Matatu Reasons for travelling with Easy Matatu

Minibus taxis were


the most common reliability 67%

alternative before
safety 62%

Easy Matatu
cleanliness 32%

other 3%

Prior to using Easy Matatu, over 65% of 144


respondents travelled by minibus taxis. This 124
indicates that the differentiation introduced
by Easy Matatu has the potential to
significantly impact commuters who have no 61 65
53
choice but to use minibus taxis. 35 34
25 14
6.5% private car 1.2% other reliability safety cleanliness
walking
10.2% Entebbe road Jinja road Kira road

boda bodas 16.2% 65.9%


ordinary
taxis

6
Faster and more Cost reduction and
reliable journeys budgeting
Respondents agreed that Easy Matatu
trips were faster than those with minibus
taxis as all trips had defined pickup points Average transport cost reduction taking
which eliminated time wasted touting for Easy Matatu, by monthly income
passengers or unplanned stops. Furthermore
nearly 20% of respondents found that < UGX 235,000 / $64 4,206

journeys were faster by up to 30 minutes, < UGX 335,000 / $91 6,440

which for some translated to improved < UGX 410,000 / $112 4,321
quality of life and work performance. < UGX 800,000 / $128 2,462
< UGX 1,000,000 / $273 13,114

Are Easy Matatu journeys 12,2% > UGX 1,000,000 / $273 9,190
shorter than normal no
minibus taxi journeys?
87,8%
yes Does using Easy Matatu
justify the higher cost
to travel?
(352 respondents) 57,7% 42,3%
yes no
Average time saved by taking Easy Matatu

Entebbe road 31.5 minutes

Jinja road 28.7 minutes

Kira road 26.5 minutes Easy Matatu strives to remit to its drivers’ fair
market rates. More than 57% of respondents
felt that the improved services introduced
The study also found that the longer the through the Easy Matatu platform justified
journey the more time saved for passengers. this cost premium.
As Kampala continues to grow, there will be a
need to expand further from the city centre In addition, transparent pricing helped
lengthening commutes and increasing the commuters to avoid on average 50-100%
need for efficient public transport to reduce price fluctuations during periods of high
commuting time. demand.

Travelling with Easy Matatu also improves “Easy Matatu removed the Boda Boda
the quality of life for commuters. Commuters equation from my transport, and I am
have reported reduced stress due to the spending less.” Easy Matatu user
assurance and certainty that Easy Matatu
brings to their commute, as well as having a Easy Matatu’s transparent pricing also
positive effect on commuters’ productivity gives commuters a better control over their
and image at the workplace due to greater finances and allows them to financially plan
consistency in reaching work on time. for transportation. Respondents consistently
exceeded their transportation budget before
‘It helps with my health because I used using Easy Matatu due to fluctuating and
to have a lot of stress you know [when] unpredictable prices of normal minibus taxis.
coming, you have to connect [with
other taxis] especially because I don't “Easy Matatu makes me spend less
work in town, I work out of town’. because I can predict the cost”.
Easy Matatu User Easy Matatu user

7
Meet Melissa Driving for
Mutoni – an Easy
Matatu Customer Easy Matatu
Melissa commutes to Kampala daily from Drivers opinion
Entebbe, a city 35 km away, for her work as
a customer service agent at an Ecommerce about Easy Matatu
start up. A single mother of one, she found
travelling to and from work while raising a
child very hectic. Every day she would have Over 64% of drivers surveyed are willing to
to board several minibus taxis to reach her use the proposed app due to the perceived
work on time. On the return trip she often benefits it brings.
had to fight to get a seat in an Entebbe bound
vehicle or walk several kilometres to the bus
Is Easy Matatu beneficial to drivers?
park where a minibus taxi was guaranteed
but add 30 minutes to her journey and is 25% yes no total
more expensive.
not
yes no Jinja road
Since she started using Easy Matatu, she has sure
become less stressed. She books a seat on
an Easy Matatu in the morning which picks yes no Kira road
her up at a stage near her home and drops
her off in the city centre, a stone’s throw from
her workplace. In the evening she no longer
Drivers on Kira road are more enthusiastic
fights or walks several kilometres to get a
about the benefits of Easy Matatu. This is
ride. She is picked up in the city centre and
likely because drivers are more open to
takes an express ride home allowing her to
tech-based mobility solutions given Kira road
get home early, to spend time with her little
has several ride hailing apps like Uber and
one. Journeys that took on average 2 hours
SafeBoda already operational.
now take on average 1 hour and 15 minutes.

“Easy Matatu has been a life saver.” Is Easy Matatu beneficial to owners?
not
yes no sure total

yes no Jinja road

not
yes no Kira road
sure

Owners on the other hand are more


optimistic about the impact of Easy Matatu
on Jinja road where there is the largest
volume of traffic, likely due to issues around
transparency and remittance of target
revenues to owners.

8
Working with Easy
experienced any road safety incidents to
date.

Matatu “Of course, I feel safe because I


do not get that tired as before.”
All drivers found working with Easy Matatu Easy Matatu driver
quicker and less stressful, and the major
reason for this is customers’ punctuality due

Meet John Magala


to Easy Matatu’s scheduled rides model.
“I no longer hustle gathering or
looking for clients as before, no
pressure as before.”
– a driver with Easy
Easy Matatu driver Matatu
John Magala lives in Wakiso, a district in

Earnings with Easy


Central Uganda, where he is a minibus taxi
driver plying the highway from Entebbe to

Matatu Kampala. Before driving minibus taxis, John


was a boda boda rider, working for 2 years
before becoming a conductor.
Drivers’ earnings have been severely
affected due to the COVID-19 pandemic and Conductors are responsible for touting and
its consequent disruptions like passenger collecting money from passengers in minibus
restrictions and night-time curfew. However, taxis. He was later taught how to drive by a
drivers noted that trips done with Easy friend, the only training he has since received.
Matatu were fast. In the minibus taxi industry,
time saved equates to more trips and more A father of 4, John makes 20,000 shillings
earnings. Also, drivers’ earnings increase with ($5.4 USD) on average each day but on
Easy Matatu due to the absence of loading a good day he could make up to 40,000
fees, fees which make up, on average, 13% of shillings ($10.9). Before the lockdown, John
their daily income. worked 12-14-hour days, completing 6 trips
each day.
“If I am not driving for Easy
Matatu and just go picking clients However, since the end of the lockdown he
one by one, sometimes the trips
can only complete 4 trips per day due to
differ. So when I am working for
Easy Matatu, I am quick because fewer customers and night time curfew.
taxis are all about the time when
you are early enough, money is Since becoming an Easy Matatu driver, he
obvious, but if you are late, you does 2 trips per day on the Easy Matatu
expect a low output.” platform, an experience he finds simple and
Easy Matatu driver straightforward because he doesn’t have to
tout for passengers and pay loading fees.

Having worked for Easy Matatu for 6 months


Safety with Easy he has learnt how to keep time, how to save,

Matatu
since he is paid through Mobile Money and
how to always keep his vehicle clean.

Only 6% of all minibus taxi drivers have ever “Working for Easy Matatu, I have
gained extra money as opposed
received formal driving or road safety training
to working alone and branding
and Easy Matatu’s road safety training was the car has affected my life in a
the first formal road safety training for many positive way.”
of its drivers. No Easy Matatu drivers have John Magala

9
Potential hours per day and enable them to increase
their daily revenue by 25%.

impact and
the way
Easy Matatu ensures that 100% of its trips
are operated by pre-screened and pre-
trained drivers and at scale can prevent

forward more than 1,000 fatal and minor crashes


annually.

In order to achieve this potential impact, Easy


More than one million people use minibus
Matatu has identified a number of key areas
taxis to travel into Kampala every day,
of its business model that it sees as critical to
however the current minibus taxi system
allow it to successfully scale its offering and
remains inefficient, creating challenges
deliver interventions that positively impact
to commuters, drivers, and the sector as
the sector.
a whole. Easy Matatu is tackling these
challenges by harnessing technology and
working from within the sector by facilitating Over the next 2 years recruit and train at
accountability, enhancing efficiency and
least 1,000 existing minibus taxi drivers
bringing organization to an informal sector.
on the Easy Matatu platform providing
Based on the results of the study, it is evident accredited road safety and defensive
that Easy Matatu has the ability to grow its driving training.
existing business model to deliver significant
impact at scale:

At scale, Easy Matatu will reduce CO2 on Expansion to be focused along major
the road, bring down transport costs and routes connecting surrounding suburbs in
increase savings, make commuting more order to target the low-middle income and
reliable, less stressful and most importantly business class that form Easy Matatu’s
safer. key customer demographic.

Easy Matatu trips are 15-30 minutes faster


Introduce new initiatives such as
and cumulatively Easy Matatu could help
launching off peak hour trips, as well as
commuters and drivers save an estimated
leveraging economies of scale to reduce
17,500 hours daily in transit.
ticket prices by ~15%.

Time savings can prevent more than 28


metric tons of CO2 being released into Fostering closer partnerships
the atmosphere each year by Kampala's with relevant government authorities
minibus taxis, the equivalent of 40 acres of like KCCA and MoWT in order to properly
forests. represent its stakeholders in future
strategy and policy formulation to reform
public transport and decongest Kampala
By eliminating wasted time, it is estimated city.
that Easy Matatu can save drivers 2-4

10
Market challenges Unsafe and unreliable minibus taxis

still needing affect the health and productivity of


the city’s workforce, and thus greater
addressed regulation and enforcement of minibus
taxi standards is critical to both
increase passenger safety and reduce
There remains a clear need to strengthen
and build platform-based communities that emissions.
can help in administering and regulating
minibus taxi operations. Despite the work
of Easy Matatu and others in trying to
reform the sector, there remain a number Digital mobility solutions currently
of key challenges in the market that need a operate in a regulatory “no-man’s
coordinated effort to address. land”, hampering their ability to
achieve meaningful impact. Decisive
government support and legislation
In light of COVID-19, the need for
to promote and nurture sustainable
regulation in the industry has never
mobility start-ups can greatly scale
been more dire. Most minibus taxis
have no social distancing, and with no their impact.
fixed routes or ticketing systems make
it impossible to do contact tracing.

Impactful mobility start-ups (such as


ridehailing, ridesharing and e-mobility)
Unstable and fluctuating prices are important in shaping a sustainable
comprise up to 30% of the transport future for Africa’s mobility, yet they
budget for low to middle income currently have inadequate access
earners. Some form of stable/regulated
to funding. Funding and capacity
pricing structure could help commuters
support from investors, donors, and
save between $0.5-4 each day in an
economy where 40% of households government are critical to supporting
survive on less than a dollar a day. the ecosystem from infancy to scale.

EASY M ATAT U
Travel made safer and faster
11

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