Chinese-backed Opera Opay has extended vertically into the car-hailing segment. This is coming on the heels of another extension into the payment segment. The latest extension is expected to intensify competition in the car-hailing landscape, consequently stimulating innovation while driving down cost among the 3 top players comprising Uber and Bolt.
Ocar is launching with a N200 promo, and 15% commission which can go as low as 3% for drivers after 20 trips. The commission rivals Bolt’s 15% commission (though currently Uber’s stand at 25%). As it stands, drivers are more likely to enlist for Ocar based on the improved commissions; the new entrant may likewise draw more users (passengers) with access to further services as found on the operator’s sister businesses – Opay, Oride, OBus, Ofood, Otrike. All these form a competitive advantage for OCar backed by a strong funding chain.
Oride Senior Director of Operation, Rilwal Olalere, enthused, in relation to the new extension, “We are on a constant path to provide solutions to all Nigerians. We are rolling out this service in cities where residents do not consider it a luxury as it serves as a primary source of transportation.”
Opay announced a series B funding to the tune of $120 million from its Chinese investors recently. The funding will help the business further challenge leaders in all the segments it currently plays. This may put Uber, Bolt, Jumia Food, and other fintech payment startups off balance as it did Gokada in the bike hailing segment.