Treepz, an African mobility company, has changed its business model to become a car-sharing marketplace where car owners may list their cars for hire.
The business claims that this shift is a more cost-effective and long-lasting solution for transportation in Africa.
With this decision, Treepz hopes to reimagine its mobility company in a relatively untapped market.
The basic idea is that there are 44 automobiles for every 1,000 people in Africa, showing that there is a significant need for accessible transportation.
By enabling customers to borrow a vehicle just when they need it and for rental durations varying from hourly to monthly usage, Treepz seeks to close this gap.
Read also: African mobility firm, Treepz rebrands consumer app
How Treepz car-sharing marketplace works
Cars may be hired via the app for between 30,000 ($65) and 93,000 ($210) per day, but the business thinks that as more vehicle owners sign up for the system, pricing competition will further reduce costs for customers.
Onyeka Akumah, the Chief Executive Officer of Treepz, explained how the company’s current emphasis is addressing the problems faced by automobile owners and renters on the continent in a statement sent to TechCabal.
“The new Treepz is an exciting innovation for transportation in Africa. We are making better use of more than 26 million vehicles available on the continent to provide commuters with enjoyable and fun transportation service as they travel for work or simply enjoy a smooth ride across the safaris in the continent,” CEO said.
Akumah explained further that “Treepz is “regarded as the largest car-sharing marketplace in Africa and we have seized that opportunity with the technology we’ve built for hosts (vehicle owners or rental companies) to manage their inventory, reach new customers and track their growth. While guests who book from these hosts have the luxury to select their dream car for work, pleasure or exploration with a vetted driver.”
According to the press release, Treepz has been developing its marketplace product for the last five months and is now making it available to consumers in Nigeria, Ghana, Uganda, and Kenya.
This car-sharing marketplace, which according to Treepz is the biggest in Africa, is home to a range of cars, including sedans, SUVs, vans, and buses. The business strategy has verified vehicle owners or “hosts” establish their chosen rates and availability while renters or “guests” choose their desired automobiles based on location and length.
The car-sharing industry in Africa is still in its infancy, with few active participants and practically any market leaders. Treepz thinks that with its solution and the knowledge it has gained from operating in African countries, it can establish itself as a market leader in the region’s emerging car-sharing industry.
In response to the challenge presented by the widely used ride-sharing model and operators, Johnny Enagwolor, co-founder of Treepz, discussed some competitive benefits of the startup’s approach in an interview with TechCabal.
“From a user standpoint, the pricing is better with our car-sharing model. Ride-hailing companies would charge a lot for a full day’s ride, compared to the daily offers on our platform. Also, we have a collection of cars—including trucks and luxury cars—that are not typically used for ride-hailing, thereby expanding the choice for our users. Finally, we are operating at a wider scope, with a system that can operate in more cities than the ones ride-hailing companies are choosing to focus on.”
Enagwolor also said that Treepz’s car-sharing service is not entirely new to the business since they had already tested the idea out for a few clients, although in a non-digitized play. “We eventually looked closely at the company to determine which model was providing us with the highest profits and could grow most effectively. Then we made the decision to fully switch our direction to car-sharing,” he said.
By purchasing mobility businesses in Ghana and Uganda, Treepz generated $2.8 million in 2021 and expanded the scope of its portfolio of mobility solutions. It offered three key services in Nigeria: a corporate mobility solution for companies, an intercity transport option, and a minivan-Uber-like service.
In order to concentrate on this new mobility vertical and pursue its goal of becoming Africa’s leading car-sharing marketplace, the business is now retiring its earlier models.
Onyeka Akumah created Treepz in 2019 with the support of well-known financiers including Google, SOSV, Goodwater Capital, Techstars, and GIIG Africa Fund.