EV focus expands to mobility apps

December 03, 2024

From the newsletter

Enakl, an on-demand shared transport platform based in Morocco, yesterday secured a $1.4 million pre-seed funding round. This is the latest in a series of investments and innovative pushes that are taking electric mobility beyond just vehicles and to new EV platform technologies. Many vehicle brands are building their own apps.

  • Enakl's funding round is led by Catalyst Fund, along with Renew Capital, Digital Africa, Station F, and 15 business angel investors. The funding will be used to expand its operations and develop its technology, leveraging AI to optimise routes.

  • Launched in 2023, Enakl manages 15,000+ monthly bookings in Casablanca with 20% month-on-month growth and aims to expand across Africa. It focuses on providing affordable home-to-work commutes and partners with corporations and transport operators to simplify employee travel and reduce their carbon footprints.

More details

  • Urban mobility is becoming a challenge in many African cities. High urbanisation rates are causing congestion, and many cities lack adequate road infrastructure to accommodate this growth. Existing transport systems are struggling to keep pace. Solving Africa's mobility problems requires a deep understanding of the customer, their location, and their financial capabilities.

  • Technology in finance has played a key role in increasing access to financial services. It has simplified transactions, making them less costly and time-consuming. In the transport sector, the old system of fuel vehicles has failed to innovate and adapt to modern technology to solve current urban transport problems.

  • E-mobility is emerging as a key player in creating sustainable transport solutions, and technology is central to its success. Customers need to track battery charges, locate charging stations, and monitor their expenses—all of which rely on digital tools. Across Africa, e-mobility startups are utilising technology in diverse ways, from ride-sharing and charging infrastructure to battery management and payment services.

  • Investors recognise the potential of this tech-driven approach. Over 60% of mergers and acquisitions in the mobility sector in 2024 involved companies offering digital solutions. This highlights the growing importance of technology in shaping the future of transportation.

  • In the charging infrastructure space, GridCars, a South African EV charging provider, has its app, ActiveCharge. The app enables customers to easily locate and use public charging stations from different providers. It also integrates cashless charging and payment. Customers receive monthly statements detailing individual charging sessions and consumption billing. Each site may have different billing strategies, but this is detailed on the map. Similarly, Nigeria's ConnectVolt app enables EV users to find and connect with charging stations across the country.

  • In Kenya, the leading electric bus company, BasiGo, offers the Jani app for booking seats, tracking rides, and making payments. BasiGo also utilises technology to support its innovative payment platform, allowing fleet operators to lease buses and pay per distance travelled. This makes it easier for transport operators to adopt e-buses.

  • This trend extends beyond apps. Uganda's EbusXpress uses USSD codes for fare payments, a method also adopted by several transport companies in Kenya. 

  • PickApp, a Togolese EV startup, provides a pay-as-you-go model for EV ownership, making electric vehicles more affordable. Their mobile app also facilitates ride-sharing, and they are establishing a network of charging terminals across Togo.

  • Even battery-swapping stations are embracing technology. Software is used to monitor and manage battery charging, capturing data on swaps, charging times, and payments. This enables providers to effectively track revenue and energy demand for easy planning.

Our take

  • Just like in fintech, technology is here to accelerate e-mobility. From enabling consumers to afford EVs through tech-enabled flexible repayment plans like pay-as-you-go, we have seen how technology has enabled access to mobile phones and money. Expect the same to happen in the mobility space, particularly in the adoption of electric motorcycles.

  • Digital technology is less capital intensive than manufacturing, and has higher margins. The mergers and acquisitions we have witnessed in Africa show that investors are confident in investing in technology for the mobility space.

  • The increasing urbanisation and demand for last-mile delivery services are driving the need for further technological innovation in the mobility sector. Consumers are seeking convenient and efficient solutions that cater to their needs and lifestyles. This demand will fuel the development of new technologies and business models that prioritise customer convenience.