Why Treepz, Which Acquired UgaBus, Pivoted from Bus Ticketing to Car Sharing.

In November 2021, Nigerian startup, Treepz, raised a $2.8m seed round. It quickly expanded to Uganda, acquiring local bus ticketing startup UgaBus. UgaBus enabled passengers to book bus tickets online and had been operating since 2016. 

As per the deal, UgaBus was renamed Treepz Uganda and its founder, Ronald Hakiza, became the Uganda country manager. Ronald has since left after a successful transition to Beatrice Birimuye who is the current Country Lead. 

Treepz was founded in Nigeria in 2019, allowing passengers to book daily rides while also serving as an aggregator for bus travel companies in various Nigerian cities. But the startup has since pivoted to car-sharing and phased out its old model. 

Car-sharing, for those unacquainted, is a sustainable, cost-effective model that allows individuals to rent out their vehicles for short periods. “It’s a win-win scenario where you can access a car without owning one, and car owners can earn extra income by renting out their vehicles,” says Beatrice. 

“This model is especially appealing in Africa, where car ownership is often a luxury.”. With over 600 million Africans living in urban areas and less than 44 cars per 1,000 people, the demand for affordable transportation options is high.

“Treepz is pivoting to car-sharing because we believe that it’s a model that works well in African countries,” Beatrice explains, her optimism reflecting the company’s confidence in this new venture.

The car-sharing market is an untapped market to some extent, with estimates projecting it to reach a staggering value of $16.5 billion by 2025. According to McKinsey & Company, the car-sharing market in Africa is expected to grow annually at 20% from 2020 to 2030, with a projected market value of $500 million. This growth potential is what excites Beatrice and her team at Treepz.

She believes Treepz is in the best position to tap into this market. “We have an established network of users and partners, their experience operating mobility businesses in African countries, and their deep understanding of the unique challenges and opportunities of this market.”

This is how car-sharing will work. “Individuals can list their vehicles on the Treepz platform for rent. We then take a commission on each rental, which will be our primary source of revenue.” Treepz has a stringent vetting process for both car owners and renters, and they require that all vehicles on their platform are insured and meet certain minimum safety standards.

It has been a couple of months since Treepz pivoted to this car-sharing model and the focus has been on securing key partnerships. “So far, it’s going steadily given that it’s a model new to this part of the world. We are mainly focusing on strategic partnerships with event organisers, online travel agents like Booking.com and Tubayo, airlines, hotels, tour operators and the like to tap into their traveller base. Significantly, we have partnered with the Tusker Lite Mt Rwenzori Marathon happening in Kasese this September, and we have a series of conversations going positively. ” 

In a bold move, Treepz has completely phased out its old business model to focus entirely on car-sharing. “We believe that it’s a more sustainable and scalable model for our company and it is a ripe model for the African market,”  Beatrice says.