Ownership is fast becoming a key selling point for EV sellers in Kenya even as more entrants get into the electric two-wheeler market.
The development comes in the wake of rider frustrations brought about by several factors related to the lease model adopted by ground-breakers in the industry. The most notable case concerns Spiro, which prides itself as the largest electric bike company in Kenya by volume and geographical coverage.
Recently, riders expressed their anger online for being unable to swap their batteries for more than five hours, yet they had no way of recharging at home.
How did it get here?
For one, the cost of owning a new electric motorcycle is quite high, almost three times that of an ICE motorbike. If startups had to make any breakthrough in the nascent market, they had to offer incentives.
They also had to prove that ‘owning’ an electric motorcycle was more profitable than owning a petrol one. That was the main selling point.
For starters, motorcycles in East Africa and other African markets are majorly used as passenger service vehicles known as bodaboda. The majority owners are therefore riders keen on making a profit.
If the electric motorbike offered an opportunity to make 60 percent more than an internal combustion one, then why not ‘buy’ it? But, as stated, the price of owning one was steep.
The Challenges of Owning an Electric Motorbike
Secondly, there was also a dearth of charging or swap stations across Nairobi, which was the launchpad for many EV companies. Inevitably, this created buyer apathy despite the promise for higher profits.
To solve these major challenges and attract customers, EV startups have built more branded swap stations that are accessible from various parts of the city, and some have even expanded to other cities serving the rural majority.
The drive range for a single charge has steadily risen from 60km to 90km and above, with some companies now reaching 120km. That’s a decent range that assures the buyer of completing a long-distance errand run without the fear of running out of charge along the way.
Companies are now designing and building stronger and powerful bikes that can withstand heavier luggage and manoeuvre tough, rugged and hilly terrains.
Using the lease model as well as collaboration with credit financiers has increased access and ownership to electric motorcycles. In this regard, fintechs like MOGO and M-Kopa provide the partial capital needed to acquire a motorbike. The rider then repays within stipulated timelines while also keeping a profit for themselves.
The challenge that remains concerns battery ownership and availability at swap stations.
Back to the Spiro case, riders could no longer hide their frustration at the unavailability of batteries at swap stations.
In some instances, they waited for more than five hours for a battery swap that should be completed within 2 – 3 minutes. That means lost profits and time for both riders and company. Spiro requires its riders to swap batteries at their branded stations – a demand that is proving untenable as EV adoption continues to rise.
Comparatively, and to avert such scenarios, Ampersand which was a pioneer in the field is focusing more on battery production and has opened up its swap stations to collaborate rather than compete. The agnostic approach means their batteries are compatible with motorbikes from different companies (or rather, bike manufacturers now have to design their vehicles to be battery agnostic).
Meanwhile, Roam is offering what it terms the best alternative for riders – ownership. Its bikes are designed to be recharged at any common electric port wherever the rider may be. This means more freedom for the rider and removes the anguish of looking for a swap station.
Unlike Spiro’s model which also ensures the battery automatically switches itself off when a bike’s not in use for a certain period (five days according to a letter we saw sent to a rider), Roam’s model assures ownership and the rider doesn’t torment themselves should they be indisposed for some time for whatever reason.
To switch Spiro’s battery back on one has to contact the company. In a general circular to address the issues raised, the company insisted on its ownership of the electric motorbike assets, asserting that some measures are to prevent dormancy ‘when other riders could be using the same battery’. In short, the company forces you to work under all circumstances so their batteries aren’t dormant.
Lack of working communication channels are also a source of frustration in this regard for the riders, not just journalists. (I contacted Spiro on the issues but there was no reply –).
While more and more bodaboda operators are switching to the electric bike, persuaded by the bigger powerful models, collaboration with ride hailing apps, and diversified financing options, ownership is now the new frontier of marketing wars. And as they say, the customer is always king.
