Transport anywhere in the world is a huge business, and the mere thought of new technology coming to disrupt the status quo makes things really interesting. In Africa, walking and public transport are still the predominant means of transport. Introducing a transportation innovation that truly works could make a lot of impact and profit at the same time.
In South Africa for instance, 65% of trips which occur in urban areas are less than four kilometers. In such a sector, any tech transport startup would definitely want to stake a claim, which explains the presence of MellowCabs.
Based in Franschhoek, Cape Town, MellowCabs is a kind of a Pedicab (bicycle taxis) made as an eco-friendly urban micro transport, with a tech-powered advertising model. They offer free last mile transportation by bringing the web’s advertising model into the real world.
Started in early 2012, MellowCabs was a product of a brainstorming session between Neil du Preez and Kobus Breytenbach centered on disrupting the pedicabs micro-transport industry. According to their home page, “MellowCabs is an exciting South African Non-motorized transport (NMT) and advertising company, focusing on the implementation and operation of pedicabs nationwide. Pedicabs are high-tech, electrically assisted human-powered vehicles that facilitate first and last mile transport solutions across a broad spectrum.”
It was initially based on a generic shell from China, which has now been modified into some roadworthy vehicle. The Chinese designs are technically bicycles. MellowCabs are manufactured in Wellington and assembled locally. According to Du Preez, “You can’t legally transport passengers in them. We’ve initially changed our cab design slightly for South African conditions, and now we’re making radical design changes, to make it truly individual.”
Zapacab and Uber are the closest to the MellowCabs idea. Both of them are taxi hailing mobile applications that operate in the main taxi industry, responsible for transporting 60% of South African commuters. Currently facing no direct competition, MellowCabs are powered by pedal and electric motor. The cabs host internally geared electric wheel hub motors which vary in capacity, and also depend on the areas where the cabs operate.
The cabs are also doing something innovative with their eco-friendly nature, by adopting a green-run stance and have been recognized by Helen Zille of the Western Cape Premier who showed her support for the startup in her 110% Green Initiative.
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MellowCabs also seems to have strengthened and secured their competitive advantage by entering into exclusive operating agreements with all high-value precincts in South Africa to ensure a patent-like protection and stake in the market. With SABS/NRCS approval, MellowCabs strongly seem to be the answer to the need for micro transport in major South African cities. Making a case for expansion, Du Preez says, “Cities all over the world have a need for micro transport, and as our business case is advertising driven, expansion could happen much faster than usual. Most of Sub-Saharan Africa’s advertising decisions are made in South Africa, which places us in the perfect position to secure a revenue line abroad,”
South Africa’s taxi industry is a multi-billion rand market, which explains why both international and local venture-funded startups, like Zapacab and Uber respectively, want a slice. Truly MellowCabs brings a combination of innovative and creative tech designs plus an advertising model into the game as somewhat of a disruption of a market which has hitherto been regular. They also hope to develop a cab-hailing model sometime in the nearest future.
