Money Markets
Safaricom CEO Bob Collymore (right) and chairman Nicholas Ng'ang'a
during an investors briefing. Safaricom has raised the acquisition price
of yuMobile assets to Sh10.5 billion and signalled that it expects to
close the transaction in a few months. PHOTO | SALATON NJAU
By John Gachiri
In Summary
- The service enables passengers to book and pay for tickets using the mobile money transfer service M-Pesa.
- Mobile-based transactions in the transport industry are expected to boom with the planned ban on cash fares.
- BookNow says that the bus travel industry in the East Africa region is worth $150 million (Sh13.2 billion).
BookNow, an online bus ticketing service, has received more cash from 10 investors to fund its expansion.
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The firm said investors made a combined Sh6.6 million
($75,000) equity investment that will enable the startup widen its
presence through hiring more staff.
The firm currently aggregates bus tickets for
operators plying routes to major Kenyan towns in addition to the
Tanzanian towns of Moshi, Songea, Kyela and Tunduma.
The service enables passengers to book and pay for tickets using the mobile money transfer service M-Pesa.
BookNow chief executive and co-founder Francis
Gesora said the investors would also bring on board expertise that the
start-up would leverage on.
“We have been able to pull together an investor
pool that brings strategic advantages to BookNow’s operations through
their skills and expertise, which we are able to draw upon as we grow
and expand,” he said in a statement.
One of the investors is Ritesh Doshi, founder and chief executive of Naked Pizza.
“This service intends to, and already is, bringing
advantages in speed, information, cost and time savings to bus
travellers and the industry,” said Mr Gesora.
Mobile-based transactions in the transport industry are expected to boom with the planned ban on cash fares.
Safaricom and Google in partnership with Equity Bank,
are also introducing cashless plans for public service vehicles. Other
listed companies have shown interest in the public transport industry.
CIC Insurance
said part of its Sh3 billion bond would be used to venture into the
public transport sector though it did not give details on how it would
be involved in the industry.
Data from the Economic Survey 2014 shows that there
were 235 registered buses in 2013 up from 78 in the previous year,
attributed to the policy targeting the phasing out of 14-seater matatus.
BookNow says that the bus travel industry in the East Africa region is worth $150 million (Sh13.2 billion).
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