Pareto Efficient

Problem:  Imperfect information about boda drivers (motorcycle taxis) leads to unsafe free-for-all

• Many bodas drive unsafely and without helmets
• Many do not know their way around town
• > 90% actually rent their motorcycle from a local owner and see their earnings impacted accordingly
• The influx of many new bodas threatens to squeeze margins for the drivers
• There are no branded fleets of boda drivers — its a wild west…

Solution: Leverage branding, scale and economic incentives to improve driver safety/earnings

Driver Safety:

• Provide clearly branded well maintained bodas to drivers
• Provide road/accident safety training to all drivers
• Provide helmets and day-glow vests for driver/passenger
• Require drivers to know the major districts, connecting roads, and typical tourist stops
• Require drivers to speak basic English

Driver Earnings:

• Revenues: Hopes that branding will cause drivers to stand out in the crowd, and get more fares.
• Costs: Over time, the drivers will pay less to rent the bodas

Back of the Envelope:

• There are over 200,000 boda drivers in Uganda
• 1,000 drivers paying the market rent would be $1.7MM USD/year in revenues (2.8bn Ush)
• As the bikes are paid off, the cost structure of the business will decrease, which we can pass on to the drivers in the form of lower rental costs.
• Increased driver earnings will increase the quality of their lives.