ZIMBABWE’S ride-hailing industry faces a dual crisis as fuel prices surged to a record US$2,17 per litre recently, leaving inDrive drivers and their customers locked in a desperate struggle over fares. This development could stall residents’ adoption of global information communication and technology (ICT) standards.
inDrive, a global mobility and urban services platform headquartered in California, the United States, announced its expansion into Zimbabwe in March 2023 to compete with local ride-hailing services.
Following its initial launch, the company expanded its services to Bulawayo later in 2023 and subsequently to other cities like Gweru and Mutare.
Harare became the eighth country in Africa and one of over 700 cities worldwide to enhance the accessibility and availability of ride-hailing services in the region.
Back then, inDrive drivers accepted rides for as little as US$2 for short distances, such as around Harare’s central business district (about 3km to 4km).
The application calculates and estimates charges based on the distance provided, giving drivers and customers the option to adjust prices.
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“Now fuel is very expensive in Zimbabwe; I can’t just accept ride requests. I have to adjust the price and add at least US$2 for short distances and US$3 for longer distances,” Peter Mahlangu told NewsDay Weekender, while glued to his smartphone, checking ride requests on the inDrive application.
For drivers using inDrive, a platform where passengers and drivers negotiate fares, the fuel price hike has turned every ride into a financial gamble.
Tinotenda Feremba, who uses a Nissan Note non-hybrid model, said even those bragging about their Honda Fit hybrid models are feeling the heat.
“Imagine we are now buying five litres of petrol for more than US$10,” he said while reversing his car.
“I am 28, and I didn’t do well in school, so at the beginning of last year, I worked hard to buy this car specifically for inDrive.
“Since then, I have been earning at least US$40 per day, excluding fuel costs.
“The game has changed since the fuel price hike. I am no longer accepting rides without adjusting ride fares,” Feremba explained, while driving off.
However, according to their website, inDrive.com, the company started as a response to injustice after the community refused unfair prices and built a solution.
They believe companies must do more to uplift people, empower communities and make systems fairer.
The latest price hike, announced by the Zimbabwe Energy Regulatory Authority recently, marks the second increase in less than a month.
The surge is being driven by escalating geopolitical tensions in the Middle East, where a widening conflict involving Israel and the United States on the one side and Iran on the other has choked global oil supply routes, specifically through the Strait of Hormuz.
Tendai Kamurai, a nurse who works at a private hospital along Masotsha Ndlovu Way in Waterfalls, said before fuel prices went up, she needed between US$2 and US$3 for a single ride from her workplace to where she stays along 70 Street in Waterfalls.
Kamurai highlighted that she has been struggling to get a ride for standard prices for the past few days.
Parliamentary Portfolio Committee on ICT, Postal and Courier Services chairperson Vusumuzi Moyo confirmed that he was also struggling to get rides on standard fares whenever he wanted to use inDrive.
“I used to pay from US$6 to US$7 to get a ride to get in town, but now drivers are not accepting those standard fares,” he said
“The geopolitics and events in the Middle East are affecting our pace in technology adoption. What is most painful is that our fuel prices are the highest in the region.
“When tourists arrive, they should not struggle to move around because of fuel prices. Tourism significantly boosts our economy.
“I think we need to develop and love our own technology, which we can adjust during such situations,” Moyo told NewsDay Weekender in an interview.
Motorists in Zimbabwe are now paying significantly more than their regional peers.
Knowledge Kaitano, the chairperson of the Parliamentary Portfolio Committee on Transport and Infrastructure, said the committee has not received any submissions to discuss transport challenges since fuel price hikes.
However, Chalton Hwende, who chairs the Parliamentary Portfolio Committee on Energy and Power Development, stated that the committee is scheduled to engage Energy minister July Moyo next week to explore interventions aimed at easing transport woes linked to fuel price increases.
“This situation will heavily affect ordinary citizens, particularly those within the ride-hailing industry,” he said.
“This sector currently employs a large number of Zimbabweans who lack formal employment. Statistics regarding inDrive drivers show that many are ordinary individuals using a single small car to sustain an entire family.
“These increases will undoubtedly have a negative impact, as many customers may soon find themselves unable to afford services that bridge the gap between the often chaotic ‘combis’ and ride-hailing options.
“Because of these rising costs, a sharp increase in the price of using inDrive is expected, which will have a dramatic social impact.”
Zimbabwe has emerged as the second most expensive country for fuel in the Sadc region, trailing only behind Malawi, according to the latest data from fuel price tracker Global Petrol Prices.