Mogo, a Kenyan asset finance company, has partnered with EV-developer startup Roam to boost the adoption of electric motorbikes in the country.
- The collaboration will kick off with the opening of 20 in-store locations across Kenya to facilitate customer access to Roam’s electric motorbikes.
- The partnership will introduce a financing package for interested buyers of Roam’s electric motorbikes, that will enable them to save money and ramp up their daily income by 30%.
- Mogo is also the first company in the list of Roam’s partners which has bought electric motorcycles for all its internal staff members.
“We are thrilled to partner with Mogo to tap into the expanding market of bodaboda riders eager to transition to electric motorcycles amidst soaring petrol prices,” said Roam’s Chief Commercial Officer and co-founder Mikael Gånge.
“By leveraging Mogo’s expertise in asset financing, we are able to offer flexible financing options that make sure customers save money on day one,” Mikael Gånge continued.
According to ESI Africa, the motorcycle industry accounted for about 3.4% of Kenya’s GDP in 2022, with KSh 60 billion worth of taxes collected annually from the purchase of fuel.
“We see that the electric motorcycle market is ever expanding, and with Roam’s innovative products that enable customers to not only charge at home, but also at Roam hubs, we believe the electric motorcycle market will eventually become larger than the petrol one,” said Rauls Leitis, Business Development Projects Manager at Mogo.
Since it was founded in 2017 by Albin Wilson, Filip Lövström, and Mikael Gånge, Roam has partnered with other startups and companies to position itself as the most ambitious EV assembly line in the region. Over a week ago, Roam opened its first physical showroom along the Thika Superhighway after partnering with Ridewell, hoping to capture a larger market share in the bodaboda demographic.
After Roam’s Series A round received about $24 million for rapid expansion, the startup needed to solidify its presence across all Kenyan markets so that its buyers could easily access servicing facilities.
The Kenyan government has expressed interest in electric mobility as part of its agenda for tackling climate change. Its support, however, remains insignificant as charging infrastructure stations remain elusive, further slowing down the transition. Roam’s removable battery, however, can be charged with household plugs thus guaranteeing customers that no charging hubs are needed.
The adoption of electric motorbikes remains sluggish despite the commitment of green-energy players in the market. Potential demand outstrips the supply of electric vehicles. In March last year, Roam announced it was opening the largest East African electric motorcycle line with an annual production of 50,000 rides. This production rate dwarfs the number of bodaboda riders in Kenya, which, according to a government report, peaks above three million nationally.
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