Kenyan mobility and logistics startup, Araka, has launched a super App which seeks to solve challenges faced by on-demand e-hailing drivers and logistics companies.
The platform allows its customers to book all sorts of services, key among them rides and deliveries, but is to be more driver-focused than its competitors, according to the startup’s CEO, Mark Pascal.
Araka which was founded in November 2021 by Pascal, together with Drake Smith, Michael Kariamu and Emmanuel Maingi, is a “fintech, logistics and mobility platform that helps digital economy drivers own their vehicles for less, access short-term credit, and connect with clients,” according to Disrupt Africa.
Speaking on the successes of the platform, Pascal said:
“At Araka, we solve the two main problems faced by digital drivers. The first of these is the high commission charged by similar platforms.
“Where our competitors charge drivers up to 25 per cent commission, we charge only five per cent, hence helping our drivers to save up to 60 per cent of their current spending on commissions.
“The second major challenge is the high cost of consumer and work tool loans, where Araka is undercutting up to 150 per cent monthly interest on short-term loans to drivers for consumer credit like fuel, airtime and data.
“We offer our riders work tool financing at low four per cent monthly interest, leading to up to 12 per cent annual interest savings,” he said.