We+ Joins Addis Ababa’s Ride-Hailing Market with Retirement Funds for Drivers

We+, a new ride-hailing platform, has entered the Addis Ababa market, offering its drivers a retirement fund. The platform aims to help 25,000 drivers save up by allocating a percentage of its commission for their retirement and other needs, such as medical expenses.

“Our payment system deducts 10% from each trip, with 4% of that amount saved for our drivers,” says Kirubel Tarekegn, founder and CEO of We+. “Our goal is to create a better tomorrow by saving together.”

The platform’s 10% total commission is on par with the industry standard. In addition, it has a flag-down fee of 105 birr and a per-kilometer fee of 18 birr.

The deducted 4% is divided into two parts: half goes to investment, and the other half is saved for drivers to withdraw whenever needed. “Drivers can save up to 20,000 birr per year with this method,” says Kirubel. “We advise our drivers not to withdraw the money immediately. When the investment fund reaches a certain amount, we will establish an investment firm where our drivers will be shareholders. However, as per our agreement, they are welcome to withdraw anytime they want.”

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Brook Tewolde, a driver in the ride-hailing business, sees this as a good opportunity. “We are working with companies that offer no other benefits,” he says. “This is a good thing, especially if they provide the money whenever we need it, as it’s hard to save cash these days. But I have my doubts about whether the company will keep its promises.”

According to the founder, the offer will remain until 25,000 drivers are registered. Currently, over 2,500 drivers have joined the platform. Kirubel stated that drivers can request half of the saved money at any time and get their money back through the finance department. However, to access the other half, they must be willing to quit the platform.

Kirubel, who was a cab driver in Canada for over five years, mentioned that it took over a year and a half to process the company’s legalities before its launch two weeks ago.

Retirement funds are not the only idea Kirubel brought to Addis Ababa’s ride-hailing sector. The platform also aims to operate as a super app, offering multiple services and features.