For a long time, the taxi and danfo leasing business in Nigeria has been plagued by many inefficiencies. This has led to the leasing of faulty and worn-out vehicles to drivers who default on agreed payments.
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Mygarage.africa is an online vehicle leasing platform that has emerged to solve this problem by digitising the entire system, from communication between drivers and vehicle owners to how vehicles are maintained and rental fees are collected.
“Most times it’s based on only trust and drivers that get the vehicles often come up with excuses for why they can’t pay despite your agreement,” mygarage.africa co-founder Sylvester Chude told TechCabal. “We’ve seen an incident where a driver claimed his mother died on two occasions just to avoid paying the owner.”
Mygarage.africa is a subsidiary service of Envio, a mobility-focused software-as-a-service (SaaS) startup founded by Chude and other cofounders.
How MyGarage Works
The digital platform, which was launched in Abuja last October, allows owners to create virtual garages where they can offer vehicles for commercial hire or vehicle finance lease and connect with vetted drivers.
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The service provides a telemetry device, designed by Envio and installed by partner tracking companies. The device is fixed to the vehicles to generate analytical data on the state of maintenance while in use.
Owners receive automated reports on inspections from support partners via a mobile application on a regular basis.
Mygarage.africa also offers a billing gateway that ensures rental fees are paid. The system notifies the driver before the agreed-upon due date for the next rental cost.
If a motorist fails to make payments before the due date, the device turns off the car engine and alerts the owner. The engine, however, is restored as soon as money is received. Envio makes money by collecting a platform charge for each payment made to a car owner.
“Insurance can cover theft but won’t cover default on rental fees or misuse of the vehicle by the driver. What we’re bringing to the table is discipline, keeping drivers on their toes and preventing investors from losses,”
Mygarage.africa is set to expand to Lagos following its success in Abuja. Besides catering to individual drivers and car owners, the service is also looking to partner with transport unions, taxi aggregators, and e-hailing startups such as Uber and Bolt.
Featured Image Source: TechCabal
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