The discussion around app development in Kenya before Covid-19 was about loan apps. Everyone was concerned about the interest rates and the need to regulate digital lenders.
Kenyans were
complaining about the recovery process and threats for defaulting on small
amounts. Then came Covid-19 and the discussion changed.
The restriction of movement has led to creative ideas and innovation.
Increase in demand for courier
services
Staying at
home or working from home has been on top of the list of precautionary measures.
This means that firms had to figure out a way of delivering their products to
their clients to stay in business.
Unfortunately,
the crisis was unexpected and its effects on businesses unpredictable.
The wait and see approach does not work for a business that sells perishable products. At the same time, most of the businesses did not have their own courier services before the crisis.
The result has been a sudden increase in the demand for courier services.
Glovo and
Uber are among the tech firms that have benefited from the demand for services.
The challenge
has been keeping up with the demand from individuals and companies while
protecting the drivers from Covid-19.
Luckily, the
Ministry of Health provided sufficient guidelines on how to prevent the spread
of the disease.
Restaurants and fast foods
Restaurants
and fast food joints have experienced perhaps the worst effects of the health
crisis.
The government
was quick to shut down social places because of the crowds they attract.
How do such
firms stay afloat without allowing customers into their premises? Courier
services have been the answer.
Customers can order food online. The restaurants then organize the delivery process.
Many such
businesses have been operating without a mobile or online store. The much they
do is advertise their business on social media.
Covid-19 has pushed business owners to start thinking about app development in Kenya.
The discussion
now is not just about a business app but a delivery app as well.
Kenyans are quick to spot such opportunities in the market.
Jumia and Twiga foods
We have known
Jumia to sell all types of household products but not groceries. However, the
pandemic has made shopping for even basic items like groceries a risk.
The recent partnership
between Jumia and Twiga foods has solved the equation for Kenyans.
Shoppers can
buy groceries on the e-commerce platform alongside other items.
The groceries
are pre-packaged and include items that every home needs such as potatoes,
tomatoes, milk, and fruits among other items.
In addition,
customers save on the cost of these items. The partners promise up to 50%
savings based on the prices of the products in local supermarkets
Another benefit
is the same-day delivery within Nairobi and its suburbs at no extra cost.
Although Covid-19
has fuelled such partnerships and innovation, the deals are likely to continue
even after the crisis.
Similar deals among other firms are likely to come up as Kenyan shoppers have already adapted to online shopping.
Uber
You mention
Uber and taxis come to mind immediately. Uber Eats is still growing in Kenya
but it has come in handy during the crisis.
Taxi apps have
formed a huge part of app development in Kenya, after Uber, Taxify,
and Bolt hit the market.
However, with the instructions to stay at home, the demand for taxi services has reduced.
Uber introduced
two apps in response to the Covid-19 crisis. The move was unimaginable to many
business owners who have been forced to downscale their operations.
The first
app was Uber
Connect, which enables families and friends to send packages to different cities.
With social
distancing, delivering simple packages like documents, clothes, gifts, or house
items is impossible.
Uber Connect
deliveries packages without endangering the lives of senders, couriers, and
recipients.
The second
app that the tech company released is Uber Direct, which is an extension of its
food app, Uber Eats.
Uber Direct poses competition to Jumia because it delivers household items and groceries from supermarkets.
The edge that Jumia and Twiga have over Uber Direct is competitive prices.
The two companies have also built a strong brand in the delivery of products in the Kenyan market.
Dominating the logistics market
Many
developers and innovators have been responding to the crisis by creating apps
around it.
Most Coronavirus or Covid-19 apps focus on notifying users of their distance from an infected person. Other apps help health care workers to handle the disease efficiently through accurate and timely data.
What happens after the crisis? Will we still need the apps?
Some innovators
are seeing the light! There is a new frontier in the field of logistics.
It may take some time before the coronavirus threat is eliminated. The arguments against its vaccines and possible treatment may delay the process further.
As mentioned,
Kenyans have already adapted to the new reality. In fact, the crisis has proved
to many shoppers that they can survive for weeks without going out.
With an e-commerce
platform or app, businesses can serve a significant percentage of their clients
online.
The challenge
now remains in providing affordable, efficient, and timely delivery services.
Some companies
like Kobo360
and Sendy
have already identified the gap in the logistics market in Kenya and Africa.
Business
owners have suffered for years in the hands of rogue truck drivers and logistics
companies.
Kenyans need
to wake up to the opportunities in the market instead of leaving everything to foreign
companies.
The companies
that started earlier have reaped extra benefits with the Covid-19 crisis. The
extra income will continue until new entrants interrupt with better or
differentiated courier services.
Final remarks
The worst of situations can present business opportunities for those who are keen to identify them. We have given you a hint for app development in Kenya. The big question now is if you will take action or wait for another foreign investor to take the opportunity.
A simple delivery app that all types of businesses can use is likely to attract thousands of users. Entrepreneurs have learnt from the crisis the need for current technologies and reliable logistics to cushion their enterprises.