Kobo360 has finally launched its operations in Nairobi, Kenya as promised earlier in the year. The company has been running beta operations for the past five months.
Within this short period, the company has already registered more than 3,000 trucks and truck owners in the country.
The speed at which top companies joined the network is an indication of the unmet needs in Kenya’s logistics industry.
The Nigerian start-up has been disrupting the $150 billion logistics industry in Africa. The entrance to the Kenyan market will further disrupt operations in East Africa.
The gaps in the industry created an opportunity for Kobo360 to expand across Africa.
The logistics industry is characterised by expensive middlemen, corruption and overreliance on telephone calls, a trend that Kobo360 fights to disrupt.
The interest in the Kenyan market is expected. The country has the largest port in East Africa.
The port of Mombasa handles more than 13 million tonnes of cargo every year. The operations at the port are the busiest in the region.
In addition, the port links directly to more than 80 ports across the globe.
During the launch, the company’s CEO for the African region,
Kagure Wamunyu emphasized the opportunities that the port of Mombasa offers.
Mombasa is the gateway to other countries in East Africa including Uganda, Southern Sudan, Burundi and Rwanda.
Kagure noted that launching operations in Nairobi Kenya would enable Kobo360 to expand operations to other East African countries.
Kenya has a high rate of technology adoption. In fact, mobile penetration in Kenya is estimated at 91% while Africa’s average rate is 80%.
Further statistics indicate that more than 43.3 million Kenyans (84% of the total population) have access to the internet.
Given the nature of online logistics that Kobo360 specialises in, the Kenyan population is a ripe market for its operations.
Kagure Wamunyu also highlighted the company’s intention to build its Global Logistics Operating System (G-LOS).
The system will enable it to facilitate the fast movement of goods across Africa at a low cost.
Kobo360 is a perfect example of the contribution of digital technology in providing business solutions.
Think about the thousands of truck owners that are already enjoying reliable logistics service in the country.
Kobo360 has already enlisted top companies in Kenya such as Bidco Africa, Rafiki Millers, Union Logistics Limited, McNeel Millers and Intraspeed ARCPRO Kenya Limited.
The list will grow further after the official launch with such giants giving the Company credibility and trust.
Funding operations in Kenya
The Logistics start-up announced earlier this month that it had secured a $30million funding.
The Nigerian tech company secured $10 million from local commercial banks.
The Series A equity round helped Kobo360 raise an additional $20 million to fund to expansion operations.
The net worth of these investors explain the company’s ability to expand from Nigeria to Kenya, Ghana, and Togo is such a short period.
With such financial back-up, Kobo360 will offer seamless connections among truck owners, cargo owners, drivers, and cargo recipients.
Modern technology is at the heart of the supply chain framework with the company offering real-time visibility of the location of trucks on its network.
Kobo360 has solutions for both truck owners and customers that need a reliable network to move their cargo.
In addition to efficient logistics, Kenyans should consider the employment opportunities that Kobo360 has created.
Since March 2019, the e-logistics startup has been creating new jobs in its East African office.
In addition, truck drivers have new job opportunities as more than 3,000 truck owners have already joined the Kobo360 network.
Customers can expect a suitable match with a quality and reliable truck owner within 6 hours.
A combination of data analytics, Internet of Things, Artificial Intelligence, Machine Learning, and Mobile technology supports efficient matches.
Kobo360 offers reverse logistics, which doubles the income of truck drivers.
All the trips are insured and customers can lock a low rate for a trip for up to two weeks.
It will be interesting to witness the change in logistics in Kenya and the East Africa Region after this launch.
The entrance of Kobo360 is also a wake-up call to Kenyan entrepreneurs to see the opportunities that foreign investors can spot from far.
Opportunities in the logistics industry will always be there as long as the busy Mombasa port is operational.
In addition, tech companies in Kenya have opportunities to create efficient mobile and web solutions for logistics and other fast-growing industries.