By George M. Song’e
Legend has it that after World War 2, Asian mechanics started fitting engines into rickshaws. These rickshaws evolved from being pedaled to propelled by an internal combustion engine, ICE engine. The single-cylinder engine made a pulsating tuk sound, hence the name tuk-tuk or auto rickshaw. It is widely believed that these engines were remnants of the European influence during the war.
Around the same time, the Italian aircraft manufacturer, Piaggio, launched the robust Ape a three-wheeler. The light vehicle addressed the logistical needs of post-war Italy. Its ability to maneuver the narrow streets endeared it to the Italian market and grew its popularity overseas. Apart from easily navigating tight corners, the tuk-tuk has a narrow body and can carry heavy loads. It is economical to drive and safer as the driver sits in a cabin, which provides an extra safety net in the event of an accident. The upfront cost is low hence its popularity in last-mile delivery and taxi services. However, due to the pulsating power delivery, tuk-tuks vibrate a lot. This is very uncomfortable for users.
Fast forward to February 2024, when Car and General Kenya Limited launched the electric Piaggio Ape, joining companies like ARC Ride, Biliti Electric, and Kiri EV in the electric three-wheeler space.
The electric three-wheeler carries all the attributes of its ICE counterparts and more. It replaces the noisy tuk-tuk sound with the zephyr-like polite sonic of the electric motor. The electric tuk-tuk provides a smoother ride for the driver and passengers These attributes place the vehicle in an exceptional position in the urban transportation space.
The coastal city of Mombasa has plenty ICE tuk-tuks. The numbers are said to be in the region of 14000 vehicles. The transition to electric tuk-tuks will provide the sector with a watershed moment. Indeed, the sector will have the privilege of redefining itself into a premium service provider in the transportation sphere. In the past residents of the port city have complained of the noisy pollutants that clog the narrow streets causing traffic snarl-ups. Many hotels are on record for barring tuk-tuks from dropping passengers at the hotel entranceway and are consigned to drop-off points at the main gates. Consequently, guests are compelled to walk to the hotel lobby. Electric tuk-tuks provide an opportunity for change as they are silent. Further operators can organize themselves in groups and establish designated pick-up and drop-off points, thus reducing congestion on the roads. They can monitor each other’s compliance with the traffic rules and instill discipline. It has worked in the boda boda sector in Rwanda, why not the tuk-tuk space in Kenya?
The complete reset of modus operandi surrounding the public transport sector is long overdue. One of the reasons why there is a lot of disorganization is the stiff competition for passengers. This competition is amplified by the narrow margins most drivers earn due to the high operating costs of the vehicles. Since electric vehicles are cheaper to run, the ripple effect is less stress on the drivers to make ends meet.
To mitigate the high upfront cost of the electric tuk-tuk, e-mobility companies provide battery leasing services under the battery-as-a-service business model. By doing this they maintain the batteries as assets and offer swapping services. Customers pay per swap and enjoy healthy batteries for as long as they maintain their vehicles in good order. The leasing companies enjoy recurring revenue from their assets. It is a win-win scenario.
As the race towards decarbonization of the transport sector takes shape, the three-wheeler sector provides a great business opportunity in a space where the traction for electric three-wheelers has been slow.