Kigali Bike-Sharing Venture Faces Hurdles, Eyes Electric Expansion
GURARIDE's bikes are deployed across various locations in Kigali City. (PHOTO/ Courtesy)
GURARIDE, a Rwandan start-up that launched an ambitious bike-sharing program nearly three years ago in Kigali, is grappling with profitability challenges as it considers introducing electric bikes to sustain its operations. Originally launched in late 2021 with stations in Kimironko, Gisimenti, Camp Kigali, and around City Hall, the service has been running more as a Corporate Social Responsibility (CSR) initiative rather than a profitable venture.
Despite an optimistic start, GURARIDE temporarily suspended its operations in April 2024 to address bike maintenance issues. However, GURARIDE'S founder confirmed that financial strain remains a significant barrier, with the service generating little to no revenue.
A bike ride costs Rwf300 (USD 0.22), a price that has made the service accessible but unsustainable from a business standpoint. The New Times reports that the company is now actively exploring alternatives to bolster revenues. One potential avenue is the introduction of higher-priced electric bikes, which it believes could attract a broader clientele and increase profit margins.
GURARIDE'S journey has not been without its challenges. The bike-sharing culture is still evolving in Kigali, and specific demographic segments, particularly women, have been slow to adopt the service. Introducing electric bikes is anticipated to help close this gap and attract more diverse riders.
The company hopes NGOs or government entities may support bike-sharing initiatives in Kigali, similar to European models where public funds sustain such projects. Alongside electric bikes, GURARIDE also plans to explore opportunities in electric vehicle (EV) charging stations, which could further diversify its revenue streams.
GURARIDE'S move towards electrification signals a strategic shift that could make its business model more viable and align with Rwanda’s growing focus on sustainable urban transport. As Kigali’s first bike-sharing venture, Guraride remains committed to overcoming its challenges and fostering a bike-friendly culture in the city, with hopes that external support and a broader vision for electric mobility will unlock the potential for profitability.
(Additional reporting from The New Times)
