Case Study: Expanding a Ride Hailing and Delivery Platform in Africa

A startup in the African continent aimed to revolutionize the transportation and delivery services industry by launching a comprehensive online platform. The platform offered four key services: ride-hailing, food delivery, package delivery, and vehicle rentals. The startup sought to capture significant market share in 11  key African countries while facing strong competition from established players like Uber and DHL.

The client approached Oak Business Consultant for comprehensive strategic support to help secure investor funding, develop a solid market entry strategy, and forecast financial performance. To meet the client’s objectives, Oak Business Consultant provided three key services:

• A robust financial model with a five-year forecast and scenario analysis.
• A detailed business plan outlining the Competitor Analysis and market opportunity.
• A compelling pitch deck to secure pre-seed funding.

Introduction to Ride Hailing Industry

Ride-hailing firms have totally changed the way we get around, right? Instead of flagging down a taxi, now we just open an app, tap a button, and boom—a driver’s on the way. Companies like Uber and Lyft (and let’s not forget Grab in Asia or Didi Chuxing in China) have dominated the scene, making private vehicles and rides easy to book in seconds. Imagine this: you’re in San Francisco, late for a meeting, and the thought of finding parking is just… no, thank you.

That’s where ride-hailing platforms step in, saving you the hassle and time. Plus, demand for ride services is huge, especially in cities where public transport can’t always keep up. But with all those rides happening, the carbon footprint and environmental impacts are starting to stack up, too. Some cities are now pushing for electric vehicles in these fleets, aiming to lower emissions while keeping the convenience. This entire ride-hailing market keeps growing, changing urban mobility, and shaking things up for traditional taxi services. It’s a wild ride!

Challenges:

1. Competitive Market Entry: Entering a market dominated by large multinational companies posed a significant challenge. The client needed a clearly differentiated value proposition. This was crucial to capture market share.
2. Complex Revenue Streams: The platform’s revenue structure was multi-faceted. It included fixed platform fees and commission-based fees across multiple services. Estimating reliable financial projections was challenging. Demand and operational costs fluctuated across different regions.
3. Securing Early-Stage Funding: As a startup, the company needed a strong investment case. This was essential to attract pre-seed funding. Investors required a clear roadmap to profitability. They also needed key milestones, market potential, and revenue generation information.

Solutions

At Oak Business Consultant, we helped our client break into 11 African markets with a solid plan. The goal? To launch their multi-service platform for ride-hailing, food delivery, package delivery, and vehicle rentals. First, we created a business plan that wasn’t just a document—it was their roadmap. We showed them where demand was high, like in Nigeria and South Africa, and how to stand out against big players.

Next, we built a pitch deck for investors. Think of it as their “why we’re worth investing in” story. It covered everything from the platform’s growth potential to its unique features, like real-time tracking and flexible payments. We also crunched the numbers in an investor-ready financial model. This model laid out revenue projections, costs, and profit paths for each service. Plus, it offered scenario analysis to prepare for the ups and downs. With our support, the client could show investors they were serious. They had a clear path to profit, a game plan for growth, and a strong foundation to build on.

Why a Business Plan and Pitch Deck Matter for Ride-Hailing Success

Starting a ride-hailing service? You need a business plan and a killer pitch deck. These aren’t just fancy documents—they’re your blueprint and sales pitch. They show investors, partners, and even your team how you’re different from every other ride-hailing app out there.

Your Roadmap to Success: The Business Plan

A solid business plan covers every angle of your ride-hailing service. It outlines how you’ll tackle competition from giants like Uber Technologies Inc., Lyft Inc., and DiDi Chuxing. Plus, it digs into the nitty-gritty, like fleet availability, the demand for ride services, and handling complex urban mobility challenges. Think of it as your personal GPS, guiding every decision from launching in San Francisco to expanding to Saudi Arabia.

Your business plan also tells your story. Why are you in the ride-hailing market? How will you handle environmental impacts, such as carbon footprints? Investors want these details—they don’t just hand over money without a clear plan. If you’re rolling out electric vehicles to cut emissions, this is the place to share that vision.

Hooking Investors: The Power of a Great Pitch Deck

The pitch deck is your moment to shine. It’s how you hook investors with a quick overview of your ride-hailing app’s potential. Highlight your unique edge, like an affordable Transportation Network Company that solves urban mobility issues or outperforms traditional taxi companies. Maybe you’re targeting demand for ride services in the Middle East, where public transport options are limited. Whatever it is, a good pitch deck makes investors see the opportunity.

But it’s not all talk. A top-notch pitch deck includes real data from the ride-hailing market. Show them your plan to reduce environmental impacts and expand fleet availability. Investors want to see numbers: revenue projections, demand for ride services, and potential in cities like San Francisco or emerging markets like Saudi Arabia.

Business Plan Development

Oak Business Consultant developed a comprehensive business plan to support the client’s strategic growth across 11 African markets. The business plan included:

Pitch Deck for Investor Engagement

Oak Business Consultant developed a pitch deck for a multi-service delivery platform targeting investors. The goal was to showcase the client’s growth potential across Africa with clear market validation and a competitive edge. Key Components included:

Why Ride-Hailing Businesses Need a Financial Model?

Running a ride-hailing business isn’t just about matching drivers with riders. It’s a delicate balance of many moving parts—driver performance, demand for rides, fleet availability, and more. Without a solid financial model, it’s easy for ride-hailing companies to lose sight of their finances and hit speed bumps along the way. A good financial model brings clarity, helping companies stay on track and make decisions that lead to profitability.

Tracking Revenue and Expenses

Every ride-hailing service, from Uber Technologies Inc. to local taxi companies, faces fluctuating revenue and costs. A financial model helps ride-hailing businesses keep tabs on income sources—like ride fares and surge pricing—and expenses, such as fleet maintenance and driver incentives. For example, a model can show how adding electric vehicles or covering fuel costs might impact overall profit. Think of it as a roadmap for understanding where the money is coming from and where it’s going.

Forecasting Demand and Market Trends

Demand transportation services have unique patterns based on location, like in San Francisco or the Middle East. A financial model allows ride-hailing platforms to predict demand trends, adjust fleet availability, and even optimize driver performance. By using this model, businesses can stay a step ahead in the ever-changing ride-hailing market.

Planning for Growth and Expansion

When ride-hailing companies want to expand, a financial model is crucial. For instance, a ride-hailing app eyeing new markets like Saudi Arabia or targeting urban mobility in the United States needs to understand the potential costs and returns. The model will cover everything from the cost of adding new drivers to expected demand for ride services in each new location. It’s like planning a road trip—you don’t just set off without knowing the fuel stops.

Managing Environmental Impacts and Emissions

More and more ride-hailing businesses want to reduce their environmental impacts, like carbon footprints from gas-fueled cars. A financial model can help plan this transition by calculating costs for electric vehicles and potential savings on fuel. Ride-hailing companies like DiDi Chuxing and Lyft Inc. are already exploring this route. A model guides decisions that not only boost the bottom line but also keep them aligned with eco-friendly goals.

Preparing for Investor Interest

Investors want to see a clear path to profit in any ride-hailing market. A well-built financial model shows them the company’s potential, detailing revenue streams, market growth, and profitability. It’s the difference between a shaky pitch and a confident presentation, showing investors exactly where their money would go and the returns they might see. For example, if a ride-hailing service wants to expand its app to include demand rentals or package delivery, the model helps prove to investors that it’s a sound idea.

Responding to Competitive Pressures

Ride-hailing companies face fierce competition from traditional taxis and other Transportation Network Companies. A financial model allows ride-hailing businesses to assess their competitive position. For example, if a competitor launches a cheaper service, the model can show how to adjust prices or introduce features without sacrificing revenue.

In short, a financial model is like GPS for ride-hailing businesses. It helps track performance, forecast trends, manage costs, and attract investors. For anyone building or scaling a ride-hailing app, a financial model isn’t just helpful—it’s a must-have to drive success and growth.

Financial Model with Projections

Oak Business Consultant created an investor-ready financial model for a multi-service delivery platform, covering revenue streams, operational costs, growth forecasts, and funding needs across multiple cities. Key Components included:

Outcome

The outcome was highly positive, with Oak Business Consultant’s strategic approach enabling the client to secure significant investor interest and funding. The combination of a compelling business plan, a detailed financial model, and an investor-focused pitch deck highlighted the client’s unique market positioning and financial growth potential, making them stand out in the delivery sector. The financial model offered a clear, flexible view of revenue projections and key metrics, giving investors confidence in the client’s robust planning and scalability. This strong foundation allowed the company to capture a competitive advantage, particularly in underserved African regions, positioning them effectively against major players like Uber and Bolt.

Conclusion

In conclusion, Oak Business Consultant’s strategic support helped the client establish a solid foundation to enter the competitive African market. Through a well-crafted business plan, an investor-focused pitch deck, and a detailed financial model, the client secured significant investor interest and funding. Our approach showcased the platform’s unique advantages, clear growth potential, and commitment to scalability. This strategic groundwork positioned the client to compete effectively against major players, ultimately setting them up for sustainable success and market leadership across Africa.

Ready to bring your business vision to life? Oak Business Consultant provides powerful Business Plans, Investor-Ready Pitch Decks, and detailed Financial Models tailored to set you apart in any industry. Whether you’re a startup aiming to capture market share or an established business seeking growth, we’re here to help you attract investors, clarify your strategy, and drive profitability. Get in touch today to start building a compelling foundation for your success!