Online Reporter
Daniel Chigunwe
Herald Correspondent
ZIMBABWE’s fast-evolving e-hailing industry is at a critical crossroad, with growing calls for the Government to urgently review policies and regulatory frameworks to protect local players from what industry actors describe as unfair competition from foreign-controlled platforms.
As digital transport services become an integral part of urban mobility, the sector is increasingly dominated by foreign-run applications such as inDrive and Bolt, whose aggressive pricing models have reshaped the market — often to the disadvantage of local innovators striving to build sustainable businesses.
Local fintech firm Toda Technologies, which operates the Toda Rider platform, is among those advocating for a more deliberate policy approach that nurtures domestic enterprises while ensuring fair competition.
Toda Technologies business manager, Mr Takudzwanashe Makanda, said the current operating environment is tilted heavily in favour of foreign players who can afford to undercut prices at levels that are unsustainable for local businesses.
“There is a battle playing out on Zimbabwe’s roads,” said Mr Makanda. “It is not fought with engines or horns, but with algorithms, pricing models, and the choices consumers make every time they open a ride-hailing app.”
He noted that foreign platforms have leveraged significant capital reserves to deploy what he described as predatory pricing strategies, with fares sometimes dropping to as low as 20 cents per kilometre.
“On the surface, that looks like a win for consumers, but it is not sustainable in our economic context. Fuel, maintenance, data costs — all these factors make such pricing unrealistic for long-term viability,” he said.
Mr Makanda warned that while consumers may enjoy short-term cost savings, the broader economic implications are concerning.
“What happens is that foreign-owned businesses capture market share while profits and valuable user data are externalised,” he said.
“There is minimal reinvestment into the local economy, limited job creation, and historically, very little contribution to the fiscus.”
Zimbabwe has, in recent months, taken steps to address some of these imbalances by introducing measures to tax payments to foreign digital platforms, a move widely welcomed by local industry players.
Mr Makanda described the development as “a step in the right direction,” noting that it affirms Zimbabwe’s position as a sovereign economy that expects fair contribution from all businesses operating within its borders.
“Taxing these platforms is not just about revenue; it is about economic justice. It ensures that those benefiting from our market also contribute to national development,” he said.
However, he stressed that taxation alone is insufficient to correct structural imbalances in the sector.
“A level playing field requires more than fiscal measures. Foreign platforms can absorb these costs due to their scale, something local startups cannot do,” he said.
“What is needed is a comprehensive regulatory framework that actively supports local innovation.”
Industry observers say without deliberate intervention, Zimbabwe risks losing control of a strategic digital sector that has significant implications for employment, data sovereignty, and economic growth.
Local platforms such as Toda Rider, Lily Ride, goSafe and Road Runnerz have demonstrated the capacity to provide viable alternatives tailored to Zimbabwe’s unique operating environment.
Unlike their foreign counterparts, local platforms reinvest revenue within the domestic economy, support local talent, and maintain closer relationships with drivers and customers.
Beyond regulation, Mr Makanda also called on consumers to play their part by consciously supporting local platforms.
“Every time we choose an e-hailing service, we are making an economic decision. Supporting local platforms is not just about patriotism — it is about building sustainable businesses, creating jobs, and strengthening our economy,” he said.
As Zimbabwe pursues its Vision 2030 aspirations of becoming an upper-middle-income economy, the need to nurture local enterprise and ensure equitable participation in emerging digital industries has become increasingly urgent.
