Local ride-hailing startup, LEFA Transportation Services, says it is threatened with imminent closure citing unfair competition by international ride-hailing companies such as Yango and InDrive.
“In a concerning development for the local economy and the integrity of Namibian laws, LEFA, Namibia’s first locally owned ride-hailing startup, faces imminent shutdown due to the aggressive tactics of international ride-hailing firms now operating in Windhoek. These companies, while boasting of job creation, have not adhered to the local requirements, laws, and regulations governing the Namibian passenger transportation industry, challenging the sustainability of local enterprises,” LEFA Founder and Managing Director Melkies Ausiku said.
“The potential closure of LEFA is a blow to local entrepreneurship and to those who champion the cause of genuine competition and regulatory compliance. It sends a troubling signal about the challenges local startups face in a landscape skewed in favor of international giants.”
He accused international ride-hailing companies of engaging in practices that seem to contravene fair business practices.
“They have entered our market employing a strategy perfected globally: undercutting prices to unsustainable levels and luring drivers with hefty incentives. Such methods, while effective for rapid market penetration, come at a significant cost to local businesses that cannot match their financial muscle and extensive marketing budgets. The situation is further exacerbated by these companies’ disregard for local regulations—a critical aspect that seems overlooked in their expansion strategies,” Ausiku said.
He said the company’s plea for intervention by local law enforcement, including the Namibian Police and Windhoek City Police, to address the violations have not been successful.
“Unfortunately, the enforcement of these laws has been tepid, leaving local businesses at a disadvantage,” he said.
He said over 50 locally registered shuttle and transfer companies have also voiced their concern over the unfair advantage being poised by international ride-hailing companies.
“The resistance to this wave of unfair competition is not a solitary battle. Over 50 locally registered shuttle and transfer companies, all compliant with our national laws, have shown their support through a petition to address this growing concern. Despite this collective effort, the response from various stakeholders and decision-makers has been disappointingly silent,” Ausiku said.
This comes as the Namibia Transport and Taxi Union (NTTU) and the Namibian Bus and Taxi Association (NABTA) are intensifying efforts to ban the operations of ride-hailing services in the country.
Bolt in February became the latest entrant to the Namibian ride-hailing market, having launched a pilot service, with plans to onboard 200 drivers while offering zero commissions for the next six months.
