Max's Innovation of Last-Mile Delivery Services In West Africa

Metro Africa Xpress (MAX)

9. Industry, Innovation and Infrastructure 17. Partnerships for the Goals

Overview

Metro Africa Xpress (‘MAX’) is a technology mobility enterprise founded in 2015 with a mission to provide safe, affordable, and reliable transportation to commuters and last-mile delivery services to businesses.

MAX started as a last-mile logistics provider; however, the founders saw a massive opportunity in moto-taxi ride-hailing and consequently launched the ‘MAX Okada’ service in June 2017. The service quickly achieved product-market fit, with rides growing 17 times in 2018. MAXOkada has completed over 2 million trips in Nigeria with 123,000 monthly active users and is currently engaged in four Nigerian cities, namely: Lagos, Akure, Ibadan, and Kano.

MAX, a private limited liability company registered in Nigeria, raised a $7.5M Series A in June 2019. Energy Ventures led the round. Novastar Ventures with participation from Yamaha Motor Company, MasterCard, and Breakth.

Authors

Dwiardi Vergiawan

Dwiardi Vergiawan

Adedeji Adejuwon

Adedeji Adejuwon

School

TIAS School for Business and Society

TIAS School for Business and Society

Professor

Mirjam Minderman

Mirjam Minderman

Innovation

MAX pioneered motorcycle hailing service in West Africa and has built systems and processes that licenses drivers and access to finance and credit ratings. Drivers at MAX have been provided with the opportunity to own their motorcycles within 12-18 months from onboarding.

MAX is solving a persistent problem in the Nigerian transportation system by using mobile technology, safety technology, KYC technology, and micro-loans to formalize the motorcycle taxi industry. MAX drivers are professionally trained, equipped with branded, well-maintained motorcycles & safety-tested helmets and monitored in real-time. MAX also provides drivers with asset-finance and mobile apps that connect them with commuters and businesses in real-time. All vehicles on the platform are tracked and monitored in real-time for safety and security reasons.

Max's Innovation of Last-Mile Delivery Services In West Africa

Inspiration

Poor road infrastructure and limited mass transit options in many major cities in West Africa have led to the emergence of millions of motorbike taxis (or ‘Okadas') to fill the gaps. The market is heavily fragmented, and the sector is populated by untrained, unregulated, and unlicensed drivers who do not wear helmets, have no regard for safety rules, and are reliable tools for anonymous crimes. Despite the safety and efficiency concerns, Okadas are still slowly relied upon for transportation and are the lifeblood of last-mile logistics.

MAX saw the massive opportunity in the regulated industry and is on a mission to transform the industry by training drivers, providing them with technology that connects them with commuters and businesses, pricing transparency, in addition to asset financing for high-quality moto-taxis and helmets. MAX tracks and monitors all drivers on the platform, thereby eliminating security risks. MAX also prioritizes the welfare of drivers by the provision of comprehensive insurance and on-field support for drivers. With these systems in place, MAX believes it can change the perception of moto-taxis in west Africa and can also drive policies that will lead to effective regulations.

Overall impact

MAX makes a margin from brokering asset finance for the drivers. MAX also generates income from handling last-mile deliveries for enterprises. MAX has also developed the technology and systems that would digitize the transportation sector in Nigerian cities. This technology includes products that capture the data of all transport operators, tracks all vehicles, standardizes training, and the licensing regime optimizes revenue collection for government and ride-hailing service.

MAX has created over 2000 direct jobs and enabled over 30,000 indirect jobs. With MAX, commuters can easily hail a professional moto-taxi driver using their smartphones or hail a driver on the street. MAX has provided a source of livelihood for drivers who currently make five times the current minimum wage. The drivers are, therefore, able to provide a decent living for themselves and their dependents.

MAX has been hailed for reviving the helmet culture as it strictly enforces the use of driver and passenger helmets. MAX ensures that the drivers are well trained and equipped with the right tools, and this ensures that commuters experience a heightened sense of safety while using the service. MAX also saves commuters an average of 3 to 4 of commute time daily.

MAX ensures that drivers make a decent income, which in turn empowers the drivers to provide a dignified livelihood for their families and dependents. Also, MAX saves users an average of 3 hours of commute time, thereby increasing their productivity. MAX empowers thousands of small businesses e.g., mechanics, technicians, as well as other unskilled and semi-skilled service providers.


Business benefit

Since inception, the company has onboarded and empowered over 2,000 drivers with assets and technology that guarantees that an average driver makes over five times the national minimum wage in Nigeria and three times more than the informal operators. It is important to note that an average driver supports 4-6 persons, and by raising the income of these drivers, the ripple effect is massive. MAX provides drivers with comprehensive insurance and high-quality safety gear and equipment.

Social and environmental benefit

MAX recently commenced the assembling of 2-wheeler electric vehicles in Nigeria. (The MAX E-series 1). This effort is to ensure consistently reduced carbon footprint.

MAX utilizes excess power generated from mini-grids to provide charging and battery swapping infrastructure for 2-wheeler or 3-wheeler electric vehicles. MAX currently deployed electric vehicles to the Gbamu-Gbamu community - a rural farming community in Southwest Nigeria to provide affordable transportation to farmers, especially women.

Interview

Adetayo Bamiduro, Co-Founder and CEO

Photo of interviewee

Keep this story going! Share below!

Metro Africa Xpress (MAX)

Metro Africa Xpress (MAX)

Lagos, NG

Business Website: https://max.ng/

Year Founded: 2015

Number of Employees: 1001 to 5000

Metro Africa Xpress (‘MAX’) is a technology mobility enterprise founded in 2015 with a mission to provide safe, affordable, and reliable transportation to commuters and last-mile delivery services to businesses.

MAX started as a last-mile logistics provider; however, the founders saw a massive opportunity in moto-taxi ride-hailing and consequently launched the ‘MAX Okada’ service in June 2017. The service quickly achieved product-market fit, with rides growing 17 times in 2018. MAXOkada has completed over 2 million trips in Nigeria with 123,000 monthly active users and is currently engaged in four Nigerian cities, namely: Lagos, Akure, Ibadan, and Kano.

MAX, a private limited liability company registered in Nigeria, raised a $7.5M Series A in June 2019. Energy Ventures led the round. Novastar Ventures with participation from Yamaha Motor Company, MasterCard, and Breakth.