Bonjour,
Victoria from Techpoint here,
Here's what I've got for you today:
- Transport Minister to set ride-hailing prices in SA
- Why have fintechs struggled with cards?
- Flutterwave lays off 30 employees
Transport Minister to set ride-hailing prices in SA
The new National Transport Act amendment bill now lets Transport Minister Sindisiwe Chikunga set ride-hailing prices, a job that used to be up to the platforms.
Many in the ride-hailing industry are happy about this change. Melithemba Mnguni from the E-Hailing Partners Council said the updates were long overdue and tackle important issues like pricing, safety, and communication between operators and platforms.
Mnguni pointed out that operators have felt underpaid and that the market is too crowded. While platforms didn't want the minister to set prices, operators think this change will better address their needs. Mnguni hopes the new pricing system will include their input.
However, some aren't so optimistic. Kenny Moretsele, a Bolt operator and head of the Ekurhuleni e-hailing association, worries that the bill's price regulation rules are still unclear and might lead to issues like price dumping.
President Ramaphosa signed the amended act into law after thirteen years, finally bringing e-hailing services into the fold. The Department of Transport is pleased and will now work on getting the regulations approved.
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These new rules will make it easier for ride-hailing services to operate, removing the need for charter permits and meter taxi licenses.
The changes also give Minister Chikunga more power to create new regulations and safety measures while streamlining the process for getting operating licenses. The struggle to get these licenses has been a long-standing issue for the industry.
Why have fintechs struggled with cards?
It's crazy how much card payments have taken over in Nigeria's cities in less than a decade. Back then, getting a card meant filling forms and waiting forever at the bank. Then fintechs like Carbon came along and made it a breeze.
But here's the twist: traditional banks seem to have a smoother ride with cards. They hardly ever pause or stop card services, unlike fintechs.
So, what's the deal? Well, according to experts, it boils down to costs. Running those fancy fintech cards can be pricey, especially with all those dollar expenses and slim profit margins.
CBN rules made it even tougher by capping how much you can spend in foreign currency. This pushed fintechs to switch gears to virtual cards, which sounded good but didn't always work out.
Plus, before a fintech can issue physical debit cards, they need a microfinance license. That's a pricey licence, and not everyone can afford it.
To dig deeper into this whole card payment saga, check out Chimgozirim's full story. It's a wild ride from the old-school banks to the fintech disruptors, all trying to swipe their way into your wallet!
Flutterwave lays off 30 employees
Three months after shutting down its Barter service, Flutterwave has laid off about 30 employees, roughly 3% of its workforce. The layoffs are part of a shift in focus towards remittance and enterprise services, which are the company's main revenue drivers.
Flutterwave didn't specify which teams were affected, but the roles cut are tied to products that no longer fit their strategy.
The fintech stated that after analysing their priorities, they found some roles redundant. Employees laid off will receive around three months' gross salary and payment for unused leave.
This is the first time Flutterwave has had to cut staff since it started eight years ago, but it was necessary to align resources with their new strategy and improve efficiency.
In April 2024, Flutterwave faced a security breach, losing ₦11 billion ($7.2 million) through unauthorised transfers. However, they assured customers that their funds were safe despite the breach.
While reducing its workforce in Nigeria, Flutterwave received approval from the Bank of Mozambique in May to expand its payment services into southern Africa. This move allows them to grow their operations in the region.
In June, Flutterwave partnered with Nigeria's EFCC to build a Cybercrime Research Center. This centre aims to boost efforts against Internet crime and enhance the security of online transactions.
In case you missed it
- Meet Ebehijie Momoh and Ugo Obasi, the ex Mastercard and Interswitch duo tasked with leading AfriGO
- Eyowo receives full licence reinstatement from CBN 3 months after securing approval in principle
- Starlink pushes more direct-to-cell satellites
What I'm watching
- World Religions Explained (Full Series)
- Who Wrote the Qur'an | What Sources Were Used?
Opportunities
- Paystack is hiring for several roles in Kenya, South Africa, Nigeria, and Ghana. Apply by July 7, 2024 here.
- Apply for a cybersecurity webinar focused on threats faced by businesses and organisations by June 26, 2024, here.
- Techpoint Africa is looking for three editorial assistants. Apply here.
- Ventures Platform has over 100 job openings across its portfolio companies. Apply here.
- Earna is looking for a Product Marketing Manager. Apply here.
- Are you a startup founder with at least an MVP? Apply for Founders Clinic, an eight-week mentorship programme connecting early-stage startup founders with experienced professionals. Register here by June 26, 2024.
- Moniepoint is hiring for 70 positions in the United Kingdom and several Nigerian states, including Lagos, Abia, and Anambra. Check them out here to apply.
- Explore this website to find multiple job opportunities in Data that align with your preferences.
- If you are a software engineer, creative designer, product manager, design researcher, or a techie looking for an internship role, please, check out this website.
Have a lovely Tuesday!
Victoria Fakiya for Techpoint Africa.
