Teddy Pellerin is the co-founder and CEO of the Heetch ride-hailing platform, launched in 2013. After raising €34 million in funding, the startup is continuing its expansion across Africa.
What does Heetch's presence on the continent represent?
The first country we chose to launch our business in was Morocco. We launched in November 2017, starting with the city of Casablanca. We then expanded to Rabat and Marrakesh. Today, we are in the process of launching in Algeria, Cameroon, and Ivory Coast.
Are you currently in the testing phase in Abidjan, or is it already operational? Ride-hailing companies have often encountered regulatory issues. Is this the case in Ivory Coast?
As far as Ivory Coast is concerned, we are currently in the market research phase, but our establishment is hampered by the regulatory framework in force. We are therefore trying to see how we can create value and provide useful and appropriate solutions in this market, solutions for drivers and users.
Abidjan is a city with a population of over 4 million. There are a lot of cars and a lot of congestion. Our mobile app and on-demand transportation service could therefore address certain local issues such as the lack of road safety. We believe that digital technology can help to structure mobility.
We started from the observation that in Abidjan, there are a lot of cars and a lot of traffic jams. There are very few motorcycle taxis for two reasons: safety, as drivers are not trained, and because motorcycle taxi drivers are not identified.
We do not want to open up the motorcycle taxi market, but rather address these issues by authorizing apps from companies that allow users to hire motorcycles with drivers. These drivers will then be able to receive training and be identified.
How does the population perceive the arrival of this new service?
Although we face difficulties related to legislation in Côte d'Ivoire and Cameroon, we have been well received.
In Cameroon, it is very different because motorcycle taxis are widely used, even though many drivers remain unidentified and poorly trained. Our service is therefore better received, even though what we offer will be more upmarket.
Why did you choose to expand in Cameroon and Côte d'Ivoire?
These are markets where, compared to competitors such as Uber, we believe we have an advantage because they are French-speaking markets. What's more, what's interesting about setting up in these countries is that the cities we are targeting are growing rapidly, with several million inhabitants, and there are no real digital solutions in terms of mobility yet. We therefore believe that we can create value in these growing markets, with cities that will increasingly need to absorb mobility flows. Digital technology is a solution to support this transition.
You are expanding on the continent through a network of local partners. Can you tell us more about this?
Our development strategy is based on a local partner that is generally focused on mobility, regardless of the country. This allows us to better understand the local market.
So, whenever we set up in a new location, we create a new company owned by both Heetch France and the local partner.
What are the prospects for development on the continent?
Our prospects are to increase our presence in the Maghreb. As for French-speaking sub-Saharan Africa, we are going to focus on Cameroon and Côte d'Ivoire, hoping to expand to other major African cities.