Editorial: VW Move; that was not a smart move

Local taxi hailing solution Move, which is owned by Volkswagen Rwanda has revised their rates upwards, a move which they say was occasioned by recent pricing regulations set by Rwanda Utility Regulatory Authority. / Sam Ngendahimana

When Volkswagen Mobility Solutions entered the public transport fray and Rwanda Utilities Regulatory Authority (RURA) directed all private taxis to install YegoCabs-powered metres, there was high hope that finally, the authorities had gotten the right formula to a seamless transport system in the city.

The issue of the errant Taximoto sector would also be brought under control by going cashless and installing metres with GPS to monitor their every move. They were given until the end of July to comply; the fact that they have not done so is another story.

But taxi operators on their side made a lot of noise over the new measures, especially since they were being forced to buy the expensive metres from their competitor as YegoCabs was also operating a transport business. They also argued that the metering system was also recording charges even when they were on personal errands.

Sooner than later, RURA finally heeded their cries and put in place several measures to address their grievances, it included a hike in transport per kilometre.

VW Move did not respond immediately as it could afford to be different than the mainstream taxis, was reliable and it soon became the transport of choice. But the honeymoon would not last long as a string of complaints became louder.

Now, before it could address all the complaints as it had promised, it suddenly hikes its fares by more than 35 per cent. Who was the marketing marvel behind the move? VW Move has hardly won back the loyalty of its clients then it drops the price increase bombshell further alienating its clients.

 

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