Thread by @gbenro

So I am doing a Strategy course and I want to tell a story about how Enviroments impact Strategy.

When @UberNigeria came to Nigeria, they had a world class strategy.

There was one flaw in their Strategy, it only worked "Ceteris Paribus"

Unfortunately Nigerians are not Normal.

So one of the strategies was to encourage New riders/Drivers to Sign up.

Lets start with the riders.
Whenever a new person signed up on @Uber they gave a promo code.

Typically this was between 1000, and 3000 naira.

Sounds good right?

Nigerians, started multiple signups.

So if I (hypotethical I please) wanted to go out, I would create a new account.

Ride free.

When I get there, I would create another and ride back.

Also free.

Uber tried their best to mitigate this fraud, tried to limit it phone numbers.

But like Oga Pantami said each one of us has 4 lines, even if you don’t.

New sim 200.
Free ride 2000. Net profit 1800.

So they started locking phones to 3 acccounts per phone.

In the end

That was the riders o.

Now to the drivers.

First there was the signup bonus.

Basically everytime you introduced someone to driving on Uber, Uber paid you 40,000 naira.

I am not going to lie this was part of my motivation.

I made money.

Tap your neighbour and say Nigerians.

Oya sanitize your hand let’s continue.

So first and foremost there was the issue where people would sign up and not drive.

When you get the money you share them.

Uber now said no problem.

They would only pay after 20 trips 😂

People would register, drive the Trips, collect the Bonus and Stop Driving.

You also know In Nigeria we had the fleet Option, so I would hire a driver, register him and on every driver, make 40k.

All in all stress for Uber.

Final Strategy for today I am tired. Incentives.

Part of the plan was to undercut local taxis, so in Abuja an Airport to Town trip was between 4-5k.

Its been like that for years, Uber came and said we will carry this route for 3500.

Nigerian Uber Drivers

So to encourage Drivers, Uber now said okay.

Please go, if you go rider will pay you 3500, we will then give you a matching bonus of 3500 making the Trip 7000.

Nigerians

Beloved,
eye hath not seen,
ear hath not heard,
neither had it entered the heart of Uber the kind of Fraud that happened next.

Now you remember the earlier rider fraud?

So a Driver, creates a new Rider = +2000
Requests himself to the airport, Cash trip, 3500 = -1500
paid =7000

Round Trip = 14000.

An enterprising Fraudster can do 10 Roundtrips to the Airport in a day.

That's 140,000.
Without picking a single person

How much do you earn?

Fink About it

Uber tried everything.
Geofencing the Airport.
Not allowing people request from the same spot, everything.

They had to remove the incentives.

Essentially what I am saying is Nigerians are special, factor that .

Till another episode of 'Tales from Uber'

Grace to you.