Bridge Taxi Finance to roll out free Wi-Fi to the taxi industry
Bridge Taxi Finance, a leading provider of affordable credit facilities to South African entrepreneurs in the minibus taxi industry is partnering with Old Mutual Limited, a pan-African investment, savings, insurance, and banking group, to provide Wi-Fi to the South African population that uses minibus taxis as a mode of transport. The partnership will enable Old Mutual to market its financial services products to the lower end of the market.
This strategic partnership between Bridge Taxi Finance and Old Mutual will deliver value creation across the businesses, while also providing financial inclusion by delivering a full suite of financial services in the lower end of the market. It is projected that the partnership will provide the businesses with access to at least 300 000 commuters that commute to and from work every day.
This will result in a competitive advantage over other market participants by gaining customer stickiness, insight and tailor-made financial services.
Bridge Taxi Finance has a vision to build a sustainable vehicle finance operation that plays a part in improving public transport for millions of South Africans, while at the same time providing accessible finance to local entrepreneurs who are historically excluded from accessing finance from formal institutions.
South Africa’s taxi industry plays a vital role in the country’s economy, accounting for over 70% of all public transport trips, and is the most widely used form of public transport in Africa. Over 15 million South Africans make use of minibus taxis to get to and from work every day. Bridge Taxi Finance finances financially excluded individuals and provides them with an opportunity to own income-generating assets, enabling them to contribute positively to the economy.
With an estimated 250 000-300 000 minibus taxis operating in the country’s formal routes, there is a significant monthly supply gap of minibus taxis in excess 1 000 vehicles. Bridge Taxi plans to address this gap by importing new, safer vehicles. Bridge Taxi Finance has financed over 4 200 entrepreneurs to date.
Bridge Taxi Finance and Old Mutual have begun the roll out with a first introduction of 40 taxis. Verdant Capital is the exclusive advisor to Bridge Taxi Finance on its bilateral debt capital markets operations and is currently raising capital for Bridge Taxi Finance following its successful debt capital raise for the company in 2021.
