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Uber Plans To Exit Self-Driving Business As It Readies for IPO; A Great Strategy

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Uber plans to exit its self-driving business. That is a good thing because I do think the company should focus on controlling demand and not supply. Under digital aggregation, the companies that thrive and win are those that control demand and not necessarily supply.

 A group of investors including SoftBank are in talks with the ride-sharing company to buy a $1 billion stake (paywall) in its self-driving vehicle unit ahead of its public listing. (QZ Newsletter)

That is so because supply is largely unbounded via the web: simply, making more cars available in the market, is not what will win the future, but controlling those that will use the cars. Uber already has a first-mover advantage via its platform. I do think it should focus on expanding that over spending efforts to add more cars in the world. Cars will always be here, and self-driving will make them super-commoditized. The entities that will win the race of future vehicular mobility are those with platforms like Uber.

Uber is the category-king ride-hailing business in North America. It makes more money than all the competitors in North America combined. But Uber made a very poor strategic decision many years ago: getting into self-driving business.  Sure, Uber’s major cost element is drivers, and removing drivers will improve its margins. But that argument does not account for the fact that Uber is not the right company to bring to fruition the generation-shaping technology leap of autonomous vehicles. Simply, Uber is a cash-poor company to fund and develop self-driving cars.

The saving on labour is marginal for the risk and distraction making cars will bring to Uber operations. Simply, the firm should build the largest demand mobility operating system and then define protocols for car makers to be integrated into it. It is a great call [I wrote in Aug 2018 that Uber should exit self-driving business] that Uber is thinking along this line: the self-driving unit should go; Uber already has a great business model on its aggregation framework.

LinkedIn Comment on Feed

Sometimes when you have plenty money to play around with, you tend to forget what made you wealthy in the first place.

Uber became wealthy without owning any taxi, no significant asset base, and suddenly it felt that by investing and owning autonomous vehicles; its greatness could become grander…

We see same in many businesses: as a start-up, you tend to be nimble, agile, offering unrivalled customer experience. Then when the money becomes plenty, you get entangled and muddled in unnecessary and suffocating bureaucracies; making sure that all the good things you were known for would be forgotten.

Well, when you are poor, there is a tendency to appear humble and gentle, and when you suddenly become rich? You know how most end up misbehaving.

Maybe Uber still have time to rediscover its root, and then shun any form of ‘misbehaviour’ in its business model.

Uber Should Exit Self-Driving Business

Nigeria’s 2019 Fintech Nucleus – Payments, Insurtech, and AI

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The Financial Services Industry in Nigeria is experiencing a tremendous change, as startups and traditional players within the industry continue to leverage new technologies in providing financial services.

With an estimated population of over 193 million, 162 million mobile subscribers, internet penetration rate at 84%, about 104.6 million internet users as of August 2018, and the financial exclusion rate standing at 41.6%, Financial Technology (“Fintech”) opportunities in Nigeria continue to deepen.

In terms of funding, according to the Nigeria Startup Funding Report (Q3 2018), the total amount of investment in technology companies in the country within the periods starting Q1 to Q3 2018 stood at $118,463,785. Interestingly, 73% of this fund was invested in Fintech companies. This is not surprising. In the same 2018, within the Global Fintech space, Fintech companies backed by venture capital raised nearly $40 billion (up 120%) across 1,707 deals globally (up 15%) over the past year. We expect this trend to continue through 2019.

In this edition of Fintech Nucleus (PDF), we start with Finley’s 1836 electric telegraph and deep-dived into the Fintech space and ecosystem. We explore the regulatory framework for the Nigerian Fintech space covering major trends in payments, Insurtech, and Artificial Intelligence, to mention but a few. And with a bias for AI Fintech startups, the authors take a wrap of the Fintech Nucleus with our Fintech feature.

We hope you find this edition of the Fintech Nucleus insightful and informative. If you would like to discuss any of the information contained in this report in more detail, please reach out to the authors.
Download the report here (PDF).
Contributor: Ademola Adeyoju

Jumia Files IPO in New York As A German Firm, Not A Lagos Company; Not An African Unicorn

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Unlike what everyone had written, Jumia is actually filing in NYSE as a German company, not a Lagos company. So, technically, we are yet to win that race. So, guys, it is not done yet: no Nigerian startup has indeed listed in New York for whatever the prize may be! I put this for record purposes as from Techcrunch to everyone, the messaging was a Nigerian firm but looking at the real stuffs that matter, Jumia is a German firm within the eyes of the American investors.

Today, Jumia is operating in 14 African countries with Nigeria the largest market but its principal executive office is in Berlin Germany, not Lagos Nigeria, according to SEC documents. This changes nothing but making it evidently clear that the march to the first Nigerian firm to NYSE remains alive.

I am expecting a company with the executive office in Nigeria. Sure, we understand that Jumia Germany is a holding company of all the pieces of Jumia in Africa. That is typical and the very reason we cannot say a Nigerian company has filed in New York. I expect a time when the holding company is based in Nigeria. So, going forward, my reporting on Jumia as it concerns its operations in New York will be classified as a German company which is what it is. So, Jumia cannot claim to be an African unicorn because it is not African.

Jumia Files IPO Papers in New York, Has 4 Million Customers

These African Women Are Using Technology To Solve Major Societal Challenges

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By Nnamdi Odumody

African women are amazing. From Queen Amina who fought invaders that threatened Zaria to Princess Inikpi and Queen Idia who paid the ultimate sacrifices to save their respective kingdoms, women have always stood in the gap when demanded. Across the continent, a new generation of women is innovating, and creating disruptive solutions to some common problems.

Brenda Katwesigye was shortsighted. This compelled her to start Wazi Vision which provides affordable and accessible eye care services to children. Her affordable eyeglasses, made out of recycled plastics by female artisans in Uganda, reduce the cost of eyeglasses by 80 percent while increasing accessibility for people. Also, she managed the development of a mobile application that uses virtual reality to perform visual acuity tests, bringing eye testing closer to people in areas that cannot afford expensive eye testing equipment.

Beth Koigi witnessed water scarcity in her native Kenya. This led her to start Majik Water which harvests water from air and converts it to drinking water using solar energy. Her device which won first prize at the EDF Africa awards this year could provide a solution for 1.8 billion people which are estimated to have water shortage globally. In Sub-Saharan Africa, 319 million people do not have access to clean and safe water. Out of this amount, 12 million people don’t have access to adequate clean drinking water, and over the next decade water shortages are expected to get much worse.

Majik Water uses desiccants such as silica gels to draw water from the air. The gels are then heated up with solar power to release the water and then collect the released water vapour, making it energy efficient. The current system can generate up to 10 litres of filtered water per day with the team looking to scale up to 100 litres at a cost of only 0.08 pounds per 10 litres. According to her, there are six times more water in the air than in all the rivers in the world. Majik’s Water device can work in low humidity of 35 percent and above in most and semi arid areas in Kenya.

Nneile Nkholise is the founder of IMed Tech, a biotechnology company, specializing in the design and manufacturing of custom made medical solutions to improve lives of Africans with 3D printing. Their products are produced with the goal of creating innovative medical solutions to help people requiring custom made medical prosthesis, bio-implants and other medical solutions to assist in enhancing lives and improving the overall health of Africans. She also founded 3DIMO that optimizes injury detection and prevention using athlete specific biomechanics data.

Dr Omolabake Adenle, founder of Ajala Studios, created voice recognition and speech synthesis software that can understand and digitize spoken African languages. The solution can synthesize speech from African languages and present them as digitized text. Digitizing African languages in this way allows Africans to interact with hardware devices such as mobile phones and digital services such as call centre applications by speaking their local languages. The software can be integrated into a wide range of devices and third party software applications.

Philipa Ngaju Makobore from Uganda invented an Electronically Controlled Gravity Feed (ECGF) infusion set, a medical device designed to accurately administer intravenous (IV) fluids and drugs by controlling the rate of fluid flow based on feedback from a drop sensor. Over 10 percent of children admitted to East African hospitals need immediate infusion therapy. Findings from a trial indicates that over infusion in children increased the absolute risk of death by 3.3 percent at 48 hours. Erroneous delivery rates can result into serious adverse effects. The ECGF solves this problem as it is very easy to operate and has key safety features which include alarms for rate of infusion (rapid or slow), total volume (over or under) and faulty sensors. A battery utilizing a hybrid (AC main and solar) charging bed powers the device. The ECGF has the potential to save lives by providing accuracy and safety at 8 percent the cost of a brand new infusion pump.

Across generations and in our own time, African women continue to lead. Even in this new era, their works continue to inspire.