Transportation startups heat up competition

One of the main criteria for venture capital firms looking to invest in startups is the size of the (potential) market that a startup is looking to tackle. A team of budding entrepreneurs might have a brilliant idea, but if they are solving a problem for a market that is very small, it is not worth it for the venture capital firm to take the risk. Luckily, there are plenty of large markets in the Middle East and North Africa.

One of these, which has drawn many startups to try their luck and solve the problem, is the transportation sector. In Cairo particularly, which has a massive population of 23 million people combined with bad traffic, there have been many startups that are looking to solve that problem.

Well-known names, such as US-based ride-hailing company Uber and UAE-based Careem each launched bus services aimed at serving Cairo's low-income population in December 2018. However, they face stiff competition from local bus startups Swvl, Halan and Buseet, as well as other transportation startups serving other niches. Learn more about the fierce battle in the transportation space in Egypt here.