OPay expands to bus-hailing, launches “OBus”

OPay, the start-up that is backed by Norwegian company Opera, has expanded its footprint in mass transit with the launch of “OBus” the country’s first bus-hailing service in Lagos, Nigeria’s commercial city, over the weekend.

The company, Opera-Pay, has since its entry into the Nigerian market expanded its business to include food and grocery delivery, and bike services, to its platform which facilitates bill payment, and transfer of money.

“OBus is like normal buses but it is more comfortable and supports cashless payments,” an OPay staff told Techpoint in an online chat.

The buses currently ply along the CMS-Ikeja routes and are undergoing beta test.

Information from Techpoint suggests that a Quick Response (QR) enabled card would be used in making payment for trips on the buses.

To use the service, commuters would have to update their OPay app and purchase a QR Cards from OPay agents at specified bus stops.

Upon boarding, the cards would be placed over a sensor reader inside the bus to read the ticket barcode which was generated through the mobile app before the trip. Withdrawal is made immediately.

OBus cards sale for as low as ₦200 and can be used for multiple trips until the credit is exhausted. Like other OPay services, payments can also be made through the OPay wallet.

The company’s latest venture is a testament of its aggressive bid for a significant share of Nigeria’s lucrative transportation industry.

Following the introduction of ORide, the company set out immediately to lure customers with attractive offers and is also said to have poached on bikers and top talents from its competitors, one of which is Gokada- a hail-riding bike company that has temporarily suspended its operations.

ORide backed by Chinese fund has expanded to Ibadan recently introduced OTrike, its tricycle hailing service in Aba. Kano is also said to be a market for OTrike.

The company whilst admitting to its rapid expansion said the strategy presented an opportunity for learning.

“I admit that OPay is moving very fast. However, I believe we will learn from experience, just like Gokada is having its share of challenges already.” OPay was quoted to have said.

OPay recently raised $50 million in funding.

ORide in the mass transit bus market would be in direct competition with “Danfo” and “Molue” commercial buses. The company would, however, be relying on pricing and the convenience it provides to woo riders.