• Friday, February 07, 2025
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The tricycle economy: What tricycles teach us about Nigerian innovation

The tricycle economy: What tricycles teach us about Nigerian innovation

Every morning across Nigeria, a fascinating economic revolution unfolds on three wheels. The humble tricycle, locally known as “Keke,” isn’t just transforming transportation – it’s offering profound lessons about how innovation really works in Africa’s largest economy.

At first glance, you might see just another transport solution. Look closer, and you’ll discover a masterclass in Nigerian business innovation that global corporations pay millions to understand.

Consider this surprising fact: In Lagos alone, the tricycle market grew by 400% between 2020 and 2024, according to the Lagos State Transportation Authority. But the real story isn’t in the numbers – it’s in the psychology behind them.

The tricycle phenomenon reveals three fundamental truths about Nigerian innovation that challenge conventional business wisdom.

First, successful innovation in Nigeria isn’t about creating something new – it’s about making existing solutions more accessible. Tricycles didn’t invent transportation; they democratized it. They found the sweet spot between the affordability of motorcycles and the comfort of taxis. This principle explains why many premium products struggle in Nigeria while “bridge solutions” thrive.

A former logistics manager at a leading e-commerce company once shared a revealing insight: their fastest-growing delivery segment wasn’t their premium same-day service or their budget weekly option – it was their tricycle-based delivery service that balanced speed and cost.

The second lesson lies in what behavioural economists call “friction minimization.” Tricycles succeeded because they removed multiple barriers simultaneously: they’re more weather-resistant than motorcycles, more affordable than cars, and more maneuverable in traffic than buses. This multi-problem approach is crucial. According to research from the Lagos Business School, successful Nigerian innovations are 2.5 times more likely to solve multiple problems simultaneously than focus on a single pain point.

But perhaps the most profound lesson comes from the tricycle’s role in social commerce. Watch a tricycle operator for a day, and you’ll see them transform from transporter to courier to mobile advertiser. They’ve created what sociologists call “commercial ecosystems” – networks of trust and transaction that extend far beyond their primary service.

This adaptability reveals a crucial truth about Nigerian markets: successful innovations here don’t just serve needs; they create opportunities. The tricycle didn’t just solve a transportation problem; it created a platform for multiple micro-businesses to thrive.

The implications for business leaders are significant. When a major telecommunications company studied the tricycle model before launching a new service, they discovered that successful Nigerian innovations share three characteristics:

They bridge existing solutions rather than replace them.

They solve multiple problems simultaneously.

They create opportunities for other businesses to build upon them.

As Nigeria continues its rapid economic evolution, the tricycle economy offers a powerful reminder: sometimes the most profound business lessons come not from boardrooms and business schools, but from the streets where innovation meets reality.

For business leaders and entrepreneurs, the message is clear: want to understand Nigerian innovation? Look beyond the obvious. The next big business insight might just be rolling past you on three wheels.

The question isn’t whether tricycles will remain part of Nigeria’s transportation landscape – it’s what other industries could learn from their success. What existing market gaps could be bridged? What friction points could be eliminated? What platforms for opportunity could be created?

Sometimes, the future of business isn’t about reinventing the wheel – it’s about understanding why three wheels worked better than two or four.

 

Ifedolapo Ojuade is a Commercial Strategy Leader specializing in marketing psychology and consumer behaviour patterns across African markets, where he combines behavioural science insights with practical commercial strategy to uncover market success patterns.

 

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