Innoson Vehicle Motors at the weekend announced the entry of its brand of ride-hailing service called IVM Cruise in Enugu, eastern Nigeria, with plans to introduce same in other cities.
The IVM Cruise ride-hailing service from one of Nigeria’s vehicle assemblers is unique as it offers drivers a chance of becoming owners of brand new Innoson vehicles after a period of three years in which the cost of these vehicles would have been paid.
IVM Cruise is a technology-driven ride-hailing service by offering commuters a platform for pickups and drop-off from their various locations to their destinations. It is designed to operate on an incremental digital architecture in line with modern trends in the city transportation industry.
“As I noted when this service was originally announced, this is a great playbook. Yes, no matter what happens, profit or loss in the ride-hailing business, this service will make Innoson vehicles popular on the roads and will then push many people to go and buy them,” Cornel Osigwe, head of corporate communications, Innoson Vehicle Manufacturers, said in a statement.
“It is a slam dunk: I am seeing these cars everywhere, and I am going for one myself. Call it a great double play strategy,” he said.
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Osigwe said for the operator using the vehicle for ride hailing services, it is a double play strategy.
“He can lose money on this but in that process, he will create a brand where IVM vehicles become common on the streets,” he said.
According to him, the vehicle-hailing business has not shown capacity to be profitable at scale anywhere. But the little losses may bring popularity through awareness this will bring.
