Roam eyes rural motorcycle demand

November 13, 2024

From the newsletter

One of Kenya's leading electric motorcycle companies, Roam, yesterday opened its first shop outside Nairobi in Thika. This marks its third shop in Kenya as the company expands its operations. The shop will offer sales, battery swapping, rentals, and after-sales support targeting rural areas around Nairobi metropolitan.

  • The company locally designs its electric motorcycles specifically tailored to the African terrain. 

  • It has a manufacturing plant in Nairobi with the capacity to produce 50,000 electric motorcycles annually.

More details

  • Most electric motorcycle companies target the urban population and have designed their products based on their own countries' terrain, which often doesn't match Africa's. 

  • Even when there are similarities, these designs may not be suitable for rural road networks, which are mostly unpaved and become muddy during the rainy season.

  • Furthermore, they may not meet the demand for carrying heavy loads, such as agricultural produce and people, to nearby markets.

  • For a product to sell, it must meet the needs of the market; Roam seems to have accomplished this. They have designed and tested their electric motorcycles in the African terrain to ensure they meet the demand.

  • To date, they have sold over 1,500 motorcycles, and their expansion is evidence that there is demand. 

  • What is interesting is that Roam's expansion is unique. While others are targeting expansion in major cities in Kenya, Roam is expanding to Nairobi's satellite towns.

  • First, Thika is an agricultural town that feeds Nairobi. Many farmers are small-scale and don't require pickups or lorries to transport their produce to market. A motorcycle serves them well. 

  • This is common across Kenya, where many farmers use motorcycles to transport their produce to their nearest market. In Kenya, 70% of the population resides in rural areas.

  • This is where the demand for motorcycles exists. But serving this population requires sturdy motorcycles that can withstand the load and terrain.

  • The riders also want something that can enable them to save on operation costs. Electric motorcycles have proven they can be cost-effective. But there is a challenge with affordability, as many rural people are unable to afford electric motorcycles.

  • Roam has partnered with several asset financing companies including Mogo, M-KOPA, Ridewell, and Bolt to ensure customers can afford electric motorcycles. 

Our take

  • Understanding your market is key, and knowing where your customers are and meeting them at their convenience is even more important. Roam's expansion outside the city is evidence of this. 

  • Many customers in rural areas are owning motorcycles for the first time, unlike in urban areas, where most are switching from fuel-powered ones. There is also more competition in urban areas, with many electric motorcycle companies targeting those areas and forgetting the rural market.

  • Rural areas are the next big market for electric motorcycles. The companies that move first to capture this market will be the ones to reap the rewards.