Roam reduces staff count by 8%

From the newsletter

Kenya-based electric vehicle company Roam Electric, has reduced its staff count by 8% over the last 12 months, according to an analysis of LinkedIn data by Mobility Rising. The company currently has 138 “senior” workers, a decrease from 150 workers in May 2024. Roam was last week named as Kenya’s fastest growing company by the Financial Times.

• The startup, which mainly sells electric motorcycles and buses, has expanded rapidly since it was founded in 2017. Its revenue hit $2.31 million in 2023, up from just $0.41 million in 2020.   

• The electric motorcycle landscape in Kenya is more competitive than ever. Roam was one of the industry’s pioneers, but the arrival of major players like Spiro and ARC Ride has made the market tougher. 

More details

• The majority of Roam’s employees (28%) work in engineering roles at the company, which mainly assembles its electric motorcycles locally. Operations employees make up 25% of the firm’s workforce, followed by sales (9%), information technology (6%) and quality assurance (4%).

• Sales is one of the functions where Roam has been hiring, the company has 12 sales staff listed on LinkedIn, which is an increase of four over the last one year. This signals an intention to capture more market share, expand into new regions, or increase sales revenue.

• The average experience of workers at the electric mobility company is 7.4 years, which is a solid level of experience for a startup. Having experienced individuals at the firm is beneficial as they bring a wealth of knowledge, industry expertise, and established networks in the EV industry.

• The average tenure for workers at Roam is 2.6 years, which is slightly longer than the average. The average employee tenure at Kenyan startups is generally shorter than in more established companies. Various data sources indicate that local startups have a median tenure of around 2 years for employees, with some roles, like executives, having longer average tenures. 

• Staff at the firm are highly educated, with 25% of workers there having a masters degree. These degrees often equip learners with specialized knowledge in a particular interest area, but within the startup ecosystem in Kenya, experience is more valued.

• Some of the employees that have left Roam have gone to their competitors, from whom the company has also been hiring new workers. It signals an increasingly competitive industry but which still lacks enough skilled workers, forcing firms to choose from a small pool of candidates.  

Our take

• The reduction of Roam’s head count could indicate efficiency measures, cost-cutting, or a strategic shift in operations as the company navigates an increasingly competitive market. it contrasts with its competitors, most of which are increasing their workforce. 

• Roam’s hiring focus on sales suggests an effort to strengthen its position and capture more customers amid growing competition. Growing the number of its sales force further could give it an edge when it comes to being visible to potential customers. 

• The EV sector in Kenya is still maturing, meaning skilled workers are in short supply. Employees moving between companies highlights the talent war in the industry, with firms competing for a small pool of experienced professionals to drive innovation and expansion.