Nigeria’s newly elected President, Bola Ahmed Tinubu, recently made a significant announcement on his first day in office – the cessation of fuel subsidies by the Federal Government.
This decision has led to a surge in fuel prices, prompting many Nigerians, particularly those in the middle class, to reconsider their transportation choices.
As a result, logistics and mobility businesses have a unique opportunity to attract this new customer base.
Adapting to changing customer behaviour is essential for sustained success in a dynamic business environment. Removing fuel subsidies in Nigeria presents a clear shift in the transportation landscape.
With rising fuel costs, the middle-class population, who predominantly rely on personal vehicles, will likely explore alternative transportation options. This behaviour change opens doors for logistics and mobility enterprises to step in and meet the evolving needs of this customer segment.
This article will explore the importance of adapting to evolving customer behaviour and how logistics and mobility sector companies can capitalise on subsidy removal to target and serve the middle-class segment effectively.
1. Carpooling options for mobility companies
Companies like Uber have previously explored the option of carpooling for their passengers. Still, they will need to double down on this strategy in Nigeria to acquire more middle-class customers who would ditch personal cars for other options.
Sharing rides with other passengers in ride-hailing apps like Uber, Bolt and inDrive could present a cheaper option for this customer base.
In Lagos, for example, Shuttlers is a ride-hailing app that picks up passengers at different points and drops them at their destinations.
It’s a win-win for both businesses and customers. Mobility companies will have the cheaper option of using one ride to serve more than one passenger, and customers will have the more affordable option of sharing a ride in a comfortable setting.
2. Appropriate pricing structure
One key aspect is offering appropriate pricing structures that provide cost-effective alternatives to owning and operating personal vehicles.
By carefully studying the pricing dynamics and competitive landscape, logistics and mobility businesses can design attractive packages that offer savings and convenience to middle-class consumers.
3. Discounts and riding vouchers
During periods of economic downturn, offering discounts and vouchers can serve as effective strategies for attracting new customers and rewarding loyal ones.
In the logistics and mobility industry, businesses can implement discount programs or provide vouchers for a specified number of rides or trips to incentivise customers to utilise their services.
This approach encourages customers to choose their services over competitors and fosters customer loyalty and satisfaction. By implementing such discount initiatives, logistics and mobility businesses can navigate economic challenges while maintaining a solid customer base.
4. Added value and services