The arrival of mobile data Internet has caused a radical change in Cubans’ daily lives. Although we still make constant use of social networks, several people have given free rein to their talent with the creation of web platforms and applications which contribute to solving common issues and significant problems. One of these entrepreneurs is Rancel Ruana, a young computer scientist and programmer whose experience of using Uber, a global transport application, served as inspiration to develop a similar model adapted to the peculiarities of this island.
When at the end of 2018 mobile data was launched in Cuba, Rancel dusted off the project that he had on hold for two years, got to work and on February 14, 2019, his app was already available on iOS and Android. The application allowing users to request taxis, which he named Bajanda, is now widely used thanks to the simplicity of the procedure and its low data consumption; in addition to its identifiable name that has already made it very popular, even among renowned artists.
What distinguishes Bajanda from other similar Cuban and international apps?
“The difference between Bajanda and Uber, which works in most of the world, is that here the payments are in cash and paid directly to the driver once the trip is over. Another of its features are the categories of standard, comfortable and classic cars, created by us and which have inspired other people in their own applications. “You can make reservations, follow the drivers in real time, get an initial estimate of the price, guarantee passenger safety through access to the police number and your emergency contacts. It has an award system for invitations to use the application. But really our main point of difference I think has been the work on social networks, especially Instagram, where many people share their trips, because we do not want it to be just a single application, but above all what you can do with Bajanda beyond its own service.” One of the most complicated issues, according to Rancel, has been to gain the trust of users and drivers, as making people understand that through an application you can book a taxi to come to you and have trips guaranteed without wasting time, is something that requires a change of mentality.
How have you recruited drivers and measured the impact of use of the application?
We have recruited drivers through word of mouth. Some have seen us on social media, but most have come through other drivers. It has grown organically because they themselves have noticed that it works, they recommend it to others and bring them to the office for us to register them. However, we do not have absolute numbers because, although we now have about 1,400 registered drivers, the important aspect lies in those who work daily and keep the application running. A clear concept that we always had from the beginning is that the drivers are our clients and it is we who provide a service to them. Using Bajanda represents fuel savings because they don’t have to go out to look for clients, it gives them security when they drive at night, they don’t have to wait around at taxi stands and they get rid of the stress of working a certain number of hours or on complicated schedules. With all this, 98% of our trips are classified as 4 and 5 stars and when there is a problem, we immediately contact the person and pay special attention to that client.
Who or what determines fares?
Even though the price of the trip is shown on the application, we do not determine this rate. The fare is established according to various factors, including the category of the vehicle, distance and time, as well as a base price that each car range has. We have verified that if we cut prices in half, drivers simply do not use the application, and if we raise them, it is the users who withdraw. The current price is a balance between what users are willing to pay and what drivers want to charge. Any taxi service that you call by phone, that picks you up at home and transports you alone is not cheap anywhere in the world. It is a service for certain situations, not to travel daily to work. Today many people use Bajanda to share travel with friends who are at different points and going to the same final destination. In addition, we have had cases where people use it to make purchases. Hopefully at some point we can offer other services that are cheaper.
How does this business model work and what results have you seen?
We only charge 15% of each trip, no matter its category (Uber can get up to 33% of the fare), as we do it so it can pay for itself. We have not yet made any considerable gain, we are just trying to make it grow, to become an alternative that more people use every day; since to turn it into a profitable business there would need to be a very large volume of daily trips. We are a business that already covers its costs, but that still does not generate concrete profits.
Why link to bars, restaurants, magazines, workshops?
“I have always been of the idea that together we can help each other and the impact we have had on social media has led us to approach other businesses and ventures. We have collaborated with several restaurants, with photographers whom we help with their sessions, with Jhonnie Walker and with Giorgio. We are always looking for ways to collaborate with others without a payment necessarily involved. What I want is for my clients or my users to have an extra advantage or benefit when traveling using Bajanda, so it is not just a trip, but a lifestyle. So they are able to complement it with their daily affairs and it is seen as something more than an app.” For Bajanda’s small team, the future is reduced to the search for alternatives that work for drivers and users, to reach a point where both trust in them and demand are such that they can insert other cheaper transport options to thus continue helping those who move through the Cuban capital to reach their destinations.