Fast & Ferocious: How Ride-Hailing Is Steering Ethiopia’s Urban Future

By Aksah Italo
Published on 02/02/26

In the tight urban corridors where city landscapes meet traffic jams, a new player has emerged among Ethiopia’s ride-hailing giants, Little. Founded on the idea of “making little changes, one ride at a time,” Little Limited began operations in Kenya in 2016 and has since expanded to over five countries, including Ethiopia.

Unlike many competitors, Little Ethiopia’s business strategy is sharply focused; catering primarily to companies by offering corporate ride-hailing services for employees. 

The company is also known for providing some of the most affordable services in the market. Little officially launched in Ethiopia in March 2022, focusing on corporate clients. Its model allows companies to manage employee transport with monthly billing, simplifying financial transactions and reducing administrative burdens. 

“Our strategy revolves around helping companies control suspicious activities and unauthorized trips by drivers,” Behailu Gizaw, operations manager at Little Ethiopia disclosed. 

Little claims to have on-boarded over 20,000 drivers and 500 corporate partners, including Safaricom, Ethiopian Airlines, Bank of Abyssinia, and Dashen Bank. However, its road has been far from smooth. Behailu says a lack of clear regulations has created significant challenges for the sector. “The unclear regulatory framework makes future growth plans and investment decisions highly uncertain,” he explained. 

Addis Ababa’s broader ride-hailing industry is now estimated to have around 250,000 registered drivers. Estimates show that there are currently 11 ride-hailing companies in the country. Ethiopia’s app-based ride-hailing industry began in 2015, slowly gaining traction over the years.

Early entrants such as ZayRide, operated by ZayTech IT Solutions, helped pioneer the space, while Ride, under Hybrid Designs Plc, became a household name and synonymous with the service itself. Launched in 2016, transport service provider ‘Ride’ managed under Samrawit Fikru, a software developer and an entrepreneur has since then built its portfolio to become one of the biggest companies in Ethiopia employing over 90,000 drivers. 

For many, ride-hailing is more than just a service, it’s a livelihood. Natinael Abebe, 30, a former trader who once ran a small shop around the Garment area, was not pleased with what he was making. 

“I was getting tired of stagnant life,” he said.

Struggling with constant losses, taxes, and an unstable business environment, he turned to driving a ride-hailing vehicle a year ago after purchasing a new electric car, to make ends meet. A father of two, now juggling two ride-hailing apps to boost profits, says the work offers him greater stability, despite the constant ups and downs. 

“It helps me make a decent living,” he said. 

Ride-hailing, defined as a technologically driven on-demand transport service, aims to make public transportation more sustainable by reducing private car ownership and boosting shared mobility.

As the city expands and population surges, traditional transportation systems struggle to meet demand, leaving space for new alternatives. Many residents had quickly become fond of its offers. Its willingness to battle incumbents, use of technology to match buyers and sellers, and embrace of “surge” pricing to balance supply and demand make the ride hailing giant a dismal scientist’s dream. 

These services thrive on convenience, affordability, and real-time tracking, qualities that appeal to urban commuters. A variety of new entrants are carving niches. Feres, the most popular ride-hailing platform among Addis Abeba’s middle class. It arrived later to the scene, launching in 2020. 

Despite that, it surpassed its competitors and is now competing for the top race. A veteran in the Ethiopian ride-hailing scene, boasts an extensive network of drivers. It has a wide cab network that comprises over 100,000 drivers and a popular reward program. Meanwhile, Seregela, founded in March 2020, is reshaping the male dominated sector by employing only female drivers. 

The company, established by Elias Negash, caters primarily to female passengers and operates exclusively via pre-orders through a call center to ensure safety. Seregela uses Suzuki sedans and charges a flag-down fee of 105 birr, with 18 birr per kilometer. Globally, the market is dominated by players such as Uber Technologies Inc., Bolt Technology OÜ, and regional competitors like Little Limited in Kenya. 

According to the Journal of Transport and Supply Chain Management, the global ride-hailing market is valued at 203.54 billion dollars and is projected to grow by over 100 billion dollars by 2030, driven by rapid urbanization, tourism growth, and worsening urban congestion.

Despite the sector’s growth, policymakers continue to debate whether ride-hailing platforms should face tighter regulation, citing concerns over pedestrian safety, data privacy, and driver liability in accidents. An official from the Addis Ababa Transport Bureau disclosed hat the bureau is currently drafting new regulations for the largely unregulated sector, where even the total number of legally operating companies remains unknown. “Some services are operating without permission, and with an even more uncertain number of employees,” the official admitted. 

“The industry needs thorough supervision.” The challenges cannot be overlooked. Regulation and safety have not kept pace with growth, and oversight remains weak. Affordability tensions are also rising. 

While ride-hailing creates income for thousands of drivers, the cost to end-users has risen by nearly 100 percent in the past five years.

Operating costs for drivers including fuel, maintenance, and vehicle loan payments have also climbed, squeezing net incomes and putting pressure on livelihoods. Experts like Birhanu Zeleke, a veteran in the transport sector, say that although ride-hailing has transformed Ethiopia’s mobility landscape, the industry must now evolve responsibly. 

“These companies need to prioritize affordability while helping address the city’s transportation crisis,” he said.

He added that the business holds immense potential, yet its rapid growth has outpaced regulation, leaving authorities struggling to catch up. To sustain its momentum, Birhanu argues, the sector needs both strong oversight and an enabling environment that encourages innovation without chaos.

 “Authorities have the greatest responsibility in navigating through that manhole,” he said.