Lefa blames imminent closure on unfair competition

Lefa Transportation Services has blamed its imminent closure on InDrive and Yango’s misconduct.Namibia’s first local ride-hailing app recently issued a statement claiming that Yango and InDrive – global ride-hailing giants founded in Russia – are the main factors in their imminent closure due to “aggressive market-penetration tactics” they deployed to gain market share.“They are undercutting market-related fares offered by local, legally registered shuttle drivers, consequently driving companies such as Lefa, Dial A Cab, City Cab and TaxiConnect, out of the market,” reads a notice by Lefa’s founder, Melkies Ausiku.The global giants, “through their weak and non-existent vetting process, are wilfully and knowingly allowing private and unlicensed operators on their platforms," Ausiku added.RiskyThis comes at the expense of fully licensed, certified and insured transport operators and poses a great risk to the public, he warned.“Yango and InDrive are violating the laws and regulations to protect the transport sector, as they do not adhere to the Road Transportation Act of 1977 and the Namibia Tourism Board Act 21 of 2000,” the statement claimed.Ausiku said the operations of its competitors undermine efforts of legitimate operators trying, at great financial cost, to comply with the regulations and provide safe and reliable service to the public.According to Lefa, the proliferation of illegal transport operators not only creates an uneven playing field but also poses a significant threat to the safety and security of passengers who use the transport services.“These operators often lack the necessary certificates, licences or insurance to operate, which puts passengers at risk in the event of an accident or emergency,” Lefa claimed.No action takenIn documents seen by Namibian Sun, which were submitted to Nampol, City Police, Roads Authority, the works and transport ministry, the Namibia Tourism Board, Namibia Investment Promotion and Development Board and the Namibia Competition Commission, detailing Lefa&#039;s concerns, the company claims no action has been taken against the ride-hailing companies in question.Lefa further underscored the risk involved if local legally registered shuttle operators are driven out of the market by InDrive and Yango’s “illegal operating drivers," saying it will destroy many Namibian shuttle companies and jobs.According to them, a great majority of these shuttles are founded by previously disadvantaged Namibians who have embraced the risk of entrepreneurship to start their businesses, employ fellow Namibians and contribute to the Namibian economy.mariud@myzone.com.na

Lefa blames imminent closure on unfair competition

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Namibian Sun 2025-12-31

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Lefa blames imminent closure on unfair competition

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Namibian Sun 2025-12-31

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