Ride sharing has become a popular service throughout the world in the past few years. Ride sharing services offer one time rides by qualified drivers under the service of a company. The company uses a mobile app for riders to set up rides. Ride sharing is easy to use, easy to navigate, and a safe way to travel through a city.
Snapp is reshaping the taxi service industry in Iran. The company received Series A funding solely from MTN, a South African Company. The funding has helped the company build its base in Iran and particularly the capital city of Tehran. After decades of sanctions, it is not easy for a start up company to prosper in Iran, but Snapp is doing well. The large funding is $22 million USD or 20 million Euro.
With over 8 million residents and strict driving regulations, Tehran is a city that depends on qualified taxi and ride sharing services. The city’s population is mostly under 30 years old, and internet access is growing fast. The city is the perfect scene for a mobile app ride-share service to grow. Snapp has established a solid customer base and plans to continue expansion within Iran and elsewhere.
What is Snapp
Snapp is a popular ride sharing service that as successfully grown in Iran. Operating mostly in the capital city of Tehran, Snapp has seized the market by using qualified drivers, premium services and pre-set prices. Snapp uses a mobile app for riders to enjoy easy and efficient transportation.
Snapp has faced challenges as a start up in Iran but has been able to use the challenges to its advantage. The city of Tehran has a large market for the service with 8 million residents and many regulations for. For example, United State’s sanctions have kept Uber from joining the Iranian market. Iran has a large number of legally and illegally operated cab services and 78,000 cabs which is 5 times more than cabs in New York City.
Despite the amount of cabs in Tehran, Snapp has little true competition in the business. Its main competitor is Tehran Taxi Organization which is just now exploring the use of a mobile app. Snapp understood from the beginning the necessity of a mobile app in the city of Tehran whose main population is under 30 and growing internet access.
With a large amount of funding, Snapp has been able to surmount many obstacles. Snapp uses qualified drivers, an easy mobile app, and good service to continue its success. The company focuses on these aspects to offer the best service and intends to continue to do so in the current market and expand its business.
How does Snapp work
Much like other ride-sharing services such as Uber, Snapp or Snapp.ir uses a mobile app. The app is easy to use for and offers a one-time riding service with pre-set pricing. Users can request a driver and go. Snapp is widely advertised by word of mouth. Prices are set before the trip which eliminates the hassle of haggling the fare. This is an original aspect of Snapp, but other companies, including Uber use this system. As for payment, Iran is still mostly a cash-based society, so cash is expected as payment.
Currently there are 10,000 drivers working for Snapp. Drivers must have a valid driver’s license and insurance. Driver’s receive a background check. Their vehicles are thoroughly inspected by Snapp to assure safety. Driver’s are local, so they know how to navigate the streets of the city well.
Snapp was founded by Iran Internet Group. The group has an interest in growing the start up ride share in Tehran and expand it to other cities. The company has successfully created the transportation service and currently has about 500,000 subscribers.
It received sole Series A funding from the South African global conglomerate, MTN. MTN is partnered with the German e-commerce incubator, Rocket International. MTN has given Snapp Series A funding. The amount of 20 million Euro or $22 million USD is one of the highest investments in an Iranian start up business.
Future of Snapp
Snapp has shown itself to be a successful business entity in Iran. The company has secured much of the ride sharing business in the country of Iran and plans to continue its expansion. Snapp’s business plan has been to focus on the Iranian market and to continue to delivering valuable service to its riders. The company plans to continue to invest in the current cities it does business in. They also plan to expand to other cities and expand services including offering premium vehicles and new features.
Snapp has proven to be a smart business entity in Iran. Taking its plan from successful international ride share companies like Uber, Snapp has succeeded in building its business successfully in Iran. The company secured one of the largest start up investments in the country and successfully built a business that has been highly needed in the bustling country. The service is easy to use with its mobile app, easy to pay for with pre-pricing and acceptance of cash, and safe and knowledgeable drivers. Snapp has changed the way taxi service works in Iran. With it current success, the company is likely to continue to expand its services through the middle east.