Startup Turns Informal Lift Culture into a Carpooling Business

For years, informal “lifting” has quietly existed across Kenyan estates and highways. Neighbours heading in the same direction share rides, motorists stop to pick stranded commuters, and lately, WhatsApp groups are coordinating transport during peak hours.Now, a Kenyan mobility startup is attempting to formalise that culture into a structured carpooling platform.

“We are not a car-hailing application; it’s not a taxi,” says Eric Mutui, the CEO and co-founder of G-Rani Mobility. “It’s just bringing people who are moving in the same direction together, basically to save on time and money.”Mr Mutui says the idea for the platform was born in late 2022 during a period of high fuel prices and heavy rains in Nairobi.He recalls leaving his car behind and boarding public transport into town, only to notice numerous private vehicles passing by with empty seats.“I thought I would be more comfortable in that car than in the matatu,” he says. “Probably that person is going exactly where I’m going.

”What followed was the realisation that the culture already existed informally in many parts of Kenya, particularly in estates and rural towns where neighbours often offer lifts to one another.“It was not necessarily a new idea,” he says. “It is basically coordinating what has already existed and putting more structure to it.”How it worksThrough the app, drivers declare available seats and routes, while passengers heading in the same direction can book rides and contribute toward fuel costs.The startup insists the model is not commercial transport.

To avoid turning private motorists into de facto taxi operators, the platform caps the amount drivers can charge passengers.“At any given point, even if you fill all the seats, the driver will not break even or make a profit,” says Mr Mutui. “The people you are carrying are just supposed to cushion you.”The startup currently limits users to declaring a maximum of four available seats, even for larger vehicles, in a move aimed at avoiding overlap with PSV regulations.Still, regulation and insurance remain among the company’s biggest hurdles:

“The law is very grey when it comes to carpooling because this person is not commercial,” Mr Mutui says. “You cannot force this guy to get a PSV because he is not making money.”Tailored coverSecurity concerns have also shaped the app’s design. Users are verified using phone numbers, national IDs and, for drivers, driving licences.“There is a cautiousness because people don’t know who they are carrying,” he says.The company is also building a rating system focused on punctuality, safety and rider comfort rather than the generic review systems used by ride-hailing apps. Beyond regulation and logistics, the startup has also had to contend with another challenge; educating the market on carpooling.“ We’ve been on ground literally onboarding people, we’ve been online, we’ve basically been everywhere,” says Linnet Kitonga, who leads the company’s brand narrative and marketing.

Earliest lessonsMs Kitonga says one of the startup’s earliest lessons came when users confused the platform with ride-hailing services.“At one point we onboarded a lot of ride-hailing drivers, but carpooling is more of a coordination infrastructure,” she says. “It’s not ‘order now, get now.’”She says many drivers would accept trips on the platform, only to abandon them when urgent ride-hailing requests came in elsewhere.The startup has since shifted toward more curated digital campaigns, podcasts and word-of-mouth marketing to attract daily commuters rather than occasional travellers.“We’ve seen digital working for us. We’ve seen word of mouth working for us,” says Ms Kitonga.G-Rani currently has more than 7,000 plus users, according to the company, with passengers forming the majority of the user base.Carpooling growth driversWhile the figure may appear modest compared to larger ride-hailing platforms,“Building something that’s new in a market like this has been one of the most eye-opening experiences for me,” she says.Mr Mutui argues that rising fuel prices, growing demand for convenience and overcrowded public transport are creating room for structured carpooling in Kenya’s urban centres.

“There is an emerging population that appreciates comfort and convenience, even when they do not necessarily have many resources,” he says.The founders believe the model could eventually reshape how Kenyans commute, not just within cities, but also for long-distance travel.Beyond logistics and marketing, the company says technology and user trust will determine whether structured carpooling can scale in Kenya.Building accountability and trustJohn Gechure, the chief technology officer (CTO) who leads the startup’s technology division, says the platform is developing a more detailed rider and driver rating system designed specifically for carpooling.Unlike conventional ride-hailing apps that rely on broad star ratings, Mr Gechure says G-Rani wants users to assess trips using specific parameters such as punctuality, cleanliness, safety and overall comfort.“For one person, five stars might mean cleanliness. For another, it might simply mean silence because they don’t want to be disturbed,” he says.The startup believes such detailed ratings could help build accountability and trust between strangers sharing rides, one of the biggest barriers to carpooling adoption in Kenya.

Mr Gechure also elaborates on the company’s token-based billing system, which is used instead of traditional commissions.Under the model, users purchase digital tokens that are deducted whenever they book or schedule trips on the platform.“One Kenya shilling equals one token,” he says. “For example, we currently charge five tokens for every 25 kilometres travelled.”The tokens do not expire, and users can purchase them depending on how frequently they use the app.The CTO says the startup sees itself as addressing a broader urban mobility challenge rather than simply creating another transport app.“Traffic in Nairobi is largely caused by private vehicles,” he says. “If we are able to remove even 1,000 vehicles from the road because people are sharing rides, that is already a significant impact.”While Nairobi remains the company’s immediate focus, G-Rani says it is already eyeing expansion into other Kenyan cities and eventually the wider East African region.

“We are looking at Tanzania and other East African countries as well,” says Mr Gechure. “It’s not just a local problem we are trying to solve. It’s an African problem and eventually a global problem.”For passengers using the platform, the promise of structured carpooling is already translating into tangible savings and convenience.Passenger experienceNyawira Gitonga says she discovered the service through LinkedIn after a friend reposted a link introducing the platform: “I came across it on LinkedIn. That’s how I ended up downloading the app.”For her, the appeal was immediate, not just cost, but predictability.“The thing I like about it is convenience and affordability,” she says. “As long as someone is on my route, it becomes very easy. My driver picks me up at around 7am, and they also work close to my office.”She contrasts this with her previous commute, which involved multiple matatu transfers and longer travel times: “Now I only use one car to get to work. Before, I would take two matatus and a boda boda. It was stressful.”On cost, she says the savings have been significant.“Usually I would spend about Sh200 a day, sometimes more. Now I’m spending around Sh50 on the platform. I’m saving more than half my transport cost,” she says.In her case, convenience extended to proximity.

“The driver was just a few blocks from my house, so I would just wait outside my gate. It was very easy compared to matatus,” she says.Safety, however, was her first concern when she joined.“Yes, I did have safety concerns at first,” she says. “But I was told drivers are vetted using IDs, and they have to register on the platform.”For her, the biggest improvement she would like to see is expansion.“More cars on my route,” she says.Driver experienceFor drivers, the platform has quickly shifted from a commuting tool into a practical cost-sharing system that helps offset daily fuel expenses.Vane Kerubo says she first learnt about G-Rani Mobility through a friend after initially registering as a passenger.“I registered as a passenger first because Uber and Bolt can be expensive,” she says.

“But since I commute to work daily, I decided to register as a driver as well, so I can pick up passengers and cover fuel.”She joined the platform about two months ago.Ms Kerubo says the biggest challenge since joining has been the need for discipline in her morning routine.“I leave my house a little earlier than I normally would,” she says. “It’s a consistent schedule every day; if I’m leaving at 6:10am, it has to be 6:10am daily so passengers also know what to expect.”Despite the added structure, she says the experience has remained smooth, with no major disruptions so far: “I haven’t had cancellations or timing issues. So far, so good. I’ve had really nice passengers.”On pricing, she says the token-based system has been a clear benefit: “It definitely covers my fuel. “It’s better than driving alone. At least I know my fuel is covered every day.”However, she notes that the system could improve in terms of matching efficiency.Door-to-door convenienceHashim Mwaura, a driver on the platform says he first learnt about the platform through a friend working at G-Rani Mobility, who introduced him to the idea of monetising empty seats during his daily commute. He joined about two months ago.He typically carries one or two passengers per trip, mainly along familiar neighbourhood routes where users are often regular commuters.

“The good thing is most of these rides are within the same neighbourhood,” he says. “The first time is a bit new, but after that, you get to know each other, and it becomes easy.”He adds that the familiarity between repeat passengers has helped build trust and reduce friction in daily coordination.On pricing, he is candid that the model is not primarily income-driven.“Because of fuel prices, what we charge does not really fully cover the cost,” he says. “But for me, I’m not really trying to cover everything. I’m looking for company and convenience on the way to work.”Asked what could be improved, he says better passenger-driver matching would enhance efficiency, ensuring commuters are aligned more closely with drivers’ routes.He notes that passengers often compare the service with alternatives such as matatus and ride-hailing apps but increasingly appreciate the predictability and door-to-door convenience.“

They don’t have to queue for matatus in the morning,” he says. “I just pick them from their gate because it’s on my route.”On safety and trust, he says the platform’s verification process has been key to building confidence among drivers.“All passengers are verified by G-Rani before they are onboarded,” he says. “So you know who you are carrying, and that makes it safe.”He adds that most transactions are settled through M-Pesa after the ride, and so far, he has not encountered any major challenges.“The first time is always the test,” he says. “But after that, passengers become familiar, almost like friends. There is no conflict.”