Yango’s daily bonus system is capturing the attention of private taxi drivers, who say it is possible to earn 1 million kwanzas per month with the application. The number of application cars on the streets of Luanda is increasing, also driven by technology that makes working time profitable and saves money on operating costs.
Marcelino Van-Dúnem and Euclides Domingos are private drivers for Yango. Marcelino had no experience as a taxi driver before the company appeared on the Angolan market, on April 28th of this year. Euclides yes, he had already worked with other applications.
According to news published by Jornal o País this week, they point out that two months after the launch of the platform, the two taxi drivers are at the top of Yango’s performance table. Marcelino and Euclides earn an average of 1 million kwanzas per month with the application.
With a smile from ear to ear, Marcelino, who started traveling with Yango on May 2nd, admits that “I never knew what it was like to have all that money in your account”. “When they explained the payment scheme to me and I saw the money that was possible to make, I thought it was surreal”, concludes, for his part, Euclides Domingos.
So what does Yango have to offer drivers to earn this level of income?
This “unique model on the market”, as Ivan classifies Exercise[IM3] , is popular with taxi drivers. “As I keep the money from the races and don’t give anything to Yango, because the company takes that commission from the bonus, I don’t even feel like I’m giving them that 13%, it’s a very smooth way of settling accounts without seeming like we’re paying them anything. ”, says Marcelino.
On the other hand, Euclides Domingos guarantees that “this formula helps guarantee profits”. The driver with experience on other platforms says that “other applications require a greater workload, because they require many more daily trips to give the bonus”, compensation that “does not differ much in value and is weekly, while in Yango it is daily”. Furthermore, he says, “the commissions that other private taxi services charge are not suitable for drivers”, which is why he joined Yango.
Marcelino confirms. “At first glance, we might think that this application is not worth it, because the prices it charges passengers are lower than other applications, but in reality this is not the case”, he guarantees. And present the accounts. “Once, I started working at the same time as a friend from another application and we went out together. At the end of the day, he saved 47 thousand kwanzas and I had the 23 thousand that the clients paid me. But as I had completed the 14 daily runs that Yango establishes, I was already entitled to the bonus of 30 thousand and 100 kwanzas. At the end of the day, excluding fuel costs, cell phone data and the 13% commission, I ended up making more money than my friend who charged passengers more”.
With “prospects and profits on the rise”, Marcelino is now preparing to take a giant leap. “I have already done a feasibility study on the market and I know that I can put another 200 or 300 taxi drivers on the market”, he exclaims.
Currently, Yango has close to two thousand drivers and eight partner companies, according to national director Ivan Exercise.
Technology and savings
When they first heard about Yango, the story seemed too good to be true. “One day a man got into my taxi and told me how the application works. He told me what we now know, that he wouldn’t feel the commission payment, because it was charged on the bonus amount. I didn’t perceive. ‘So I’m going to keep 100% of the money I produce and they’re going to pay me more?’ He told me yes”. “A little suspicious”, he decided to take a chance.
He started working at the beginning of Yango’s operations, on April 28th of this year. “I started with five trips, to try it out.” Later that day, he received a call from the partner transport company he was registered with. “They told me I had money to receive. ‘Paying or receiving?’ ‘No, you already have money in your account’”. “I was surprised,” he reveals with a laugh. “That’s when I realized it was a serious company and that they really paid.”
Today, with income of around 1 million kwanzas per month, Euclides manages the work on the application to make the most of time and profits. “With Yango I rest more and have the opportunity to work intelligently to take advantage of the flow of traffic and passengers according to schedules and routes”, he explains. Although the application does not require exclusivity from its drivers, Euclides remains connected even after completing the goal of 14 daily trips. “My account balance continues to grow after reaching the bonus. We are not obliged to work only with Yango, but this application can make us work 24 hours a day, if we want”.
The application technology helps the day go smoothly. “Yango doesn’t let you stop, one or two minutes after dropping off a customer, you get another trip, which is very good for drivers who really want to work”, he describes. This system, known as “order chain”, is based on technology that detects the volume of transport demand, carrying out the necessary calculations to allocate trips consecutively. In practice, says Marcelino, “it helps to reduce the space between trips and make better use of driving time”, with “savings on fuel and on the wear and tear of the car itself”. According to Yango, this system can reduce dead time between races by up to 40% and increase drivers’ income by up to 70%.
In terms of technology, another difference that drivers highlight is Yango’s geolocation system. The application has its own maps, tailored to Luanda, and which include reference points to help locate the starting and ending points. “These maps are much more accurate than those used in other taxi applications, such as Google Maps. Yango maps have detailed descriptions of the areas, which helps us a lot”, assures Euclides, who points out another comparative advantage: “unlike other applications, Yango maps work well on both iOS and Android”.
Drivers with rights
Yango’s current business model, with big profits for drivers like Marcelino and Euclides, is part of the company’s entry strategy into the Angolan market. And they are aware of it. “I understand that at this initial stage, companies focus on gaining agents, drivers and consumers and have a working capital to cover all costs, such as bonuses, until they reach their commercial objective”, assumes Euclides Domingos.
“At some point, Yango will have to balance its business model”, admits, for his part, the national director, Ivan Exercise[IM5] , for whom the company “will only start to make a profit in a year or more” from its operation in Angola. However, it does not dramatize. “To achieve our business goals, we simply need to increase the number of races. With our response to the mobility problem in Luanda, we will certainly make enough profits to ensure that everyone always wins: the passenger, who will continue to pay less for trips; the driver, who will always have bonuses and incentives and will earn more than in other applications; and partner transport companies, whose businesses will continue to evolve.”
Marcelino and Euclides are not worried about possible changes. “Even if they change the incentive policy and, for example, the bonus drops to 25 thousand kwanzas, if Yango continues to remove the commission from the bonus and we don’t feel it, there will be no problem”, guarantees Marcelino.
Once they confirm that they are going to last, they put on their shirts and think of alternatives to make the business more attractive to drivers, such as increasing the target of 14 daily trips needed to obtain the bonuses. A proposal that Yango’s national director, Ivan Exercise [IM6] discard for now. On the one hand, he says, “currently not many drivers reach that limit”; on the other, “excessively increasing this limit is a risk, because we will have very tired drivers driving just to try to reach the bonus, and this does not meet the level of safety that the company requires in the operation.”
Euclides understands the point and emphasizes that “this type of concern for drivers and passengers” distinguishes the company from others he has worked for. And he gives one more example. “Many don’t know, but Yango is working so that the State recognizes us as workers, with the right to social security and other benefits.” Giving workers this formality “is essential”, says Ivan Exercise[IM7] . “Currently, in our country there is no law to collect taxes from people who work on digital platforms such as Yango, Instagram or Facebook, and we have experience in this field, we have already helped governments in various parts of the world to apply what we call taxes digital.” In Angola, he adds, “the State has already shown interest in regulating this sector and we had the opportunity to share our knowledge in this field with several institutions”. “By having a law that regulates this activity”, he continues, “people who work on digital platforms and pay these taxes will have recognition and protection from the State in terms of social security and other benefits, such as the possibility of requesting bank credits, for example”.
How to be a motorcyclist in Yangon?
There are several ways to be part of Yango. Interested parties can self-register, for example. To do this, you need to download the application and complete the forms with the required data. Another way is through local transport companies that manage drivers’ licenses and act as a bridge between them and Yango. These are called “partners” (the application does not deal directly with taxi drivers). Finally, those interested can approach the application agents who are on the city’s streets, recognizable by their Yango t-shirts. These “scouts” register instantly.