Challenges + Solutions
Last mile issues and consistent addressing for delivery services for consumers (and many businesses) are seriously complex issues in need of solutions. And those are only two of many complex issues to be solved.
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Nairobi’s formal areas, including its Central Business District, face a GPS accuracy crisis that significantly disrupting logistics, navigation, and service delivery.
Although these areas are supposed to be well-mapped, only about 60% of these streets have officially registered names.
Delivery apps often get confused and send drivers to the wrong place, causing a 15-20% of failed deliveries.
Apps like Waze and Google Maps often take months to update, so new roads or traffic changes don’t show up in time.
All of these challenges contribute to a system that is inefficient and unreliable. Addressing these issues could lead to significant improvements in operational efficiency, service delivery, and overall city infrastructure.
SOLUTION: ADVANTAGES OF DAI
Drivers will no longer need directions from customer while en-route (location precision)
Reduce cost & multiple touches for LMD (last mile delivery)
On-time delivery guarantee where the customer tracks their order
DHL, FEDEX and UPS to expand their footprint in Africa
Offer an optional outlet for ride-sharing drivers without the revenue model
Remove a major barrier for multi-national companies such as Walmart & Amazon
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Failed deliveries cost Nairobi between $180 million and $225 million annually. A Jumia driver in Mathare makes over three calls per delivery, adding up to 45 minutes to each route. Impacting small businesses as well, with 68% of informal vendors lack formal addresses for digital payments(KNBS 2023), significantly limiting their potential for growth.
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Ambulance response times in Nairobi are critically delayed in informal areas, averaging 12 to 15 minutes compared to 5 to 7 minutes in formal neighborhoods (Nairobi EMD, 2023). Alarmingly 23% of maternal deaths occur during transit due to address confusion (MSF Kenya, 2024).
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Ambulances alone incur approximately $8million annually from wasted fuel and unsuccessful trips. With improved address accuracy, response times could be reduced by 30%, potentially saving 2.4 million each year. Similarly, police operations lose an estimated $12 million annually due to overtime and unresolved cases. By providing precise location data, Bawbab Technologies could help resolve 5000 additional cases per year enhancing both efficiency and public safety.
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Government and systemic inefficiencies in Kenya are worsen by inadequate addressing systems, causing significant economic and public health loss. For example, Nairobi County reportedly misses out on approximately 50 million annually in property tax due to unregistered or unaddressed properties as noted in a 2023 government report. This shortfall hampers the county’s capacity to fund essential public services and infrastructure development.
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Fire and police services are similary hindered. Response times in slums are 40% longer than in other areas, and 65% of crime reports lack actionable location data, severely limiting effective solutions.