Introducing: Switch a consumer to consumer marketplace that allows users and merchants to buy, sell, and trade items. Launching in July of 2021, the Switch app aims to redefine the current re-commerce market space in Africa through verified listings, secured payment processing and instant delivery. Users will have the ability to buy, sell, and switch anything from household items to vehicles. Switch has made clear that their ultimate goal is to apply a new way of forward thinking to the market, allowing users the ability to successfully connect within their communities in Africa without fear of fraud and scams. In addition, Switch aims to drive revenue for local shops and business by digitalizing their brick and mortars and providing a safe and efficient platform to connect customers and generate sales. This mission will begin in Nigeria. Switch will start by rebuilding the social trust within the country.
The Market
Re-commerce has taken the digital western market by storm as recently merged U.S based startups Offerup and Letgo have gone on to raise over $1 Billion in collective venture capital and currently serving nearly 100 million users. Africa is no stranger to the re-commerce market. Companies such as market leaders Jiji and OLX Africa have built classified ad listing platforms and successfully tapped into a fluid market retaining over 8 million rapidly growing users. According to data collected by Statistia.com, there is an addressable market of over 300 million online African shoppers. This open market has been infiltrated by formal e-commerce platforms such as Jumia.com.ng. However the vast majority of this addressable market remains untapped by re-commerce players.
The Problem
Despite having the consumers to make this market thrive, the current structure of business models operating within this market space has made it relatively difficult for users to feel safe while facilitating transactions. Upon evaluation, poor social trust and a lack of secure payment methods have made it difficult for the re-commerce market in Africa to reach its full potential. According to a study conducted by World Value Survey, 85% of Nigerians responded that they needed to be extremely careful in dealing with people (Inglehardt et al., 2014) Similarly, 43% and 35% of Nigerians answered that they either did not trust a stranger very much or did not trust them at all. This finding makes it clear as to why Joe would have an issue carrying ₦3 million in a brief case to go and purchase a BMW from a faceless seller that he was chatting with online. At a time, Ebay and craigslist controlled the re-commerce market in the west. However the inability to verify the authenticity of sellers made it difficult for users to feel safe and left a gap within the market which Offerup would later come to fill alongside their introduction of user verification and community integrated features that solved this issue for western consumers.
The Switch App will be available on IOS and Google Play Store
Switch offers real time pictures and videos to ensure seller integrity and avoid the selling of fake items through the app. Switch believes users should feel confident in every purchase made on the platform. The Switch app will establish a sense of security for users by registering individuals through YouVerify, a service that conducts quick and easy background checks. In addition, user verification will be ensured through additional verification methods such as phone number, email address, and social media accounts.
In-app messaging will be set up for users to be able to communicate safely with one another. Apps that use post-service review systems where users can evaluate each other creates a culture of feedback that encourages ethical behavior and uproots difficult users. Allowing consumers to participate in peer-to-peer exchanges regulated through reviews will in turn build a sense of social trust amongst users in their community. Frédéric Mazzella, a French entrepreneur stated that this, might even mirror the current Western phenomena where people trust fellow users of sharing economy platforms more than they do their colleagues and neighbors, likely due to the sense of comfort generated from the digital trust infrastructure provided by ratings and review systems (Mazzella et al., 2016).
Secured Escrow Payment Processing
In order to ensure safe in-person and online transactions, Switch offers users a way to process payments directly through the app. Utilizing the most trusted payment processing service in Sub-Saharan Africa, buyers will be granted peace of mind through the transaction process, as funds will remain in escrow until the buyer confirms that the item has been received as described.
Delivery on Demand
Switch has partnered with Kwik Delivery services to formally introduce logistics to the re-commerce market. Whether you are too busy to meet in person or simply do not have a means of transportation, request the delivery option and Switch will have the item brought directly to you. Upon arrival, buyers have a 15 minute window to view the item. Once accepted, funds are disbursed to the seller. Not what you wanted? Simply select “decline”, hand the item back to the driver and funds will be released back to you.
The first trading platform in Africa
Switch offers a barter system which allows users to trade goods for goods. From household items to vehicles, the Switch feature gives users a way to get real trade in value for their items. Within the user interface, once an item has the “Switch” icon activated, users now have the ability to place trade offers in exchange.
Who We are
At age 19, Co-Founder Michael Onyemaobi visited home to his native country Nigeria for the first time in his life. Throughout the duration of his trip, Onyemaobi saw an opportunity to connect modern technology with the growing shared economy in Africa. 1 year later, Switch was founded by Michael Onyemaobi and co-founder Caleb Biggurs. The pair met during their time attending Texas Christian University playing football and immediately clicked. Over the years of knowing each other they have grown to be family with one another and they carry that bond of community and relationship into their business endeavors. In addition, the Switch founders have established an internship program that will consist of business/marketing analysts and Information technology interns to help aid in the running of the beta tests in Nigeria. Reimplementing the culture of sharing in Africa is a goal that these two young men plan to achieve on a massive scale. From a foundational standpoint, it begins with building the core of their company with sources in its neighborhood. From employees and interns to backend partner services such as Kwik and Paystack, Switch plans to be the first African tech start-up operating solely on the technological support of its neighboring counterparts.
https://www.linkedin.com/company/switchllc/
[1] Mazzella, F., Sundararajan, A., Butt D’Espous, V., & Möhlmann, M. (2016). How Trust Powers the sharing economy: The Digitization of Trust. IESE Insight, 24–31. https://doi.org/10.15581/002.ART-2887
[2] Inglehart, R., C. Haerpfer, A. Moreno, C. Welzel, K. Kizilova, J. Diez-Medrano, M. Lagos,P. Norris, E. Ponarin & B. Puranen et al. (eds.). 2014. World Values Round Six Country-Pooled Datafile www.worldvaluessurvey.org/WVSDocumentationWV6.jsp. Madrid: Institute.
