In a dramatic shift in Ethiopia’s economic landscape, the country floated its currency just a week ago, resulting in the birr losing over 88% of its value. This sudden devaluation has led to a cascade of reactions from businesses—many increased their prices significantly, while others stopped selling their products altogether. However, amidst the turmoil, one company stands out with an unconventional approach: Dodai, an emerging leader in the e-mobility sector, has not only resisted price hikes but has also launched special promotions. This bold move has captured public attention and sparked curiosity about the company’s strategy.
In a recent interview with Addis Insight, Dodai’s founder, Yuma, sat down to discuss the company’s unique approach in the face of these economic challenges. Yuma elaborated on the company’s commitment to its mission and its surprising decision to offer promotions at a time when many businesses are raising prices. “Dodai is committed to making e-mobility accessible to all Ethiopians, regardless of the economic challenges,” Yuma emphasized. “We believe in supporting our customers, even if it means taking a hit in the short term.”
Maintaining Prices Despite Economic Pressures
Despite the birr’s devaluation, Dodai chose not to raise prices, opting instead for special offers to celebrate their mission of making e-mobility accessible. Yuma explained, “At Dodai, we recognize the challenges posed by the devaluation of the birr, but our mission of making e-mobility accessible to everyone is our guiding principle. Instead of reacting by raising prices, which could hinder access to sustainable transportation, we chose to stand by our customers to the extent that is financially and legally possible, though this is not sustainable in the long term.” This strategic decision aims to build trust and loyalty, emphasizing long-term value over immediate financial gain.
Managing Profit Margins and Supply Chain
With the birr losing over 88% of its value, Dodai faces significant pressure on profit margins. However, Yuma stressed that the company’s focus is not on short-term profitability but on long-term mission alignment. “We are not focused on maintaining profit margins in the short term at all at the expense of slowing down our mission to make e-mobility accessible to everyone in Africa, starting in Addis Ababa,” Yuma stated. Drawing parallels with innovative companies like Tesla and Amazon, Dodai prioritizes building a strong team, developing high-quality products, and accelerating its mission.
Regarding supply chain management amidst exchange rate fluctuations, Dodai maintains a focus on compliance and scalability. Yuma explained, “We prioritize compliance and scalability over short-term fluctuations. We expect daily ups and downs and are committed to finding solutions to each problem as they arise.” This approach ensures a steady flow of E-motorbikes, emphasizing the importance of building operations capable of handling increased volumes in the future.
Customer Response and Market Strategy
Dodai’s decision to maintain prices and offer special promotions is a recent development, and the full impact on customer behavior is yet to be seen. Yuma remarked, “It’s too early to judge the full impact of our decision, as we announced it only a few days ago. We are continuously analyzing the situation and its potential effects as a team.”
The company’s mission-centric approach, focusing on building high-quality products and strong customer service, sets it apart from competitors. Unlike other businesses that prioritize short-term profitability, Dodai’s strategy emphasizes long-term value creation. “Many of our competitors focus on low-capacity, low-quality e-motorbikes with lead-acid batteries. In contrast, we offer e-motorbikes with lithium batteries that have an eight times longer lifespan and can travel up to 150 km per charge under ideal conditions,” Yuma noted. This commitment to quality and customer trust positions Dodai as a market leader in e-mobility.
Collaborative Leadership and Future Plans
Dodai’s leadership team, including Hilina Legesse, Chuan Yee, Milka Seid, and Samuel Tariku, plays a crucial role in navigating these challenging times. Yuma expressed pride in the team’s collaborative approach and commitment to transparency. “Our leadership team collaborates daily, and we require everyone to spend at least one day at their non-primary workplace to enhance collaboration. We place a strong emphasis on transparency and do not allow direct messaging (DM) in general, as we believe that open information exchange and accessibility lead to the best results,” Yuma explained.
Looking ahead, Dodai has ambitious plans to sustain growth and stability. In the next 3-6 months, the company aims to increase brand awareness, support customers in obtaining number plates more smoothly, and launch Ethiopia’s first-ever battery-swapping stations. In the mid-term, Dodai will continue improving its products and operations to meet customer demand and international standards. By 2027, the company plans to expand to other countries, building a strong foundation in Ethiopia first.
Dodai’s approach to navigating economic challenges, focusing on long-term value creation, customer satisfaction, and product quality, sets a strong foundation for future growth. Despite the economic challenges posed by the devaluation of the birr, Dodai remains committed to its mission of making e-mobility accessible and sustainable for everyone in Africa.
