interesting points but like you said its good business for Kaymu and MTN, plus its a free market and very free in the Nigerian context.
I wont browse Kaymu cus its free to start with but I think it helps this ecosystem that so needs to be encouraged to buy online. If it was rosy for Kaymu and MTN, they wont dare a thing like this, E commerce still has a pretty long way to go and this move is indeed “a die there” business move for both companies, it will cost MTN but they hope it encourages the E commerce space so that more buyers and sellers integrate on their investment Kaymu.
As per hurting the ecosystem, my take is users will visit whichever site they will visit and that is guaranteed, I wont spend all day on Kaymu or buy on it because I browse it for free, I don’t know if you would or even the guy that cannot afford data, the share size of Kaymu’s ad budget is a big blow to any boot strapping, lean budget e commerce start up, zero rates data is not big enough a blow compare to it, yea maybe it adds to it but it is what it is.
The e commerce start up’s would either adapt or die while it is not impossible for Kaymu itself to close shop and for an unknown start up today to rule the space tomorrow.
Its attitudes like this that make Nigeria the shitty-hole it is today. From your username, i guess you are a lawyer?
Does this constitute fair-competition? Remember the battle Google had in India and Europe for putting its products higher in search results than competitors?
Also, what about Comast and Netflix’s issue in the USA on the tel-co creating super fast lanes for special companies?
Or Facebook’s woes in India because of their seemingly harmless Internet.Org making them re-brand to Free basics?
Or the FCC in the US, now passing a law enshrining net neutrality?
Come, this guy, be careful oo. I am ashamed you are ‘my learned colleague’.
** Edit: From your second comment, its now clear you work for Kaymu.**
I dont understand how you do that, username to assume one’s profession, you are not learned.
About fair competition, your e commerce sphere you are fighting for is barely existing, it has to exist before fair competition comes to the table. You are quick to compare India, USA and Europe when your e commerce space is only getting air because of the likes of Kaymu.
Again, you assume I work with Kaymu, I own Lucy.ng yes and its e commerce. You need to learn.
But it doesn’t have to be that way! We in the ecosystem have to first realise that this is a problem and then, maybe just then will it start filtering out that this is harmful to startups.
That’s a fact of life but doesn’t mean we shouldn’t have a level playing field
Lol, I’ve had my share of the ‘cat walk runway’…and I do understand how the world works, but thx for the friendly advice.
And in this case, even though it appears that you’re supremely confident that this is nothing, I feel in time you will realise you’re mistaken. Time is all that we need…
Lol, I am not saying its nothing, it is something but its not a most important problem at this moment for the Nigerian e-commerce space, with time it will be and its good you call attention to it now, so we prepared for it then, I am all in for a Nigerian commerce space win win.
I ordinarily would have passed on the post but the poster and his exclamation reminded me of the chicken little shouting the sky is falling, when its not.
I was only assuming you were a lawyer. Nothing wrong in that.
Ditto about that Chicken little thing. . I guess its part true.
But that doesn’t mean we should applaud them either. E-commerce is growing rapidly and if you notice, eCommerce is not like social media that cant have local champions. E-commerce is something that has no other option but to grow. With or without MTN. So stop making refs to MTN growing nada.
My point is, this nonsense must be nipped in the bud. MTN has almost zero impact on the local ecosystem here in Nigeria. Imagine the disrespect of backing a foreign startup to come eat our cakes and also making it super-easy for them to win.
That will be the biggest mind-fuck of the decade. What disrespect!!!
This is cheating. I think Konga & others need to start creating awareness and probably take MTN, Jumia & Kaymu to court. We should all speak against this. We cannot allow Internet service providers (ISPs) to restrict the best access or to pick winners and losers in the online marketplace for services and ideas. Especially giving an excessive advantage to a foreign company.
If MTN, wants to do an e-commerce, they should probably go and open a website/app on their own, so everybody will know MTN is now selling products not hiding under Jumia & Kaymu
Simply put, because ‘received funding’ doesn’t constitute a ‘gatekeeper’ access.
You can raise funding for your startup A (say $10m)
I can raise funding for my startup B (say $20m)
[note that the funding amounts are different]
We both go head to head in the market. At that point, even despite me raising more funds for Startup B, you can out execute me and win the market for Startup A.
But this outcomes changes dramatically if the service provider (say MTN), decides that Startup B is a zero rated app bundled into their service. It totally skews the chances in my favour. And that’s why this is bad for everyone (including customers), except of course Startup B/MTN.
Finally, don’t confuse net neutrality issue with other factors that can determine the outcome for a startup (eg funding like you mentioned). So it’s not talent, proprietary IP, domain expertise, brand etc.
Oh it’s very different. This is about network neutrality. MTN as a service provider is not MTN as an investor. As a service provider, I believe neutrality expects that they should provide equal access for all customers to all sites. Might think this is not big deal now, until it is. Today, it’s free to go on Kaymu, tomorrow, Techcabal will have to pay to let their site load faster on the MTN network. Downhill slope, man.
Free access vs. graded access is completely different imo.
I can see the “dangers” of graded access, but if a service provider has a public relationship with a company and supports them by making access to their service free no matter what … capitalism at work.
If you’d rather they did the explicit thing by giving you a refund for your data expenditure on kaymu then sure. Even better you can distance the cause from the effect and let kaymu themselves send you the voucher that mtn gave to them in the first place.
Giving free access isn’t wrong. It’s when they dabble in hampering access to competitors that we have a problem.
Ha. Neveer intended to be sensational though.
