Yango Ethiopia Introduces Rental System Promising Higher Returns for Car Owners

Yango Ethiopia, the local arm of the Dubai-based Yango Group, has introduced a new vehicle rental model that it says will give car owners more control and potentially higher returns in Addis Ababa’s crowded ride-hailing market.

Unlike the city’s dominant fixed-fee daily rental system, Yango’s platform allows owners to register vehicles through its franchise partner, G2G, and track driver routes, trip volumes and revenues in real time. The company projects that fuel powered cars could generate up to 120,000 Birr a month while electric vehicles (EV) are forecasted to earn up to 160,000 Birr revenues.

That promise is bold. In Addis Ababa, daily rentals typically range from 1,300 to 2,000 birr for economy cars and closer to 2,000 Birr for electric ones. Average drivers make around 45,000 birr per month, less than half of what Yango projects as likely. Still, Yango’s country manager, Yekenalem Abebe (PhD), insists that the model could double returns if cars are consistently deployed on the platform

 “Many car owners in Ethiopia are already part of the ride-hailing market, but often without visibility or control over their investment. We are offering a transparent, profitable alternative that supports drivers, benefits owners, and fuels the local economy,” he told Shega. 

The projections rest on heavy usage: up to 80 trips a week. At that rate, drivers can earn weekly bonuses of 12,000 Birr, or 14,000 Birr if they brand their vehicles with Yango logos. With average fares around 250 Birr per trip, Yango estimates weekly earnings could reach 34,000 Birr, adding up to around 120,000 Birr per month. The Company already offers its drivers bonuses based on weekly trip targets.

But costs loom large. Fuel alone can swallow above 35,000 Birr a month, and maintenance bills often rise sharply, cutting into profits. Electric vehicles, with estimated monthly energy costs of just over 4,000 Birr, reportedly offer higher margins. Yango’s new rental model, first rolled out in Egypt and Kenya, aims to replicate its impact by boosting investor-side returns and creating more structured driver opportunities. 

Currently, ride hailing drivers in Addis Ababa using someone else’s vehicle still rent cars at fixed daily rates typically between 1,000 and 2,000 Birr and keep whatever remains from their earnings. Yango’s rental system would allow owners to monitor performance, though the revenue split with drivers remains determined by private negotiations. Yango takes no commission. 

“We only want to provide more options for both the driver and renter sides,” Yekenalem said. 

Addis Ababa’s ride-hailing industry currently has an estimated 80,000–120,000 registered drivers and vehicles. While the company declines to disclose its exact market share, Yango’s country manager noted that most drivers in the capital work with multiple ride-hailing apps simultaneously, suggesting significant overlap across platforms. 

To join Yango’s rental model, both drivers and car owners are required to register through Yango’s franchise partner. Yango entered Ethiopia in 2023 through a partnership with G2G IT Group and has since positioned itself as a growing competitor in Addis Ababa’s crowded ride-hailing market.