Overcoming the chicken-and-egg problem? Evidence from innovative business models in Kenya

Despite significant advances in electrification and transport sector decarbonization in Sub-Saharan Africa, the diffusion of electric mobility hinges on resolving the persistent “chicken-and-egg” problem between vehicle deployment and charging infrastructure. Yet existing research largely examines these components in isolation, offering limited insight into how innovative business models (IBM) can address this interdependence, particularly in resource-constrained contexts such as Sub-Saharan Africa. This study examines the role of IBM in addressing the chicken-and-egg problem. Using a multiple case study design, we compare the IBM of four ventures in Kenya's rapidly evolving electric motorcycle market. Based on 22 semi-structured interviews, multiple site visits, field notes, and numerous documents across these ventures, we uncover two distinct approaches: Portable-And-Chargeable-Everywhere (Pace) and Mobility-Over-Versatile-Energy (Move). Pace prioritizes vehicle ownership, robust engineering, and flexible, infrastructure-independent charging that enables riders to “charge everywhere”, thereby mitigating the chicken-and-egg problem. Move centers on battery leasing and dense swapping networks that ensure uninterrupted mobility, effectively integrating the chicken-and-egg problem into the business model. Both approaches embed environmental and social value while reflecting distinct approaches to ownership models, infrastructure development, user practices, and the coupling of e-mobility with energy provision. Moreover, each model faces trade-offs and implementation barriers. This study advances the literature on IBM in e-mobility by offering new theoretical insights into the interdependence of vehicle deployment and charging infrastructure within the business model. It further highlights the central role of e-mobility ventures in shaping e-mobility development in Sub-Saharan Africa.