Dodai Powers a Transport Revolution in Ethiopia

Dodai is leading a transport revolution in Ethiopia with electric motorcycles that cut costs, beat fuel shortages, and power up delivery businesses.

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In Ethiopia, where less than half of the population has access to electricity, a bold and unconventional solution is taking root — one that’s rapidly transforming urban transport and last-mile delivery in the country. Enter Dodai, a local startup that, in under a year, has become Ethiopia’s fastest-growing electric vehicle (EV) manufacturer, taking the electric two-wheeler market by storm.

The Birth of a Disruptor

Founded in 2022 by Japanese entrepreneur Yuma Sasaki, Dodai is addressing both an energy access problem and an economic one. With fuel prices climbing and maintenance costs burdening small businesses, Sasaki’s battery-powered motorcycles offer an elegant alternative: minimal running costs, long battery life, and reliable performance.

Priced at $1,800 (approx. RM8,550)— around $500 more than its competitors — Dodai’s e-bikes still find strong demand. Why? Because they can run up to 150 kilometers (93 miles) on a single charge and require far less maintenance than traditional fuel-powered bikes. Businesses like Sheger, a wedding store in Addis Ababa, have already seen significant cost savings since switching to Dodai. “We charge the bikes at our store and give a better service to our clients at no fuel cost and low maintenance,” said store owner Kibrom Hagos.

Dodai’s early focus on business customers — including the Ethiopian Postal Service, which became an exclusive partner in 2023 — helped it gain traction before the general public even had access to its products.

The Power of Lithium and Local Partnerships

Unlike many Chinese competitors using cheaper lead-acid batteries, Dodai uses lithium-ion batteries, giving it an edge in performance and longevity. It’s a crucial difference in a landscape where reliability can make or break a business model. As Sam Rosmarin, an Addis Ababa-based climate entrepreneur, points out, “Enterprises have big needs for motorbikes — delivery companies, especially.”

But Dodai’s success isn’t just about engineering. It’s also about removing roadblocks. In Ethiopia, motorcycle registration can take up to six months due to bureaucratic delays and strict tracking requirements. To overcome this, Dodai partnered with GPS provider Beatrix, enabling it to subsidize registration costs and speed up the process for its customers. The company even formed an EV bike association to help gig workers navigate the system — a move that has effectively given Dodai a monopoly in EV bikes with license plates.

Charging Into the Future with Swappable Batteries

While Dodai’s fixed battery model has built a strong foundation, the company is now investing in an ambitious new frontier: battery swapping. With a goal to deploy 100 battery-swapping stations across Ethiopia by the end of 2025, riders will soon be able to exchange depleted batteries for fully charged ones in minutes — a solution ideal for gig workers and delivery riders who lack personal charging infrastructure.

Though a planned partnership with Ethiopia Investment Holdings has since been called off, Sasaki says the project is going “120%” ahead as an independent venture. The startup believes the swappable battery model will dramatically lower the cost of entry — potentially halving the upfront cost for riders — and help it outpace competitors like Chinese giants Yadea and Transsion.

“The battery swapping model follows a winner-takes-all approach,” Sasaki said. “Investing in this model now ensures we remain ahead in the evolving e-mobility landscape.”

Scaling Up — With Vision and Capital

Dodai has already secured $7 million (approx. RM33.25 million) from Japanese investors, including Nissei, Musashi Seimitsu Industry, and Inclusion Japan. Sasaki plans to raise another $10 million to fund the battery-swapping rollout. He credits Japanese investors’ long-term mindset as critical to navigating Africa’s regulatory and infrastructure hurdles.

“Unless you are a long-term investor, you won’t be happy,” he said, highlighting the complexities of doing business in a country where customs delays can stall shipments for weeks.

Still, Sasaki remains bullish. The company’s dual model — fixed batteries for commuters and swappable batteries for delivery riders — offers flexibility in a market with varying infrastructure access.

Leading the Charge

Dodai’s journey is about more than electric bikes. It’s about solving systemic problems — from unreliable energy access to outdated regulation — with thoughtful innovation and local partnerships. In a country that has historically lagged in transport electrification, Dodai is carving a new path forward, one ride at a time.

As Ethiopia looks to electrify its transport future, Dodai’s story might just become a blueprint for others in Africa — and beyond.