Uber Shakes Travel Landscape in Nairobi with Huge Price Cut

“We want Uber to be the most affordable option for you – available at the push of a button, whenever you need it,” he added as he addressed the media on Thursday in Nairobi.

Anderson said the lowering of the prices was not a response to the competition that has emerged to rival it as their move is anticipated to trigger an unprecedented fare war among cab companies now scrambling to lower rates. For them, its ‘mission is to make it reliable as running water.’

“We do not respond to the competition. We are committed to making Uber the most affordable and safest option to move around Nairobi. Our experience shows us we can make that happen while making Uber the best way for drivers to earn. This also means riders can ditch their car keys and travel with Uber more often. For some it will make Uber cheaper than owning a car. This means fewer cars on the road, less traffic, and fewer issues trying to find parking.”

The company says price cuts boost demand so more people request more rides with Uber, meaning drivers spend more time earning.

Anderson allayed fears that the price cut will impact on their drivers saying increased demand and higher earnings is what they aim for in Uber payment guarantees.

“Price cuts are designed to help drivers. Price cuts boost demand so more people are requesting more rides with Uber, meaning drivers will spend more time with riders in the backseat and less time sitting idly waiting for a request.  We’re confident drivers will earn the same or more when the cuts help increase their trips and if the amount driver-partners make on the road isn’t what we expect, we’ll reassess this price change,” he added.

To help drivers using Uber, Uber has also partnered with Total to provide some great deals on fuel. The partnership allows Nairobi driver-partners to receive 3.50KES off every liter of fuel and as an added extra they can get a power wash for KES200.

“We believe these changes will help, but while the city adjusts to the new prices, we are putting in place minimum payment guarantees for drivers to ensure they don’t lose out. And if the amount they make on the road isn’t what we expect, we’ll reassess this price change,” says Anderson.

Uber has also partnered with Sidian bank  to offer up to 100 percent financing for a car, with a maximum loan of 1.5 million shillings. Since launching the service at the end of May it has already approved 10 three-year loans with a 10.5 percent interest rate, well below the average 18 percent rates.

Uber is all about making sure people have a safe, reliable, affordable and convenient way to get from A to B. With these changes, Uber hopes even more people in Nairobi will let Uber help them get where they need to be.

More than one million trips have been made using Uber since its launch with Thika becoming the third town after Nairobi and Mombasa to join a growing list of smart transportation hubs in the country.