Market News

Is Kenya Uber’s waterloo?

BY David Indeje · August 3, 2016 05:08 am

Hundreds of drivers signed up to the Taxi hailing service, Uber in Kenya went on strike on Tuesday protesting against fare cuts alleging exploitation.

Those who protested held placards signs with statements including, “we should not be Uber slaves in our country.”

Uber taxis drivers in Nairobi on strike over reduced prices by 35%. #UberStrike pic.twitter.com/5F2juuW3dq
— Richard Bosire (@richybosire) August 2, 2016

The culmination of the protests saw some allegedly signing up with another ride-hailing Little Cab, launched last month.

Uber drivers signing up for Safaricom's #LittleCab. They are getting new smart phones & free monthly data bundles. pic.twitter.com/6bOrylS8gF
— Number8, the poet (@DannMwangi) August 2, 2016

.@Uber Taxi Drivers protesting outside my office talking of decamping to @littlecabKE #ThisisNairobi pic.twitter.com/j7CqFZTNei
— Aly-Khan Satchu (@alykhansatchu) August 2, 2016

Last month, Uber announced a 35% fare reduction terming it ‘the next disruption’ Nate Anderson, Uber’s General Manager in Kenya on the lowering of the prices, “It is not about the kilometer fare, it is about adding value and efficiency in the city. We want Uber to be the most affordable option for you – available at the push of a button, whenever you need it.”

According to the Kenya Digital Taxi Association they had not been consulted before the price reduction from the current 25% to 15%.

“A partnership means we grow at the same rate. Not growth of one partner at the expense of another partner,” the group said on its Facebook page.

“When fuel goes up, Uber reduces their fare by 35% and Uber fees remains 25% because they don’t own car. Say no to neo-colonism,” they add.

However, during the price reduction announcement, The Company said with 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.”

Subsequently, BBC Africa in an interview with Uber’s Alon Lits, more than 1,000 drivers were consulted before fares were lowered and that the small number of drivers in today’s protests do not in any way represent the voice of the majority of Uber drivers.

Uber has improved the driver experience with flexibility and it has used competition to spur innovation.

On its blog, Mapping Uber’s Future, it says, “Behind every successful Uber ride is a technology many of us take for granted: maps. Mobile maps and GPS allow us to match you with the closest available driver, navigate the fastest path to your destination, and give you an accurate ETA. Accurate maps are at the heart of our service and the backbone of our business.”

About David Indeje

David Indeje is a writer and editor, with interests on how technology is changing journalism, government, Health, and Gender Development stories are his passion. Follow on Twitter @David_IndejeDavid can be reached on: (020) 528 0222 / Email: info@sokodirectory.com