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Uber Drivers Hold Demos Over Recent 35 Percent Price Reduction

BY Soko Directory Team · August 2, 2016 09:08 am

Drivers of Uber Technologies Inc. planned to hold a demonstration today over the recently introduced 35 percent price cut that they claim has led to a reduction on their pay.

According to Emmanuel Kasina, who is the head of Kenya Taxi Digital Association, the drivers were never consulted before the company came up with the decision adding that they the company to revert to the old prices.

“The drivers also want Uber to reduce commissions from the current 25 percent,” added Kasina.

On the other hand, the company defended itself on the matter by stating that it had had a consultation with the drivers on the price cut and that it has guarantees that have been put in place that will ensure that the drivers needs are met.

“We have held multiple focus groups and one-on-one feedback sessions over the past six weeks,” read a statement from the company.

The statement went head to disclose that three days before the price cut, it ensured that over 1,000 of its drivers and partners had gone through the plan, explaining to them how the minimum guarantees were so as to make them stay in business and make more profits.

Read: Uber Shakes Travel Landscape in Nairobi with Huge Price Cut

The taxi hailing service lowered its prices last week by 35 percent in Nairobi, referring to the move as ‘the next disruption’ after launching its services in the country last year.

During the launch, Nate Anderson, Uber’s General Manager in Kenya said that the move was not about the fare being paid by their clients, but for purposes of adding value and efficiency in the city. He added that they wanted Uber to be most affordable whenever anyone would need their services.

Anderson said the lowering of the prices was not a response to the competition that had emerged to rival it and that their move was anticipated towards triggering an unprecedented fare war among cab companies that are currently scrambling to lower rates.

Uber started operating in Nairobi, the Kenyan capital, in February last year, and has partnered with more than 1,000 drivers across the country. Just recently, Thika become the third town after Nairobi and Mombasa to join a growing list of smart transportation hubs in the country.

 

Soko Directory is a Financial and Markets digital portal that tracks brands, listed firms on the NSE, SMEs and trend setters in the markets eco-system.Find us on Facebook: facebook.com/SokoDirectory and on Twitter: twitter.com/SokoDirectory

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