In July, Uber lowered fares for uberX in Nairobi by 35 percent and this has been beneficial to driver-partners but has also made it easier and more affordable for riders to get around their city.
Based on the results released by Uber, driver-partners have had a 100 percent increase in new rides per week, this means that the price cut has doubled the number of new riders for driver-partners.
Showcasing how the reduced prices have helped driver-partners reach new customers. This has led to more trips for drivers and lower prices for riders. Their driver partners are now getting over 70 percent more trips per day – but working less hours. The company said that it continues to have over 100,000 unique people opening their app every single month looking for a safe new ride.
Nate Anderson, Uber’s General Manager in Kenya maintains that Uber has every confidence – after years of experience – that driver-partners will continue to see more demand from riders.
“We are continuously watching and reviewing the effects of the price cut and we are thrilled that the results show that the price cut is working.” He said.
James, a driver-partner using the Uber platform noted the difference “I am all for price reductions and it is really working for me. I wait less in between trips and therefore earn more every hour. Uber had a good intention in reducing prices. Following the price cut announcement, I do two times the normal number of trips I normally do on a Monday.”
Peter and Stephen who make use of Uber’s platform, explain how the price cuts have benefited them, “‘Business has been good actually, I can’t complain. Since the cut, it has picked up. Before, you had to wait a while to get a trip, but now, it is continuous. There is more frequency of trips so I am actually making more than before,” states Peter.
Stephen adds, “Demand has increased so much, what Uber envisioned in a very short time has happened – my number of trips has gone up. One of my drivers now during the weekdays does as many trips as he would on a weekend.”