Uber Kenya Succumbs to Its Drivers Pressure and Increases Prices

By Vera Shawiza / March 16, 2017




Taxi hailing service, Uber has increased its prices to 42 shillings per kilometer from 35 shillings in Nairobi in a move that has been seen as succumbing to the pressure of their drivers who have been pushing them to increase their prices since they were getting little returns from the latter.

Early last month, Uber drivers went to the streets protesting over the lower prices claiming that they had nothing to take home after as their share had reduced significantly. Despite the fact that the company seemed not giving in to the driver’s demands, it has at last considered their cry.

Here are the new rates after the review: 

NEW FARES KES 42 per KM KES 100 base fare KES 3 per min KES 300 minimum fare
OLD FARES KES 35 per KM KES 100 base fare KES 3 per min KES 200 minimum fare

 

Mombasa residents will also be forced to pay a little bit more too so as to enjoys Ubers’ services with an additional 7 shillings for every kilometer, just the same as Nairobi riders. The difference between Nairobi and Mombasa riders will be that in Nairobi, the minimum fare has increased to 300 shillings from 200 hundred shillings, while in Mombasa, the minimum fare has only gone up by 50 shillings.

The table below shows reviewed rates in Mombasa:

NEW FARES KES 42 per KM 70 KES base fare, KES 3 per min KES 200 minimum fare
OLD FARES KES 35 per KM KES 50 base fare KES 3 per min KES 150 minimum fare

 

In a statement to the media, the company stated that they have at all times monitors the driver-partner economics by keeping cognisant of how inflation and fuel prices can affect drivers using their app and because of that, they will still stand by their promise because their success depends on the success of their partners.

As a technology company, our strength is that we can move and adapt quickly, based on what works best for each city. With six years’ experience, we have seen that pricing is all about achieving the right balance ultimately, prices are designed to encourage more riders on the road, to help increase trips for drivers, but equally, you want to make sure the basic economics of drivers are sustainable,” read the statement.

According to the company, any decision that is made need to be data-driven, using statistically proven methods to determine pricing and that is the reason that has pushed them into considering the current local conditions in the country together with a pricing model that has been tried and tested in over 450 cities across the world.

“That is why today we are raising our prices in Kenya. We believe driver-partners will earn more as a result of these changes and that riders will continue to enjoy access to a safe, affordable and reliable service,” read the statement.

“Uber works when both riders and driver-partners are benefiting. Riders need safe, reliable transport and drivers need to keep earning,” read the statement.

The taxi company urged both riders and drivers will continue having transparency and certainty around prices so as to help them make informed choices about when and how they use Uber.

The company used to charge Sh60 per kilometer when it entered the Kenyan market two years ago.

Related: Uber Receives Tax Reprieve as Burden is Transferred to Car Owners

 



About Vera Shawiza

Vera Shawiza is Soko Directory’s in-house journalist. Her zealous nature ensures that sufficient and relevant content is generated for the Soko Directory website and sourcing information from clients is easy as smooth sailing. Vera can be reached at: (020) 528 0222 or Email: [email protected]

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