Online Taxi App Lovers Set to Pay More in New Tariffs

Kenyan’s are set to pay more to be able to enjoy taxi-hailing services after the Ministry of Transport, and e-hailing firms signed an agreement for higher pay and better working conditions for drivers.

The signed agreement establishes the Automobile Association (AA) rates as the standard for the cab sector in Kenya.

Online taxi drivers for Uber, Taxify, Little Cab, Pewin Cabs and Fone Taxi operators ended their strike after their woes were heard and implemented.

Adoption of the AA rates is expected to automatically increase the cost of rides.

The AA rates state that 26 shillings per kilometer will be charged for vehicles with engine capacity of between 850cc to 1050cc and 42 shillings per kilometer for 1050cc to 1300cc cars.

Under the new deal, the association will cushion drivers in the event of falling fares arising from discounts companies offer to passengers, provide security during trips in case of emergencies, while the taxis will have to inspected by the government transport and safety authority.

The association recommends 45 shillings per kilometer for 1300cc to 1500cc vehicles and 58 shillings per kilometer for 1500cc to 1800cc vehicles.

“All that we were looking for, we have been given. All the drivers are now happy. And everybody will now go to work,” David Muteru, chairman of Digital Taxi Association of Kenya, representing more than 2,000 ride-hailing taxi drivers, said after the signing of the agreement.

With the newly recommended charges in place, Uber, which has been charging an average of 14 shillings per kilometer with 25 percent of this going to the company, will now charge up to 33 shillings per kilometer with 25 percent of this going to Uber.

This leaves riders with an imminent price increase, a move meant to accommodate the drivers’ demand for better pay. Notable is that the Memorandum of Understanding (MoU) does not make it mandatory for digital taxi providers to set new rates.

Taxify, on the other hand, charges 22 shillings per kilometer and takes 15 percent commission.

Safaricom’s Little charges 35 shillings per kilometer and takes away 15 percent in commission too.  The apps also have a set base fare and minute rates for each service.

Transport Principal Secretary Paul Maringa said the department had agreed to sign an agreement with the drivers that included a pricing structure.

The drivers who use online taxi-hailing apps claimed last week that they spend a lot of time on the road but they don’t get better compensation from the service providers.