TRANSPORT

Uber raises minimum fare to Sh220

The move comes exactly a month after protest by taxi platform drivers

In Summary

•Drivers had resorted to a negotiated price with their customers for amounts higher than the one provide by the ride hailing apps.

•Uber Head of East Africa Imran Manji said that these pricing updates are meant to cushion drivers from the high cost of living that the country is experiencing.

Ride-hailing and delivery group Uber
Ride-hailing and delivery group Uber
Image: BBC

Passengers in Kenya will pay more for Uber taxi services after the firm increased prices across all its existing models.

The review comes a month after protests by digital taxi drivers in July over the existing pricing models.

Last month Uber, Bolt, Faras, and other e-taxi applications drivers went on strike protesting against poor pay and demanding better working conditions.

Without disclosing the increases for all the bands on Monday evening, Uber announced it had raised the minimum fare by 10 per cent to Sh220 from Sh200.

"The minimum fare for example Uber Chapchap is Sh220, that's what the drivers will earn. However, for customers with discounts they may pay lower," said Uber Head of East Africa Imran Manji.

The move comes after drivers resorted to higher negotiated prices with their customers from the ones provided online.

Manji said the price increase is meant to cushion drivers from the high cost of living.

He said the increase would ensure drivers continue to have the opportunity to maximise their earnings while driving on the app and at the same time, remaining affordable for riders.

“On the rider side, we are investing heavily on rider promotions to boost demand and ensure the service is affordable. For drivers, we have an on-going driver reward program which includes cash bonuses and we aim to reduce driver operating costs through initiatives such as third-party partnerships with vehicle maintenance companies,” said Manji.

Uber however failed to disclose the number of reported drivers that it had taken action against or the number of complaints under investigation.

"We have channels through the app where we look at the specific incidents reported and take the necessary action, if its a safety issue its handle differently from a financial issue,” said Manji.

The regional head said that they were alive to the potential impact of sudden increase in prices and the likelihood of this reducing number of rides.

Uber says that to cushion its drivers it has introduced a feature that will enable consumers willingly pay higher if they want faster rides.

The Uber ChapChap Priority is a product that is only visible during high demand periods.

This product allows passengers to pay an additional Sh110 per trip in order to increase the likelihood and speed of matching to a driver.

“Drivers have the choice of opting in which will allow them to earn the additional amount on top of the regular fare,” said Manji.

 

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