Bus-hailing service SWVL is planning to introduce dynamic pricing in its Kenyan operations.
This will see the service charge different fares for different drop off points based on the distance and time between pickup point and destination.
Currently, SWVL which launched in Kenya in 2019, charges KES 200 (US $2) for any destination along its 55 routes in Nairobi regardless of distance.
Compared to local taxi-buses (matatus), and SWVL’s main competitor, Little-bus, which charge fares south of KES 100 (US $1) for short distances. The matatus charge as little as KES 50 (US $0.50), however they like the convenience and comfort of SWVL and Little-bus.
Dynamic pricing would place the service in a better position to compete with other aforementioned services.
SWVL Kenya’s General Manager, Shivachi Muleji, said all SWVL riders are insured. The company has also partnered with Flare to provide emergency rescue services to commuters.
In addition to dynamic pricing, the company is also planning to increase the number of routes plied by its buses within Nairobi, based on data emanating from customer geotags and direct request from riders.
This would widen the company’s customer base to accommodate more of the approximately, 3 million commuters that travel within Nairobi every day.
Related article: Cairo-based transportation startup SWVL, secures $42M series B-2 investment
Bus-hailing services are quickly gaining popularity for their convenience, and dedication to providing a premium commute experience, safety and reliability at affordable prices.
SWVL and Little could very soon disrupt the matatu industry. Little recently begun testing long distance ride-hailing options, to towns outside Nairobi.
SWVL was started in 2017 to provide reliable commute services in emerging markets. The firm hopes to reduce traffic jams by encouraging people to adopt public transport over getting their own cars.
