Uber, the globally recognized ride-hailing service, has announced a 10% hike in its base fare in Kenya, a move aimed at appeasing drivers who had initiated a strike and set their own rates. The adjustment sees the minimum fare now set at $1.71 (KES220), along with the introduction of a new priority service, which promises reduced waiting times for an additional fee of $0.85 (KES110).
Imran Manji, the head of Uber in East Africa, explained that the fare adjustments were implemented to balance the drivers’ ability to earn a sustainable income while using the Uber app and maintaining affordability for passengers. He stated, “Uber has made these pricing updates to ensure that drivers continue to have the opportunity to maximise their earnings while driving on the Uber app and at the same time, remaining at an affordable price point for riders.”
The fare increase comes in the wake of a strike that commenced on July 16, during which drivers demanded a minimum fare increase to $2.33 (KES300). They also called for a review of the ride-hailing companies’ policies on account suspensions and deactivations in cases of disciplinary action. When their demands were not met, the drivers took matters into their own hands by setting their own rates and conducting rides outside the app’s platform.
Despite the fare revision, representatives from the sector’s union expressed dissatisfaction, labeling the increase as “insignificant” and asserting that the new rates are still insufficient to cover the high operational costs they face. Zakaria Mwangi, the Secretary General of the Ridehail Transport Association (RTA), conveyed the drivers’ ongoing discontent, stating, “We don’t really feel it. We made our demands clear that we want at least KES300 as the base fare among other demands. They’ve not gotten to 10% of our demands. We will be back at it again.”
In response to the drivers’ concerns over affordability, Uber has pledged to ramp up its investment in customer promotions to keep ride costs reasonable. However, gig drivers continue to argue that the rates set by app-based companies do not adequately reflect the escalating costs associated with their operations.
To support partner drivers, Uber has introduced cash bonuses and is forging partnerships with vehicle maintenance firms to assist drivers in reducing their operational expenses. Meanwhile, other ride-hailing services in the market, such as Bolt, Faras, and Yego, have not yet revised their pricing structures. This follows a meeting held on August 13 between the ride-hailing apps and the drivers’ representatives. The outcome of these discussions and any subsequent actions by these companies remain to be seen.
