Uber has bowed to pressure from partner drivers who have been demanding a review its rates amidst increasing competition in the ride-sharing sector.
Uber Kenya has increased fare prices by raising the minimum fare to Sh300 from previous Sh200 in Nairobi and fare per kilometer from Sh35 to Sh42. This is the first time Uber is increasing its price after a series of fare cuts in response to local and international competition.
The company has also raised minimum fares in Mombasa from Sh150 to Sh200, Sh42 from Sh35 per kilometer and base fare to Sh70 from Sh50.
Uber says their pricing structure is designed to encourage more riders on the road and to help increase trips for drivers.
"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," Uber Kenya said.
"Any decision is data-driven, using statistically proven methods to determine pricing. That is why we consider local conditions together with a pricing model that is tried and tested in 450+ cities across the world."
Last month, a section of Uber drivers went on strike to demand higher rates claiming that they were getting low profits.
But the company now hopes that the move will settle the dispute without affecting the customers.