16 March 2017

Kenya: Uber Increases Price in Kenya After Drivers' Protest

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.

Kenya

Kenya Third Most Innovative Sub-Saharan Africa Country

Kenya has been ranked the third most innovative country in sub-Saharan Africa. Read more »

Copyright © 2017 Capital FM. All rights reserved. Distributed by AllAfrica Global Media (allAfrica.com). To contact the copyright holder directly for corrections — or for permission to republish or make other authorized use of this material, click here.

AllAfrica publishes around 900 reports a day from more than 150 news organizations and over 500 other institutions and individuals, representing a diversity of positions on every topic. We publish news and views ranging from vigorous opponents of governments to government publications and spokespersons. Publishers named above each report are responsible for their own content, which AllAfrica does not have the legal right to edit or correct.

Articles and commentaries that identify allAfrica.com as the publisher are produced or commissioned by AllAfrica. To address comments or complaints, please Contact us.