Uber has caved in to pressure from drivers and MPs to increased its fares. According to the drivers this will benefit thousands of independent contractors and provide a more level the playing field for other players in the taxi industry.
It will now cost Sh42 per kilometer in Nairobi, up from Sh35. The minimum fare has been increased by Ksh 100 to Ksh 300. The base fare will remain at Sh100 with the fee on time during the trip remaining at Sh3 per kilometer.
In Mombasa, the price per kilometer is also up to Sh42 while the minimum fare was increased by Ksh 50 to Sh 200. Base fare was increased from Sh50 to Sh70.
“We have always promised to closely monitor driver partners economics; keeping cognizant of how inflation and fuel prices can affect drivers using our app. We continue to stand by that promise because Uber succeeds when our partners succeed. That is why today we are raising our prices in Kenya. 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,” the company said in a statement on Wednesday.
The price increase was arrived at after a meeting between officials from the company and the chairman of the National Assembly’s Committee on Transport.
The company dropped the fare to Sh35 per kilometer from a previous Ksh 60 when it entered the Kenyan market. Though the drop came just a day before competitor Little Cabs came into the picture, Uber said that that was a bid to get more people using the app.
This led to a significant decrease in the take-home amount by car owners and the independent contractors who use the app to get customers.
Last month, they submitted a petition to the committee chaired by Starehe MP, Mr Kamanda.
Members of the Kenya Taxi Cab Association also piled Pressure on the company by the submission of a petition to the same committee. The members also asked the MPs to come up with ways to regulate the sector.