NAIROBI, Kenya- After months of mounting pressure from its drivers, Uber has announced a significant fare increase across all its products in Kenya, including a 10pc hike in minimum fares.
This move comes as a direct response to widespread protests from drivers who have been vocal about the need for higher compensation, even going so far as to set their own rates in recent weeks.
On Monday, Uber’s Head of East Africa, Imran Manji, confirmed that the company had completed an extensive review of its pricing structure, leading to the new fare adjustments.
“We’ve finished our calculations. We first had to analyze the prices, look at the data, and speak to drivers with whom we have round tables almost every week. We’ve finished our analysis, and now we have increased our prices on all our products,” Manji stated.
While Uber has been somewhat tight-lipped about how these changes will specifically affect its various ride options, it did confirm that the minimum fare for its popular Uber Chap Chap service has increased by 10pc, from Ksh 200 to Ksh 220.
This fare adjustment is a direct attempt to address driver concerns, particularly for short trips that previously left them undercompensated.
The fare hike comes amidst a backdrop of ongoing dissatisfaction among Uber drivers, many of whom have been charging passengers more than the fare displayed in the app.
In response, drivers created and posted their own fare guides inside their vehicles, leading to confusion and frustration among passengers.
Manji acknowledged that the drivers’ protests played a role in the decision to raise fares, but he emphasized that it wasn’t the sole factor.
“Even before the protests, we increased the price of Uber Comfort about eight weeks ago because the demand was good, and the number of vehicles on the product needed to go up. It’s an input, but not the most decisive input; there are multiple other conditions,” he explained.
Uber’s challenge lies in finding a delicate balance between keeping its drivers satisfied with fair compensation and maintaining affordability for a price-sensitive Kenyan market.
The company has had to invest heavily in weekly promotions to keep trip costs lower for passengers, which has further complicated its pricing strategy.
With the new fare adjustments, Uber hopes to put an end to the practice of drivers negotiating prices directly with passengers—something that has increasingly become a pain point for the company.
“We hope that this behavior of price negotiation will now stop,” Manji said, urging passengers to report any instances where drivers ask for more than the app’s quoted price.
Uber has acknowledged a rise in customer complaints regarding this issue, though it has not disclosed specific figures.
Lorene Onduru, Uber’s head of communications in Kenya, reassured customers that the company is actively addressing these complaints. “We have channels through the app where you can complain about a specific trip, then we can start investigations and take action,” she said.
Uber’s fare hike is a calculated move to appease its drivers while striving to retain its customer base in a competitive and cost-sensitive market.
As the ride-hailing giant navigates these challenges, it remains to be seen how these changes will impact its long-term relationship with both drivers and passengers in Kenya.
