In response to mounting pressure from drivers, Uber has raised its base fare in Kenya by 10%, a move aimed at addressing the grievances that led to a recent strike. The ride-hailing giant announced that the minimum fare has been increased to $1.71 (KES220) and introduced a new priority service that will charge an additional $0.85 (KES110) for a shorter wait time.
According to Imran Manji, Uber’s Head of East Africa, the fare adjustments were implemented to balance the earnings of drivers with the affordability of rides for passengers. “Uber has made these pricing updates to ensure that drivers continue to have the opportunity to maximize their earnings while driving on the Uber app and at the same time, remaining at an affordable price point for riders,” Manji stated.
The fare increase follows a strike by drivers on July 16, during which they demanded that ride-hailing companies raise the minimum fare to $2.33 (KES300) and revise their policies on suspending and deactivating driver accounts in disciplinary cases. When these demands were not met, drivers took matters into their own hands, imposing their own rates and taking rides offline in protest.
Despite Uber’s move to raise fares, sector union representatives have expressed dissatisfaction, calling the increase “insignificant.” Zakaria Mwangi, the Secretary General of the Ridehail Transport Association (RTA), voiced the concerns of many drivers, 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.”
The discontent among gig drivers continues as they argue that the rates set by app companies do not reflect the rising cost of operations. Uber has responded by promising to increase investment in customer promotions to keep rides affordable and has introduced cash bonuses for partner drivers. Additionally, the company is exploring partnerships with vehicle maintenance companies to help operators reduce their expenses.
Other ride-hailing companies in Kenya, including Bolt, Faras, and Yego, have yet to adjust their prices following a meeting with drivers on August 13. The situation remains tense as drivers await further actions from these companies to address their concerns.