Ride-hailing app Uber has increased its base fare in Kenya by 10% to pacify drivers who went on strike and imposed their prices. Uber increased the minimum fare to $1.71 and introduced a priority service that will charge an additional $0.85 for a shorter wait time.
“Uber has made these pricing updates to ensure that drivers continue to have the opportunity to maximise their earnings while driving on the Uber app and at the same time, remaining at an affordable price point for riders,” Imran Manji, Uber head of East Africa, said in a statement.
On July 16, the drivers went on strike to force the apps to increase the minimum prices to $2.33. They also wanted the companies to review their guidelines on suspending and deactivating accounts in disciplinary cases.
When that did not happen, the drivers resorted to charging their rates and taking rides offline.
The sector union representatives who spoke to TechCabal said the raise was “insignificant.” They said the new prices still cannot cover high operational costs.
“We don’t really feel it. We made our demands clear that we want at least KES300 as the base fare among other demands,” Zakaria Mwangi, the Secretary General of Ridehail Transport Association (RTA) told TechCabal.
“They’ve not gotten to 10% of our demands. We will be back at it again.”
Uber said it will increase investment in customer promotions to keep its rides affordable. Gig drivers have maintained that the rates charged by app companies do not reflect the rising cost of operations.
The company said it has introduced cash bonuses for partner drivers and is currently entering partnerships with vehicle maintenance companies to help operators cut costs.
Other companies including Bolt, Faras and Yego are yet to adjust their prices, following a meeting between the apps and the drivers on August 13.
