Ride-hailing platform, Little, will increase rates for all its fleet categories by 15% to enable its drivers to earn more amidst economic challenges.
- •According to Little’s CEO, Kamal Budhabhatti, the move is aimed at improving the reliability of the platform for customers, as well as incentivizing drivers to provide better competitive services.
- •Earlier this week, the platform’s rival Uber raised fares by 10% across all its ride categories, a move that was likely to be replicated by other market players.
- •The rate hike has been welcomed by Little cab drivers who regard it as considerate to their welfare and a positive step to responsiveness in the ecosystem.
“This increase may mean slightly higher costs for our clients, but it also guarantees more reliable and convenient services. A happy driver will always deliver excellent service,” said the CEO, Kamal Budhabhatti.
Little was launched by Safaricom and Craft Silicon in 2016. In 2018, it raised KSh 10 billion to fuel expansion across the region. Despite its commitment to charging lower commissions than other predominant players like Bolt and Uber, its uptake has been rather unimpressive.
“Little has always been a listening and caring partner. We have heard and analysed the requests from our drivers. Despite the tough economic times that all Kenyans are facing, we believe it is important to support the individuals who keep our platform running,” said Budhabhatti.
The Bigger Picture
The decision by Little and Uber to hike prices, while deemed necessary, may result in lower demand from customers opting for other means of transport.
It may also raise about the industrial action that led to the price hikes, which saw drivers’ post their own fares and in some instances attack clients who refused off-app hikes by either locking them in cabs or physically assaulting them. Ride-hailing platforms will need to address the resulting safety concerns from the strike, while balancing between maintaining their individual and the overall ecosystem.
For driver’s the move is a welcome win after months of complaints about low fares amidst a struggling economy that has seen a significant number lose their cars to creditors when they are unable to meet their asset financing obligations.
