Ride-hailing app, Uber, announced that it will increase fare prices for all its ride categories including the minimum price and the per-kilometer rates to give drivers an opportunity of earning more.
- •Speaking at the Uber Headquarters, the company’s Head of East African operations – Imran Manji – said that the fare re-evaluation was undertaken after a rigorous market data analysis and consultation with drivers.
- •Last month, drivers using major ride-hailing platforms staged a protest challenging the rates and minimum fares these companies calculated; and lamented that they only retained a small portion of earnings incapable of sustaining them fully.
- •The protests culminated in a fracas with customers who were appalled by certain drivers demanding they paid 1.5× higher than the fares tabulated by the app – resulting to deeper discontent with the industry players.
“We’ve considered multiple factors to ensure drivers earn decent income while passengers still benefit from affordability. Increasing of the prices was informed by a review of the cost of living, drivers’ feedback, and not because of the protests only,” said Imran Manji.
Uber also said that in the new pricing model, some ride categories will fetch a minimum fare of KSh 220, instead of the previous KSh 200. The platform also stated that they have garnered partnerships with multiple auto-industry players to secure subsidization of maintenance services for their drivers.
When questioned about the prevalent cases of drivers demanding more money from customers, Uber encouraged customers present their complaints and report the involved drivers. Although the app’s management did not divulge the number of drivers who had so far been reported and dealt with, Uber maintained that disciplinary actions ranged from warnings to full expulsion.
“We have a comprehensive approach that includes frequent roundtables with drivers who opt-in to the meetings where we discuss specific topics and get feedback for current and future features with drivers, whilst maintaining the independence of drivers,” Manji added.
Hiking fare prices could in the long run reduce drivers’ earnings as customers shun the platform. For this reason, Imran Manji said that the app had introduced a series of rewards and remunerable spots for drivers. By tapping into new categories like Uber Chap Chap and Uber Comfort, drivers with newer cars could earn more money from higher fare prices.
Uber Comfort was launched earlier this year, providing a more luxurious experience for customers as well as more financial reward for drivers. The Uber Chap Chap category allows drivers to earn additional money per ride, KSh 110, during high-demand hours.
Uber has also sought to popularize a rewards system dubbed ‘Uber Care’ where 30 drivers with the highest five-star ratings and completed trips are awarded with cash bonuses. This is meant to incentivize hardworking drivers to earn more, as well as ensuring customers get quality service.
In the Uber Pro system, drivers are stratified by colour codes – blue, platinum, and diamond. Drivers are encouraged to gain on the diamond category where a reward of KSh 10,000 is obtainable. Uber believes that this reward system will benefit drivers in the long run, only if they are dedicated.
The ride-hailing platform currently operates in six cities and towns across Kenya. The decision to hike fares may give competitors an edge over Uber in the market, but the company believes that it was a necessary move to pacify frustrated drivers. How this will play out, or whether it will be acceptable to the aggrieved drivers, remains to be seen.