Uber has announced that it has upped its prices in Kenya after a section of its Nairobi drivers went on strike last month demanding higher rates due to a surge in cars and reduced earnings.
The taxi hailing online company has sent a message to its Kenyan customers saying that from 16th March, new prices in Nairobi will be Sh 100 base fare, Sh 42 per km, Sh 3 per minute and minimum fare of Sh 300 while Mombasa prices will be Sh 50 base fare, Sh 42 per km, Sh 3 per minute and minimum fare of Sh 200.
“We have always promised to closely monitor driver-partner’s economics; keeping cognisant of how inflation and fuel prices can affect those using our app. We continue to stand by that promise because Uber succeeds when our partners succeed.” Uber Kenya said in a statement.
Last year, Uber Kenya reduced its fares twice saying this was aimed at boosting demand which would result into more trips and in turn increased earnings for its drivers, a move that was not well received by the drivers forcing the Government to intervene.
Uber entered the Kenyan market in January 2015 with Nairobi being its first city of operation before expanding to Mombasa and Thika Town a few months later.
Globally, Uber drivers have staged various protests against the company saying they are against price cuts which have affected their earnings and on other occasions they’ve demanded to be classified as employees.
However, Uber does not consider its drivers as employees saying they are independent contractors. This therefore means that Uber is not responsible for the many costs like health insurance, car maintenance and other costs.
