UBER’S Take on Fuel And Costly Fare Rates

Following Uber drivers’ outcry on high fuel prices in the country, the company has increased its rates by adding Sh.10 to the minimum fare.

After a review on its rates effective on July 5th 2022, the firm raised minimum fares to Sh.160 from Sh.150 for the Uber ChapChap services, a low-priced and almost default service for most Kenyans.

There was an increase on base fare by Sh.8 to Sh.108 before the start of trips. A rate charge per kilometer was also raised to Sh.26 from Sh.25, a one shilling increment. The new rates are likely to be boycotted by riders who have been pushing for higher rates to act as compensation for the rising costs of doing business.

In response to an increase in petrol and diesel prices by Sh.9 per litre the rates are expected to rise. The minimum charge for the more expensive UberX has not changed and remained at Sh.200, but the company increased the rate per kilometre by one shilling fromSh.38 to Sh.39 with the base fare rising to Sh.130 from Sh.115. Bolt, Uber’s main rival, has not reviewed its rates. 

Uber’s review comes after Transport Cabinet Secretary James Macharia announced new regulations that capped a commission charged at 18 percent per trip. The government’s move will affect companies such as Uber, Bolt, Little, and other digital cab companies.

“We have taken into account the rising cost of living, and the increasing fuel prices. We remain committed to providing a reliable earnings opportunity for drivers as well as a reliable service for riders,” Uber said in its announcement on the new price structure.

The introduction of the fuel surcharge kicks in after Uber’s head of East Africa Mr. Imran Manji said the firm was looking forward to balancing rising rates for drivers to cover their costs.

The new rules exclude all entities or companies that provide street-hailing taxi cab services, limousines, or other transportation services based on a method other than through a transport network platform.