Uber drivers in Nairobi. The service has gained popularity in Kenya due
to its pricing model that offers a standard cost per kilometre. PHOTO |
FILE
By DOREEN WAINAINAH, dwainainah@ke.nationmedia.com
In Summary
- US-based firm says it has clocked eight million kilometres in Kenya since launch in Nairobi 15 months ago as platform gains popularity.
- Uber customers are charged for every kilometre covered and time taken to their destination — unlike regular cab drivers who quote their prices based on arbitrary spot negotiations with clients.
- The lower cost pricing model triggered bitter rivalry and street demonstrations between local taxi operators and Uber drivers.
Online taxi hailing company Uber says it has signed
up nearly 1,000 Kenyan drivers onto its platform since it began
operations in January 2015.
The US-based company also announced yesterday that it has
clocked eight million kilometres in Kenya since its launch in Nairobi 15
months ago.
“Over 100,000 of you choose Uber every month and
since launching in Kenya we have facilitated over a million trips
through the platform,” said Uber on its blog.
The taxi hailing app first launched in Nairobi, and in March this year began operations in Mombasa.
It has gained popularity in Kenya due to its
pricing model that offers a standard cost per kilometre, charging
relatively lower fares compared to traditional taxi operators.
Uber customers are charged for every kilometre
covered and time taken to their destination — unlike regular cab drivers
who quote their prices based on arbitrary spot negotiations with
clients.
Every Uber trip is automatically and openly priced,
with riders having the option of getting a fare estimate before hailing
the vehicles.
The lower cost pricing model triggered bitter rivalry and street demonstrations between local taxi operators and Uber drivers.
Several Uber cabs were torched and vandalised as
the operators opposed the pricing model. Using the Uber pricing model of
Sh60 per kilometre, Sh4 per minute and a base fare of Sh100 per ride,
the US firm could have made an estimated over Sh800,000,000 in the 15
months it has been running in Kenya.
Some trips are charged higher depending on traffic
jams and availability of the Uber cabs in certain vicinities—indicating
that the revenue estimated could be even higher.
Uber keeps 25 per cent of the value of a ride. It
does not own any cars but relies on individuals who want to sign up
their private vehicles with them. The tech company’s Kenya launch came
only months after Brazilian-owned Easy Taxi set up shop in Nairobi.
Easy Taxi, also an online ride-hailing company that
uses app technology, launched at the end of 2014, registering 2,000
drivers on its service as of January.
It has however announced plans to exit the Kenyan
market. The online taxi hailing business has seen increased activity
with new entrants including Mondo Ride also seeking to get a piece of
the cake.
Mondo Ride, which has Romanian roots, started
operations in Nairobi mid-January as it first African destination. It is
also targeting boda boda hailing in the country
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