US-based mobility firm inDrive has received an official licence to operate in Kenya. FILE PHOTO | POOL
US-based mobility firm inDrive has received an official licence to operate in Kenya in what promises to increase competition in the ride-hailing industry with rivals
including Uber, Little Cabs and Bolt.The California-based company had been operating in Nairobi as inDriver taxis in 2019 but rebranded last October to inDrive.
“With the official licensing to operate in Kenya, inDrive is excited to contribute to the local transportation ecosystem, providing safe, reliable, and affordable mobility options to the people of Kenya,” said Godfrey Mabula, inDrive’s business representative in Kenya.
“The company looks forward to partnering with local drivers and serving the community while upholding its commitment to safety and fair pricing practices.”
Ride-hailing has become integrated into regular ways of moving from place to place. InDrive is present in more than 200 cities worldwide including Kenya, Tanzania and Nigeria.
The company will be competing for the share of the market dominated by other operators.
The Kenyan digital taxi market has been characterised by an increased price war as companies cut trip rates in promotions to woo riders.
InDrive charges five to 10 percent of the commission, depending on the market they operate in, while Uber and Bolt charge 18 percent down from 25 percent and 20 percent, respectively.
Little, another ride-hailing firm charges a 15 percent commission.
The decision to cut charges came days after a strike by the drivers last November pushing for the tech platforms to abide by new regulations capping their charges at 18 percent but which Uber had challenged in court.
The National Transport and Safety Authority, which licences ride-hailing firms, on June 20 published regulations putting the ceiling on commission charged by digital taxi operators on drivers at 18 percent per trip.
Under the new regulations, operators’ licences will be valid for a year, should have a registered office in Kenya, and have to be registered by the Data Commissioner as a data controller or processor.
The law was expected to take effect three months after the notice.
“The recent licence issuance is a direct response to new regulations implemented by the local government. These regulations required us to apply for an operating license, a process which we initiated promptly as soon as the new rules were announced.
“We believe in full compliance with all local laws and regulations to ensure the best and safe service for our customers and seamless operations,” InDrive told the Business Daily.
We believe in full compliance with all local laws and regulations to ensure the best and safe service for our customers and seamless operations,” said InDrive in response to an email enquiry.
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