Taxi-hailing App company Uber has significantly reduced its cab prices in Nairobi in what is seen as the result of stiff competition in the taxi market following entry of safaricom which launched a similar service in July.
Uber made a 35 per percent reduction in fares in what the company said is a way of adding value for riders and providing unique opportunities for its drivers.
Safaricom partnered with craft silicon to launch Little Cabs which seem to have prompted Uber to make fare changes, though Uber GM for East Africa Nate Anderson has dismissed the claims.
“We do not make any decisions based on the competition,” he said.
An unidentified Uber taxi driver was quoted saying the changes will affect the drivers. “They (Uber) have told us that earnings are not good, there are too many cars on the platform and competitors are cheaper than them, therefore they have reduced rates from Sh4 per minute to Sh3 and significantly reduced the cost per kilometre to Sh35 from Sh60.
The worst part is, we have loans, maintenance costs and fuel expenses to bear yet we are the ones absorbing the cost of the new cheaper fares while Uber has not reduced the commission it charges us,”.
The Kenyan Weekly could not independently verify the claims.
The Kenyan Weekly newspaper is a fresh general-news publication published on newsprint once a week.