Uber recently raised its minimum fare for the ‘Uber Chap Chap’ service in Kenya from Sh200 to Sh220. This 10% increase aims to address the rising cost of living and improve driver earnings in response to ongoing protests. However, the fare adjustment has sparked mixed reactions among passengers and drivers.
Passengers have reacted in various ways to the fare increase. Some users understand the need for higher fares to support drivers. However, many are concerned about the financial impact of this change.
Reports indicate that some drivers now charge more than the fare displayed in the app. This practice has become more common as drivers negotiate directly with customers to secure better pay. As a result, riders feel uncertain about the reliability of the fares shown on their screens.
Imran Manji, Uber’s Head of East Africa, stated that the fare increase aims to balance driver earnings with passenger affordability.
However, the introduction of a new priority service complicates the fare structure. Passengers can now pay an extra Sh110 for quicker service during peak demand.
While this option may appeal to some riders, it raises concerns about the overall affordability of Uber rides in a price-sensitive market like Kenya.
The fare increase follows significant protests by Uber drivers in July. These drivers rallied for better pay and improved working conditions. Their main demands included raising the minimum fare to Sh300, which they believe reflects their operational costs more accurately.
They also sought a review of Uber’s guidelines on account suspensions and deactivations, which many drivers viewed as unfair.
During the protests, drivers charged their own rates and took rides offline, highlighting their dissatisfaction with Uber’s pricing model.
Zakaria Mwangi, the Secretary General of the Ridehail Transport Association (RTA), expressed the drivers’ frustration. He said,
Mwangi added that the recent fare increase did not fully address their concerns. He indicated that drivers would continue to advocate for better compensation.
As Uber navigates the challenges of balancing driver earnings with passenger affordability, the recent fare adjustments have not fully satisfied drivers.
While some passengers appreciate the rationale behind the increase, they remain wary of potential price hikes and the accuracy of fare estimates.