In July, Uber lowered fares for uberX in Nairobi by 35% and the firm now reports that the move has seen driver partners get over 70 percent trips than before.
According to the firm, driver-partners have had a 100% increase in new rides per week, this means that the price cut has doubled the amount of new riders for driver-partners leading to more trips for drivers and lower prices for riders.
”Our driver partners are now getting over 70% more trips per day – but working less hours. We continue to have over 100,000 unique people opening our app every single month looking for a safe new ride,” said Nate Anderson, Uber’s General Manager in Kenya, “We are continuously watching and reviewing the effects of the price cut and we are thrilled that the results show that the price cut is working.”
James, a driver-partner using the Uber platform noted the difference “I am all for price reductions and it is really working for me. I wait less in between trips and therefore earn more every hour. Uber had a good intention in reducing prices. Following the price cut announcement, I do two times the normal number of trips I normally do on a Monday.”
This is very encouraging as it means driver-partners are spending less time idle and are taking more money home, which is exactly what the price cut aims to do. Results also show a decrease in hours per driver-partner, meaning drivers are not having to spend extra hours to earn the same as before.
Peter and Stephen who make use of Uber’s platform, explain how the price cuts have benefited them, “‘Business has been good actually, I can’t complain. Since the cut, it has picked up. Before, you had to wait a while to get a trip, but now, it is continuous. There is more frequency of trips so I am actually making more than before,” states Peter.
Stephen adds, “Demand has increased so much, what Uber envisioned in a very short time has happened – my number of trips has gone up. One of my drivers now during the weekdays does as many trips as he would on a weekend.”
Uber has seen that riders have responded positively to the price cuts too. According to tweets, Smriti Vidyarthi, Host of NTV said
“So excited that @uber_kenya will be even more affordable. Thanks for the great deal! #UberFORLESS”, and Bobby Vj, Avid Sports Editor noted
, “Since the introduction of Uber in Kenya, I can say today was amazing, after 35% cut down – Unbelievable. Wow. Awesome guys”.
Riders Zein and Phil said they will be “using Uber to and from work” and noted that moving from meeting to meeting would now be “stress free.” Joseph was happy to say that “the consumer wins again”. Kathryn hopes that with Uber Kenya being cheaper, she will see “far less drunk drivers on the road”.
In addition, Uber has partnered with Sidian Bank to provide loans valued at KES 10 billion (USD 100 million) offering qualifying driver-partners up to 100% finance deals on vehicles priced between Ksh 1 million and Ksh 1.5 million. The firm has also partnered with Total Petrol Station has been beneficial to driver partners who receive Ksh 3.50 off every litre of petrol every time they fuel at Total petrol stations.
Uber adds that its partnership with Auto Express enables its driver partners to service their vehicles at any Auto Express at a discounted rate. Driver-partners can also wash their cars at affordable rates of Ksh 100 to wash saloon cars and Ksh 250 to wash vans through a partnership with 24HR Car Wash Limited.