Wednesday, August 10, 2022
Wednesday, August 10, 2022
Home Ride Hailing Uber to set new fares ahead of the fuel price surge in Kenya

Uber to set new fares ahead of the fuel price surge in Kenya

by Val Lukhanyu
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Uber Kenya will increase fares in the next two weeks to weather the recently introduced pump prices. The price review comes after drivers demanded compensation for the increase in fuel prices.

Fuel prices increased by Ksh9 per litre which translates to Ksh159.12 for a litre of petrol, Ksh140 per litre for diesel and Ksh 127.94 per litre an increase the Energy and Petroleum Regulatory Authority (EPRA) says the cost comes as a result of the depreciating dollar among many other factors.

speaking on the development, uber head of East Africa Imran Manji said “We are looking at the pricing, and there is more chance than not that we will be reviewing our rates upwards to factor that fuel price increase,”

Earlier today, major taxi drivers also took to the streets to demonstrate the recent fuel price increase including the 15 per cent commission. Amid this pricing is growing increase is the rising cost of living, which makes it necessary for the company to find an amicable solution to compensate their drivers better.

The 2-year covid-19 stretch also had huge repercussions on transport operations in the country also slowed down taxi operations. Taxi drivers across all hailing apps have in the past protested about the high cost of fuel eating into their earnings as the industry slowly picks up again.

The price increase to be adopted by the firm will cushion drivers to cover their costs and make extra earnings and keep them on the app.

“It’s a difficult situation in the market right now because as the cost of living for everybody goes up, the affordability of things like ride-hailing comes into question. If we raise our prices too high; when the majority of people are already feeling price pressure on daily necessities, we are limiting how many people are going to be using our services and also limiting the driver of earnings,” said Mr Manji.

“So the price increase has to be looked at in conjunction with what is the resultant effect on demand,” he added

This will be Uber’s second review in less than 6 months after another price review was made in February after the drastic fule price shoot. The pump price rose by Sh5 per litre, after the withdrawal of a fuel subsidy cushioning Kenyans.

We expect a slight increase in fare prices though nothing much out of the normal. The company is also working on creating a balance not to destroy the demand. The lowest-priced on the app, Uber Chap Chap charges a minimum fare of Sh150 and a maximum of Sh250 per kilometre while the more expensive Uber X charges a minimum of Sh200 and a maximum of Sh380 per kilometre.

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