Showfa , a new online taxi company that was recently launched in Nairobi by Trade Cabinet Secretary Moses Kuria has announced a subscription fee of Sh300 per day for car drivers and a daily fee of Sh50 for bodaboda riders as it seeks to differentiate itself in a market where rivals charge commissions as a percentage of fares.
The company’s Business Development Director Dhruv Rajah told Business Daily that car drivers will pay Sh300 while bodaboda riders will part with a daily fee of Sh50, with the operators taking the entire earnings made during the course of the day.
The company will also allow drivers on the app the option to either make daily, weekly or monthly subscriptions.
Although there are several other companies licensed by the National Transport and Safety Authority to operate taxi services in Kenya such as Bolt, Uber, Little, Farasi and Yego,they use the commission-based model where drivers pay a set percentage to the taxi platforms every time they make a trip, Showfa’s subscription-based strategy, which is the first of its kind in Kenya, will see drivers submit payments only once while retaining the rest of the day’s earnings.
“We feel that if you have a happy driver, a happy rider, the customers will flow because they know that they are giving and also empowering Kenyans for the services,” Mr Rajah said during the launch.
The Kenyan digital taxi market has been characterized by increased price wars as companies cut trip rates and offer promotions to attract riders. The entry of Showfa in the ride-hailing space will therefore increase options for travellers, riders and drivers in the gig economy
The firm also announced plans to launch ambulance services where customers can order emergency services through the app.
Both the driver and the passenger apps are available for download on PlayStore and IOS.