Kenyan Taxi Drivers Challenge Uber by Setting Their Own Fares Amid Economic Pressure

The African market, particularly Kenya, has been highlighted by Uber's executives as a key region for the company. However, the situation has been complicated by protests triggered by proposed tax increases, high prices for basic goods, rising interest rates, and the consequent decline in consumers' purchasing power. In response to drivers' demands, the local startup Faris cabs raised fares by 20%, while Estonian-based Bolt stated that it does not support price hikes.

While waiting for a resolution, drivers continue to find ways to bypass the app's algorithmic fare settings. They use walkie-talkie apps to collectively agree on higher prices, ensuring that customers receive the same rate regardless of the service they choose. Additionally, drivers have created laminated fare guides, which they display in their cars for passengers to see.

Over the past eight years of working as a taxi driver in Kenya's capital, Judith Chapone has never seen business slump as severely as it has now. A price war between major market players — Uber, Bolt, and local startups Little and Faris — has driven fares down to levels that many drivers find unacceptable. As a result, many taxi drivers have started setting their own, higher fares. Judith argues that they have no other choice.

"If you stick to the app's rates, you can work for 12 hours and still not earn enough to cover fuel and loan repayments on your car," she explains. The app takes its full commission, the passenger pays the amount they think is fair, and the driver is left squeezed between debts and customers' pricing expectations. About half of her passengers agree to pay more than the app suggests.

Nevertheless, Uber considers such arrangements a violation of its rules and requires drivers to return to the set fares. The company urges customers to report instances of overcharging. This creates tension between the high-tech, automated world of international ride-hailing services and the reality of life in Kenya, Nigeria, and Tanzania, where economies are growing, but car ownership remains low.

Eric, a driver from Nairobi, explains, "You can quickly calculate a new price by multiplying the fare suggested by the app by 1.5. But if the passenger doesn’t agree, you have to follow the app’s suggestion because, at the end of the day, you still need to work. If you refuse everything, you might as well leave the business." However, he adds, drivers are trying to improve the business before leaving.

Thus, under the pressure of economic challenges and uncertainty, Kenyan taxi drivers continue to fight for their survival by offering alternative fares and adapting to the changing market conditions.