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

By Ivan PetrenkoAug 21, 2024 17:35 PMNews
Share:
Drivers unite to agree on fair fares. Source: pixabay

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.

Top Articles

Coachella 2025: Everything You Need to Know

Sep 16, 2024 19:30 PM

Andijan: A Gateway to Uzbekistan’s Rich Heritage and Dynamic Culture

Sep 14, 2024 15:30 PM

Namangan: Uzbekistan's Hidden Cultural and Natural Treasure

Sep 14, 2024 14:30 PM

Exploring Uzbekistan: A Journey Through History, Culture, and Nature

Sep 14, 2024 13:30 PM
More News

Vietjet Opens Early Sales for Lunar New Year 2025 Flights

Sep 17, 2024 20:30 PM

New Luggage Rules on French Railways: Restrictions and Fines

Sep 17, 2024 18:35 PM

Khiva: A City Frozen in Time, Rich in History and Culture

Sep 17, 2024 17:00 PM

AirAsia Thailand Focuses on Punctuality in New Campaign for Travelers

Sep 17, 2024 16:30 PM

Expedia’s New Travel Shops: What It Means for Travelers

Sep 17, 2024 14:30 PM

Namangan's Rising Popularity: A New Destination for Curious Travelers

Sep 17, 2024 14:00 PM

Kalta Minor: The Unfinished Symbol of Khiva

Sep 17, 2024 13:30 PM

Itchan Kala: A Historic Trade Center

Sep 17, 2024 13:00 PM

Devastating Wildfires Sweep Across Central and Northern Portugal: Communities Face Evacuations

Sep 17, 2024 12:35 PM

Spain Faces Coastal Erosion Threat, Endangering Tourism Industry

Sep 17, 2024 10:30 AM

Epic Four-Day Train Journey from Paris to Istanbul via Night Trains

Sep 17, 2024 08:30 AM

British Airways and American Airlines Unveil Ambitious Summer 2025 Plans for London Heathrow and US Routes

Sep 17, 2024 06:30 AM

Circular Runways: A Revolutionary Concept in Aviation Design

Sep 17, 2024 04:30 AM

Delta Airbus A330-900neo Makes Emergency Return to JFK Due to Fumes in Cabin

Sep 17, 2024 02:30 AM

Woman Sues American Airlines After In-Flight Coffee Spill Causes Severe Burns

Sep 17, 2024 00:30 AM

Rome’s Tourist Transport Fare Increase: What Travelers Should Know

Sep 16, 2024 23:30 PM

Record Floods in Central and Eastern Europe: How It Affects Travel

Sep 16, 2024 22:30 PM

New Secret Fare Offers Major Savings for Flexible Travelers

Sep 16, 2024 21:30 PM

Cardiff's New Tramway to Connect Key Tourist Areas

Sep 16, 2024 20:30 PM

Air Canada and Pilot Union Secure New Agreement: Impact on Travelers

Sep 16, 2024 18:30 PM

Revitalizing Northern Ireland: From Historical Landmarks to Cross-Border Connections

Sep 16, 2024 16:30 PM

Bukhara: A Tapestry of History, Culture, and Timeless Monuments

Sep 16, 2024 16:30 PM

Strengthening Border Controls in Germany: Impact on Travel and Migration

Sep 16, 2024 15:35 PM

Bali Introduces Ban on New Hotel Construction to Combat Mass Tourism

Sep 16, 2024 14:30 PM

Ransomware Attack at SeaTac Airport

Sep 16, 2024 13:35 PM

Night Train from Amsterdam to Barcelona Postponed to 2026

Sep 16, 2024 12:30 PM