Uber Kenya has increased fare prices by raising the minimum fare to Ksh300 from previous Ksh200 in Nairobi and fare per kilometer from Ksh35 to Ksh42 in response to demands from partner drivers. This is the first time Uber is increasing its price after a series of fare cuts in response to local and international competition.
The company has also raised minimum fares in Mombasa from Ksh150 to Ksh200, Ksh42 from Ksh35 per kilometer and base fare to Ksh70 from Ksh50.
According to Uber the new pricing structure is designed to encourage more riders onto the road and to help increase trips for drivers.
“We believe driver-partners will earn more as a result of these changes and that riders will continue to enjoy access to a safe, affordable and reliable service.
“Any decision is data-driven, using statistically proven methods to determine pricing. That is why we consider local conditions together with a pricing model that is tried and tested in 450+ cities across the world.”
– Uber Kenya
Last month, some of Uber’s Kenyan drivers went on strike demanding higher rates claiming that they were only earning low profits.
Now, the company hopes that their move will settle the dispute without impacting too much on customers.