Uber drivers in Kenya, Nairobi have ditched their fancy cars and taken to the streets to protest the recent price slash announced by the mobile taxi hailing app believed to be as a result of potential competition coming to the transportation market. In actual fact, it hasn’t been all too rosy for Uber in Nairobi since it entered their market. There was a time local taxi drivers were aggrieved by the Uber rates and passengers’ preference for Uber over local cabs that they resorted to burning Uber ‘taxis’ in Nairobi. Unfortunately, the situation now is a house divided against itself. Despite the fact that it has been a bumpy ride (smirk) in Kenya, reports put it that business seemed to have stabled recently and Uber thought it wise to slash prices in order to promote growth of the business among operators. More riders for cheapers rates translating to more business as opposed to fewer riders and not so much business as a result of competition.
Uber slashed the charges for every minute spent on the ride from 4 Kenyan shillings to 3 Kenyan shillings; charges per kilometer from 60 Kenyan shillings to 35 Kenyan shillings and dropped minimum charges from 300 Kenyan shillings to 200 Kenyan shillings.
Something of this sort happened in South Africa recently where Uber reduced prices but later rescinded its decision. Is this likely to happen in Nairobi’s case? Time alone will tell.