Uber Kenya has announced an increase of 10% in all its ride charges, setting a minimum fare price, following months of protests by irate drivers. The drivers had sometimes resorted to quoting their own prices, which prompted several unplanned discrepancies between the fare suggestions on the app and what passengers actually paid.
The increase in prices cuts across all products, and the minimum fare for Uber Chap Chap is now KSh 220, up from KSh 200. All the same, Uber has been very careful to maintain secrecy regarding changes in other products’ fares. According to Imran Manji, Uber’s head of East Africa, the move was guided by data findings and decisions from drivers rather than as a direct cause following protests.
The dynamic pricing model of Uber has been taken as controversial, taking into account the distance and time. Drivers have prepared fare guides on their own and displayed them in the car. This act has created fear with the passengers who are getting inconsistent prices.
In response, Uber has started calling its customers, requesting them to share experiences where drivers charge more than the fare reflected on the mobile phone application. On this note, the company will have to maintain the stance of an “economic balance” at the increments of fares to meet the demands put forward by the drivers while simultaneously ensuring that its services are affordable to price-sensitive customers in Kenya.
Currently, Uber has over 20,000 drivers partnered on the platform together with numerous products that aim at providing most of the needs, meaning that the company’s problem is maintaining profitability and satisfaction levels with customers while managing the compensation and service provision effectively on the side of the drivers.