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.

Recent complaints from customers using ride hailing apps reveal refusal to accept drivers demanding 1.5 times above fares calculated by apps. This comes after a notice from a union representing Nairobi Online Drivers declaring that customers would no longer be charged rates listed by the platforms.

The dispute followed a one-week strike earlier this month by drivers associated with Uber, Bolt, Faras, and Little, who were protesting against what they termed “exploitative rates.” However, the strike wasn’t successful since some drivers opted to continue working by taking advantage of the fact that there are higher surge prices during the slowdown.

Why Customers Are Complaining

Many customers took to social media to air their dissatisfaction at the unexpected hikes in fares. These customers complain either of being blindsided by additional charges at the end of their trips or of drivers refusing card payments.

One frustrated user commented on X, formerly Twitter, “If they don’t like working with the app companies then ship out and leave a few who are comfortable working with mobile taxi companies. Trouble started when too many cab drivers joined taxi hailing companies.

Another user sympathized with the drivers over their economic hardship but reasoned why they were using the app to get customers and at the same time imposing their own price. Others retaliated by giving them one-star reviews, with some others even promising to stop using the platforms.

Uber has stated that the situation is unacceptable, as the drivers are violating the rules set by the platform. While not mentioning what they will do, for some drivers, deregistration may be a possibility. Also, maybe in the long term, they might negotiate with the drivers to come up with solutions.

Why Some Customers Don’t Mind It

Some customers have, on the other hand, sided with the drivers, accusing the ride-hailing platforms of having a blind eye toward the drivers who suffer in their plight. They argue that the rates set by companies are too low for drivers to at least cover their expenses and earn a reasonable livelihood.

One sympathetic customer noted, “Those rates are very realistic. Honestly, I don’t understand how they have been surviving and paying loans considering that companies take 70% of what you pay. I have always topped up without anyone asking because I understand how a car works.

Others have pointed out the broader issues that drivers face, including poor working conditions and a lack of regulation, suggesting the current row is a symptom of all these problems that have been ongoing.

Ride-Hailing Companies’ Comment

Ride-hailing companies have responded by reassuring that they are committed to having fair pricing structures. Uber sent an email to customers requesting them to report cases where drivers are demanding extra money besides what is being calculated on the app saying it contravenes their Community Guidelines.

“Our drivers are fairly paid, and we have a very well-set pricing structure that meets their expectation and needs. It therefore ensures at no point in time are our riders affected. It’s a Kenyan app designed for Kenyan drivers and Kenyan riders,” Little CEO, Kamal Budhabhatti said.

Friction has only increased in the air as drivers feel underpaid and riders are irritated by skyrocketing fare prices. The situation is unresolved because the debate on the future of ride-hailing teeters between both parties, hoping to have that which they need.

Within the past year, electric motorbike initiative has yielded great success for Uber Kenya, with the number of trips across the city of Nairobi increasing by 94%. If one thing is proved, it is that there is fast adoption of e-mobility solutions across this city, which has been facilitated by a strategic partnership with Greenwheels, an e-mobility firm.

The partnership with Greenwheels has grown the number of riders from 50 to nearly 500 within one year. The growth in size is primarily contributed to by increasing the number of e-bikes and opening up access to more battery-swapping stations. According to the chief executive officer of Greenwheels, Nabil Anjarwalla, every ride via Uber Electric Boda saves 85 grams of carbon, hence a critical boost towards the war against climate change.

Greenwheels, in celebration of this great initiative, announced a major increase in its maintenance and tech department from three employees last year to 75 employees today. “We are happy to celebrate this important milestone in driving Kenya’s shift to green mobility with Uber. In just our first year, we’ve already moved over 700,000 passengers and covered more than 12 million kilometers on electric motorcycles, and there’s so much more yet to be done,” Anjarwalla said.

The most alluring feature of Uber’s operations remains an electric Boda option, which saves on gas through various cost-effective advantages. Drivers pocket more as maintenance costs drop 30-35%. According to Imran Manji, Head of Uber East Africa, this has served to better the earnings of drivers hence their support of Kenya’s quest towards sustainability.

It formalizes a largely unorganized boda boda sector in Kenya by employing e-bike riders and putting them on stable salaries, allowances, and bonuses linked to performance. “As we continue to scale, we’re committed to reducing carbon emissions, providing formal employment, and ensuring safe, convenient transport for Nairobians,” said Anjarwalla.

To facilitate seamless movement of the e-bikes, about 100 battery-swapping stations have been installed across Nairobi. The headquarters of Greenwheels in Westlands hosts an East African leading stock of 400 e-bike batteries. According to the company, a number of concerns raised by it over the expansion of EV-charging infrastructure identify conditions—costly ones—imposed by Kenya Power (KPLC) as the main hindrance.

Notwithstanding the fact that initiatives by both Uber’s Electric Boda and Greenwheels do succeed, it spells out hope for a greener and more sustainable future of urban mobility in Kenya.