STRIKE ACTION RESULTS IN #UBER #TAXIFY AND OTHERS TO RAISE TARIFFS
(Posted 13th July 2018)
An on and off strike by drivers over the past two weeks, associated with app based taxi hailing services like Uber and Taxify, among others, has resulted in a deal being brokered through the Kenyan Ministry of Transport, raising the fares and in turn raising the income of drivers, many of whom are also the owners of the cars they drive.
While tariffs go up and users have to pay more for their rides are in particular Uber drivers still disputing the 25 percent commission the company charges them whereas other similar companies keep only 15 percent of the cost of a ride, something which is likely to lead to added future industrial action.
Two Uber drivers used while in Nairobi confirmed that they felt if commissions would reduce by 10 percent and bring them in line what their colleagues at Little, Taxify and others pay their platforms, it would in addition to higher fares raise their income significantly. Said one of them on condition of anonymity: ‘Those extra 10 percent the drivers for Little earn is 10 percent more of what we at Uber earn. We have invested in a good car and have to pay off loans besides making a good income for our families. The 25 percent commission must be reviewed and brought in line with other companies because now that there is so much competition in this sector, we will be at a big disadvantage and may have to leave Uber and join the ranks of others simply to survive‘.
Notably did the arrival of app based taxi hailing service however also bring down the previously over the top charges by normal cab services to the relief of many, both locals and foreign visitors using cabs.