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Kenyan drivers have started increasing their fares and will continue to do so unless their fares are reviewed and increased by the ride-sharing platforms.
Recent fare disputes between ride-hailing apps and their partner drivers in Kenya have escalated. Drivers whose fares are set by ride-hailing companies have recently started enforcing their prices and refusing to ride to passengers who do not want to pay.
“We as online drivers from Nairobi would like to inform the public that due to the high cost of living, we are unable to work at the current rates of Uber, Faras and Bolt,” reads a notice behind the headrest of a driver’s seat.
The announcement said price adjustments are necessary for gig drivers to remain in the industry. Drivers hope their actions will encourage ride-hailing companies to rethink their pricing structure, starting with an increase in the minimum fare from $1.40 (KES 180) to $2.33 (KES 300).
“If the minimum fare is KES 300, we charge a litre of fuel plus $0.78 (KES 100) for the driver, airtime and maintenance. For journeys over KES 300, i.e. over 3km, it would only be fair for the driver to multiply the app fare by 1.5,” said Dennis Nyariki, vice-chairman of the Organisation of Online Drivers Kenya.
Drivers have set standard fares for pick-up and drop-off at airports and train stations at between $7.75 (KES 1,000) and $38.76 (KES 5,000), making them more expensive than train tickets and almost half the price of a flight from Nairobi to Mombasa.
Nyakyiri also reported that an analysis by AA Kenya, a mobility solutions company, found that, taking into account the cost of maintaining the apps, they would typically cost at least $0.26 (33 Kenyan shillings) per kilometer.
Kenyan drivers launched a five-day protest on July 15 to Push for tariff reviews due to the high cost of living. Nevertheless, ride-hailing companies are keen to maintain their low fares to retain price-conscious customers.
The companies have agreed to meet with drivers’ associations to address the problems, as more customers report harassment and attacks when they refuse to pay the unofficial fares.
“We understand and empathize with drivers’ concerns,” Bolt said in a statement. “However, we are aware that some of them have taken independent action to increase fares, resulting in inconsistent customer charges. We want to discourage drivers from increasing fares through the app until this industry matter is resolved.”
Bolt added that the company is actively working to balance the “economic needs” of its drivers on the one hand and the quality and price of services for customers on the other.
In the past, the Department of Transportation and the National Transportation Safety Authority (NTSA) have attempted to mediate negotiations between drivers’ unions and ride-sharing companies.
Such meetings have not yet produced any results, so the drivers regularly go on strike. While the drivers are primarily interested in the price structure, they also want to be involved in setting or reviewing the fares.
Uber also stated that charging more money than the app displays is against its rules, and if drivers are caught doing so, they face consequences ranging from a temporary suspension to permanent removal from the platform.
“Requesting an additional payment beyond the amount displayed in the app violates our Community Guidelines. If this is found to have happened, actions may range from suspension of the driver’s account to possible blocking of further access to the app,” Uber said in a statement.
The unions have stated that they will continue to respect their wage agreements if the meeting does not result in a fair solution to the disputes.
