This archive report was first published on 22 August 2019.
Uber Kenya has made a significant move to appease its drivers by introducing a 29% price increase, set to take effect on Monday, August 26, 2019. This change will impact both UberX and Uber ChapChap riders.
As part of the new model, Uber Select, the company's premium option, will be discontinued, leaving only UberX and Uber ChapChap. The UberX category will now feature cars with an engine capacity of above 1300cc, while all cars below 1300cc will fall under the Uber ChapChap category.
Unlike Bolt, Uber has chosen to increase prices rather than eliminate the budget option. Instead, the company has done away with the premium option. This change will also limit drivers' ability to switch between the two categories, a feature that was previously available during peak demands.
According to Uber, the rate increase will result in a significant rise in drivers' earnings, with the cost of trips increasing by an average of 26% for UberX and 13% for ChapChap. The base fares for both services will remain at KES. 85 and KES. 80, respectively, but the minimum amount of money customers will pay for an UberX ride will now be KES. 200, and KES. 150 for a ChapChap.
Uber ChapChap vehicles will also face a 25% commission on their first 15 weekly trips, and thereafter 3% on the remaining trips. Trips on Uber ChapChap will cost KES. 4 per minute, but this will rise to KES. 12 per minute after the trip exceeds 11 Kilometres.
While the announcement may be good news for Uber drivers, concerns remain about how customers will react to the changes. With options like SWVL bus sharing and InDriver available, it remains to be seen whether Uber's new pricing model will be enough to keep customers loyal.
