This archive report was first published on 6 May 2020.
As the COVID-19 pandemic continues to spread, Uber drivers in Kenya are facing a significant drop in earnings. In a move aimed at ensuring the long-term sustainability of the business, Uber has scrapped its three percent commission fee and reverted to the old rates.
The decision was made in response to decreased trip demand, which followed the imposition of movement restrictions, including a daily dusk-to-dawn curfew and the closure of schools, bars, and nightclubs.
According to a letter sent to drivers, Uber stated, "We are making these changes as a result of the unprecedented times we find ourselves in, with an aim to ensure long-term sustainability of the business."
Uber had previously adopted a new pricing model in October 2019, which significantly increased the cost of rides and introduced a new driver commission metric. Under the new model, ChapChap taxis paid a 25 percent commission on the first 15 weekly trips and three percent on the remaining journeys completed.
While incentives for drivers in Kenya have been put on hold during the pandemic, drivers still have access to injury protection and other safety features, according to Uber spokesperson Lorraine Onduru.
"This is not permanent, and our teams will continue to monitor the situation," Onduru said. "We are committed to working with government agencies and other stakeholders on their behalf to ensure they are supported during this difficult time."
