This archive report was first published on 7 May 2020.
As the COVID-19 pandemic continues to affect the world, Uber drivers in Kenya are facing a significant drop in earnings. The company has scrapped its 3% commission on fares, which was introduced in October last year, and reverted to the old rates.
According to Uber, the decision was made due to decreased trip demand following the movement restrictions imposed to curb the spread of the virus. The restrictions include a daily dusk-to-dawn curfew and the closure of schools, bars, and nightclubs.
"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 said in a letter sent to drivers last week.
Uber had introduced a new pricing model in October last year, which significantly increased the cost of rides and introduced a new driver commission metric. The model saw ChapChap taxis pay 25% commission on the first 15 weekly trips and thereafter remit 3% on the remaining journeys completed.
However, with the pandemic affecting the economy, Uber has put on hold incentives for drivers in Kenya. Despite this, drivers still have access to injury protection and all the safety features, including the in-app emergency button and 24/7 support.
"This is not permanent and our teams will continue to monitor the situation. We are committed to working with government agencies and other stakeholders on their behalf to ensure they are supported during this difficult time," said Uber spokesperson Lorraine Onduru.
