Business Daily
Date: 22.02.2017
Page 8
Article size: 397 cm2
ColumnCM: 88.22
AVE: 167622.22
Uber defends price cuts as
drivers gear up for boycott
BY ANNIE NJANJA
Online taxi hailing firm Uber has de­
fended recent price cuts, saying they are
intended to attract more customers on
its platform.
The San­Francisco­based firm says
that since the 35 per cent price cut came
into effect last July the firm has seen an
increase in the number of trips by new
Uber East Africa spokesperson Janet
and old customers.
Kemboi. file
The tech firm was responding to the
Monday switch­off by its drivers and the
looming threats to cripple services in Nai­
robi and Mombasa starting tomorrow.
The taxi drivers plan to hold a three­
day demonstration to force the Ameri­
can firm to cede to their demands. They
are demanding that Uber increases the
fares payable by customers and reduces
the 25 per cent commission it deducts
from their total earnings to increase their
to Sh200 while base fare remained un­
Uber drivers protest at the Hacienda restaurant in Nairobi during the Monday
switch­off to demand for higher pay following price cuts last July, salaton njau
take home.
"Time and again we have seen that
price cuts result in more people want­
ing to take trips with Uber. That's good
news for driver­partners who spend less
time waiting for fares and more time
earning," said Janet Kemboi, Uber East
Africa spokesperson.
"Uber has reduced fares in many other
countries across the world and the impact
has almost always been an increase in the
number of trips by new and existing riders
and, in many cases, higher than average
net earnings for driver­partners."
The Monday strike by Kenyan drivers
is only the latest to hit the firm after simi­
lar industrial action paralysed its opera­
tions in India and Qatar last week.
The drivers both in Mombasa and Nai­
robi have threatened to switch off their
devices and take to streets for three days
(Thursday, Friday and Monday) until
Uber addresses their complaints.
"We have no desire to abandon duty
and demonstrate. All we are asking from
Uber is a chance to talk and bridge this
gap. They lowered the prices without
seeking our consent and we are asking
them to review them up failure to which
we are going to paralyse their service until
come up with a formula that does not dent
our pockets," said David Muteru, chair­
man Digital Taxi Association of Kenya
on Monday.
changed at ShlOO.
The association plans to petition the
government through Parliament to set up
a body that will oversee the operations of
the traditional and digital taxi players in
Kenya if Uber does not reduce the com­
mission and raise the prices. The group
joins other city taxi drivers who had pe­
titioned MPs two weeks ago, asking the
lawmakers to intervene and set a price
for various destinations that have to be
metre down from Sh60. It also reduced
observed by all players. James Mahianyu,
association's analyst, says Uber has dis­
missed call for talks, however, Ms Kemboi
insists that Uber is open for discussion.
"Anyone can speak to us at any time
and there are a number of ways drivers
can speak with us. Uber succeeds when
our partners succeed so our teams are
working hard everyday to find even more
ways for drivers using the app to thrive,"
its charges per minute by Shi to Sh3 and
cut the pricing of short rides by ShlOO
anjanja @ ke. nationmedia.com
Taxi players
Last year, Uber cut prices to Sh35 per kilo­
said Ms Kemboi.
Ipsos Kenya ­ Acorn House,97 James Gichuru Road ­ Lavington ­ Nairobi ­ Kenya