To keep up with the rising cost of fuel, Uber has reviewed its prices upwards adding a Ksh 10 fuel charge to the minimum rate those using its services pay. This will bring the minimum fare charged to Ksh 160 from 150 for Uber ChapChap.
The price changes come a few days after the Government published new rules that will force the Taxi apps to lower the flat rate they charge drivers to 18% from as much as 25% for the case of Uber.
The price changes might help cushion the drivers from the recent changes in fuel prices but may not be enough. Drivers using these platforms have been complaining about low earnings as fuel prices have been changing this year.
Uber also adjusted the base fare from Ksh 100 to Ksh 108. The base fare is what is charged as the trip starts and isn’t affected by the distance covered by the trip.
The rate per kilometer has also been raised from Ksh 25 to Ksh 26. As you may see, the changes are minimal as Uber is probably trying to cater for both the drivers and the clients. Uber also faces some competition from other players on the market so it has to be careful not to be the least desirable to either drivers or its clients.
As for the more expensive Uber X, the minimum charge was not changed and remains at Ksh 200. For these rides, the company has raised the rate per kilometer from Ksh 38 to Ksh 39. The base fare on the other hand has been raised from Ksh 115 to Ksh 130.
In a statement, Uber said, “We have taken into account the rising cost of living and increasing cost of fuel. We remain committed to providing a reliable earnings opportunity for drivers as well as a reliable service for riders.”
It is still not clear how the price changes will affect Uber and that is something we will have to wait a bit longer to fully understand.
Bolt on the other hand is yet to adjust its rates but it might be forced to do so for the sake of its drivers.
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