Uber adjusts service fee from 25% to 18% in Kenya after operators strike

Ride-hailing company Uber has adjusted its service fee from 25% to 18% after a public outcry by taxi operators last week.

Drivers of major digital taxi platforms across major towns in Kenya on Thursday downed their tools in protest of what they called non-compliance by the transport network companies. 

The operators drawn from Uber, Bolt, Little Cab, Yego, Maramoja and others faulted the companies for offering discounts to customers and asked them to lower commission charged from current high of 25-30 % to 18%. 

And on Sunday, Uber announced the adjustment with immediate effect and said it had received its transport network license to operate in Kenya from the National Transport and Safety Authority (NTSA).

“We are committed to Kenya and will continue to find workable solutions that benefit both riders and drivers using the platform as well as the business,” Imran Manji, Head of East Africa for Uber, said.

 During the peaceful demonstrations held last week in Nairobi, Justin Nyaga, the Chairperson of Organisation of Online Drivers said the taxi hailing apps had not implemented earlier agreements on capping commission charged on drivers which was to begin on September 20, 2022. 

This even after NTSA had given the transport companies 14 days to register and produce working agreements with drivers.

The drivers complained that agreements were yet to materialise and the authority had not taken action on the taxi hailing apps. 

Meanwhile Manji has stated that Uber, which began local operations in 2015, will remain committed to engaging with regulators to ensure the welfare of drivers is catered for and that they can grow their businesses.

 “We are certainly excited about our future in Kenya. We remain committed to engaging with policymakers, raising the bar on safety, helping drivers grow their businesses, and improving the experience of riders,” he said.