Ride-Hailing Rate Dispute: Kenyan Drivers Take a Stand

The conflict over fare rates between ride-hailing companies and their driver-partners in Kenya has intensified. Drivers, who normally follow fare structures set by ride-hailing platforms, are now setting their own prices and declining service to passengers unwilling to pay these new rates.

A sign displayed on the headrest of a driver’s seat reads, “We, as Nairobi online drivers, wish to notify the public that due to the high cost of living, we will not be able to operate under the current rates of Uber, Faras, and Bolt.”

The sign details new fares that drivers believe are necessary for them to remain operational. They are urging ride-hailing companies to reconsider their pricing, starting with increasing the minimum fare from $1.40 (KES 180) to $2.33 (KES 300).

Dennis Nyariki, deputy chairman of the Organisation of Online Drivers Kenya (OOD), explained, “With a minimum fare of KES 300, our calculations cover a litre of fuel plus an additional $0.78 (KES 100) for the driver’s expenses, such as airtime and maintenance. For trips exceeding KES 300, which cover more than 3 km, it’s fair for the driver to multiply the app’s fare by 1.5.”

The drivers have set new fares for airport and railway station pickups and drop-offs, ranging from $7.75 (KES 1,000) to $38.76 (KES 5,000), which are pricier than a train ticket from Nairobi to Mombasa and nearly half the cost of a flight to the coastal city.

According to an analysis by AA Kenya, a mobility solutions company, incorporating maintenance costs suggests that ride-hailing apps should charge at least $0.26 (KES 33) per kilometer.

Drivers are advocating for fare increases to improve their earnings, partly due to the rising cost of living. However, ride-hailing apps are hesitant to raise prices as they aim to keep fares affordable for price-sensitive customers.

Economic challenges, including job cuts, pay freezes, and high inflation, have led to reduced discretionary spending, impacting leisure travel and potentially decreasing ride frequency.

Customers have reported harassment and even assault from drivers when refusing to pay the unofficial rates. In response, the ride-hailing companies have agreed to meet with drivers’ associations to address these issues.

“We understand and empathize with the concerns raised by drivers. However, we are aware that some drivers have taken independent actions to increase fares, leading to inconsistent pricing for customers. We urge drivers to refrain from setting their own fares until this industry matter is resolved,” Bolt said in a statement to TechCabal.

Bolt also mentioned that they are working on a solution to balance drivers’ economic needs with customer affordability and service quality. Industry negotiations mediated by the Ministry of Transport and the National Transport and Safety Authority (NTSA) are expected.

Uber added, “Requesting additional payment beyond what is displayed on the app violates our Community Guidelines. Actions may be taken, ranging from holding the driver’s account to potentially denying further access to the app.”

Past negotiations on this issue have often been unproductive, leading to frequent driver strikes. While fare pricing is a major concern, drivers are also seeking a role in determining and reviewing trip fares.

If the upcoming meetings fail to resolve the conflict, unions have indicated they will continue to enforce their new rates. This situation underscores a challenging moment where ride-hailing apps, once eager to attract drivers, might consider severing ties with them.