Uber Kenya will raise fares in the next two weeks in order to appease its army of agitated drivers who are demanding compensation for the rise in fuel prices.
Imran Manji, Uber’s East Africa head, stated that the company is working on a price increase to account for the recent fuel price increase.
Mr Manji stated that the company is attempting to find a sweet spot between not destroying demand by pricing and ensuring that drivers cover their costs in the face of rising living costs and stiff competition in the ride-hailing industry.Â
The announcement comes after fuel prices rose by Sh9 per litre on Tuesday, marking the fourth consecutive increase since February.
Drivers of digital taxis on apps like Uber, Bolt, Little Cab, and Have previously protested about the high cost of fuel eating into their earnings, which have also declined due to a glut of drivers and players in the industry.
In Nairobi, the price of super and diesel is currently Sh159.12 and Sh140, respectively, setting the stage for further increases in the cost of living at a time when inflation has reached a 27-month high.
Since last year, the industry has been reeling from decreased riding activity as a result of the work-from-home policies.
This has been preceded by a rise in the retail prices of major staples such as bread, milk, maize flour, and cooking oils.
