Uber Kenya has raised passenger fares to appease its registered drivers who have been alarmed by the recent sharp rise in fuel prices.
The company announced that it was raising the fare to “support drivers increase their earning opportunities” and to cover high operating costs.
The move by Uber comes after some of its drivers complained that their margins had shrunk after the Energy and Petroleum Regulatory Authority (Epra) raised fuel prices by Sh9 mid-last month, leaving a litre of super petrol retailing at Sh159.
“Our commitment to drivers is to continuously find ways of maximising their earning potential while meeting the needs of the riders. As part of our regular engagements with drivers, we increased fares to help drivers with the recent spike in operating costs,” the company stated but declined to disclose the new rates when asked by Nation.
The company stated that it was monitoring the situation, particularly in the global market, and that it would make changes based on feedback from riders and drivers.
“We continuously engage directly with drivers using our various engagement channels to work towards addressing any issues,” said the company.
Uber made the move despite reports that its rival, Bolt, was considering a similar move. Bolt, on the other hand, has not yet issued an official statement.
In an effort to protect drivers’ rights, ride-hailing companies are raising fares even as the government tightens the noose around their operations, capping commissions they earn from drivers at 18% per trip.
The 18% cap will also apply to the commission paid by vehicle owners registered with the various digital taxi companies.
The government’s decision will have an impact on companies like Uber, Bolt, Little, and other digital taxi companies.
