Its barely a week since the U.S based taxi hailing service Uber announced their 35% reduction in their prices and things are getting worse as drivers have vowed to down their tools.
The cutting of prices is linked to the competition from other hailing services such as Safaricom’s Little Cab.
The move that was made by Uber management without consulting drivers is now a big issue as the drivers argues that the new prices have a huge negative impact on their income.
Yesterday, the drivers held a meeting and they threatened to take to the streets today as they demand to hold a dialogue with the Uber management on the issue.
At the conference that was held last week, Nate Anderson the Uber manager for Kenya pointed out that the drivers would earn a guarantee of between Sh500 and Sh450 for every peak and off-peak hour respectively that they fail to get ride requests.
Also Read: Why Uber Charges in Nairobi is Now 35%
Uber Customers were faced with price surges yesterday as majority of drivers kept away from the roads.
The interim Chairman of The Kenya Taxi Digital Association Emanuel Kasina, argues that Uber failed their part in constructively engaging the drivers and partners to deliberate on the matter before arriving to the final decision.
“They reduced what is going into our pockets but didn’t reduce what is going into their pockets. Today we have made a resolve that Uber needs to listen to us and they cannot any business decision without consulting us. We need rules of engagement,” Mr Kasina said.
The new prices for Uber dropped from Ksh 60 to Ksh 35 per kilometer and from Ksh 4 to Ksh 3 per Kilometer hence making the minimum charge to drop from Ksh 300 to Ksh 200.
In July, Safaricom and Craft Silicon launched Little Cab which Sh55 per kilometer and Sh4 per minute with no flat base charge.