Uber’s Price Increase Explained: The Impact On Riders And Drivers

• Uber announced it had increased the minimum fare to KSh 220 in response to driver protests and rising costs of living in East Africa, among other factors
• New Uber service categories have also been introduced to enhance driver earnings, including Uber Comfort and Chap Chap Priority
• Uber said that to increase driver satisfaction; they have initiated reward programmes that offer cash bonuses and incentives for top-performing drivers, with additional partnerships to reduce operating costs
• The reward programmes have been in place even before the protests; it is a way of taking care of drivers on the platform

Muyela Roberto is a business journalist at TUKO.co.ke with over 9 years of experience in the digital media, offering deep insights into Kenyan and global economic trends.

Ride-hailing app Uber has announced a price increase across its services a month after protests by digital taxi drivers over the existing pricing models.

Uber's Head of East Africa, Imran Manji, explained that the new prices were recalibrated in response to several factors, including the rising cost of living, driver needs, and customer preferences.

"Customers should expect a slight upward adjustment in the rates. We’ve considered multiple factors to ensure drivers earn decent income while passengers still benefit from affordability. Increasing of the prices was informed by a review of the cost of living, drivers' feedback, and not because of the protests only," Manji told TUKO.co.ke.

The new pricing model, which includes raising the minimum fare from KSh 200 to KSh 220, aims to curb instances where drivers request additional payments—a trend that has caused discomfort among clients recently.

About a month ago, drivers from various ride-hailing platforms staged protests demanding a review of prices, which they claimed were exploitative and left them with very thin profit margins.

"We hope this issue will be resolved, but in the event it persists, we urge affected clients to report to us through the app or our customer care channels," Manji added.

Uber's pricing and driver earnings

Addressing concerns about ride pricing and driver remuneration, Manji explained that several factors are considered when calculating fares, including the minimum fare, price per kilometre, starting price, and price per minute.

However, Manji expressed reservations about the recent calls from drivers and other stakeholders for Uber to increase fares to address driver dissatisfaction.

"Raising fares could actually reduce driver earnings in the long run. One issue that could contribute to this is that clients may avoid using the service, ultimately reducing driver income," he explained.

Uber Comfort

To enhance driver earnings, Uber has introduced various categories of services, such as Uber Comfort, for which customers are willing to pay a premium.

This category requires vehicles of a certain standard, typically newer models, to provide customers with a more luxurious experience.

Uber Chap Chap Priority

Another category is Chap Chap Priority, which is available during high-demand hours and offers drivers an additional KSh 110 per ride.

Reward programs on Uber

Uber Care: This program provides cash bonuses to the top 30 drivers with high ratings and the most completed trips.

Uber Pro: Drivers are categorised by colour codes—blue, diamond, and platinum. Drivers who achieve Diamond status are rewarded with KSh 10,000.

Additionally, to reduce operating and maintenance costs for drivers, Uber announced it had partnered with strategic suppliers to offer discounted prices on spare parts and maintenance.

Proofreading by Otukho Jackson, a multimedia journalist and copy editor at TUKO.co.ke