Uber Responds to Growing Competition with 35% Price Cut in Nairobi

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In response to mounting competition from new players in the e-taxi space in Kenya, Uber has slashed its fares in Nairobi by 35 per cent.

“With cheaper fares, we believe Uber can now be a true alternative to people driving their own cars into the city centre, with all the hassle and cost that parking brings,” the American company said.

The review is aimed at making Uber services cheapest in the market, making its platform the most preferred by consumers.

The new prices will see Uber charge users Kshs3 per minute down from Kshs4 previously. The online taxi-hailing firm also reduced its per- kilometre charge to Kshs35 from Kshs60 and the minimum rate for short rides from Kshs 300 to Kshs200.

The base and cancellation fees remain Kshs100 and Kshs200 respectively.

These changes are likely to ignite pricing wars with Uber rivals who include other foreign and some local companies which have recently launched in the industry.

For instance, recently unveiled Little Cab by local firms Safaricom and Craft Silicon charges Kshs55 per kilometre and Kshs4 per minute and has no flat base charge or price surges in heavy traffic or during peak hours as compared to Uber.

Uber’s other competitors include Dubai-based Mondo Ride, Estonian-based Taxify and Maramoja, Teke Taxi, Sendy Ride and WayTaxi.

According to the company, both riders and drivers are set to benefit from the price cuts as lower fares have previously shown to boost rider demands leading to higher driver earnings.

Since its entry into the country in 2015, Uber has employed various means to gain a competitive edge in the market in addition to launching in three Kenyan cities.

In May 2016, the company launched an initiative to give investors and driver-partners affordable access and convenience to start or grow Uber-based businesses, in collaboration with Sidian Bank.

Earlier this month, Uber included Nairobi and Mombasa in its global ice cream day marketing campaign that saw its drivers deliver frozen treats to users of its platforms at a cheap rate. The event was marked in 400 cities worldwide.

The revised Uber prices take effect today with the #Uberforless already trending in Kenya.

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