September 11th, 2024

Uber drivers in Kenya are ignoring the app and charging their own rates

Uber drivers in Kenya are defying official fare rates by using a fare card suggesting prices 50% higher, driven by rising fuel costs and low earnings, leading to passenger frustrations.

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Uber drivers in Kenya are ignoring the app and charging their own rates

Uber drivers in Kenya are increasingly defying the company's set fare rates by implementing their own pricing through a fare card circulated by the Organization of Online Drivers (OOD), a union representing about 15,000 drivers. This fare card suggests rates that are at least 50% higher than Uber's official charges, allowing drivers to negotiate better earnings amid rising fuel prices. The initiative has gained traction despite Uber's policy against charging above app rates, with the company currently reviewing complaints related to this practice. Drivers like Charles, who have struggled with high gas prices and low earnings, have adopted the fare card to demand higher payments, particularly from customers using cash or mobile payment methods. The situation has led to frustrations among passengers, who often find themselves negotiating fares before rides. The OOD's actions are seen as a collective response to Uber's inadequate fare adjustments, especially after the Kenyan government removed fuel subsidies, causing gas prices to soar. While Uber has made some adjustments to its commission rates in response to protests, many drivers feel that the fare increases have not kept pace with their rising operational costs. As a result, some drivers are shifting to alternative ride-hailing apps that offer better terms.

- Uber drivers in Kenya are charging fares 50% higher than the app's rates.

- The Organization of Online Drivers has circulated a fare card to support this practice.

- Rising fuel prices and low earnings have prompted drivers to take collective action.

- Passengers are frustrated by the need to negotiate fares before rides.

- Some drivers are switching to alternative apps with better commission structures.

Link Icon 11 comments
By @outcoldman - 7 months
My experience with Uber/Taxi in Sweden. Got out of ferry, need to go to the airport, 40 minutes drive. There are a lot of taxies at the ferry terminal, sure, I talked to them, asked how much is to Airport, they all replied "by meter". Well I know you can set any rate to your meter. And all of them drove that route a lot of times, nobody gave me an estimate. So I have ordered Uber. Uber driver asked me how much Uber is going to charge me, and offered that he would cancel the ride, and I will pay him directly. I declined, just because I want to support Uber. I understand, that maybe some rides are not as beneficial as others, but give me a reasonable estimate, and I will agree to it.

But this behavior of taxi drivers that would rather do one drive in 2 hours instead of 2 rides, and they make approximately the same amount of money - that is what created Uber/Lyft. Passengers frustration with the taxis.

And I had bad experiences with Uber/Lyft and with Taxi. Cars can be filthy. But what I need: easy way to order a car, know exactly how much I am going to pay (estimate is fine with adjustment to changing traffic/time), what I don't want - not knowing if they will decide to charge me between 50-300 EUR/USD. That is not an estimate.

By @paxys - 7 months
Drivers have creative ways of getting around rules in most markets. In India when you get a ride assigned the driver will first call you and check where you are going, and cancel the ride (or ask for extra money) if the amount or destination is not to their liking.

This happens here in the US as well. Especially for food delivery apps, the driver shown on the app will rarely be the person who actually does the delivery. This is because people create accounts and sell them to others who don't have legal status, and take a cut of their earnings.

By @Analemma_ - 7 months
It's not Kenya, it's everywhere. Ubers in the US are increasingly doing a lot of the same things (canceling your booking if they don't like where you're going, e.g.) and becoming indistinguishable from the pre-Uber status quo.

From an economic perspective it's kind of fascinating that lying and cheating drivers appear to be the natural equilibrium state of the taxicab market; Uber temporarily disrupted this dynamic but could not actually eliminate it, and it is now reasserting itself after a period of turbulence.

By @twelve40 - 7 months
It always amazed me how Uber was able to quickly force itself into the most criminal markets (which in poorer countries is typically anything that has to do with taxis). But in hindsight, after a quick surprise win worldwide, they were eventually forced out. In Russia, weirdly enough, not by criminals but by a quasi-state company, starting back in 2018. In parts of Mexico, by what seems like outright criminals and collusion. In Turkey, sometimes works, but often seems ignored. Wonder how they were able to launch in complicated markets to begin with.
By @danielfoster - 7 months
I remember using Uber in Kenya. Half the time, I had to reject the ride because the license plate on the car did not match the app.
By @beaglesss - 7 months
This makes no sense,why wouldn't Uber just increase rates and take a cut rather than let the drivers eat their lunch? What incentive do they have to charge less than the market will bear?
By @JaggedJax - 7 months
When I was in Kenya last year (around Nairobi & the coast), I was shocked with how cheap the Ubers were. I was wondering how they could even pay for gas with the rates being so low. This answers that question and it's not at all surprising to find Uber yet again corrupting the market and the drivers paying the price.

At that time everything was going through the app like normal, but I did find that most drivers would call you to confirm the pickup or destination spots to be sure. I don't recall many if any cancellations.

By @pcurve - 7 months
Kilimani to jkir is about 20 km and a bit over half hour ride. Their published rate is about 16 bucks.

A longer 52km ride is about 38 bucks.

It’s cheap by western. Not sure how it fares against other comparable countries.

By @wing-_-nuts - 7 months
I don't understand. What's to stop an uber customer from just flat out refusing and reporting the driver (and eventually getting them kicked off the platform)?

If I am quoted a rate, I expect to pay that rate.

By @aranelsurion - 7 months
So they basically reinvented taxi again, with the added captive audience factor coming from abusing the platform.