Uber to raise fares six months after cutting prices by 35%

Uber to raise fares six months after cutting prices by 35%
  • The state has commended Uber for increasing fare charges
  • The US-based taxi hailing app reduced its fares by 35% in August 2016
  • The government has given Uber until tomorrow to have decided on the fare increment

Kenya’s government has urged US-based taxi-hailing company, Uber to revise its fare charges in an upward trend.

Transport Principal Secretary, Irungu Nyakera says the move to increase Uber fare charges is aimed at luring back drivers who have left the lucrative business since August 2016.

“In August 2016, Uber lowered its fare prices by 35% directly eating into Uber drivers revenues, a move that has seen a majority of drivers exit the business,” said Nyakera.

Thousands of Uber drivers across the country were last year given loans to buy their own cars but later the taxi-hailing app scrapped fares by 35%, a move they claim has negatively affected their ability to repay back the loans.

READ ALSO: Uber drivers to shut down as management declines to address grievances

The cutting of Uber fares negatively impacted drivers as a majority of them had taken loans to buy their own cars. Uber was also taking a 25% commission from the drivers, leaving them with only 40 per cent of their total income to cater for other expenses.

The government through, the Transport Ministry, has given Uber until Wednesday, March 1, 2017, to negotiate with drivers and audit its pricing mechanisms in a way that will allow drivers to receive the best available package from the business.

Last week, Uber drivers went on strike. Operators demonstrated outside Parliament building urging the National Assembly to help solve the differences between them and their employers.

 

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