In Nairobi, Kenya, gig drivers are defying e-hailing platforms by setting their own fare rates, rejecting the platforms’ current pricing. They are refusing to carry passengers under the new rates and are pushing for a fare increase.
The drivers are demanding that the minimum fare be raised from KSh180 ($1.40) to KSh300 ($2.33). This move is part of an escalating dispute over fare rates between ride-hailing companies and their drivers in Kenya.
According to TechCabal, one driver was seen with a sign saying, “We, as Nairobi online drivers, wish to notify the public that due to the high cost of living, we will not be able to operate under the current rates of Uber, Faras, and Bolt.”
Dennis Nyariki, Deputy Chairman of the Organisation of Online Drivers Kenya (OOD), explained that the proposed minimum fare of KSh300 reflects the cost of one litre of fuel plus an additional KSh100 ($0.78) for expenses such as driver compensation, airtime, and vehicle maintenance. For trips longer than 3 kilometers, Nyariki suggested increasing the fare by 1.5 times the app’s standard rate to cover the higher costs.
The drivers have also set new rates for airport and railway station pickups and drop-offs, ranging from $7.75 (KSh1,000) to $38.76 (KSh5,000). These prices are intended to reflect the cost of travel compared to other modes of transport.
The drivers are seeking higher fares to match the rising cost of living, while the ride-hailing platforms want to keep fares low to attract cost-conscious customers.
On July 15, 2024, drivers staged a five-day strike demanding fair pay and the removal of value-added taxes. By early August 2024, many Nairobi customers reported that drivers were charging 1.5 times the app-calculated fares.
In response, the e-hailing platforms have agreed to meet with drivers’ representatives to discuss their concerns. The Ministry of Transport and the National Transport and Safety Authority (NTSA) are expected to mediate the talks.
Bolt has advised drivers to stop the off-app price hikes until the issue is resolved, while Uber has warned that drivers who default will face disciplinary actions.
The drivers’ union has stated they will continue to enforce their new rates if the negotiations do not lead to a satisfactory resolution.
