Drivers on digital taxi apps in Kenya have over the years complained about reduced earnings and the choking nature of the business relationship they have with the platforms.
The cost of doing business has been going up largely driven by rising inflation and a steep increase in fuel prices. First it was a 8% VAT that was slapped on petroleum products then it was increased to 16% in last year’s budget.
For drivers who work with Uber, what has remained consistent is the commission that the company deducts from driver i.e. 25% for each ride. Regardless of the increase in the cost of doing business the company has refused to compromise of this.
This has made drivers work longer hours by enrolling into other apps such as Bolt, Farasi and Little. They have also started asking passengers to pay more before they can provide a service. Usually this means that the driver will ask the customer to pay say Ksh. 500 for a Ksh. 200 ride. The drivers usually ask the customer to allow them to go offline for this off the app transaction to take place so that the can pocket the full amount without giving Uber their cut. This is a dangerous trend that would lead to situations where customers safety might be at risk.
In light of the cost of living crisis that Kenyans are facing and for the safety of its customers, Uber should reduce its commission to say 15% and help drivers earn a decent living. This will reduce instances where they resort to desperate measures to survive.