In the bustling capital of Kenya, Nairobi, a fierce price war between ride-hailing giants Uber and Bolt, alongside local startups Little and Faras, has left taxi drivers struggling. Fares have plummeted to unsustainable levels, forcing drivers to demand higher rates from passengers, creating a tense negotiation process. Judith Chepkwony, a veteran taxi driver with eight years of experience, described the situation as dire. She said, “Most of us have these cars on loan and the cost of living has risen. I try to convince customers to agree to the higher rates. If they can’t pay, we cancel and let them find another driver.” Chepkwony explained that about half of her passengers eventually agree to pay more than the price displayed on their ride-hailing app, an arrangement that keeps her business running. However, Uber has declared that such practices violate its guidelines and has urged drivers to adhere to the company’s established rates. This conflict highlights the disparity between the slick automation of the international ride-hailing industry and the harsh realities faced by drivers in a developing market. Kenya, with its growing economy and relatively low car ownership rates, is a key market for Uber in Africa. However, the company has faced numerous challenges, including drivers going on strike twice this year and once last year due to low commissions. Imran Manji, Uber’s Head of East Africa, stated that the company is reviewing reports of customers being overcharged and encouraged riders to report any such instances. Bolt, a competitor to Uber, also expressed concerns about drivers demanding higher fares and stated their commitment to finding a solution that addresses the needs of both drivers and customers. In the midst of this ongoing battle, drivers have found creative ways to circumvent the ride-hailing companies’ united front. Many use the walkie-talkie app Zello to collectively agree on higher prices, ensuring that customers are quoted the same rate regardless of which company they choose. They have also created a fare guide, which is laminated and displayed inside their cars, outlining their minimum fares. One guide seen by Reuters set the minimum fare at 300 shillings ($2.33), exceeding the 200 shillings set by Uber and Bolt, who often offer additional discounts. Erick Nyamweya, a Nairobi-based driver, explained their approach: “We first ask the client where they are going and how much is shown on the app. Then we propose a rate based on our chart which can also be done by quickly multiplying by 1.5. If they agree, we take the ride. If not, we either negotiate further or decline because the current rates are not sustainable with higher fuel and spare parts prices.” Some progress has been made. Local startup Faras Cabs recently increased its fares by up to a fifth to meet driver demands, according to Osman Abdi, Chief Commercial Officer. However, the ultimate burden falls on the customer, both financially and in terms of time spent negotiating. One customer, Lameck Owesi, described the experience as frustrating, stating, “The negotiations end up taking so much time that it ends up beating the logic of trying to save time by taking a cab.” The ongoing struggle between ride-hailing companies and drivers in Kenya highlights the complex challenges of balancing driver needs with customer expectations in a rapidly evolving market.
