Guess what, you will now enjoy your Uber ride at a much lower price! Taxi hailing company, Uber, has slashed its charges in Nairobi by 35 percent in response to mounting competition from local rivals that have entered the market this year.
The price cut is expected to trigger a vicious price war, as competitors move to attract customers on pricing.
“We are committed to making Uber the most affordable and safest option to move around Nairobi. This means fewer cars on the road, less traffic, and fewer issues trying to find parking,” Uber country manager Nate Anderson said.
The firm has also introduced a payment guarantee for drivers, who had initially feared the price cut would result in lower earnings. Uber drivers will be guaranteed Sh550 during peak hours and Sh450 during the off peak hours.
Little Cab, the latest taxi hailing platform to enter the market, charges passengers Sh55 per kilometer and Sh4 per minute. Mondo Ride which launched in January has also been offering similar charges in a bid to attract customers.
The round of price cuts has caught the attention of the Competition Authority (CAK) which now says it will monitor the sector more closely.
CAK Director General Wang’ombe Kariuki said that the regulator would ensure that any of the taxi hailing services that attains a dominant status with over 40 percent market share, does not use predatory practices to ensure that the others don’t compete effectively