Uber in Kenya has announced on Monday 27th that residents of Mombasa and visitors to the city will be able to ride for less thanks to reduced fare rates on UberX. This follows a similar fare reductions in Nairobi, which proved very popular amongst drivers and riders .
From today, anyone booking an UberX ride in Mombasa can expect to pay the following:
- Base rate: Ksh 50
- Ksh 35 per kilometre
- Ksh 3 per minute
- Ksh 150 minimum fare
- Ksh 150 for a ride cancellation
According to Kagure Wamunyu, Uber’s Operations Lead in Kenya, the number of people taking advantage of the reliability, convenience and affordability of Uber has increased steadily since the price cut in June this year. “By lowering prices you see a much higher demand for rides which means driver-partners can spend more of every hour moving people and less time waiting around for a paying customer.” Wamunyu explains.
Drivers started earning over 70 per cent more in fares for every hour they work. This was led by a 100 per cent increase in the number of trips requested from first time Uber users, showing that the reduced prices helped reach new customers.
Wamunyu is confident that the same win-win scenario will unfold when prices are reduced in Mombasa. “Tens of thousands of people across Mombasa are already using Uber,” she explains, “we’re committed to making Uber one of the most affordable options to move around the city and our experience shows us we can make that happen while making Uber one of the best possible platforms for driver-partners to earn a living.”
By reducing prices, it’s possible for Uber to unlock more business for driver-partners through increased demand for trips from riders. “Years of global experience have shown us that lower prices are very effective in boosting rider demand,” Wamunyu explains, “and the more people request Uber rides, the more drivers will spend time with riders in the backseat and less time sitting waiting for a request.”
Based on the success already seen in Nairobi and Lagos, the company believes this change will work, but while the city adjusts to the new prices, Uber is putting in place temporary payment guarantees for driver-partners so that they don’t lose out.