The drivers of these taxi apps, during a press conference in Nairobi, issued a 30-day notice promising to cease operations if the respective apps fail to increase fare prices.
The demand for increased fare prices is due to the increase of fuel prices in the country by the Energy Regulatory Commission of Kenya (ERC).
The drivers claim that their daily income has reduced significantly affecting their daily needs, and making it difficult for those paying for the loans of the cars they use.
The passenger’s fare is normally split between the taxi driver and the respective app company.
It is however not the first time drivers are demanding increased fare prices in the company. Previously, different companies have had their own way of pleasing both the drivers and the passengers. Like Uber has run Uber Chapchap promotion, that would decrease the commission from 25% to 3% after 15 rides, before the pandemic.
Business-wise, you have to please both the customer and the driver, and at the same time maintaining the platform and realize a profit from it. Increased fuel prices make it difficult to balance the three factors hence the need to create another equilibrium.