Another round of strikes kicks off today after drivers working with online taxi hailing apps switched to other local apps after Uber and Taxify declined to adjust prices upwards.
Speaking to the Star, Digital Taxi Forum chief of party Ryan Kanyandong said the firms have 72 hours from today to comply with the price suggestions given by government and AA, and to work with the online drivers’ representative body.
A memorandum of understanding signed between the drivers and the forum in July 11 saw the industry settle to rely on Automobile Association of Kenya rates as the independent guide on the travel rates depending on the vehicle engine capacity.
“Uber and Taxify has never implemented the MOU three months on. We have engaged them through the Ministry of Transport and the National Transport and Safety Authority severally but they remain adamant on their pricing model,” Kanyandong said.
The AA rates state that a 800cc to 1000cc engine capacity vehicle should charge Sh26 per km, 1050cc to 1300cc charge Sh35 per km and 1600cc - 2000cc to charge Sh44 per km.
Kanyandong said Little and Maramoja reviewed their rates to Sh42 and Sh45 per km respectively. However, Uber and Taxify charges Sh16 and Sh20 per km respectively.
The drivers have run consistent strikes, criticising the firms over high commissions and very low pricing of trips.
“Drivers are very dissatisfied with the poor returns as the charges do not correspond to what they incur. They now want the charges to be above the AA rate,” Kanyandong said.
He said there are about 25,000 online drivers supporting one million regular customers in Nairobi. Kanyandong said the drivers’ forum has close to 12,000 members, of whom 80 per cent operate under Uber and Taxify. Kanyandong also said the regulation will move the firms from price wars to competing on service delivery.
CEO Little Kamal Budhabhatti said the persistent strikes have so far drawn more drivers to sign up with the app, but this will not push them to raise their commission.
“We raised our charges from Sh40 to Sh42 per kilometer when the VAT attracted an increase in fuel prices, while price to drivers is Sh35. This is the best price and we confident it is considerate to both parties as we aim to give both riders and drivers a premium experience,” he said.