The battle for Kenyan drivers in the ride hailing taxis’ space is heating up with the companies now racing to increase the take home by drivers on the back of increased complaints.
The trend started with Bolt, last week Uber announced a 10 per cent increase and now ride-hailing platform, Little, will increase rates for all its fleet categories by 15 per cent.
Over the past month, the ride-hailing industry in Kenya has been marked by unrest, as drivers demand better rates to sustain their livelihoods amidst rising costs.
With increased competition from both local and international players, the industry has faced disruptions.
According to Little’s CEO, Kamal Budhabhatti, the move is aimed at improving the reliability of the platform for customers, as well as incentivising drivers to provide better competitive services.
“This increase may mean slightly higher costs for our clients, but it also guarantees more reliable and convenient services. A happy driver will always deliver excellent service,” said the Little CEO, Kamal Budhabhatti.
The CEO says that rate adjustment not only ensures that drivers will now earn a fairer wage but also helps ensure the reliability, convenience, and safety of the services offered by Little to its Clients.
However, the decision by Little and Uber to hike prices, while deemed necessary, may result in lower demand from customers opting for other means of transport.
Ride-hailing platforms will need to address the resulting safety concerns from the strike, while balancing between maintaining their individual and the overall ecosystem.
For driver, the move is a welcome win after months of complaints about low fares amidst a struggling economy that has seen a significant number lose their cars to creditors when they are unable to meet their asset financing obligations.
“We have heard and analysed the requests from our drivers. Despite the tough economic times that all Kenyans are facing, we believe it is important to support the individuals who keep our platform running,” he added.
“This increase may mean slightly higher costs for our clients, but it also guarantees more reliable and convenient services. A happy driver will always deliver excellent service.”
