Uber services in Kenya experienced disruption this week after hundreds of driver partners operating under the taxi-hailing app camped at the company's head office in Nairobi to protest the company's move to reduce fare charges by 35%.
The strike comes a week after Uber decided to cut their fare prices in response to growing competition - especially from the newly launched Little Cabs, co-owned by Safaricom and technology company, Craft Silicon.
Uber drivers complained that the new rates do not make economic sense because it means incurring a loss per ride instead of increasing demand for the service.
Speaking to ITWebAfrica on condition of anonymity, for fear of his driver profile being deactivated, one Uber driver said that the service had become too cheap, yet the company still insists on taking 25% on all rides charged on the platform.
"Before the price reduction, we were making money that made economic sense, but with the new rates, some rides are even becoming cheaper than public transport, especially in cases where people share a ride," the driver explained.
"Other taxi-hailing apps are offering more competitive prices, and if Uber does not act on our feedback, then we may be forced to subscribe to competitors," added the driver, "Let them revert to the initial rates, and what will make us stand out from the other services will be our reliability and quality of service, not just cheap fares."
Most drivers-partner complained that they were not consulted in the price reduction model, something that Uber disputed.
"We have held multiple focus groups and one-on- one feedback sessions over the past six weeks," said Nate Anderson, Uber General Manager in Kenya, during a press briefing. "Three days before the price cut we saw over 1,000 drivers and partners to go through the plan and explain how the minimum guarantees ensure they don't lose out."
In reaction to the strike, the company said that it encourages and respects the right of driver-partners to voice issues or concerns that affect their business, but would not be intimidated through acts of violence or harassment. The company also added that it will not hesitate to deactivate any driver-partners from the platform, in case they are found contravening the company's policy.
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