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Uber remains on course in Africa

By , Portals editor
Africa , 09 Jul 2015

Uber remains on course in Africa

It is business as usual for global taxi-hailing app Uber Technologies' Kenya operation. That is the message from senior executives at the embattled company who suggest that despite a few country-specific setbacks, the future looks good for the offering.

The company made global headlines when it announced its intention to suspend its UberPop service in France following a feud with local taxi drivers. Computerworld has reported that the company will remove the service, which allows passengers to get rides from unlicensed drivers, from its mobile app.

According to the report local taxi drivers recently blocked highways and airport entrances in protest against the service, action which is believed to have escalated to attacks on Uber drivers and their vehicles.

There has also been an ongoing debate between Californian labour authorities and the service regarding the official classification of drivers. The state wants Uber drivers to be classified as employees and not as independent contractors.

In South Africa the service has also come under the spotlight for various reasons. In Cape Town last week Uber launched an online petition to pressure the Western Cape government to speed up the process of issuing vehicle operating permits to its drivers. ITWeb Africa reported that the petition had 15,000 signatures as of Friday 03 July at the time of publishing.

Uber was quoted as saying that while operating licences have been issued to "large metered taxi fleet operators", no Uber partner had received their permit. "Regulation in the Western Cape, aggressive intimidation, and impoundments are threatening job creation and preventing Uber driver partners from offering safe and reliable rides," the company stated.

In a blog post the company stated that "despite over a year of progressive discussions with regulators, there is still no clear route to obtaining vehicle operating permits for Uber driver partners.

Several reports have been published by regional media detailing how Uber passengers and drivers have been allegedly harassed by rival metered taxi services in Johannesburg.

In a statement the company said that it is working with all relevant stakeholders in the city and in Gauteng to resolve this as a matter of urgency, adding that it has been engaging with metered taxi associations since the beginning of the year to find a way to partner with them. "We do not feel that it should be about Uber or Taxi but rather Uber AND Taxi," the company said.

"We hope tourists, business travellers and residents alike can enjoy a safe, affordable, hassle-free time travelling however they choose to get around Johannesburg," it said.

Uber remains confident of its value proposition and has downplayed any ramifications for the company's existing operation and interests in the rest of Africa.

Nairobi calls

In January Nairobi became the sixth city in Africa to launch the app-based transportation network and taxi service.

The region's tech-savvy community and level of smartphone penetration were given as reasons for the launch.

At the time Alastair Curtis, international launcher in Africa, confirmed that the base fare would be KES100, KES4 per minute and KES60 per kilometre, according to the pricing model used by Uber Nairobi.

The minimum fare is set at KES500, while the cancellation fee is expected to be KES300, he added.

In April the company's representatives described the services as "still the cheapest option" since its launch.

Kaitlin Freedman, driver operation and logistics manager at Uber, said the company is 20 to 30% cheaper than most taxis.

"Our average ETA (expected time of arrival) across Nairobi is currently at 4.2 minutes in Nairobi, making sure that you get your ride faster than anyone else," said Freedman.

The company believes that there is political momentum in many countries to embrace technology services like Uber, at a time of high unemployment and a floundering economic recovery.

"History shows us that every truly revolutionary innovation was faced with stiff opposition from incumbents and rearguard actions by regulators...We will continue to be a constructive partner in finding solutions that will create more choice, more economic opportunity and more benefits for the people of Africa," it added.

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