From Monday the 26th of August 2019, users of Uber X will experience up to a 29 percent increase in ride charges.
In a notice sent to its partners and drivers on Tuesday the 20th of August 2019 the company stated that, “From Monday, 26 August 2019, Uber will be introducing changes to Uber ChapChap and UberX. These changes have been informed by your continued feedback and many months of thorough reviews on the growth and sustainability of your earnings opportunity.”
Uber’s increment of its prices, is coming just weeks after its biggest rival, Bolt (formerly known as Taxify), removed the budget fares option which was called ‘Bolt Go’. The move by Bolt, led to an increase in charges for its users.
Uber’s decision, is a big win for the digital cab drivers who had in the past, had pushed for increases in fare charges, giving high operating costs as their reason for doing so.
Uber in a notice to its partners, stated that it will increase the rates for ChapChap and UberX in the latest price review which will see the earnings of its drivers rise significantly, while the cost of journeys go up by an average of about 26 percent for users of the UberX category and 13 percent for users of Uber ChapChap, which was previously Uber’s version of a budget category.
Users of Uber’s new premium option; UberX, are set to pay 11 Kenyan Shillings more per kilometre to 38 Kenyan Shillings, along with an additional charge of 1 Kenyan Shilling per minute for delay.
Users of the ChapChap option, will be required to pay 22 Kenyan Shillings, which is 4 Kenyan Shillings higher per kilometre.
The Base charges for the Uber ChapChap and Uber X categories however, remain unchanged at 80 Kenyan Shillings and 85 Kenyan Shillings, respectively, with the shortest rides costing 50 Kenyan Shillings more to 150 Kenyan Shillings for Uber ChapChap and 200 Kenyan Shillings for the UberX option.
Where a 4 Kenyan Shillings per minute flat rate fee applied, Uber X users will now pay 5 Kenyan Shillings per minute.
In addition, users of Uber’s ChapChap option, will be required to pay 8 Kenyan Shillings more per kilometre after the trip exceeds 11 kilometres, a move which will significantly increase the cost of rides to areas such like the Jomo Kenyatta International Airport.
The increase in charges will also most likely affect the number of times Digital taxi hailing services, will be used.
The new Uber model will also discontinue the ability of drivers, to switch between categories, effectively taking away the freedom which they previously enjoyed especially during low demand periods when most of them switched to the budget option to get more trips.
Uber stated that, “Uber ChapChap will be everyday compact ride. The driver preferences or ‘switch’ feature will no longer be available and all small hatchbacks with an engine capacity of 1,300cc or less will now only be eligible for Uber ChapChap trips.”
The new prices will now see vehicles on the Uber ChapChap option pay 25 percent more commission on the first 15 trips each week and thereafter pay 3 percent on the remaining trips completed.
The 25 percent commission charge on total earnings however, remains unchanged for vehicles in the UberX category.
Uber has also scrapped off UberSelect which is its premium category.
UberX will take its place and will only enlist cars with an engine capacity of above 1300cc.
