A Win for Uber Drivers as Commissions Dropped to 18%
Digital taxi-hailing platform Uber has cut the commission it charges on fares after last week’s strike by drivers protesting high operational costs.
The US-based firm has lowered the commission to 18% from 25% effect on Sunday, set to bring to an end regular driver protests in recent years over lower earnings they take home as fuel costs increase.
Uber had opposed regulations published by the National Transport and Safety Authority (NTSA) on June 20 to cap commissions charged by digital taxi operators in the country on drivers at 18% per trip.
The firm argued that the cap would restrict the flexibility of its revenue model and stifle its ability to negotiate suitable commissions.
It said its commission charges cover promotional price cuts to attract riders, operating costs, health insurance on the trip for the driver and the passenger, and support of safety button technology for passengers and drivers in jeopardy.
The adjustment comes after the drivers went on strike Thursday, including those signed up on Bolt and Little, to push the firms to lower the commission charged on fares.
Bolt and Little charge 20% and 15%, respectively.
“We remain committed to engaging with policymakers, raising the bar on safety, helping drivers grow their businesses, and improving the experience of riders,” said Uber head of East Africa, Imran Manji.
The firm has also received a transport network license to operate in Kenya from NTSA, valid for one year according to the new laws.
Operators are also required to set up an office in Kenya and be registered as data controllers or processors by the Data Commissioner.
The laws published in June were to take effect three months after the notice. However, Uber filed a petition to declare the regulation unconstitutional.