In a significant move against the ride-hailing giants, Uber and Bolt, taxi drivers in Nairobi, Kenya, have begun setting their own fares, defying the algorithms that traditionally dictate prices. This development comes amid a fiercely competitive market and rising living costs, driving many to take matters into their own hands to sustain their livelihoods.
Judith Chepkwony, a taxi driver with eight years of experience, describes the current business climate as the worst she has seen. A sharp price war among major players, including Uber, Estonia’s Bolt, and local start-ups like Little and Faras, has driven fares to unsustainable levels. For many drivers, including those with car loans and facing higher living costs, these low rates no longer suffice.
“We have loans to repay, and with the rising cost of living, we have no choice but to ask for higher fares. If a customer can’t pay, we let them find another driver,” Chepkwony shared.
While approximately half of the passengers agree to these higher rates, Uber has pushed back, stating that such arrangements violate their guidelines. However, drivers are finding creative ways to work around this, such as using the walkie-talkie app Zello to coordinate fare increases collectively. Some drivers have even produced laminated fare guides displayed in their vehicles, setting minimum fares significantly higher than those dictated by the ride-hailing apps.
Local start-up Faras Cabs recently responded to drivers’ demands by raising its fares by up to 20%, but for most, this is just a small step toward addressing the broader issue.
As Kenya grapples with the economic fallout of recent tax hikes, high commodity prices, and soaring interest rates, the tension between ride-hailing companies and drivers is likely to continue. For now, both drivers and customers find themselves in a frustrating cycle of negotiation, with time and money at stake.
