Kenyan drivers defy Uber’s pricing algorithm, set their own fares

Kenyan taxi drivers are pushing back against ride-hailing giants like Uber and Bolt, setting their own fares amid a fierce price war.

For Judith Chepkwony, an eight-year taxi driver in Nairobi, business has never been tougher. Increasingly, drivers are abandoning app-based fares in favor of higher, self-determined rates. Chepkwony explains, “Most of us have cars on loan, and the cost of living has spiked. I ask customers to accept the higher fare or cancel the ride.”

About half of Chepkwony’s passengers agree to pay more than the app’s suggested price. However, Uber has warned that this practice violates its guidelines, setting the stage for a standoff between the company’s algorithms and drivers struggling in one of Uber’s key markets. Kenya has faced economic hardships, including deadly protests, rising taxes, and inflation, making it harder for drivers to sustain their livelihoods.

Although Uber, Bolt, and local competitors like Little and Faras dominate the market, they have also faced strikes and protests over low commissions. Uber East Africa’s head, Imran Manji, said the company is reviewing reports of overcharging, while Bolt discourages fare-hiking.

Drivers have developed collective tactics, including using a walkie-talkie app, Zello, to set consistent higher fares and posting printed fare charts inside their vehicles. One such guide sets a minimum fare of 300 shillings, higher than Uber’s 200 shillings rate.

Nairobi driver Erick Nyamweya says drivers either negotiate a new rate or decline the ride altogether. Some companies, like local start-up Faras, have begun raising fares to accommodate driver demands.

For customers, the constant negotiation is frustrating, with some complaining it defeats the purpose of hailing a ride to save time. “It’s frustrating,” said one passenger, Lameck Owesi.

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