Uber is striving to be the most affordable way to move around in Nairobi with their latest move of slashing uberX prices by up to 35%. The base fare will remain unchanged, although short rides will now cost considerably less.
This comes in the face of intensified price wars with local cab & Matatu drivers as well as Safaricom’s entry into the transportation industry with it’s Little Cabs venture in Nairobi.
The ETN reports that Little Cabs has entered the market recently with a big bang and taken significant enough market share out of the previously Uber-dominated market, prompting a major fare review and what will no doubt become a major price war. When Gulf-based Mondo Ride entered the market a few months ago, they also did so with lower charges. Last week another competitor entered the market, named Teke Taxi, increasing the pressure on fares yet more.
It remains to be seen how other app-based cab hailing services will react to the new Uber fares and in turn also either match or further undercut their own.
We’re lowering uberX prices by 35% in Nairobi! #UberFORLESS https://t.co/2eq3sS1eoP pic.twitter.com/0EjgJ0r3KO
— Uber Kenya (@uber_kenya) July 28, 2016
Uber believes that with its cheaper fares, they can now be a true alternative to people driving their own cars into the city centre, with all the hassle and cost that parking brings.
THE NEW uberX RATES in Kenya Shillings
| Old uberX | New uberX | |
|---|---|---|
| Base | KES 100 | KES 100 |
| Per Minute | KES 4 | KES 3 |
| Per KM | KES 60 | KES 35 |
| Cancellation | KES 200 | KES 200 |
| Minimum | KES 300 | KES 200 |
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