In a bid to enhance customer experience and address declining driver earnings, Uber has implemented stricter regulations for its drivers in Kenya. The move comes as an influx of drivers on the platform has reduced individual incomes, sparking discontent and protests among operators.
Starting January, Uber will tighten vehicle age limits for its economy services, including ChapChap and UberXL, reducing the maximum allowable car age from 16 years to 10 years. For Uber Comfort, the eligibility threshold will drop from 16 years to just 8 years.
This change is expected to lock out many drivers with older vehicles, effectively curbing the number of new drivers entering the platform.
In addition, the ride-hailing giant has introduced mandatory training sessions for new drivers, aimed at improving service delivery and ensuring adherence to Uber’s community guidelines.
The adjustments come amid ongoing complaints from drivers about low earnings, largely attributed to the platform’s fare structures and commission rates. However, Imran Manji, Uber’s Head of East Africa, disputes this claim, instead pointing to the oversupply of drivers as the primary issue.
“The problem isn’t that Uber is taking too much from drivers,” Mr. Manji said. “It’s that the number of drivers seeking to earn on the platform far outpaces the growth in demand from riders.”
This oversupply is further exacerbated by increasing competition in Kenya’s ride-hailing market, which has grown from just Uber in 2015 to 14 operators today, without a corresponding increase in rider demand.
A Nairobi-based digital taxi operator, who requested anonymity, noted a significant decline in ride requests over the past two years. “In 2022, I was earning around Sh3,000 a day. Now, I make about Sh1,000. I used to decline rides, but today, I rarely get any requests. People who used to take Uber are likely opting for matatus or boda bodas instead.”
Despite Uber’s early entry into Kenya’s ride-hailing sector and its continued popularity, the company faces mounting pressure from both competitors and a stagnating customer base. As the industry evolves, drivers are calling for pricing reviews to ensure sustainable earnings amid rising operational costs and economic challenges.