Uber said it had raised the minimum fare to KSh 220 as a result of the drivers’ demonstrations and the high living standards in East Africa and other areas. They have also realized new service categories for drivers to earn more money with what we have today as Uber Comfort and Chap Chap Priority. Uber stated that for them to improve the drivers’ levels of satisfaction; they have started the reward programmes that give the right cash bonuses, and incentives for the foremost performing drivers, coupled with more operational partnerships to cut operating expenses. The reward programmes have been existing even before some of the protests; it is how the platform tries to take care of drivers.
Drivers' Protest
Ride-hailing app Uber has announced a price increase across its services a month after protests by digital taxi drivers over the existing pricing models. The new pricing model, which includes raising the minimum fare from KSh 200 to KSh 220, aims to curb instances where drivers request additional payments—a trend that has caused discomfort among clients recently. About a month ago, drivers from various ride-hailing platforms staged protests demanding a review of prices, which they claimed were exploitative and left them with very thin profit margins.
Pricing strategy and earning of Uber drivers
In a bid to address issues to do with the pricing of the rides as well as the remuneration of drivers, the company outlined several factors that go into the determination of fares including the minimum fare and the price per kilometre, starting price as well as the price per minute. However, the firm had expressed concerns regarding the new emerging voices from the drivers and other stake holder urging Uber to effect fare hike to enhance the dissatisfaction among drivers.
Uber Comfort
To increase driver earnings, Uber has come up with numerous categories of services including, Uber Comfort for which customers are willing to pay. This category demands specific standard of the vehicles used, it can be newer models as a way of offering customer a superior experience.
Reward programs on Uber
Uber Care: This program rewards the 30 most highly rated active drivers and the top active drivers with completed trips with cash bonuses.
Uber Pro: Persons are grouped in the colour code of drivers Blue, Diamond and Platinum. The drivers who gain the Diamond status are eligible for the bonus of KSh 10,000. Additionally, Â to cut down the operating and maintenance cost for the drivers, Uber stated that it had tied up with some strategic suppliers who offered spare parts at a cheaper rate and maintenance
Chap Chap Priority
The other option is Chap Chap Priority, which is only operational during peak hours and costs drivers an extra KSh 110 on each trip.