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Uber to Increase Rates Following Fuel Price Hike

Taxi-hailing app, Uber is set to increase its rates following the fuel hike announced earlier this week. The company will over the next two weeks increase its prices in line with the Sh9 increase on fuel on June 14.

According to Head of Uber East Africa Imran Manji, the company is reviewing its prices with an aim of meeting drivers’ costs without hurting the brand.

“The review will find a “sweet spot between not destroying demand by pricing and ensuring that drivers cover their costs,” he said.

The move follows uproar from Uber drivers who demanded better compensation due to the rising cost in fuel prices. Manji said finding a balance is important, as a steep price hike would also lead to reduced trips for the drivers.
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“It’s a difficult situation in the market right now because as the cost of living of everybody goes up, the affordability of things like ride-hailing comes into question. If we raise our prices too high we are limiting how many people are going to be using our services and also limiting the driver of earnings,” said Manji as quoted by Business Daily.

Taxi drivers operating on popular apps Uber, Bolt and Little Cab have often complained of little income. The industry is dogged by frequent strikes with riders demanding increased prices against the company’s cut.

EPRA announced an increase in the price of Super Petrol in Nairobi by Sh9 to Sh159.12 per litre.

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