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Good News for Uber drivers as commission rates go down

Post by : Ann Njambuya

Taxi Hailing Company Uber has just lowered its commission rate to 18% in line with the Law.

Uber drivers and taxi owners can now enjoy their hard earned money after the digital-taxi hailing company adjusted its commission rate. The taxi company expected that its drivers would pay up-to 25% commissions on all rides acquired through its apps. This commission rates discouraged drivers from making any meaningful amount of money. The drivers have been complaining for quite a long period of time for this harsh and punitive terms.

The NTSA through an bill in parliament amended the transport act for this taxi hailing apps. The act curbs the Commission charged at 18%. This is considered a favourable term for the drivers as they will be able to meet other essential bills. Uber had gone to court to challenge the new law terming it as anti-competitive and denied the company the room for negotiation.

However after a go slow among its drivers the company has reviewed its policy and readjusted with the newly passed law. the american based firm had the highest commission rates while compared to other competitors in the market. It charged a commission rate of 25% while other competitors charge,Bolt 20% and Little 15%.

This law on commissions comes at a time when Kenyans are increasingly using taxis at unprecedented rate. The uptake of taxi hailing app is being attributed to the growing middle class earners in the country. It is expected that this uptake will continue to grow fast and more in the coming years.

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Over time Uber has been facing stiff competition from other apps, like Bolt and little who have resonated well with the public. Bolt and Little are considered cheaper and usually more available.

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