Corporate News
City transporter launches plan for cheaper fares
Citi Hoppa buses has introduced a pre-paid ticketing system that could lead to a shake-up in the business. Photo/LIZ MUTHONI
Posted Tuesday, March 16 2010 at 00:00
Train services in the larger Nairobi region, with cheaper fares of between Sh15 to Sh35, serve a relatively smaller fraction of commuters, partly due to capacity of the wagons and congestion.
Over the last couple of years, operators of public transport vehicles have had to grapple with escalating fuel costs following trends in the global market, extortions from illegal groups, and theft by the crew.
The daily extortion cash paid by about 15,000 operators in Nairobi is estimated to stand at about Sh3 million.
Mega Rider
Mr Weru said the ticket book will help rein in the double problem of extortion and theft by crew.
The defunct Kenya Bus Service was the first to launch a cashless ticketing system (Mega Rider) in which commuters were issued with cards allowing them unlimited daily travels after paying a flat monthly fee.
It was terminated after the company lost a huge chunk of revenues from the poor design that left gaps, including unlimited transfers leading to thin average revenue per commuter.
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