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Mondo Ride Nairobi fares cut signals fresh price war for online taxi hailing companies

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Mondo Ride head of Africa Joar Lindh. PHOTO | SALATON NJAU

Online taxi hailing firm Mondo Ride has slashed its fares again, pointing to a fresh price war among players in the market.

The Dubai-based taxi firm said that its customers will pay Sh35 per kilometre and Sh3 per minute in addition to a base fare of Sh100 effective Tuesday, for the standard taxi service.

Mondo Ride previously charged Sh45 per kilometre and Sh3 for every minute spent in a journey, plus a base fare of Sh100 for the service.

“We are simply following the price development on the market and have lowered our rates to the same levels as our competitors.

“We believe this will result in a larger amount of rides for our drivers and thus further steer the growth that Mondo Ride has been on,” said Joar Lindh, Mondo Ride head of Africa.

Mr Lindh also revealed new prices for Mondo Large and Budget taxis. 

Mondo Large will now cost Sh45 per kilometre, Sh3 per minute and a base of Sh100.

Previously the service cost Sh55 per kilometre, Sh3 per minute in addition to a base fare of Sh100.

Mondo Large targets corporate clients that wish to car-pool their staff. The service features taxis that can accommodate six to eight riders, enabling large groups of people to travel together.

READ: Mondo Ride cuts Nairobi fares in price war with Uber

The company budget service will now cost Sh30 per kilometre, Sh3 per minute and a base fare of Sh100.

Budget service previously cost Sh35 per kilometre, Sh3 per minute and Sh100 as base fare.

Cost of shortest ride for all services remains unchanged at Sh200. The firm has also reduced commission to drivers to eight per cent from 10 per cent.

Taxi hailing firms in Nairobi have over the past one year engaged in a price war than has every player in the market reduce its prices as competition for customers’ heats-up.

Uber was the first to pull the trigger with a 35 per cent drop in prices starting July 28 last year.

Safaricom-backed Little Ride also cut its prices in November last year. Little Ride now charges Sh30 per kilometre down from Sh55, and left time charges at Sh4 per minute — with no flat base charge or price surges in Nairobi and Mombasa.

Taxify, an Estonian taxi start-up, in mid-August also lowered prices by nearly a fifth to charge Sh40 per kilometre, down from Sh50, Sh4 per minute from Sh5, while the base fare remained unchanged at Sh100.

The rapid-fire price cuts by Mondo Ride, Uber, Taxify, and Little Ride come as a win for consumers who will now enjoy lower fares.