Uber drivers strike over slashed earnings

Uber drivers at the Hacienda restaurant in Nairobi where they announced that they will go on strike again this Thursday. PHOTO | SALATON NJAU

What you need to know:

  • The drivers have pledged to work together until Uber addressed the issues facing them.
  • They are planning a demonstration this Thursday.
  • The drivers are also planning to petition MPs in a bid to help resolve the impasse, saying that attempts to talk it out with Uber has proven ineffective.

Taxi drivers using the Uber e-hailing platform are on strike decrying the 25 per cent commission taken by the San Francisco-based firm which they term as "high and exploitative."

The drivers, who held a meeting in a Ngara hotel Monday morning, pledged to work together until Uber addressed the issues facing them.

They are also planning a demonstration this Thursday.

The drivers say they will petition legislators in a bid to help resolve the impasse, claiming that previous attempts to sort out the issues with Uber have proven ineffective.

The group joins other city taxi drivers who had petitioned Parliament two weeks ago, asking lawmakers to intervene and set a price for various destinations that have to be observed by all players.

"We are tired of Uber's exploitative ways. Drivers and partners' earnings have dipped and we are all growing poorer every day," said David Dawoud, chairman of the Digital Taxis Association lobby.

"Uber continues to take the same commission even after they lowered the prices. If we factor in the cost of running the taxi, we are no longer making profit. Uber's exploitative ways needs to end now," he added.

COMPETITION

The American firm announced a 35 per cent drop in prices in July last year, a move that forced Safaricom's Little and Estonian taxi firm Taxify to also lower their fares.

Over 800 Kenyan taxi drivers had taken Uber to court through the Digital Taxi Association last September, saying the slash in fares amounted to restrictive trade practices.

Previously, the firm charged Sh60 per kilometre and an additional Sh4 per minute above a base fare of Sh300.

It now charges Sh35 per kilometre, an additional Sh3 per minute and a minimum fare of Sh200.

However, the drivers say that the firm still takes a 25 per cent commission per transaction despite changes, leaving the drivers to absorb all other costs.

The strike by Kenyan drivers is only the latest to hit the firm after similar industrial action paralysed its operations in India and Qatar last week.

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