Companies

Uber talks with Kenyan drivers collapse over new contract terms

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Uber drivers at a meeting in Nairobi last month. They accuse the US tech giant of unfair business practices. PHOTO | SALATON NJAU

Talks between online taxi-hailing firm Uber and Kenyan drivers have collapsed after the US tech giant introduced a requirement for them to sign an agreement that they say “bars them from seeking arbitration within the borders.”

The document sent out Wednesday morning provides that the relationship between Uber and the drivers will be governed by the laws of the Netherlands and any dispute arising are to be resolved in reference to it.

“Except as otherwise set for in this agreement, this agreement shall be exclusively governed by and construed in accordance with the laws of The Netherlands,” read an excerpt on arbitration.

The members of the Digital Taxi Kenya Association (DTAK) said they have withdrawn from the ongoing negotiations and will instead hold demonstrations starting next week against Uber’s “unfair business practices.”

Uber has indicated a willingness to increase prices in the Kenyan market in line with the drivers’ demands, on condition that its drivers withdraw a pending court case.

Last year Uber cut prices to Sh35 per kilometre down from Sh60. It also reduced its charges per minute by Sh1 to Sh3 and cut the pricing of short rides by Sh100 to Sh200 while base fare remained unchanged at Sh100.

Uber drivers started the go-slow three weeks ago. The operators both in Nairobi and Mombasa have so far held three demonstrations decrying the price cut and the 25 per commission Uber takes from their total earning before tax.

READ: Uber signals price increase to end row with drivers

The drivers say that Uber is also demanding that they withdraw a petition they lodged in Parliament three weeks ago and the ongoing court case in which the drivers took Uber to court in September last year challenging the 35 per cent price cut.

Uber Spokesperson, Janet Kemboi, however said it is “in open talks with all stakeholders.” Stakeholders involved in the previous talks include the Transport ministry, Competition Authority of Kenya, AA Kenya, National Transport Safety and Authority and the Presidential Delivery Unit.

“While the association was working tirelessly to see this situation improved and were almost getting a deal, talks have collapsed due to the insincerity on the part of Uber.

Drivers are being coerced into signing an online agreement that potentially withdraws their right to be heard within their borders,” said DTAK spokesperson Emmanuel Kasina.

“This contract is retroactive taking effect as from September 2015. We take particular exception with clause 15, which cites that arbitration should only be done in the Netherlands and the ICC.”

Members of the Digital Taxi Association of Kenya (DTAK) in their petition, to the chairman of the Parliamentary committee on transport chaired by Maina Kamanda, asked for a fare determination structure that sets the minimum cost of journeys to various estates in the city.