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800 Nairobi Uber drivers fault price cuts

taxis

Taxicabs parked along Kimathi Street, Nairobi, on February 8, 2016. PHOTO | SALATON NJAU

More than 800 drivers have joined a court case filed against mobile phone taxi hailing company Uber challenging the American firm’s move to slash fares by 35 per cent.

The drivers, through the Digital Taxi Association of Kenya lobby, claim that the American firm is engaging in restrictive trade practices by capping fares at Sh35 per kilometre with a minimum fee of Sh200.

Uber has, however, asked the High Court to dismiss the suit, arguing that the Digital Taxi Association of Kenya is not a legal person hence has no right to sue the taxi hailing firm on behalf of drivers.

The drivers have faulted Uber for refusing to increase their 75 per cent commission despite slashing fares, claiming that the move is an attempt to create a monopoly in the taxi industry.

The lobby says its members have spent over Sh1.04 billion to get each of their 4,000 vehicles in line with Uber’s requirements on licensing, vehicle specifications and staff.

“Despite the arbitral reduction of fares to the detriment of the plaintiffs, Uber’s commission of 25 per cent per transaction remained in force leaving the drivers to absorb all appertaining costs. Uber’s actions were actuated by malice and in furtherance of a conspiracy to exploit the plaintiffs and dominate the taxi business,” says the lobby.

But Uber has challenged the lobby’s authority to file the suit, and adds that another 31 drivers who have joined the suit do not have a common interest hence cannot file a consolidated case against the taxi hailing firm.

READ: Uber goes for the kill with 35pc fare cut

The American firm adds that the drivers have failed to ask Justice David Tuiyott to take any specific action against Uber in the suit papers.
“The pleadings and evidence placed before this honourable court do not disclose any cause of action, reasonable or identifiable, against the defendant company. The suit is incompetent and was amended unprocedurally, rendering it liable to striking out,” Uber says in its court filings.
The drivers, however, insist that their association is legally registered and that the price cuts have dented the average income of Sh500,000 each monthly.
“Some of the drivers have been unable to service their loans with financial institutions owing to the harsh conditions leading to their vehicles being repossessed and sold by the said financiers. Unless the said rates are restored, the drivers will suffer irreparable loss and damage,” the drivers add.
Uber’s price slash followed undercutting by other taxi hailing applications like Dubai-based Mondo Ride, the Safaricom-backed Little Cab and Teke Taxi.
Uber initially charged Sh60 per kilometre and an additional Sh4 per minute above a base fare of Sh300.