Regulators should not be a stumbling block to innovation

Nairobi and Mombasa, like many other African cities, are well positioned to fully achieve smart city status. With transportation, for example, the power of technology and collaboration is vital in building the transport systems of the future. The Transport ministry and the National Transport and Safety Authority has recently reinforced this sentiment in their plans to develop a legal framework for the regulation of certain aspects of ride-hailing companies’ operations.

These draft regulations have the potential to bring several benefits to the industry. However, for this to happen, the policy framework should support innovation and business growth. While Uber is supportive of positive regulation, we are particularly concerned about a clause proposing a 15 per cent commissions cap. If it comes into law, it would make it the most restrictive cap in the world, while adding unnecessary barriers of entry for Kenyans for whom ridesharing presents a platform for accessing flexible earnings.

The government in September 2016 capped interest rates chargeable by banks at no more than four per cent of the base rate set by the Central Bank of Kenya. It took years of lobbying and objections by banks and its customers to revoke the cap. While the intentions were good, in practice, the cap lowered credit to the private sector, hindered growth, locked out SMEs and exhausted the effectiveness of the monetary policy.

As a country, we are still trying to better understand the tech industry — even from a tax standpoint — and it is important that we explore ways of growing the industry, with progressive regulations.

Over the past five years, we have been committed to using our platform to help unlock more than 12,000 economic opportunities for drivers, as well as introducing digital earning opportunities and skills training programmes.

Our commitment to safety has been unwavering and we continue to enhance features to adapt to the current times as well as to respond to regulations set out by the government.

Individuals, businesses and public entities have felt the impact of Covid-19. We have been no exception. However, we’ve leveraged the opportunity to transform our business, in order to provide additional earnings opportunities for drivers.

Furthermore, we have taken the lead in providing drivers and delivery people with personal protective equipment, educational resources on protection from the coronavirus and financial support for those that contract the virus or are asked to self-quarantine by a public health facility.

Regulating the commissions that fund our marketplace would force us to radically alter the way we do business and the benefits we offer to drivers and riders.

Setting a precedent of such prohibitive regulations could lead to a broader impact on the industry, disincentivising investment in the ICT sector as a whole, and leading to tens of thousands of economic opportunities lost. As our country navigates the path to economic recovery, it is imperative that we create opportunities for investment for the rebuilding of critical sectors and industries.

Fair trade and healthy competition are the cornerstones of any effective and growing economy, therefore it is vital we provide an equal playing field.

Uber is committed to supporting the growth of Kenyan’s transport system and contributing positively to the industry.