Ride-hailing company Uber was compelled to change its terms and conditions on customer services in Kenya, Uganda, and Egypt after a probe established that they were “misleading” and “unconscionable,” a regional watchdog has revealed.
The Competition Commission of the Common Market for Eastern and Southern Africa (Comesa) has disclosed that Uber agreed to alter its client terms of service following an investigation that found them to be problematic for consumers.
Previously, the conditions required, among other issues, application of Dutch law in dispute resolution between users and the company, which meant that those aggrieved had to travel to the Netherlands to raise a complaint against Uber.
“Upon the CCC’s engagement with Uber, they were cooperative and agreed to amend their terms in accordance with the recommendations of the CCC, to ensure that consumers in the common market are protected,” the commission discloses in its annual report for the year to 2024, published Tuesday.
CCC polices competition and consumer protection issues in the 21-member Comesa bloc, where Uber operates in four markets, including Kenya, Uganda, Egypt, and South Africa.
The ride-hailing firm revealed that it updated its terms of service at the beginning of the year to comply with the CCC’s directive, changing four key clauses that were particularly considered problematic by the regulator.
A key concern for CCC was that, under the old terms, Uber reserved the right to change the displayed price to customers at any time even during a trip without notifying users.
“This meant that the consumer would be forced to pay a higher price at the end of the transaction than the booking price that the consumer used to enter the transaction,” said the CCC.
Uber had also absolved itself from any liability linked to the quality of service or risks associated with the service provided by its drivers, meaning that customers could not claim any losses arising from the use of Uber services.
“The CCC was concerned that consumers contract with Uber but not with third parties, and therefore the denial of liability by Uber would leave them without recourse if they are dissatisfied with the service or aggrieved by the action of the third party,” noted the regulator.
The new terms of service by Uber now indicate that it will take liability for any such damages, unless exclusions are legally permissible.
It has also updated the terms to clarify that any changes in pricing during the trip will be duly communicated to the customers, and that the rules governing its operations in Kenya, including arbitrations, are the laws of Kenya and not of the Netherlands.
The Uber case is among seven key consumer protection cases investigated by the regional watchdog in 2024 that involved companies operating in Kenya.
