Uber representatives told MPs on Tuesday that the firm has already made price increase proposals.
The MPs, however, warned Uber that they would regulate the minimum fares chargeable by e-cabs “to protect industry players from price undercutting.”
The MPs directed Uber managers to agree with other players offering cab-hailing business on the agreeable charges.
Online taxi hailing firm Uber has indicated a willingness to increase prices in the Kenyan market on condition that its drivers withdraw a pending court case.
Appearing before the National Assembly’s Transport and Public Works committee on Tuesday, Uber representatives told MPs that the firm has already made price increase proposals.
“We had a meeting with the Transport Cabinet Secretary James Macharia this morning (Tuesday) and other players and we have agreed on agreeable pricing. We would like to make the announcement but we have a court case,” said Ms Cezanne Maherali, Uber’s manager for public policy in East and West Africa.
The MPs, however, warned Uber that they would regulate the minimum fares chargeable by e-cabs “to protect industry players from price undercutting.”
The MPs directed Uber managers to agree with other players offering cab-hailing business on the agreeable charges failing which the committee will recommend amendment to the Traffic Act to regulate the minimum fare charged as is the case with the petroleum and electricity sectors.
The Netherlands registered Uber recently dropped its charges to Sh35 from Sh60 per kilometre mid last year, undercutting other players like Dubai based Mondo Ride, Safaricom-backed Little Ride and Estonia’s Taxify.
“We ask you to go and agree with other players and don’t force us to regulate the fares. Go sit and come to a compromise position which can help everybody. With Sh60 per kilometre, there was no problem. But there is hue and cry from taxi drivers whom you have contracted,” said Maina Kamanda, who chairs the transport committee.
The committee is scrutinising a petition filed by traditional taxi drivers as well as complaints raised by Uber drivers that they were being pushed out of business with the price cuts.
Traditional taxi drivers petitioned Parliament seeking changes in law to protect their turf from cab-hailing firms. Conventional taxi service providers have accused the firms of posing unfair competition by charging rock bottom prices.
“We are aware that recently some driver-partners have expressed concerns around their earnings. When we cut prices last year, it was to encourage more people to take trips. By helping driver partners stay busy, we hoped to improve the amount of money they make. And we saw an increase in the number of trips taken by new and existing riders and in many cases, higher than average earnings for drivers,” Kagure Wamuyu, Uber’s Country Lead in Kenya told MPs on Tuesday.
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