TaxifyGO is priced at Sh22 per kilometre, Sh3 per minute in addition to a base fare of Sh75.
This fleet, the firm said, will consist of vehicles with 1,300cc engines that consume less fuel.
The move comes after Uber slashed fares for its 800cc Suzuki Alto.
Estonian-based taxi firm Taxify on Wednesday unveiled new rates that saw the cost of the minimum fare for regular cabs slashed to Sh100.
The new regular service dubbed TaxifyGO is priced at Sh22 per kilometre, Sh3 per minute in addition to a base fare of Sh75.
This fleet, the firm said, will consist of vehicles with 1,300cc engines that consume less fuel.
“These fares have been carefully set to strike a delicate balance between meeting the affordability needs of the customers and making business sense for Taxify drivers,” Taxify head of Kenya operations Chisom Anoke said in a statement.
This comes after its biggest rival in the country Uber introduced Uber Chap Chap Service, which exclusively uses the fuel-efficient 800 cc Suzuki Alto with a consumption rate of 25 kilometres per litre.
A ride on the Suzuki Alto starts at Sh16 per Kilometre, Sh4 per minute with a minimum fare of Sh100.
Taxify also announced a new service, TaxifyXL, for taxis that will accommodate up to six passengers.
The base fare is set at Sh100 with each kilometre and minute priced at Sh40 and Sh4, respectively. The minimum fare for the TaxifyXL is set at Sh250.
The firm said the new Taxify XL service will cater for a more diverse customer base, which includes groups who wish to use the larger capacity vehicles.
“We have recognised that as our customer base expands, and they grow accustomed to using the ride-sharing service, people are now moving to a point where they want vehicles that can carry more than four passengers at a go,” said Mr Anoke.
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