A go-slow protest has been organized by Uber and Bolt drivers in Kenya to put pressure on both ride-hailing companies to reduce the commission that is paid on the drivers’ fees. In comparison, Bolt’s commission rate is 20%, while Uber’s is 25% for each ride.
Taxi drivers have long complained about their inadequate pay and wanted a cut in commission, which has led to these demonstrations, which are not new. The Kenya Digital Taxi Association was founded by taxi drivers who work for ride-hailing platforms to address the recurring challenges they have concerning their income and welfare while the companies employ them.
They have taken part in industrial action on multiple occasions in the past, with some of them alleging that they are fed up with being treated like “Uber slaves.” As was the case during earlier demonstrations, some drivers have refused to accept trip requests made via the apps, particularly in locations such as Eastlands, Kasarani, the Nairobi Central Business District (CBD), Waiyaki Way, and the region around Kilimani. Some drivers may accept rides but will finish the trips without using the app, which is referred to as “driving offline.”
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The strike was a result of the increased commission rates from Uber and Bolt
The demonstrators are demanding that Uber and Bolt cut their commission rates, which have not changed despite increased operating costs on the part of the drivers. As an example, the protesters are highlighting the rising cost of fuel. The chairman of the Organization of Online Taxi Drivers and Digital Taxi Association of Kenya, Zachariah Mwangi, stated that “We are still operating at the same price when fuel prices were at Ksh97 ($0.80).” The cost of a gallon of gasoline in Nairobi is now Ksh179.3, or $1.49, while a gallon of diesel now costs Ksh165.82, or $1.37. Both of these prices are much higher than they were a year ago.
Since 2016, the National Transport and Safety Authority (NTSA) has been developing legislation to satisfy their apparent requirements. On June 20th, the NTSA released regulations that set a national cap for the commission paid by drivers to digital taxi companies of 18% per trip. These restrictions were effective immediately. There are already local ride-hailing services that charge fees in this range, with Safaricom’s Little’s being the highest at 15%. Others, such as Bolt and Uber, were obliged to comply with the rules and cut their commissions by September 22—three months after the warning was issued. They have not done so.
Around fourteen days before the event, Uber filed a legal lawsuit challenging the new regulations. The petition was based on the argument that Kenya is a free market and ride-hailing businesses have the freedom to negotiate business partnerships without interference from outside parties. Uber asserted several things, one of which was that the introduction of 18% as the cap on the maximum commission has the potential to stifle innovation and lessen the viability of its market investment. Uber also said that putting an 18% cap on the maximum commission could make it harder for the company to invest in the market.
Uber responded, while Bolt hasn’t
Uber Kenya has stated that it is aware of some drivers’ go-slow and will continue to engage them on their issues. Bolt, on the other hand, has not yet given a public response to the continuous demonstrations that have been taking place. It has also stated that it is aware of a small group of drivers for online ride-hailing services who want to go offline and stop using the app to complete rides. “We respect drivers as valuable partners who have a voice and a choice, and we want drivers to feel as though they can talk to us about anything at any time,” “We respect drivers as valuable partners who have a voice and a choice.”
Uber recently withdrew its business activities from Tanzania, another East African nation, for the same set of concerns that it claimed in its petition against the new regulations in Kenya.
Before the Land Transport Regulatory Authority (LATRA) ordered all ride-hailing firms in Tanzania to drop their service price from a commission of 25% to 15%, the ride-hailing platform had been operating in Tanzania for a total of six years throughout that period. Bolt Tanzania also didn’t like the changes that LASTRA wanted, but when the organization wouldn’t back down, Bolt Tanzania stopped doing business in the country for everyone but corporate clients.
