Due to an increase in Fuel Prices, Uber will raise Fares in two weeks.

In reaction to increased gasoline costs, Uber Kenya, a mobility service provider, would raise its fares in the next two weeks.

This comes after an outcry from uber drivers who demanded compensation after price hikes of Ksh.9 across the board on Wednesday, June 15.

East Africa is served by Uber. Imran Manji stated that they are working on a price review to find a “sweet spot” between not killing demand through pricing and ensuring that drivers recoup their expenses.

Manji also stated that they will proceed with caution during the assessment process, stating that raising costs too high risks limiting the number of trips taken by riders.

“It’s a difficult situation in the market right now because as the cost of living of everybody goes up, the affordability of things like ride-hailing comes into question. If we raise our prices too high we are limiting how many people are going to be using our services and also limiting the driver of earnings,” said Manji as quoted by Business Daily.

Drivers for Uber, Bolt, and Little Cab have already complained about rising gasoline prices eroding their earnings, pushing them to ‘bolt out’ of the industry and seek alternative forms of revenue.

Since May, the price of super fuel has risen 5.96 percent to Ksh.159.12 a litre in Nairobi, with diesel and kerosene costing Ksh.140 and Ksh.127.94, respectively.

The fuel subsidy, which covers Ksh.25.56 for super petrol, Ksh.48.19 for diesel, and Ksh.42.43 for kerosene, will be phased out by the National Treasury, causing prices to rise even further.

Without the cover, petrol costs Ksh.184.68 per litre, while diesel and kerosene cost Ksh.188.19 and Ksh.170.37 per litre, respectively.

The exchequer has warned that the cost of the fuel subsidy has reached an unsustainable level, putting the stabilization mechanism in jeopardy fiscally.

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Written by Esther Oyugi

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