Despite dissatisfaction, Uber says it helps Kenyan drivers earn extra Ksh2.2bn every year

Uber, a leading e-mobility app in Africa helps e-hailing drivers earn an estimated KSh 2.2 billion (28 billion naira) in extra income every year since its launch. This was disclosed by the company in the first Economic Impact Report launched by Uber at the Fairmont Norfolk Hotel in Nairobi on Tuesday.

According to the report which was compiled by Public First, an independent consultancy based in London, Uber’s extra income numbers are 37 per cent more than any of its competitors, making it the best platform platform for drivers to earn additional income.

Aside from the drivers on its taxi-hailing platform, restaurants and eateries that have partnered with its food delivery arm, Uber Eats also benefited from an additional value of KSh 534 million in 2023 alone.

Speaking about the benefits the company has afforded its drivers and riders, the Head of Uber East Africa, Imran Manji, said since the company’s launch, it has always strived to go beyond delivering efficiency to making sure its partners are well taken care of.

“Since Uber launched in Kenya in 2015 and Uber Eats launched later in 2018, not only have we helped facilitate efficient, safe and convenient mobility and delivery for Kenyans, but we have also helped to create thousands of new economic opportunities, empowering drivers and delivery partners to improve their livelihoods and support their families while creating additional value through new revenue streams for local businesses,” Manji said.

While this might be so, recent happenings appear to portray a set of heavily dissatisfied drivers all across Africa, particularly in Kenya.

Kenyan e-hailing drivers may not be impressed with Uber’s largesse

While Uber might be patting itself on the back for having afforded drivers so much in extra income, the drivers themselves have always insisted that they hardly make enough money to survive. 

Indeed, just 4 short months ago, drivers in Kenya’s capital city, Nairobi took to the streets in protest against the policies of e-hailing companies like Uber that have seen drivers continue to languish under never-improving earnings. They also boycotted the ride-hailing apps to drive home their message.

In a vehicular procession that has been described by observers as noisy but peaceful, the drivers generally demanded better pay. But more specifically, they demanded full enforcement of the regulation which stipulates that app companies only receive an 18 per cent commission.

The other demand by the drivers was that Uber be compelled to accept a fixed minimum fare of 300 Kenyan shillings (Ksh) per trip. This, like the 18 per cent commission, is a requirement stipulated by law. A driver who spoke about the matter said that, like the 18 per cent commission, “this is also not fully enforced, putting the drivers in a tight spot as they have very little left after factoring in fuel costs and the commission platforms like Uber and Bolt take.”

The drivers further threatened to start embarking on offline trips if their demands were not met and if their earnings did not improve as a result. All these point to a driver population that is deeply dissatisfied with their earnings, a condition they said they were simply tired of.

So while Uber may have recorded as much as Ksh 2.2 billion in extra revenue for the drivers, the reality is that drivers are not feeling like they earn enough extra to make much of a difference.

See also: Uber and Bolt drivers in Kenya protest non-implementation of 18% commission, Ksh 300 minimum fare

The Public First report, according to Uber, is to enable the ride-hailing platform to quantify the potency of its operations in Kenya, as well as its beneficial impact on drivers, delivery partners, merchants, and communities.

The report witnessed participation by 1,132 adults in Kenya who shared information on their travel and food ordering habits. The report also comprises an in-depth online poll of 1,014 drivers and delivery partners in Kenya who shared their experiences and attitudes.

According to the report, 70 per cent of the drivers surveyed said they were positive about the Uber platform while 13 per cent responded negatively. About 57 per cent of the drivers on the app said they chose Uber as a means to self-employment, while 41% prefer the flexibility it offers them as they earn according to the report.

“Having calculated the earnings that drivers and delivery partners would sacrifice to retain control over their schedule, we estimate that this increased flexibility was worth KSh 1.6 billion to drivers and delivery people in 2023,” the report added.

On its impact on the community, the report also disclosed that Uber boosted Kenya’s nighttime economy by KSh 167 million and ramped up the value of the country’s tourism sector by KSh 2.7 billion last year.