Bolt has announced a 10% increase in its base fares across all ride categories. This decision comes hot on the heels of a similar price adjustment by its major competitor, Uber, just a week prior.
The fare hikes are a response to mounting pressure from drivers who had resorted to setting their own rates in recent weeks, highlighting the ongoing tension between ride-hailing platforms and their driver partners.
Bolt, the Estonian ride-hailing and food delivery startup, revealed on Monday that the price increase would be immediately reflected in all rides booked through its platform.
For instance, the base fare for the economy category will see a rise from KES 200 to KES 220. This adjustment is expected to have a substantial impact on both drivers’ earnings and passengers’ wallets.
Driver Satisfaction at the Forefront
The company emphasized that this move is the result of extensive engagement with drivers in recent months. Concerns about unfair pricing mechanisms have been a persistent issue in the ride-hailing industry, leading to protests and unilateral actions by drivers.
Bolt’s decision to increase fares is aimed at addressing these concerns and improving driver satisfaction.
Bolt’s price hike follows a similar move by Uber, which announced an increase across all its offerings the previous Monday. Uber’s ‘Chap Chap’ product, for example, saw a 10% increase in its minimum fare.
Imran Manji, Head of East Africa at Uber, expressed hope that this adjustment would put an end to price negotiations between drivers and passengers, encouraging users to report any discrepancies directly to Uber.
Linda Ndungu, Bolt’s General Manager in charge of rides, stated that the price adjustment is an acknowledgment of “the value our drivers bring to the platform every day.”
She emphasized the company’s belief that this move will help drivers earn a fair wage, which in turn will ensure the continued provision of reliable and safe transportation for riders across Kenya.
Little Joins the Fray
Not to be left behind, Little, another major player in Kenya’s ride-hailing market, recently announced a 15% increase in rates across all its fleet categories.
The company cited the need to cushion drivers against economic challenges as the primary motivation for this adjustment.
Little CEO Kamal Budhabhatti lauded the move saying it will boost drivers’ earnings.
“Little has been a listening and caring partner. We have heard and analysed the requests from our drivers. Despite the tough economic times that all Kenyans are facing, we believe it is important to support the individuals who keep our platform running,” noted Budhabhatti.
Implications for the Industry
These widespread fare increases across major ride-hailing platforms in Kenya signal a significant shift in the industry.
As companies strive to balance driver satisfaction with customer affordability, it remains to be seen how these changes will impact the competitive landscape and user preferences in the long run.
The coming months will be crucial in determining whether these fare hikes successfully address the underlying issues or if further changes will be necessary to maintain a sustainable ecosystem for all stakeholders in Kenya’s vibrant ride-hailing industry.
