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

by | Jul 16, 2024 | Technology

Uber and Bolt drivers in Kenya’s capital city, Nairobi have taken to the streets in protest against the policies of both e-hailing companies that have seen drivers continue to languish under never-improving earnings. They are also boycotting 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 are generally demanding for better pay. But more specifically, they are demanding full enforcement of the regulation which stipulates that app companies only receive an 18 per cent commission.

Back in 2022, Kenya’s e-hailing regulatory body, the National Transport and Safety Authority (NTSA) had mandated e-hailing companies to accept a flat commission fee of 18 per cent. While the rule led to disagreements and protests by the company, they would eventually succumb and undertake to comply with the rule.

But two years later, it applies the companies have not been complying with the rules. According to drivers who spoke with Tech Arena, digital taxi-hailing platforms still extract more than the 18 per cent commission required by law. They allege that Uber and Bolt are particularly notorious for this because of the hegemony which they wield over the ride-hailing space.

Uber and Bolt’s drivers protest

This is why, even though drivers will prefer the lesser-known apps like Yego and Little, they have no choice but to always return to the big two as those two can afford to crash fares and as such retain a majority of the passengers and force drivers back to them.

This leads to the drivers’ second demand; that the companies be compelled to accept a fixed minimum fare of 300 Kenyan shillings (Ksh) per trip. This is also 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.”

Uber and Bolt’s drivers threaten direct fare negotiation and offline trips

If their demands are not met, the protesting drivers have threatened to resort to directly negotiating their fares with passengers in a bid to increase their earnings. In this situation, when they meet the passenger, they would negotiate a different price, higher than the one on the app.

They also threatened to resort to offline trips if they did not get a positive response and were forced to work around their current plight. An offline trip is where the driver accepts a trip on the app but switches off the app and negotiates a new, higher price with the passenger, different from what was agreed. Sometimes the driver asks the passenger to cancel the ride while they negotiate a new fare. With this, drivers are able to get everything without needing to pay a commission to the app company as the trip is not tracked on the app.

According to the drivers, the ongoing protest is not organized by any group or association that is supposed to represent their interests. On the contrary, the protest is being organized and carried out by the drivers themselves who are simply tired of the current circumstances. The drivers said that they cannot trust their association leaders to really for them anymore as they may have been compromised.

To ensure that as many drivers as possible take part in the boycott and protest, the drivers are also strong-arming their colleagues who are still working to join them. They are doing this by requesting rides on different apps and once the driver shows up to pick up his passenger, they would be accosted and forced to switch off their apps and join the protest. The drivers also believe this is a more effective way of getting the attention of Uber and Bolt and other taxi apps.

Linda Ndungu, Bolt General Manager, Rides

Responding to a Technext inquiry, a Bolt spokesperson said they are aware of the protests and closely monitoring the situation. The spokesperson also told Technext that the company has always complied with the 18 per cent commission cap as well as a 16 per cent Value Added Tax (VAT).

We are aware of a group of e-hailing drivers that embarked on a protest in Nairobi on 15 July 2024 in which they have raised several concerns. We are compliant with the regulations put in place by NTSA for all ride-hailing platforms, including the required 18% commission cap, as we continue providing a reliable mobility option for riders and an earnings opportunity for drivers in the country. We charge and collect 16% Value Added Tax (VAT) and remit the same as required by the Kenyan VAT Act. We are closely monitoring the situation and are making every effort to minimise disruptions for users,” the spokesperson said.

On the side of Bolt, General Manager, Rides, Linda Ndungu told Technext that the company is aware of the drivers’ strike and respects their right to peaceful demonstrations. She, however, noted that Bolt has complied with the requirements set by the NTSA.

Bolt upholds local legislation and is compliant with the licensing requirements set by the industry regulator, the National Transport and Safety Authority (NTSA). We continue to work in partnership with local authorities and other key stakeholders to ensure that the ride-hailing, micro-mobility, and food delivery industry in Kenya, grows to its full potential, sustainably,” she said in a statement to Technext.

See also: Bolt and Uber may hike fares in Kenya amid govt’s 6% significant presence tax

Uber and Bolt drivers in Kenya’s capital city, Nairobi have taken to the streets in protest against the policies of both e-hailing companies that have seen drivers continue to languish under never-improving earnings. They are also boycotting 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 are generally demanding for better pay. But more specifically, they are demanding full enforcement of the regulation which stipulates that app companies only receive an 18 per cent commission.

Back in 2022, Kenya’s e-hailing regulatory body, the National Transport and Safety Authority (NTSA) had mandated e-hailing companies to accept a flat commission fee of 18 per cent. While the rule led to disagreements and protests by the company, they would eventually succumb and undertake to comply with the rule.

But two years later, it applies the companies have not been complying with the rules. According to drivers who spoke with Tech Arena, digital taxi-hailing platforms still extract more than the 18 per cent commission required by law. They allege that Uber and Bolt are particularly notorious for this because of the hegemony which they wield over the ride-hailing space.

Uber and Bolt’s drivers protest

This is why, even though drivers will prefer the lesser-known apps like Yego and Little, they have no choice but to always return to the big two as those two can afford to crash fares and as such retain a majority of the passengers and force drivers back to them.

This leads to the drivers’ second demand; that the companies be compelled to accept a fixed minimum fare of 300 Kenyan shillings (Ksh) per trip. This is also 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.”

Uber and Bolt’s drivers threaten direct fare negotiation and offline trips

If their demands are not met, the protesting drivers have threatened to resort to directly negotiating their fares with passengers in a bid to increase their earnings. In this situation, when they meet the passenger, they would negotiate a different price, higher than the one on the app.

They also threatened to resort to offline trips if they did not get a positive response and were forced to work around their current plight. An offline trip is where the driver accepts a trip on the app but switches off the app and negotiates a new, higher price with the passenger, different from what was agreed. Sometimes the driver asks the passenger to cancel the ride while they negotiate a new fare. With this, drivers are able to get everything without needing to pay a commission to the app company as the trip is not tracked on the app.

According to the drivers, the ongoing protest is not organized by any group or association that is supposed to represent their interests. On the contrary, the protest is being organized and carried out by the drivers themselves who are simply tired of the current circumstances. The drivers said that they cannot trust their association leaders to really for them anymore as they may have been compromised.

To ensure that as many drivers as possible take part in the boycott and protest, the drivers are also strong-arming their colleagues who are still working to join them. They are doing this by requesting rides on different apps and once the driver shows up to pick up his passenger, they would be accosted and forced to switch off their apps and join the protest. The drivers also believe this is a more effective way of getting the attention of Uber and Bolt and other taxi apps.

Linda Ndungu, Bolt General Manager, Rides

Responding to a Technext inquiry, a Bolt spokesperson said they are aware of the protests and closely monitoring the situation. The spokesperson also told Technext that the company has always complied with the 18 per cent commission cap as well as a 16 per cent Value Added Tax (VAT).

We are aware of a group of e-hailing drivers that embarked on a protest in Nairobi on 15 July 2024 in which they have raised several concerns. We are compliant with the regulations put in place by NTSA for all ride-hailing platforms, including the required 18% commission cap, as we continue providing a reliable mobility option for riders and an earnings opportunity for drivers in the country. We charge and collect 16% Value Added Tax (VAT) and remit the same as required by the Kenyan VAT Act. We are closely monitoring the situation and are making every effort to minimise disruptions for users,” the spokesperson said.

On the side of Bolt, General Manager, Rides, Linda Ndungu told Technext that the company is aware of the drivers’ strike and respects their right to peaceful demonstrations. She, however, noted that Bolt has complied with the requirements set by the NTSA.

Bolt upholds local legislation and is compliant with the licensing requirements set by the industry regulator, the National Transport and Safety Authority (NTSA). We continue to work in partnership with local authorities and other key stakeholders to ensure that the ride-hailing, micro-mobility, and food delivery industry in Kenya, grows to its full potential, sustainably,” she said in a statement to Technext.

See also: Bolt and Uber may hike fares in Kenya amid govt’s 6% significant presence tax

 Uber and Bolt drivers are also threatening to resort to offline trips and direct fare negotiation  

Uber and Bolt drivers in Kenya’s capital city, Nairobi have taken to the streets in protest against the policies of both e-hailing companies that have seen drivers continue to languish under never-improving earnings. They are also boycotting 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 are generally demanding for better pay. But more specifically, they are demanding full enforcement of the regulation which stipulates that app companies only receive an 18 per cent commission.

Back in 2022, Kenya’s e-hailing regulatory body, the National Transport and Safety Authority (NTSA) had mandated e-hailing companies to accept a flat commission fee of 18 per cent. While the rule led to disagreements and protests by the company, they would eventually succumb and undertake to comply with the rule.

But two years later, it applies the companies have not been complying with the rules. According to drivers who spoke with Tech Arena, digital taxi-hailing platforms still extract more than the 18 per cent commission required by law. They allege that Uber and Bolt are particularly notorious for this because of the hegemony which they wield over the ride-hailing space.

Uber and Bolt’s drivers protest

This is why, even though drivers will prefer the lesser-known apps like Yego and Little, they have no choice but to always return to the big two as those two can afford to crash fares and as such retain a majority of the passengers and force drivers back to them.

This leads to the drivers’ second demand; that the companies be compelled to accept a fixed minimum fare of 300 Kenyan shillings (Ksh) per trip. This is also 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.”

Uber and Bolt’s drivers threaten direct fare negotiation and offline trips

If their demands are not met, the protesting drivers have threatened to resort to directly negotiating their fares with passengers in a bid to increase their earnings. In this situation, when they meet the passenger, they would negotiate a different price, higher than the one on the app.

They also threatened to resort to offline trips if they did not get a positive response and were forced to work around their current plight. An offline trip is where the driver accepts a trip on the app but switches off the app and negotiates a new, higher price with the passenger, different from what was agreed. Sometimes the driver asks the passenger to cancel the ride while they negotiate a new fare. With this, drivers are able to get everything without needing to pay a commission to the app company as the trip is not tracked on the app.

According to the drivers, the ongoing protest is not organized by any group or association that is supposed to represent their interests. On the contrary, the protest is being organized and carried out by the drivers themselves who are simply tired of the current circumstances. The drivers said that they cannot trust their association leaders to really for them anymore as they may have been compromised.

To ensure that as many drivers as possible take part in the boycott and protest, the drivers are also strong-arming their colleagues who are still working to join them. They are doing this by requesting rides on different apps and once the driver shows up to pick up his passenger, they would be accosted and forced to switch off their apps and join the protest. The drivers also believe this is a more effective way of getting the attention of Uber and Bolt and other taxi apps.

Linda Ndungu, Bolt General Manager, Rides

Responding to a Technext inquiry, a Bolt spokesperson said they are aware of the protests and closely monitoring the situation. The spokesperson also told Technext that the company has always complied with the 18 per cent commission cap as well as a 16 per cent Value Added Tax (VAT).

We are aware of a group of e-hailing drivers that embarked on a protest in Nairobi on 15 July 2024 in which they have raised several concerns. We are compliant with the regulations put in place by NTSA for all ride-hailing platforms, including the required 18% commission cap, as we continue providing a reliable mobility option for riders and an earnings opportunity for drivers in the country. We charge and collect 16% Value Added Tax (VAT) and remit the same as required by the Kenyan VAT Act. We are closely monitoring the situation and are making every effort to minimise disruptions for users,” the spokesperson said.

On the side of Bolt, General Manager, Rides, Linda Ndungu told Technext that the company is aware of the drivers’ strike and respects their right to peaceful demonstrations. She, however, noted that Bolt has complied with the requirements set by the NTSA.

Bolt upholds local legislation and is compliant with the licensing requirements set by the industry regulator, the National Transport and Safety Authority (NTSA). We continue to work in partnership with local authorities and other key stakeholders to ensure that the ride-hailing, micro-mobility, and food delivery industry in Kenya, grows to its full potential, sustainably,” she said in a statement to Technext.

See also: Bolt and Uber may hike fares in Kenya amid govt’s 6% significant presence tax

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