July 20, 2017

Kenya’s Struggling Uber Drivers Fear a New Competitor: Uber

Photo of LG Smartphone with UBER logotype on the screen
Copyright: gyddik / 123RF Stock Photo

James Njoroge, an Uber driver in Nairobi, earns barely $5 at the end of a grueling 10-hour workday ferrying customers through snarled traffic across the Kenyan capital. Now a new competitor is in town, threatening to undercut even these meager earnings.

That rival is none other than Mr. Njoroge’s own employer.

Uber is aiming to beat back competing services by pushing its prices even lower. In April, the San Francisco-based company announced it was introducing an even cheaper service at half that price, $1.45, by allowing its drivers to use much older, lower-quality cars.

Drivers say they’re bearing the brunt of the price cuts. In February, drivers went on strike to protest fare cuts that they said made it difficult for them to break even. The new pricing is much lower than that.

The prospect of losing what is already a threadbare living is making Mr. Njoroge, 29, nervous.“We’ve been working for them so much, but now they’re slashing us,” he said recently, slowing down his Toyota, a seven-year-old model, hardly brand-new but newer than the […]

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The News for the Gig Economy Staff is constantly searching the web for the latest news regarding freelancing and gig platforms to bring them to you in one handy place. All articles with this generic author have been sourced with the original location at the bottom of the piece. We encourage our readers to view the original source of all excerpts. NGE is a project of ARC Online, LLC.

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