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 […]