July 28, 2016

Summary

Uber lowers fares to compete with Safaricom’s Little Cabs. Safaricom has recently entered the taxi industry.

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Uber lowers fares to compete with Safaricom’s Little Cabs

Uber lowers fares to compete with Safaricom’s Little Cabs

Smart taxi service Uber has lowered its prices in Nairobi by 30% in an effort to mark its territory following the entrance of Safaricom’s Little Cabs in the market.

“We want to make sure that uberX is the most affordable way to get around, all day, every day. As of today, we’re lowering uberX prices by 35% in Nairobi!

Whether you’re commuting to and from work, running quick errands, or just meeting friends, with these new rates you can Uber further, faster, and for less!” read an update on uber’s website.

The minimum price charged for a ride has now been reduced to Sh200 from Sh300.

Kenya’s giant telecommunication, Safaricom, announced plans to venture into the taxi business last month before officially launching the Little Cabs” service on July 5.

Little Cabs has stepped up the competition, promising to give drivers a bigger share of the revenue than similar taxi services.

“It is effectively a rival for Uber,” Safaricom CEO Bob Collymore said in a previous interview.

“It is a local competitor which will be cheaper and better for the local community.” He said.

Uber, a tech-based American taxi service made an entry into the Kenyan market in January 2015 and its popularity has totally disrupted the survival of traditional taxis, which have been fighting Uber by hook and crook. 

The company had earlier announced that Nairobi is now Uber’s fastest growing places internationally.

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