Following weeks of fruitless strikes and go-slows, Kenyan digital taxi drivers have escalated their bid to push the online hailing firms to lower the commission charged on their fees.
This comes a week after the new regulations to cap the commission charged by taxi-hailing firms at 18 per cent took effect.
The same has been challenged in court by Uber, which maintains that the move will restrict flexibility on its revenue model, and stifle the ability to negotiate suitable commissions that will affect its investment, demand, and competition.
Through their lawyer, Wambui Kibicho Advocates, the drivers have issued a notice to hold a “peaceful gathering and demonstration” on Thursday, October 27, 2022.
“The demonstration will begin at Luna/Uhuru Park and proceed on foot to the National Transport and Safety Authority (NTSA) offices at Upper Hill,” the letter reads in part.
The drivers say they will be presenting their grievances over the Transport Network Companies, Owners, Drivers, and Passengers Regulations 2020 their employers.
“At the same time meetings will be held in different areas in Nairobi and its outskirts, namely along the following roads: Thika, Ngong, Magadi, Waiyaki, Mombasa and Kangundo,” the letter adds.
In new legislation that was passed in July and took effect in September, the commission paid by drivers to digital taxi operators was capped at 18 percent per trip.
In other words, for being in Uber and co’s networks, drivers permit these aggregators to keep a certain percentage of whatever they earn for serving customers.
But as drivers on the ground have been reporting to us, the taxi-hailing apps are yet to effect the changes.
Kenyan Taxi Hailing Apps Violating 18 Percent Commission Law
The companies are also yet to issue a direction regarding reviewing pricing in consideration of the rise in fuel costs.
Earlier last month, Uber appealed to Kenya’s apex court to annul the new digital taxi-hailing regulations claiming that some aspects are unconstitutional, discriminatory, discouraging to foreign investments, and infringing on its rights and those of its riders and partners.
In court files seen by cnyakundi.com, Uber is contesting Kenya’s decision to cap commission charged per ride at 18% and evaluate pricing structure, saying it would dent its earnings and discourage further investment in the country.
The company argues that Kenya is a free market, where ride-hailing companies have the right to negotiate commercial agreements without external influence. It also claims that the regulations were made and gazetted without following due process and public participation.
