Shortly after Uber announcing their food delivery service called UberChoma in Kenya, Uber has announced today that residents in Kampala and tourists to the city will be able, to ride for less thanks to reduce fare rates on UberX in Uganda with up to 23% price reduction. With over 15,000 active riders using Uber in Kampala, Seeta, Wakiso and Entebbe. The Apps has also become an earnings generating alternative for drivers who have partnered with Uber.
Following growing competition from the like of Friendship Taxi, boda bodas and others, starting today, anyone booking an UberX ride in Kampala will pay the following;
| Old Price (UGX) | New Price (UGX) | |
|---|---|---|
| Base rate | 1300 | 1100 |
| Distance (per Km) | 900 | 750 |
| Time (per minutes) | 200 | 150 |
| Minimun Fare | 5000 | 3000 |
| Ride Cancellation | 5000 | 3000 |
Speaking at the press briefing Aaron Tindiseega Country Lead in Uganda confirmed that reducing fares aims to boost demand for trips from riders and thus unlock more business for driver partners. “Years of experience have shown us that lower prices are very attractive in boosting rider demand, ” Tindiseega explains “and the more people request Uber rides the more drivers will spend time with paying riders in the backseat and less time sitting waiting for a request.”
Uber has successfully cut prices in other countries like Kenya and Nigeria and they believe that doing the same for Kampala will work. When Uber reduced their prices in Kenya there was a 70% increase in the number of trips taken by riders as well as a 100% increase in the number of trips requested from the first time Uber users, showing reduced prices helped reach riders. Uber is also confident that the same win-win scenario will unfold when prices are reduced in Kampala.
So what happens to the driver’s earnings?
While the city adjusts to the new prices, Uber is putting in place temporary payment guarantees for the driver partners so that they don’t lose out. Tindiseega also explained that, as it typically the case these lower prices are not always permanent and partner economics are very closely monitored.
