A decade of Uber operations in Kenya reveals benefits for passengers while revealing financial losses for drivers
In the bustling heart of Kenya, a new adventure is taking shape. Uber, the global ride-hailing giant, has introduced a unique product called Uber Safari, revolutionising the tourism sector.
Launched at the end of 2022, Uber Safari allows users to book guided tours of Nairobi National Park through the app. The service is operated by licensed tour companies using safari-ready vehicles, providing a seamless, tech-savvy safari experience.
Uber's entry into the tourism sector comes after it revolutionised the urban transport sector in Kenya, having entered the market in January 2015. The company's growth, however, has not been without its challenges. Fare reductions, a high commission structure, and driver protests have been common issues.
Drivers, many of whom are in debt due to vehicle loans and work long hours to cover monthly payments, have staged protests demanding reduced commission, increased fares, and more flexibility in pricing. Some argue that Uber should address earnings on regular trips before branching into tourism.
Tour operators, too, have concerns. They face high licensing fees and compliance costs, and fear Uber's entry could trigger a race to the bottom in safari pricing. Others worry that Uber Safari will create new pricing pressures by introducing algorithm-driven pricing to the tourism sector.
The National Transport and Safety Authority (NTSA) created a licensing regime for digital taxi operators in 2019, requiring them to register, share trip data with regulators, and enforce a commission cap. Uber, like other digital service providers, is also subject to the Finance Act, which introduced digital service tax in 2021 and e-TIMS compliance in 2024.
Uber Safari offers day packages at KES 25,000 ($194) during the day and KES 40,000 ($311) at night. This is significantly higher than the typical cost of a half-day trip to the park, which usually ranges between $43 and $138 per person with a tour company or park-operated vehicle.
Despite these concerns, Uber Safari could attract a new demographic - younger, tech-savvy tourists who might not book a traditional tour. As the tension between profitability, driver welfare, and regulatory compliance continues to influence Uber's and other ride-hailing platforms in the Kenyan story, one thing is certain: innovation and change are the order of the day.
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