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Why e-taxi drivers still not happy with 18pc fee cap
Drivers want the ride-hailing firms to include them in the pricing decisions, arguing that they incur the bulk of the operational expenses, including insurance, fueling, and parking.
The July 2022 government-imposed rule to cap commissions payable to digital taxi-hailing apps by drivers at 18 percent, down from 25 percent has failed to pacify the operators, who on Monday downed their tools in a nationwide call for better terms.
In their new demands, the drivers want the ride-hailing firms to include them in the pricing decisions, arguing that they incur the bulk of the operational expenses, including insurance, fueling, and parking.
Ridehail Transport Association secretary-general Zakaria Mwangi told the Business Daily Tuesday that drivers could resort to “unorthodox” charging models if the platforms failed to heed their cries.
“We shall be advising our members to negotiate with passengers on the pricing of trips since the current rates are painfully unfair and unsustainable. Those customers who will not agree to pay the extra charge will simply not be ferried, and they’ll not have an alternative because we’ll have a universal agreement,” he said.
In response to the demands, Bolt said it would continuously engage with driver-partners to facilitate growth and progress for all parties.
“As a business, we consistently work towards enabling our driver partners’ entrepreneurial journeys through our platform. We remain focused on the overall driver and rider experience, and we will continue to provide our driver partners online and in-person support to facilitate their success,” said Bolt in a statement.
According to him, the drivers meet between 80 to 90 percent of all operating costs but the taxi apps have been adamant in involving them in setting the costs of trips.
“The person who sets the pricing does not care because their income is guaranteed and they don’t bear the cost of running the business. That is why they have sustained the unfair pricing regime because they don’t relate to our pain points but we’ve said we’re not taking it anymore.”
In July 2022, Kenya’s transport and infrastructure ministry capped the commission paid by the owners of vehicles registered to various digital taxi firms at 18 percent of the total earnings of each trip, bringing it down from the previously existing rate of 25 percent.
Drivers had earlier in 2020, through their lobby dubbed the Digital Taxi Forum (DTF), petitioned Parliament to cap the commissions at a maximum of five percent.
