Bolt Kenya increases fares by 10% after drivers threatened to start setting their own rates

Leading e-hailing company, Bolt has instituted a 10 per cent increase in fares across all ride categories in Kenya. The new rates were announced by Bolt’s General Manager for Rides, Linda Ndungu. According to her, the increase is aimed at providing fair compensation while enhancing working conditions for its driver-partners.

This development comes more than a month after e-hailing drivers in the country embarked on a protest against unfavourable fares and high commissions extracted by the app companies amid a torturous economy and biting cost of living. Per the new arrangement, the base fare for Bolt’s Economy category will be increased from 200 to 220 Kenyan shillings (Ksh). 

Speaking about the fare increase, Linda Ndungu said it was a step towards helping the drivers earn a fair wage.

“This fare adjustment is not just a price change but also a step towards acknowledging the value our drivers bring to the platform every day. We believe that this move will help our drivers earn a fair wage, which in turn will allow them to continue providing the reliable and safe transportation our riders depend on,” Linda said.

The company added that the improvement was a product of extensive dialogue with its driver community and industry regulator to better understand challenges as operational costs have risen significantly. This dialogue came in the wake of months of complaints by drivers that the current rates are not enough to cover their operational costs, let alone guarantee them adequate earnings.

Bolt also said it will continue to monitor the economic landscape while also engaging with all stakeholders to ensure that necessary adjustments are made in the future.

Bolt trying to resolve the Kenyan drivers

In July, drivers in Kenya’s capital city, Nairobi took to the streets in protest against the policies of the two largest e-hailing companies, Uber and Bolt, that have seen drivers continue to languish under never-improving earnings. They also boycotted the ride-hailing apps to drive home their message.

In a vehicular procession that was described by observers as noisy but peaceful, the drivers generally demanded better pay. But more specifically, they demand full enforcement of the regulation which stipulates that app companies only receive an 18 per cent commission.

Back in 2022, Kenya’s e-hailing regulatory body, the National Transport and Safety Authority (NTSA) had mandated e-hailing companies to accept a flat commission fee of 18 per cent. While the rule led to disagreements and protests by the company, they would eventually succumb and undertake to comply with the rule.

But two years later, it appears the companies have not been complying with the rules. According to drivers who spoke with Tech Arena, digital taxi-hailing platforms still extract more than the 18 per cent commission required by law. They allege that Uber and Bolt are particularly notorious for this because of the hegemony which they wield over the ride-hailing space.

This is why, even though drivers will prefer the lesser-known apps like Yego and Little, they have no choice but to always return to the big two as those two can afford to crash fares and as such retain a majority of the passengers and force drivers back to them.

This leads to the drivers’ second demand; that the companies be compelled to accept a fixed minimum fare of 300 Kenyan shillings (Ksh) per trip. This is also a requirement stipulated by law.

A driver who spoke about the matter said that, like the 18 per cent commission, “this is also not fully enforced, putting the drivers in a tight spot as they have very little left after factoring in fuel costs and the commission platforms like Uber and Bolt take.”

Weeks after the commencement of the protest, the drivers started resorting to directly negotiating their fares with passengers in a bid to increase their earnings. This move ultimately forced Uber to increase its fares, a path which its rival, Bolt has now resorted to.

While this may appear like a step in the right direction for the drivers, it, however, may not be so for the passengers who also are not exempt from the effects of Kenya’s biting economy. Ultimately, the issue would shift to the matter of commissions which has not been addressed by either of the app companies.

An increase or reduction in fares favours the drivers or the passengers while taking nothing away from the app companies. A reduction in commissions is the only way the app companies can demonstrate a level of sacrifice if indeed they are keen on keeping both drivers and passengers happy.

See also: Bolt blocks inter-country requests over Nigeria vs South Africa row, blocks mischief makers

The post Bolt Kenya increases fares by 10% after drivers threatened to start setting their own rates first appeared on Technext.