Another cab-hailing app chops fares, drives up rivalry
What you need to know:
- “We accepted almost every taxi driver who would join in. Now we do have car quality and condition checks and train drivers individually to provide the best service,” he said.
Estonian online cab-hailing app Taxify has cut its fares amid increased competition from its rivals including Uber.
Taxify is from this week charging Sh40 per kilometre, down from Sh50, Sh4 per minute from Sh5, while the base fare will remain unchanged at Sh100.
The firm first entered the Kenyan market on July 1, this year.
Drivers signed up to the app are the biggest winners of the firm’s re-launch as they will part with a 15 per cent commission as its main rival Uber charges 25 per cent.
Taxify rider charges are, however, higher than Uber rates announced two weeks ago where passengers pay Sh35 per kilometre, Sh3 per minute and a base fare of Sh100 during normal hours. Unlike Taxify, Uber has price surges when demand for taxis rises.
“Today we are re-launching our services in Nairobi to adopt to changes in the market with new pricing models and stricter quality standards from our drivers,” Taxify Head of Marketing Pavel Karagjaur, said in Nairobi on Sunday.
The firm has tightened its quality control rules for drivers signing up as they are now expected to observe a number of terms that include safety certification.
Condition checks
“We accepted almost every taxi driver who would join in. Now we do have car quality and condition checks and train drivers individually to provide the best service,” he said.
So far, the firm has over 600 active drivers, most of whom are Kenya Taxi Cab Association (KTCA) members, with about 1,500 others awaiting approval to join the platform.
It has also added credit and debit card payment options along cash for riders, with a pending plan to include mobile money payment option.
The technology set up in 2013 is operational in more than 10 countries including South Africa, Estonia, Czech, Finland, Georgia, Latvia, Lithuania, Serbia, Netherlands and Mexico.
Taxify has plans to venture into all major towns including Mombasa, Nakuru and Kisumu in the next one year and recruit about 7,000 drivers belonging to licensed taxi firms or groups.
It is estimated that Nairobi has 140,000 taxi users and it would require 25,000 drivers to service the city yet less than 15,000 are currently doing rounds leaving the market inadequately served.
Nairobi has become the tech hub of Africa mainly because its residents are more willing to embrace new technology making it a magnet for tech firms from around the globe. This explains why the capital is teeming with nearly a dozen cab hailing platforms.
