We won’t be driven out of town, says Uber

When Uber launched in Kenya last year, it was eagerly welcomed by many in Nairobi. But the taxi app has faced a backlash from traditional taxi drivers unhappy with the new competition, with Uber drivers and cars being attacked.

Launched in San Francisco in 2009, Uber now operates in 400 cities across 68 countries. It is in ten cities in Africa — Cape Town, Durban, Joburg, Pretoria, Port Elizabeth, Nairobi, Lagos, Cairo, Alexandria and Casablanca.

Smart Company talked to Ms Samantha Allenberg, Uber Africa spokesperson. Here are the excerpts of the interview below:

Question: What is the extent of the growth of your business since your entry into the Kenyan market last year?

Answer: We are really excited about the opportunities in Kenya, there is so much potential in this country. The uptake since we launched a year ago has been amazing, riders and drivers are loving having another choice on how to move around their city.

A large part of Uber’s success stems from the fact that we are offering an unprecedented level of safety and convenience when it comes to transportation.

By offering unprecedented accountability and transparency (in our system), and having vehicle options at various price points, Uber has transformed the way people think about their transportation options in Africa. We think we’re part of a pretty exciting change at the moment, and our technology makes our riders lives’ easier and simpler. The way people think about transportation, and are moving around their cities is changing, and Uber is a big part of that change.

How much have you invested in the market so far?

We don’t disclose exact figures but Africa is a priority market for Uber in 2016.

Can you briefly explain your business model?
A: Tap a button, get a ride. Uber is evolving the way the world moves, seamlessly connecting riders to drivers through smartphone technology.

Do the cheap fares that you charge affect salaries for your drivers?
Uber does not employ any drivers or own any cars. We are a technology company connecting riders to drivers. We partner with independent operators and the majority of the fare stays with the driver. Drivers-partners pay a service fee to Uber for lead generation software. Looking at other markets, as well as looking back a year since Uber launched in Nairobi, we have seen that lower fares often mean riders use the service more frequently. This means more trips for driver-partners and more chances for profit.

What is the nature of opposition you are facing?

Rider choice and driver opportunity are at the heart of what we do. Competition is healthy as it makes everyone up their game. Many taxi drivers have already partnered with Uber as a means of growing their business which will bring all the consumer, partner and transparency related benefits to the current transport market.

Some players in the conventional Kenyan taxi industry fear you undercut them hence the opposition being witnessed. Is this the case?
Absolutely not. Uber’s technology is open and available to all. Many taxi drivers have already signed up to use the Uber app as a way to increase the number of trips they make on a daily basis and boost their chances for profit, and we welcome more who want to join.

Have any of your drivers been physically assaulted or threatened with violence as has been alleged?

There have been cases of isolated intimidation towards Uber driver-partners. These cases shock and sadden us, as these driver-partners are simply using the Uber platform to earn a living for themselves and their families.

In the wake of these new claims, how are you securing your passengers?

We are deeply committed to the safety of riders and driver-partners before, during and after a trip. We will continue to engage with the local authorities and various stakeholders across Nairobi to ensure a safe, reliable transportation option for the people of Nairobi.

Have you reached out to state agencies like the National Police Service and Competition Authority of Kenya?

We are working with all relevant stakeholders in Nairobi and Kenya to resolve this as a matter of urgency.

What do you see as the business opportunity for those who feel threatened by your model of doing business?

As said our technology is open and pro-choice and we are keen to offer it to a broad number of taxi drivers to boost their occupancy rates and chances for profit.

Finally, what is your business outlook for Kenya and the region?

There are so many opportunities in Kenya and Africa, the potential is amazing. We are so excited for the future.