Friday, 25 November 2016

KENYA: Little Rides Cuts Down Fares In An Anticipated Business War With UBER

Sharply lower yields, following their decision a few weeks ago to drop tariffs and increasing problems with discontented drivers whose income was sharply reduced as a result have now been compounded by a rival's decision to drop rates from previously 55 Kenya Shillings per kilometre to just 30 Kenya Shillings.

This literally halves the price passengers have to pay and backed by Safaricom, Kenya's largest mobile network, will affiliate Little Rides take full advantage of their move to launch a frontal attack on UBER.

The new tariffs are effective from 25th of November and pundits foresee 'the clash of the taxi titans' in Kenya as a major migration of passengers is now anticipated as they ditch UBER and use the lower priced Little Rides.

Other Kenyan rivals like Mondo too will come under pressure to follow suit giving visitors to Nairobi and locals alike the lowest taxi tariffs in a generation.

Conventional taxi operators, hotel limousine operators and even unlicensed cabs too will have to consider their pricing now that a full scale tariff meltdown is underway.

UBER's price surge during peak hours too will be coming under scrutiny as others do not raise tariffs, another reason for would be passengers to vote with their feet and their pockets.