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Uber drivers in Kenya are ignoring the app and charging their own rates

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Re: Uber drivers in Kenya are ignoring the app and charging their own rates

#21

Post by beaglesss »

throwaway201606 wrote: post #19
beaglesss wrote: post #4

This makes no sense,why wouldn't Uber just increase rates and take a cut rather than let the drivers eat their lunch? What incentive do they have to charge less than the market will bear?

For this particular market, they are not charging less than the market will bear, they are charging all they can. They have to keep taking an 'L' specifically because there is extreme efficiency in price information discoverability in a commodity market. Explaining: Some background info: - almost all drivers are signed up with all services [ ie i) Lyft, Uber - which are global & ii) Faras, Bolt which are internationa…

The eventual outcome of such race down is the apps realize they are merely matchmakers and they charge a 100% commission, since the price quoted can only be trusted as accurate with regards to the cost of using the 'rideshare' app.

Re: Uber drivers in Kenya are ignoring the app and charging their own rates

#22

Post by zo1 »

pcurve wrote: post #20

Kilimani to jkir is about 20 km and a bit over half hour ride. Their published rate is about 16 bucks. A longer 52km ride is about 38 bucks. It’s cheap by western. Not sure how it fares against other comparable countries.

I just did a few calcs for here in South Africa, and the prices you mentioned are about 2.1x as much than what it costs to get an UberX/Go trip here. Or the same price as what I'd pay for a "luxury" Uber Black ride.

This is just taxis doing what taxis always eventually do. This whole gimmick of "we can't afford to live at these rates" is just whining because they don't like their earnings at the end of the day. I'm all for a fair price that takes into account all the costs involved and a fair margin ontop so it's a livable and respectful wage. But what Taxis eventually do is not it, they want a certain lifestyle and salary that they've been used to before ride-shares came about, and they'll eventually get violent (like they did here in SA) till they get it. Fun story, I was in an Uber here once and got chased-down by an angry taxi driver when they saw me being picked up by an Uber driver from a "protected" tourist spot.

Re: Uber drivers in Kenya are ignoring the app and charging their own rates

#23

Post by throwaway201606 »

beaglesss wrote: post #21
throwaway201606 wrote: post #19

Earlier quoted context omitted.

For this particular market, they are not charging less than the market will bear, they are charging all they can. They have to keep taking an 'L' specifically because there is extreme efficiency in price information discoverability in a commodity market. Explaining: Some background info: - almost all drivers are signed up with all services [ ie i) Lyft, Uber - which are global & ii) Faras, Bolt which are internationa…

The eventual outcome of such race down is the apps realize they are merely matchmakers and they charge a 100% commission, since the price quoted can only be trusted as accurate with regards to the cost of using the 'rideshare' app.

That is essentially what has already effectively happened.

Passengers are paying the drivers directly ( and the drivers then passing on the apps share on to them - the 30% in commission and booking fee ) because when the passengers pay outside the rideshare app, the app portion becomes payable to the app.

Passengers pay outside the app because mobile money is ubiquitous in Kenya (mobile phone to mobile phone micropayments called MPESA): it is used even more frequently than cash

Re: Uber drivers in Kenya are ignoring the app and charging their own rates

#24

Post by _zoltan_ »

twelve40 wrote: post #11

It always amazed me how Uber was able to quickly force itself into the most criminal markets (which in poorer countries is typically anything that has to do with taxis). But in hindsight, after a quick surprise win worldwide, they were eventually forced out. In Russia, weirdly enough, not by criminals but by a quasi-state company, starting back in 2018. In parts of Mexico, by what seems like outright criminals and co…

In Hungary by the taxi lobby first and then they let them "back", but there is only a single company that serves taxis via Uber so it's only a front end.

Re: Uber drivers in Kenya are ignoring the app and charging their own rates

#25

Post by Log_out_ »

haliskerbas wrote: post #16
notyourwork wrote: post #13

Earlier quoted context omitted.

How? Likely bribes. No way around it in parts of the world. Have to grease the wheels of diplomacy.

Including the US, but here bribes are legal, it's called lobbying!

actually not comparable in price and scale. lobbying is cheap and limited, while bribes often become buisness ending very fast .

Re: Uber drivers in Kenya are ignoring the app and charging their own rates

#26

Post by Y_Y »

infamouscow wrote: post #18
notyourwork wrote: post #13

Earlier quoted context omitted.

How? Likely bribes. No way around it in parts of the world. Have to grease the wheels of diplomacy.

The places that don't have bribery call it lobbying. That way, the politicians can look down on other governments for the lack of sophistication in their corruption.

> The places that don't have bribery

This is an interesting sci-fi premise, but hard to imagine.

Re: Uber drivers in Kenya are ignoring the app and charging their own rates

#28

Post by [deleted] »

throwaway201606 wrote: post #19
beaglesss wrote: post #4

This makes no sense,why wouldn't Uber just increase rates and take a cut rather than let the drivers eat their lunch? What incentive do they have to charge less than the market will bear?

For this particular market, they are not charging less than the market will bear, they are charging all they can. They have to keep taking an 'L' specifically because there is extreme efficiency in price information discoverability in a commodity market. Explaining: Some background info: - almost all drivers are signed up with all services [ ie i) Lyft, Uber - which are global & ii) Faras, Bolt which are internationa…

[deleted]

Re: Uber drivers in Kenya are ignoring the app and charging their own rates

#29

Post by fngjdflmdflg »

throwaway201606 wrote: post #19
beaglesss wrote: post #4

This makes no sense,why wouldn't Uber just increase rates and take a cut rather than let the drivers eat their lunch? What incentive do they have to charge less than the market will bear?

For this particular market, they are not charging less than the market will bear, they are charging all they can. They have to keep taking an 'L' specifically because there is extreme efficiency in price information discoverability in a commodity market. Explaining: Some background info: - almost all drivers are signed up with all services [ ie i) Lyft, Uber - which are global & ii) Faras, Bolt which are internationa…

Adding to this, it then makes sense why this isn't a thing in most developed countries as the burden of checking 4 apps seems to not be worth saving a few dollars for most people. In the US, for example, it seem like the two main competitors are Uber and Lyft, with Uber having 3x the sales as Lyft.[0] So it seems like most people will just check Uber and buy that no matter what.

[0] (Bloomberg) https://secondmeasure.com/datapoints/rideshare-industry-over...

Re: Uber drivers in Kenya are ignoring the app and charging their own rates

#30

Post by givemeethekeys »

beaglesss wrote: post #5
aranelsurion wrote: post #3

So they basically reinvented taxi again, with the added captive audience factor coming from abusing the platform.

Always carry an object capable of smashing out a window when you ride in a 3rd world taxi

No one I know across many, many 3rd world countries has ever done this or recommended it. I suggest learning how to vet the driver before getting into the vehicle. For example, does the driver and car's plates and description match what's in the app?
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