We are Reviewing our Rates, Bolt Tells Boycotting Drivers in Kenya
Bolt Vs Boycotting Drivers in Kenya
Bolt PR Manager for Africa, Nthabiseng Mokoena, said that the e-hailing company is currently updating prices in light of the proposed boycott by Kenya's e-hailing drivers.
Under the auspices of the Digital Taxi Forum, ride-hailing drivers in Kenya recently threatened to withdraw their services if Uber and Bolt did not raise base fares and/or reduce commissions in response to a sharp increase in fuel prices. The drivers issued a 30-day ultimatum to e-hailing operators to comply with their demands or face a widespread boycott.
On behalf of the drivers, Wycliffe Alutalala, Secretary-General of the Digital Taxi Forum, said, "We hereby give a 30-day notice to all defiant apps that we will be turning them off and removing them at the end of the 30-day period."
Bolt Responds To Drivers' Condemnation of Fuel Price Increase
Although voicing drivers' concerns, Mokoena revealed that Bolt already has a mechanism in place to increase drivers' earnings relative to operational costs consistently.
E-hailing drivers have urged Uber and Bolt to reduce commission rates, claiming that Kenya's energy regulator's recent rise in fuel prices has slashed their earnings significantly.
Mokoena also said that Bolt collects and tracks all other expenses associated with drivers' ride-hailing services, including vehicle leasing/installment costs, fuel, car wash, airtime, and internet bundles.
It is not the first time ride-hailing drivers in Kenya have threatened a boycott, having staged repeated strikes and demonstrations over low fares in recent years.
Some drivers say they have been forced to take out car loans to cover regular expenses due to receiving static low fares despite incurring higher costs, resulting in a significantly lower income.
Mokoena has told drivers, however, that Bolt is constantly revising operations to maximize earnings.
Weighing Drivers' Expectations
To increase their earnings, e-hailing drivers are demanding that Uber/Bolt reduce commissions to a maximum of 15% and increase trip base fares.
Indeed, app-based drivers submitted a resolution to the Senate in 2019 through the National Transport and Safety Authority, demanding that operators not charge more than a 5% fee. According to Alutalala, the regulators' draft bill has not yet been introduced in parliament.
According to Uber and Bolt's commission rates in Africa, it is highly unlikely that these companies will even comply with such a requirement is imposed by the government.
But Uber currently charges Kenyan drivers the same 25% commission as it does in Nigeria and Ghana; Bolt collects 20% on each journey, the same as it does in Ghana, but at a rate of 5% higher than in Nigeria.
In terms of base fares, companies such as Uber and Bolt have sometimes reduced trip fares to draw more passengers. However, it seems as if the drivers bear the brunt of such behavior.
In Kenya, Uber/Bolt drivers are officially listed as independent contractors, although there have been demands for workers' status to be granted. It will entitle drivers to social security payments, such as grants and health insurance.
