Bolt, the popular taxi-hailing firm, has announced a 10% increase in its fares across all ride categories effective immediately. This adjustment, which addresses the longstanding grievances of drivers over low pay, follows significant unrest this past July when drivers organized a nationwide strike to protest the perceived unfair pricing models.
The company confirmed on Monday—following the notable strike—that this fare increase isn't merely about changing prices but is also about recognizing the drivers' contributions and ensuring they earn fair wages. Linda Ndungu, Bolt's General Manager, elaborated on the move, stating, "We believe this move will help our drivers earn a fair wage, which in turn will allow them to continue providing the reliable and safe transportation our riders depend on." The decision is intended not only to support driver earnings but also to encourage high service standards across the platform.
The change means the minimum fare for the Economy category will now climb from Sh200 to Sh220. The fare adjustment is expected to lead to significantly improved earnings for drivers with each completed trip. This restructuring aims to provide financial relief for drivers, many of whom have been struggling amid rising living costs and harsh economic conditions.
The recent fare-adjustment announcement arrived at a time when the cost of living continues to rise across Kenya, creating financial strain for both drivers and riders. The digital taxi service, alongside its major competitor Uber, which recently raised its minimum fare by the same percentage, intends to balance the interests of its drivers—whose livelihoods are greatly impacted by pricing—and the affordability of rides for customers.
The impetus behind this fare increase stems from what taxi drivers characterized as unfair pricing strategies utilized by ride-hailing apps during the previous months. This was brought to the forefront during the significant strike action where drivers urged the firms to engage with them to address their concerns. Their dissatisfaction escalated as they attempted to bypass app-imposed algorithms, instead negotiating their own ride prices with customers, reflecting widespread unease within the city’s transport ecosystem.
During the strike, drivers from various digital taxi companies—including Uber and other local services—united to highlight their frustrations not only over pricing mechanisms but also over working conditions, and alleged oppression by local government officials known colloquially as ‘kanjos.’ This multifaceted issue points to broader challenges faced by digital taxi operators as they navigate the burgeoning ride-sharing market.
According to Ndungu, Bolt remains committed to monitoring the prevailing economic climate closely and engaging with drivers and other stakeholders to understand their needs, signaling potential for more adjustments to come if necessary. The management views these fare increases as integral to fostering long-term sustainability within the ride-hailing sector, which has seen rapid growth but remains fraught with conflicts over operational standards and profitability.
Many Bolt drivers hope this fare revision will serve as a turning point, allowing them to improve their working conditions and the overall viability of their jobs amid growing competition within the sector. Notably, this fare crisis exhibits the larger trend impacting many gig-economy workers globally, where platforms are increasingly expected to prioritize fair wages and working conditions as fundamental parts of their business models.
Overall, Bolt's fare increase marks the company’s first significant step to realign its pricing strategy with the increasing demands of drivers as they strive for greater earnings and acknowledgment of their contributions. With the fare adjustment now implemented and the foundation laid for continuous dialogue with its drivers, Bolt aims to sustain its market presence and maintain the trust of its rider base. It remains to be seen how this latest move will impact the dynamics of the digital taxi business across Kenya, particularly as economic conditions continue to evolve.
The steps taken by Bolt echo broader movements within the ride-sharing industry as it grapples with balancing profitability, service quality, and fair driver treatment, all pivotal elements to their continuing success and adaptability within this fast-paced marketplace.