Ride-Hailing Price Increases Could Reshape Commuter Choices

NAIROBI, Kenya Aug 20 – Nearly half of ride-hailing users would turn to matatus if fares increase.

A consumer survey conducted by the TIFA Research shows 44 percent would use public transport more often to save money, while only 18 percent would continue using ride-hailing services as usual.

22 percent would either use ride-hailing less often or switch to cheaper alternatives.

“The survey findings suggest ride-hailing customers are highly responsive to price changes, with affordability likely to determine whether they remain on the platforms,” TIFA explained.

Eleven percent would use ride-hailing less frequently, while another 11 percent would switch to cheaper alternatives.

Seven percent would use boda bodas more often, four percent would walk, and three percent would rely on personal vehicles.

Two percent would stop using ride-hailing services altogether.

This comes as the government is working on regulations that would introduce a minimum compensation per trip for ride-hailing drivers and motorcycle riders.

The Ministry of Roads and Transport last month revealed that it has been consulting operators before finalising the rules.

The current base fare on some platforms is about Sh220. However
Industry consultations have reportedly considered a minimum fare/compensation level of around Sh400-Sh500 per trip.