With competitors like Uber, Little Cabs, and Bolt, the US-based mobility company inDrive has gotten an official license to operate in Kenya, which is expected to strengthen competition in the ride-hailing sector.
According to Godfrey Mabula, inDrive’s business representative in Kenya, “With the official licensing to operate in Kenya, inDrive is excited to contribute to the local transportation ecosystem, providing safe, dependable, and affordable mobility options to the people of Kenya.”
“The business is eager to work with local drivers and give back to the community while preserving its commitment to safety and ethical business practices.” Added Godfrey.
Ride-hailing services are now a common part of how people get about. Kenya, Tanzania, and Nigeria are just a few of the more than 200 cities where InDrive is available.
The business will fight for a piece of the market that is now dominated by other companies.
As operators lower trip costs as part of promotions to attract customers, the pricing war in Kenya’s digital taxi sector has intensified.
Depending on the market they serve, InDrive charges between 5% and 10% of the fee, while Uber and Bolt now only charge 18% instead of 25% and 20%, respectively.
Another ride-hailing company, Little, levies a 15% commission.
The move to lower prices after a strike by the drivers in November of last year, during which they demanded that tech companies obey by new rules regulating their fees at 18%, which Uber had contested in court.
On June 20, regulations were published by the National Transport and Safety Authority, which issues licenses to ride-hailing companies, capping the amount of commission that digital taxi operators can charge drivers at 18% every trip.
According to the new rules, licenses for operators must be registered with the Data Commissioner as a data controller or processor, have a registered office in Kenya, and be valid for one year.
Three months following the notice, the law was supposed to go into force.
“The recently issued license is a direct result of new rules that the regional government put into effect. Due to these requirements, we had to apply for an operating license, which we did as soon as the new regulations were made public.” According to InDrive.
“We believe in full compliance with all local laws and regulations to ensure the best and safest service for our customers and seamless operations,” added InDrive.
InDrive responded to an email inquiry by stating, “We believe in full compliance with all local rules and regulations to offer the finest and safest service for our customers and flawless operations.”
