Ride-Hailing Price Increases Could Reshape Commuter Choices

In Nairobi, Kenya, on August 20, a survey conducted by TIFA Research reveals that roughly half of ride-hailing users could turn to matatus if fares increase. The study indicates that 44% of respondents would opt for public transportation to cut costs, while a mere 18% would maintain their current ride-hailing habits. A significant 22% either plan to reduce their use of ride-hailing services or seek more affordable alternatives.

TIFA explains that these findings highlight how sensitive ride-hailing customers are to price changes, with affordability playing a crucial role in their decision to continue using the platforms.

Furthermore, 11% of respondents indicated they would use ride-hailing less frequently, while another 11% would gravitate towards cheaper alternatives. Seven percent would opt for boda bodas more often, four percent would choose walking, and three percent would rely on personal vehicles. Two percent would even abandon ride-hailing services entirely.

This shift in commuter behavior is unfolding as the government works on regulations aimed at introducing a minimum compensation per trip for ride-hailing drivers and motorcycle riders. The Ministry of Roads and Transport recently announced that it has been consulting operators before finalizing the rules. Currently, some platforms charge around Sh220 as the base fare, but industry consultations are reportedly considering a minimum fare/compensation level ranging from Sh400 to Sh500 per trip.