Taxi hailing service Uber has slashed fares for Mombasa users, in what is seen as market rivalry with Little Cab, which launched in the town a week ago.
This will see users charged Sh35per kilometer, down from Sh60 and Sh3 per minute, down from Sh4 per minute.
Uber’s price slash in Mombasa just after Little Cab’s entry mirrors what happened in Nairobi four month ago, when the latter officially launched into the market.
According to Uber Operations Manager Kagure Wamunyu, the reduction in prices is expected to spur demand for taxi services in the tourist rich city, hence providing affordable services to customers while the company reap from economics of scale.
She added that high demand will see its drivers make more trips, hence earning more than usual.
Although Little Cab, developed by IT firm Craft Silicon is charging Sh55 per kilometer and Sh4 per minute, its prices are constant as opposed to Uber which hikes prices during peak hours.
Minimum charges for Little Cab is also Sh30 less compared to that of Uber, whose minimum rate is Sh300.
The entry of other players in the country’s taxi market has liberalized the sector, which was once a preserve for elites in the society.
Taxi hailing app Mondo ride was the first to cut its prices in mid-June this year. Its customers are now paying Sh48 per kilometer, Sh10 lower than from its former rate of Sh58.
Although it maintained its base fare at Sh100, it lowered its per minute billing by a shilling from Sh4 per minute.
In late July, Uber followed Mondo’s steps by slashing its prices in Nairobi by a whopping 35 per cent.
The American company taxi firm is now charging its Nairobi customers Sh35 per minute down from Sh60 and Sh3 per minute, down from Sh4 per minute. It also lowered its minimum rates by Sh100 to Sh200, beating Little Cab by Sh70.
Taxi prices are expected to go down further, following plans by local taxi firms to go digital.