Riders using Safaricom backed taxi hailing app Little Ride will now pay Sh30 per kilometer down from Sh55, edging out Uber by Sh5
The new prices takes effect immediately in Mombasa and Nairobi in what is expected to take digital taxi price war to the next level.
Little Ride will charge Sh4 per minute with no price surges and flat bas charge.
Uber is currently charging Sh35per kilometer and Sh3 per minute. It however has a base charge of sh100
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.
American giant Uber in July cut fares in Nairobi by a third, reducing the app’s per kilometre cost to Sh35 from Sh60, and lowered per minute transit charges by Sh1 to Sh3, but left base charge intact at Sh100.
Taxify was next in the price cutting queue when it lowered prices by nearly a fifth to charge Sh40 per kilometre, down from Sh50, Sh4 per minute from Sh5, while the base fare remained unchanged at Sh100.
Late last month, Uber slashed fares for its customers in Mombasa user to Sh35per kilometer, down from Sh60 to replicate what it charges its Nairobi users
According to Kamal Budhabhatti, Founder of Craft Silicon, they are forced to slash prices to stay afloat in the highly competitive market.
“We were the most expensive in the market. And our riders wanted us to be same price as other players in market.”
The ongoing price war among taxi hauling apps is complicating matters for already aggrieved traditional taxi drivers who have previously held protests against new entrants.
Even so, drivers employed by taxi apps are not happy either.
Last week, Uber drivers demonstrated in Nairobi threatening to leave the taxi-hailing service and join rival e-taxi firms if the management does not restore the old rates.
They complained that low prices were making the firm shine in the public eyes while it was hurting them.
Under a new lobby group Kenya Taxi Digital Association, the Uber-allied drivers said the cheaper fares have more than halved their daily earnings raising fears of inability to pay their car loans.