Ride-hailing company Bolt has defended its pricing model in Kenya following recent protests by drivers demanding a fair share of commissions and the removal of value-added tax (VAT) on fares.
Linda Ndungu, Bolt’s General Manager for Kenya, said the company’s pricing mechanism takes several factors into account, including base fare, distance, and time, to create an optimal structure that balances the interests of both drivers and passengers.
“Our pricing model is designed to consider the needs of all parties involved,” she explained adding that they operate within regulatory frameworks to maintain a sustainable business model that retains both customers and drivers.
“Our platform depends on both drivers and passengers, who are the core stakeholders,” said Ndungu during a media briefing at Riverside Square in Nairobi’s Westlands.
“We offer a platform that works for all when they choose to engage with us. Regarding commissions, we fully comply with the legal requirement, which sets an 18% commission cap for app companies, leaving 82% to drivers. We adhere strictly to these guidelines.”
Fare Hikes
In August, both Bolt and Uber announced fare hikes in Kenya, responding to pressure from drivers who have increasingly organized to challenge the companies’ pricing strategies.
Also Read:Â Kenyan Ride-Hailing Drivers Threaten New Protests After Unsuccessful Strike
Bolt raised its prices by 10%, following Uber’s 20% hike, while Little, another local ride-hailing service, implemented a 15% increase.
Despite these fare adjustments, Bolt said setting fares too high could alienate both drivers and passengers, which would negatively impact the business.
“There have been calls for higher fares, but the reality is that increasing prices too much could exclude many passengers. If passengers are priced out, drivers lose business, and in turn, the platform suffers. Our goal is to maintain a harmonious balance between drivers and passengers.”
The National Transport and Safety Authority (NTSA) introduced a regulation in 2022, mandating that ride-hailing companies in Kenya cap their commissions at 18%. All stakeholders eventually complied after the directive initially faced resistance.
Two years since the inception of the regulations, drivers continue to express dissatisfaction, alleging that some companies are still charging more than the legally allowed commission, fueling ongoing tensions in the industry.
Focus on Environmental Sustainability
Ndungu said Bolt is committed to environmental sustainability. She announced they have a deal with M-Kopa to introduce electric vehicles (EVs) to its fleet.
This even as she encouraged drivers and riders to consider e-mobility, aligning with Kenya’s goal of transitioning to 100% clean energy by 2030.
This, she said, is in support of President William Ruto’s efforts to promote electric mobility to reduce carbon emissions and improve air quality.
President Ruto has been a vocal advocate for electric vehicles and has actively demonstrated his support by incorporating EVs into his motorcade at various climate-focused events.
