Connect with us

Business

Why digital drivers are shifting to offline mode

Published

on

By Judith Gicobi

In response to declining revenues, a number of drivers using digital taxi-hailing services are choosing to discontinue service and return to traditional business methods.

Even while the incomes of the drivers who make up a greater portion of the gig economy are being squeezed, digital taxi platforms like Uber and Bolt have not yet changed their prices.

In June, there was a Sh9 per litre hike in fuel prices, the fourth straight increase since February.  Nairobi’s retail prices for super and diesel are currently Sh159.12 and Sh140, respectively, raising the cost of living.

Numerous driver interviews revealed that some currently choose to operate according to the conventional taxi model, merely using the apps to attract consumers before canceling the trip to directly bargain prices with their clients. They have also avoided commissions as to increase their earnings.

“Offline removes the commission. If I go 10km or so and get Sh1,000 from the trip, I may spend Sh200 on fuel and have my Sh800 compared to when I have the app where I might up end up with just Sh500,” says Mwangi.

Some drivers are switching to Little and Hava apps, which charge 15% and 10% commission respectively, as fuel prices rise.

Drivers have also expressed concern over the firms’ failure to account for longer commutes and traffic congestion, which further reduces their profitability due to higher fuel use and the inability to attract riders in some of those areas.

READ ALSO  Treasury to stop funding of Kibaki office, cut staff
Advertisement
Click to comment

Leave a Reply

Your email address will not be published.

AMG Realtors will deliver your Title Deeds anywhere in the world

You can easily own one of these

Like us on FB

Copyright © 2021 Kenya Satellite News Network. All Rights Reserved.