US taxi firm inDrive granted licence to operate in Kenya
US taxi firm inDrive officially received licence to operate in Kenya to compete with Uber, Little Cabs, and Bolt
US taxi firm inDrive officially received licence to operate in Kenya to compete with Uber, Little Cabs, and Bolt.
With competitors like Uber, Little Cabs, and Bolt, the US-based mobility company inDrive has gotten an official license to operate in Kenya, which is expected to strengthen competition in the ride-hailing sector.
The California-based company had been operating in Nairobi as inDriver taxis in 2019 but rebranded last October to inDrive.
“With the official licensing to operate in Kenya, inDrive is excited to contribute to the local transportation ecosystem, providing safe, reliable, and affordable mobility options to the people of Kenya,” said Godfrey Mabula, inDrive’s business representative in Kenya.
“The company looks forward to partnering with local drivers and serving the community while upholding its commitment to safety and fair pricing practices.”
InDrive is present in more than 200 cities worldwide including Kenya, Tanzania, and Nigeria.
The company will be competing for the share of the market dominated by other operators.
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The Kenyan digital taxi market has been characterized by an increased price war as companies cut trip rates in promotions to woo riders.
InDrive charges five to 10 percent of the commission, depending on the market they operate in, while Uber and Bolt charge 18 percent down from 25 percent and 20 percent, respectively.
Little, another ride-hailing firm charges a 15 percent commission.
The decision to cut charges came days after a strike by the drivers last November pushing for the tech platforms to abide by new regulations capping their charges at 18 percent but which Uber had challenged in court.
The National Transport and Safety Authority, which licences ride-hailing firms, on June 20 published regulations putting the ceiling on commission charged by digital taxi operators on drivers at 18 percent per trip.
Under the new regulations, operators’ licences will be valid for a year, should have a registered office in Kenya, and have to be registered by the Data Commissioner as a data controller or processor.
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