Kenya ride-hailing strike: drivers demand fair pay, pricing power

Ride-hailing drivers in Kenya began a five-day strike on Monday to demand fair pay and the removal of value-added taxes; they marched to the National Transport and Safety Authority (NTSA) office at the end of day one. The strike comes ten months after the Transport Ministry compelled Bolt and Uber to reduce their commission to 18%.

The drivers want to be included in Uber and Bolt’s pricing decisions and believe they’re entitled to this inclusion because they handle expenses like insurance and parking fees.

“The person who sets the prices doesn’t bear the cost of running the business,” said Zakaria Mwangi, Secretary General of the Ridehail Transport Association. “Ultimately, the taxi apps determine the cost of each trip, not the driver.”

They also criticise the platforms for charging taxes. “The taxi apps take 18% commission from the trip amount and then deduct the tax of this commission on a driver’s income,” said Mwangi.

However, those taxes are paid to the government and don’t belong to the mobility companies.

In a meeting in Nairobi on Sunday, the drivers said they would no longer shoulder the operational costs of their businesses while “the app companies continue to take their guaranteed income.” They called it an unfair business practice.”

Bolt said it was “aware of the drivers’ strike and respects their right to peaceful demonstrations.”

“We are committed to continuous engagement and collaboration with driver partners,” Bolt told TechCabal in a statement, side-stepping questions on commissions.

Uber acknowledged the strike, and said it is “closely monitoring the situation and making every effort to minimise disruptions for users.”

With the strike in place, only a handful of drivers are accepting rides, leading to surge pricing.

The trouble with the ride-hailing apps and drivers comes down to an important detail: these drivers are not Uber or Bolt employees but “driver partners.” That partnership leaves the bargaining power in the hands of the companies who insist they only provide a platform for the drivers to earn and take a commission.

The drivers are learning that this is the gag in gig work.

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