Tag: Uber

  • Unlocking the opportunities of Kenya’s boda boda economy

    Unlocking the opportunities of Kenya’s boda boda economy

    Each day, millions of people across Kenya rely on boda bodas to weave through traffic on the way to work, to move goods, access healthcare, and bridge the last mile. These fast, affordable motorcycle taxis power urban mobility and support economic inclusion, but they operate in a sector that remains largely informal. Many drivers navigate these roads with little training, oversight or protection.

    And yet, the sector is a critical part of Kenya’s economy, contributing over KSh 660 billion annually, which is around 4.4 percent of the country’s GDP. More than 2.5 million people depend on this sector for income. It fuels last-mile delivery, supports e-commerce, connects farms to markets, and sustains a wide network of service providers. Many drivers use motorcycle taxis to supplement other income, support families, or save for rainy days.

    The potential of Kenya’s two-wheel economy is immense, yet it remains largely untapped. This is not just about moving people from point A to B; it’s about fostering economic empowerment, enhancing urban efficiency, and creating a sustainable future for mobility. Unlocking this potential requires a multifaceted approach that goes beyond traditional views of the boda boda sector and elevates it from an informal necessity to a professionalised, respected, and thriving industry.

    The perception of boda bodas often falls short of their true value. They are not merely a last-resort mode of transport; they are the capillaries of urban and peri-urban life in Kenya. Their agility allows them to navigate congested streets and reach areas inaccessible to larger vehicles, making them indispensable for last-mile logistics and connecting communities. It is this kind of efficiency that positions them as a key solution to the growing challenges of urban sprawl and traffic congestion.

    However, this vital role is often overshadowed by concerns around safety and professionalism. Many drivers lack formal training, leading to a higher incidence of accidents. The absence of comprehensive insurance and social security nets leaves drivers vulnerable to financial hardship in case of injury or vehicle damage. Addressing these fundamental issues is paramount to building a sustainable and respected boda boda sector.

    Technology holds the key to professionalising and modernising the boda boda sector. Digital platforms can bring structure to a largely informal industry, offering tools for better organisation, improved safety, and enhanced earning opportunities. By integrating features such as transparent pricing and direct feedback mechanisms, these platforms can foster a greater sense of accountability and trust between drivers and riders.

    For instance, app-based services like Uber Boda demonstrate how technology can elevate the sector. Through such platforms, drivers must undergo background checks every year and receive training in road safety and customer service. According to the Uber Kenya Economic Impact Report, 87 percent of drivers reported that they felt safer if there was such app-based support, and riders shared similar feedback.

    Features like in-app GPS tracking, “Share My Trip,” and emergency buttons significantly enhance safety for both drivers and riders. This shift from informal arrangements to structured, app-driven operations not only provide drivers with consistent earning opportunities but also establishes clear standards, leading to a more reliable and professional service for consumers.

    The transparency in upfront pricing removes uncertainty and builds trust, changing the perception of boda bodas from an unpredictable option to a dependable mode of transport. In 2023 alone, app-based platforms enabled KSh 2.2 billion in additional income for drivers. Drivers attributed KSh 1.6 billion of that to the value of being able to choose their own schedules.

    Beyond ride-hailing, technology can also democratise access to financial services. Mobile money platforms, for example, enable flexible loan repayments and credit access for drivers, even those without formal banking histories. This financial inclusion empowers them to transition from renting to owning their motorcycles, a crucial step towards long-term economic stability and wealth creation.

    The conversation around the boda boda sector must also include its environmental impact. The adoption of electric motorcycles (e-bikes) is a game-changer, with significant cost savings for drivers due to eliminated fuel expenses and reduced maintenance. In 2024, electric motorcycles (e-bikes) accounted for more than 7 percent of new bike registrations in Kenya, up from 3.6 percent the year before. This shift is projected to create over 300,000 new jobs over the next five years.

    The rising number of registered e-bikes in Kenya is a promising sign of progress in sustainable transport. However, adoption remains uneven, especially in rural areas where charging infrastructure is still limited. To make e-mobility more inclusive, targeted investment in local assembly, service centres, and widespread charging infrastructure is essential.

    Electric mobility presents a fantastic opportunity for Kenya. Our electricity grid is powered mainly by renewable sources, hydro, geothermal, and wind, which generate a surplus every night. The wind is still blowing while we sleep! Directing this excess energy to power our transportation requirements will cut our foreign exchange needs and strengthen our balance of payments. By embracing electric mobility, we can transform our natural advantages into a cleaner, stronger, and more self-reliant Kenya.

    While technology offers powerful solutions, it cannot solve all the challenges. Issues like financial literacy, crime, lack of comprehensive insurance or legal protection remain significant hurdles.

    The path forward lies in public-private collaboration. Government bodies, civil society organisations, and businesses must work together to create an incentivising policy framework that balances formalisation with the entrepreneurial spirit of the sector. Programs that offer training in road safety, customer service, and digital tools, are crucial for professional development and instilling business discipline and financial literacy.

    Kenya has a unique opportunity to lead Africa in modernising two-wheel transport. By recognising the boda boda sector’s vital contribution, investing in its professionalisation, and embracing technological advancements, the nation can deliver safer rides, create better jobs, improve service quality, and foster cleaner cities. It is about cultivating a thriving ecosystem that respects its entrepreneurial spirit while protecting everyone on the road.

    Imran Manji is the General Manager, Head of East Africa & Head of Business Development for Africa at Uber

  • Uber rolls out new safety features for Kenyan riders

    Uber rolls out new safety features for Kenyan riders

    Uber has introduced new safety features on its Uber Boda which it says will help enhance safety of riders as well as that of the customer.

    The global ride-hailing firm, says it has introduced GPS tracking, emergency assistance, driver verification, and professional training programs to elevate safety standards in the two-wheel transportation sector.

    “Safety has always been at the core of everything we do at Uber, regardless of whether someone is riding in a car or on a motorcycle. We have introduced technology and training standards that set a new benchmark for motorcycle taxi safety in Kenya, ensuring both our drivers and riders can travel with confidence,” said Cassie Jaganyi, Head of Communications for Uber, Sub-Saharan Africa.

    Through the partnership with electric mobility solutions provider Greenwheels Africa, Uber says it aims to elevate standards across Kenya’s motorcycle taxi industry by demonstrating the value of proper training and verification processes

    “Our partnership with Uber allows us to combine our expertise in electric mobility with their technology and safety standards to offer an experience that is not only safer, but also more sustainable. We ensure that every rider receives hands-on training, regular safety inspections, and support so that they can operate confidently and responsibly on the roads,” added Nabil Anjarwalla, CEO, Greenwheels Africa.

    According to the National Transport and Safety Authority (NTSA), Kenya has over 2.5 million registered motorcycles, with 1.8 million actively in use, and tens of thousands operating daily in Nairobi alone.

    The sector generates an estimated Ksh 660 billion annually, contributing 4.4pc to Kenya’s GDP.

  • Uber strikes EV deal with Chinese Tesla rival BYD

    Uber strikes EV deal with Chinese Tesla rival BYD

    Uber has announced a deal which aims to bring 100,000 electric vehicles (EVs) made by China’s BYD to the ride-hailing giant’s global fleet of cars.

    The two companies say they will offer Uber drivers incentives to switch to electric cars, including discounts on maintenance, charging, financing and leasing.

    The multi-year agreement will be rolled out first in Europe and Latin America, before being made available in the Middle East, Canada, Australia and New Zealand.

    The announcement comes as EV sales around the world have slowed and Chinese car makers face higher import charges in places like the US and the European Union.

    “The companies aim to bring down the total cost of EV ownership for Uber drivers, accelerating the uptake of EVs on the Uber platform globally, and introducing millions of riders to greener rides,” the two firms said in a statement.

    They also said they will work to integrate BYD’s self-driving technologies into Uber’s platform.

    Earlier this year, Uber said it was working with Tesla to promote EV adoption among its drivers in the US and planned to develop a purpose-built EV with South Korean car giant Kia.

    The US, the European Union and other major markets have recently hiked tariffs on China-made EVs in moves aimed at protecting their car industries.

    The move has prompted BYD and other Chinese EV makers to expand their production facilities outside China.

    In July, BYD agreed a $1bn (£780m) deal to set up a manufacturing plant in Turkey.

    The new plant will be able to produce up to 150,000 vehicles a year, according to Turkish state news agency Anadolu.

    The facility is expected to create around 5,000 jobs and start production by the end of 2026.
    Also last month, BYD opened an EV plant in Thailand – its first factory in South East Asia.

    BYD said the plant will have an annual capacity of 150,000 vehicles and is projected to generate 10,000 jobs.

    At the end of last year, BYD announced it would build a manufacturing plant in EU member state Hungary.

    It will be the firm’s first passenger car factory in Europe and is expected to create thousands of jobs.

    The company has also said it is planning to build a manufacturing plant in Mexico.

    BYD, which is backed by veteran US investor Warren Buffett, is the world’s second-largest EV company after Elon Musk’s Tesla.

  • Uber faces £250m London black cab drivers lawsuit

    Uber faces £250m London black cab drivers lawsuit

    Uber is facing a multi-million pound legal claim being brought on behalf of almost 11,000 London black cab drivers.

    Litigation management firm RGL Management says the claim is worth at least £250m, with cabbies potentially getting £25,000 each.

    Uber did not immediately reply to a BBC request for comment.

    The lawsuit, which is set to be filed in the High Court on Thursday, is the latest challenge to the US-based ride-hailing giant in the UK’s capital.

    The group action focuses on Uber’s operations in London between May 2012 and March 2018.

    The case, which is being brought for the claimants by law firm Mishcon de Reya, claims that in order to obtain a licence to operate in the city, Uber deliberately misled Transport for London (Tfl) about how its app worked.

    The claimants also allege that Uber’s intention was to “unlawfully… take business from existing black cab drivers”, according to a statement by RGL.

    “Uber seems to believe it is above the law and cabbies across London have suffered loss of earnings because of it,” said Garry White, who has been a black cab driver for 36 years. “It is time they were held to account.”

    Over the years, Uber has faced a number of challenges in London, as well other cities around the world.

    Tfl refused to renew the company’s licence in 2017, saying it showed “a lack of corporate responsibility” with “public safety and security implications”.

    At the time, Uber’s chief executive Dara Khosrowshahi apologised for past mistakes and said the firm would dispute the decision.

    Uber successfully appealed after renewal of the licence was again denied two years later.

    In 2022, a two-and-a-half-year licence to operate in London was granted. It is due to expire at the end of September.

    Uber has also been the focus of demonstrations organised by London’s black cab drivers.

    Earlier this year, Uber agreed to pay A$271.8m ($177.7m; £141.7m) to settle a lawsuit in Australia, according to a law firm for taxi operators and drivers.

    Maurice Blackburn Lawyers filed the class action on behalf of more than 8,000 taxi and hire car owners and drivers.

    The case alleged they lost income when the ride-hailing giant “aggressively” moved into the country.

    “Since 2018, Uber has made significant contributions into various state-level taxi compensation schemes, and with today’s proposed settlement, we put these legacy issues firmly in our past,” Uber said in a statement.

    The company did not disclose the size of the proposed settlement.

    In December 2023, Uber won a lawsuit brought against it by 2,500 taxi drivers in France.

    A Paris commercial court ruled that Uber had not committed acts of unfair competition.

    San Francisco-based Uber, which was founded in 2009, operates in around 70 countries and more than 10,000 cities globally.

  • Uber agrees $178m payout to Australia taxi drivers

    Uber agrees $178m payout to Australia taxi drivers

    Uber has agreed to pay A$271.8m ($178.3m; £140m) to settle a lawsuit in Australia, according to a law firm for taxi operators and drivers.

    Maurice Blackburn Lawyers filed the class action on behalf of over 8,000 taxi and hire car owners and drivers.

    The case alleged they lost income when the the ride-hailing giant “aggressively” moved into the country.

    “Uber fought tooth and nail at every point along the way,” the law firm said.

    “Since 2018, Uber has made significant contributions into various state-level taxi compensation schemes, and with today’s proposed settlement, we put these legacy issues firmly in our past,” Uber said in a statement.

    The company did not disclose the size of the proposed settlement.

    “It would be inappropriate to comment on specifics until the agreement is finalised and the settlement is disclosed to the court,” it said.

    The class action was filed against Uber in 2019 in the Supreme Court of Australia’s Victoria state.

    “This case succeeded where so many others have failed. In Victoria, Queensland and Western Australia, cases were brought against governments and all of them failed,” Maurice Blackburn principal lawyer Michael Donelly said.

    “What our group members asked for was not another set of excuses – but an outcome – and today we have delivered it for them,” he added.

    Before any pay out can be made the court still needs to approve the proposed settlement as being in the best interests of group members.

    San Francisco-based Uber, which was founded in 2009, operates in around 70 countries and more than 10,000 cities globally.

    Over the years, it has faced protests by taxi drivers in cities around the world.

    In December 2023, the company won a lawsuit brought against it by 2,500 taxi drivers in France.

    A Paris commercial court ruled that Uber had not committed acts of unfair competition.

    The taxi drivers had been seeking €455m ($495.4m; £389m).