hi
Is Uber Business Profitable in Kenya 2023
Are you a car Owner or wants to venture into an online taxi business in Kenya? Online Platforms like Uber Bolt, Faras, and Indriver, Provide you with an opportunity to get customers hustle-free from the Traditional Taxi system with flexible schedules and promising profits. However, when examining the specific case of Uber and the Online Taxi Business in Kenya, the reality is far from what many might expect.
The combination of soaring fuel prices, competition, traffic, Police harassment, and high commissions has rendered the Uber business considerably less profitable in Kenya. In this blog post, we’ll give the reasons why Uber business is not a good choice of Business to do in Kenya Today. IS Uber Business Profitable In Kenya?- No Uber Business is Not Profitable in Kenya 2023 due to High Fuel Prices, Competition, Traffic and High Cost of Maintaining your Vehicle.
Why Uber and Bolt Business is Not Profitable Business to Start in Kenya
High-Cost Fuel Price.
One of the reasons why Uber Taxi Business is not profitable in Kenya is the continuously rising fuel prices. With fuel being a primary operational expense in this Business, the imbalance between fuel costs and the prices offered to customers in this Platform puts considerable strain on drivers’ earnings and Profits. The unfortunate truth is that even with the high demand for rides mostly it does not translate into substantial profits due to these inflated fuel expenses.
Traffic Jam
Traffic Jam in Nairobi city is Nightmare for Taxi Business in Kenya. This results in longer travel times, lower trip turnover, and subsequently, reduced earnings for Uber drivers.
Spending a significant portion of their workday stuck in traffic Jams not only impacts profitability but also translates to Higher Fuel Usage and wear and tear on vehicles, leading to higher maintenance costs.
Harassments by Traffic Police and County Council Traffic Police
Navigating Nairobi City and Mombasa often involves facing another challenge of Lack of Parking Spaces and Minor or even Unrealistic Traffic Offences: the interactions with traffic police and county government officials. In Kenya, the threat of fines for even minor mistakes looms large.
This uncertainty places an additional burden on Uber drivers, who may have to allocate a portion of their earnings to potential fines, Corruption, etc, further affecting the Profits of Uber Drivers.
High Commissions.
Online Taxis Like Uber and Bolt’s business model involve taking a percentage of drivers’ earnings as commissions (to be paid to these apps). However, in Kenya these commissions might be disproportionately high, considering the factors like distance, time, and fuel consumed.
This model reduces drivers’ potential earnings, making it challenging to achieve the desired level of profitability.
How to Make More Money In Uber Business Here In Kenya
Transition to Gas Fuel
To combat the rising fuel prices in Kenya, a reliable solution for Uber or Online Cabs drivers is to transition to alternative fuels, such as installing gas systems in their vehicles. Utilizing gas could cut fuel expenses by up to half, effectively increasing drivers’ profit. Otogas Kenya Provides Solutions To Cab Drivers to afford Cheaper Fuel For their Uber Taxis.
Diversification
As an Uber driver in Kenya, you can explore diversifying your services beyond one App. For instance, Having More than 1 App or partnering with local businesses for delivery services, or providing Private Transport Solutions could help drivers maximize their Profit streams and utilize their vehicles more efficiently.
Advocacy and Negotiation
Online Cab drivers in Kenya could collaborate and form associations to collectively negotiate better terms and conditions with Online Taxis Platforms. This could include revisiting the commission structure or addressing concerns about their well Being, potentially leading to a more Equitable business relationship.
How much does Bolt driver make a day?
A bolt Driver In Kenya Makes Around 1500-5000 Kshs in A day