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Ex-Uber executive reveals how driver earnings were slashed in Kenya

 2 years ago
source link: https://finance.yahoo.com/news/ex-uber-executive-reveals-driver-123637433.html
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Ex-Uber executive reveals how driver earnings were slashed in Kenya

Annie Njanja
Mon, May 23, 2022, 9:36 PM·4 min read
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New details have emerged showing that Uber was planning to further reduce commuter charges in Kenya, months after the 35% cut of 2016, which is the subject-matter of a civil suit filed by drivers against Uber BV and its local subsidiary.

Alissa Orlando, a former Uber executive in Kenya, said that she left the ride-hailing company in February 2017, after a period of contesting the additional price cuts, which the company’s management was actively pushing for. As the operations manager in Kenya, Orlando was in charge of launching new products across East Africa, and negotiating partnerships with third-party companies like banks, amongst other duties.

In a verified affidavit that supports the drivers’ case against the ride-hailing company, Orlando said Uber planned to push down the minimum fare from the Ksh200 (about $2 as per the 2016 exchange rate) it had settled at after a 35% price cut.

Orlando, who joined Uber in June 2016 from Rocket Internet (Jumia), weeks after the ride-hailing company instituted its first price cut in Kenya, said the plan by Uber to reduce the prices while retaining its 25% commission “was done arbitrarily and unreasonably without consulting the drivers and without due regard to the prevailing economic conditions.”

She left the company in protest.

“Due to the arbitrary nature of decision-making in matters involving drivers by Uber Kenya Limited and Uber BV, I decided to leave my position as Operations Manager in February, 2017,” said Orlando, who is now based in New York.

While Uber did not decrease its UberX prices, it introduced a lower-priced service dubbed Chap Chap in January 2018, which has over time become the default ride-hailing service in Kenya’s capital Nairobi, and set minimum fare at $1.

Orlando told TechCrunch during an interview that by the time she left, Uber had also reduced the trips per hour target from 1.3 to 0.9, as the company increased the number of cars and drivers using its platform, further dipping the drivers’ earnings.


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