This past week, Little, Uber’s main competitor in Kenya launched its operations in the coastal city of Mombasa. Little has first emerged as a cheaper and formidable competitor to Uber, which has culminated into some sort of price war. Earlier in the year, following the launch of Little, Uber slashed its prices by 35%, a move aimed at combating Little’s entry. The price cut led to protests by Uber driver partners who were to bear the burden as Uber still maintained their driver earnings cut at 25%.
Uber has today announced the slashing of prices for rides in Mombasa, a move that seems to counter the entry of Little. The new prices will see the base fare drop from Kes 80 to Kes 50 while reducing the minimum fares in Mombasa from Kes 250 to Kes 150. Below is a breakdown of the new structure:
|Old Uber Prices in Mombasa||New Uber Prices in Mombasa|
|Base||KES 80||KES 50|
|Per Minute||KES 5||KES 3|
|Per KM||KES 50||KES 30|
|Cancellation||KES 200||KES 150|
|Minimum||KES 250||KES 150|
Little has been gaining traction locally especially with the launch of its USSD platform that allows users without smartphones to hail a cab. It has also been popular with drivers for its lower cut on driver’s fee. Little charges no base fare but charges a minimum fare of Kshs. 270 and a cost of Kshs. 55 per kilometer and Kshs. 4 per minute. The service has also been keen to add new features such as the ability to view your fare live as well as free wifi on board.