Uber Kenya in partnership with local CMC Motors (Suzuki franchise holder) has imported 300 Alto cars in a bid to pilot the Uber chap chap service. Kenya Stanbic Bank facilitated the financing at a subsidized cost of Ksh 835,000 per vehicle.
“The fuel-efficient car allows the driver-owners to repay the financing as well as extending the benefits of less fuel consumption to riders.” Uber Kenya General Manager, Loic Amado
The service was inspired by often use by Nairobi residents to run errands n short distances such from office to office or bank runs.
Amado says the venture into a fuel-efficient car was partly as a result of the intense competition in the ride-sharing segment which has been characterized by price wars, strikes by drivers and resistance from traditional cab drivers in the three years Uber has been in Kenya.
The service will have lower price points compared to UberX and Uber select. The base fare is KES 80, per kilometer fare is KES 16 and per minute fare is KES 4. The minimum fare is KES 100 and if you cancel the trip, the fee is KES 100. This has been made possible because the Alto consumes a litre of fuel per every 25 km.
‘Uber Chap Chap’ is set to operate within Nairobi’s CBD and its environs including parts of Parklands, Westlands, Kileleshwa, Arboretum, Hurlingham, Ngumo, Nyayo Highrise, Ngara and Nairobi West.”
“We believe we are creating a new segment in the market but we know there is a possibility of cannibalizing our other segments but what we see is people moving between the products,” adds Amado
The company is impressed with the high interest and uptake of the service.