According to a recent report from Uber Kenya, the ride-hailing company contributed positively to Kenya’s economy and helped boost its tourism sector.
In an Economic Impact Report launched by Uber launched at Tuesday, Uber highlighted some positives the company has made in Kenya.
By the numbers
- KSh 2.2 billion: Additional earnings for gig riders, a 37% boost compared to alternative options, according to Uber’s first Economic Impact Report.
- KSh 167 million: Contribution to Kenya’s nighttime economy.
- KSh 2.7 billion: Uber’s boost to Kenya’s tourism sector in 2023.
- KSh 534 million: Value added to restaurants via Uber Eats last year.
Economic ripple effect
Compiled by consultancy firm Public First, the report highlights Uber’s transformative role since launching in Kenya in 2015. It quantifies the app’s benefits for drivers, delivery partners, merchants, and communities, including:
- Driver flexibility: Worth KSh 1.6 billion in 2023.
- Convenience: Saved Kenyans 3.4 million hours annually.
What they’re saying
“Since launching, we’ve created thousands of economic opportunities while supporting local businesses with new revenue streams,” said Imran Manji, Uber East Africa Head.
Customer insights
- 95% of users cite convenience as the main reason for using Uber.
- 70% rely on the app for emergencies; 60% for hospital visits.
- Uber Eats saved customers 448,000 hours in 2023, with 90% using the app to discover new restaurants.
Challenges and innovations
Balancing affordability and driver earnings remain critical.
- New offerings like Electric Boda and Uber One (a KSh 280/month membership with ride and delivery perks) aim to attract more customers.
- Partnerships, such as discounted maintenance for drivers and free Safaricom data, address cost pressures.
The big picture
Uber faces potential headwinds with a proposed 6% Significant Economic Presence tax, up from 1.5%. “Higher taxes could limit market reinvestment and push costs onto customers,” Manji warned.
Safety first
- 80% of users say Uber transformed night travel; 70% of women consider it the safest nighttime option.
- Features like “RideCheck,” which flags prolonged stops, enhance security.
Source: Kenya Wallstreet
