Uber, the renowned ride-hailing company, has made significant strides in Kenya since its launch in 2015. A recent Economic Impact Report unveiled by the company highlights its positive contributions to the nation’s economy, particularly in the tourism sector.
The report, compiled by Public First, underscores the app’s transformative influence on drivers, delivery partners, merchants, and communities. In 2023 alone, Uber generated an additional KSh 2.2 billion in earnings for gig riders, a substantial 37% increase compared to alternative options. The company also contributed KSh 167 million to Kenya’s nighttime economy and boosted the tourism sector by KSh 2.7 billion. Additionally, Uber Eats added KSh 534 million in value to local restaurants.
One of the key benefits of Uber is its convenience. Customers value the app for its ease of use, with 95% citing it as the primary reason for choosing Uber. The app has saved Kenyans 3.4 million hours annually, and 70% of users rely on it for emergencies and hospital visits. Uber Eats has further streamlined the dining experience, saving customers 448,000 hours in 2023 and introducing them to new restaurants.
Despite its numerous successes, Uber faces challenges such as balancing affordability and driver earnings. To address these issues, the company has introduced innovative solutions like Electric Boda and Uber One, a membership program offering ride and delivery perks. Partnerships with organizations like Safaricom have also helped to alleviate cost pressures for drivers.
However, the proposed increase in the Significant Economic Presence tax from 1.5% to 6% could hinder Uber’s growth and impact its ability to reinvest in the market. This could ultimately lead to higher costs for customers.
Safety remains a top priority for Uber. The company has implemented features like “RideCheck” to enhance security and has gained the trust of its users, with 80% of customers believing that Uber has transformed night travel and 70% of women considering it the safest nighttime option.
Uber’s positive impact on Kenya’s economy is undeniable. The company’s commitment to innovation, convenience, and safety has made it an integral part of the Kenyan landscape. As Uber continues to evolve, it has the potential to further drive economic growth and improve the lives of Kenyans.
