Ride-hailing platform Uber says it generated Ksh. 167 million into Kenya’s nighttime economy in 2023, according to its inaugural Economic Impact Report.
The report, compiled by Public First, delves into the economic benefits for drivers, businesses, and the broader community.
“Not only does Kenya’s vibrant nighttime economy give Kenyans amazing social and cultural opportunities, enriching their lives and helping them stay connected with friends and family, it is also a huge asset to the Kenyan economy,” the report reads in part.
Key Findings
- Driver Earnings: Uber enabled drivers to earn an estimated additional KSh 2.2 billion annually, a 37% increase compared to alternative options.
- Nighttime Economy Boost: The platform contributed KSh 167 million to Kenya’s nighttime economy, facilitating safe and convenient transportation to entertainment venues.
- Tourism Sector Impact: Uber’s role in the tourism sector was highlighted, with a KSh 2.7 billion contribution to the industry.
“Tourism is one of Kenya’s strongest industries, accounting for 10.4% of the country’s GDP and 5.5% of its formal employment.13 Uber’s trusted relationship with international travellers means that it is their go-to transport option when exploring Kenya.”
- Restaurant and Delivery Partner Benefits: Uber Eats generated an additional KSh 534 million in value for restaurants and delivery partners.
- Consumer convenience and safety: 95% of respondents cited convenience as the primary reason for using Uber, while 96% of female riders emphasized safety.
- Reduced Congestion and Increased Efficiency: Uber has saved Kenyans 3.4 million hours annually, reducing congestion and improving urban mobility.
“Since Uber launched in Kenya in 2015 and Uber Eats launched later in 2018, not only have we helped facilitate efficient, safe and convenient mobility and delivery for Kenyans, but we have also helped to create thousands of new economic opportunities, empowering drivers and delivery partners to improve their livelihoods and support their families while creating additional value through new revenue streams for local businesses,” Imran Manji, Head of Uber East Africa, said.
Challenges and Future Outlook
The report also addresses challenges faced by the industry, including balancing driver earnings, customer affordability, and business profitability.
Uber’s strategies to address these challenges include:
- Product Innovation: Introducing new products like Electric Boda and Uber One to enhance user experience and drive growth.
- Driver Support: Exploring partnerships to reduce costs for drivers, such as vehicle maintenance subsidies and data plans.
- I am balancing Affordability and Earnings: Implementing customized ride options and dynamic pricing to optimize driver earnings and customer affordability.
- Navigating Regulatory Landscape: Addressing concerns related to the proposed Significant Economic Presence (SEP) tax, which could impact investment and innovation.
Kenya’s Proposed SEP Tax: Uber Seeks Talks to Avoid Exit, Higher Fares
Safety and Security
Uber’s commitment to safety is evident, with features like RideCheck ensuring the well-being of both drivers and riders.
“Uber has a suite of safety features, such as the “RideCheck” feature, which detects if the ride stops for an extended period and sends a prompt to the driver and rider ensuring they are alright, following up with calls to each of them if they are unresponsive,” the report noted.
