A few weeks ago, Safaricom partnered with Craft Silicon to launch LittleCabs, a reincarnation of Rocket Internet’s failed effort, EasyTaxi. I reckoned that to attract enough drivers to make the platform worthwhile, they’d have to jack up prices and pass the cost on to the consumer. Now, Uber has slashed its prices by up to 35%, in a bid to “add value for riders, and provide unique opportunities for its drivers”, they said (lol).
The drivers are already complaining because lower fares means lower earnings for them. Thing is, a multitude of drivers doth not a profitable venture make and Uber’s bet is that the users will move to the ridesharing platform with the lowest prices.
Source – Techweez