The recent introduction of the 16 per cent VAT on all petroleum products starting September 1 has had an effect on the taxi-hailing companies.
Among the taxi-hailing companies that have taken action after the recent fuel shortage due to the hiked pricing include Little, Uber and Taxify.
Little on its part wrote to its riders cautioning them about “more waiting time for your driver to reach, as the available drivers may a little far from your location.”
Chief Executive Kamal Budhabhatti noted that the company would not increase the prices but would have to hike “the driver payments to accommodate this increase without affecting you.”
“Your rate card remains the same for all categories,” Kamal said in an email to Littlers.
The San Francisco-based cab hailing firm, Uber is according to Quartz still reviewing its “driver economics” to better understand pricing.
“While we work through the results, we have invested in a 10% fare boost on all uberX and UberSELECT trips until we complete our earnings review,” an Uber representative told Quartz.
Taxify on the other hand said that the levy does not have any effect on their drivers but will give their Taxify Boda and Go drivers a 15 per cent bonus for every trip made.
The cab hailing company also announced a new feature that connects drivers with trips headed to their destinations.
Driver Destinations feature will help boost the driver’s earnings as it will allow them indicate where they are heading and then synchronizes with the Taxify app to find and connect them with trips that are on their way.
Members of Parliament had voted to delay the levy for two years as the cost of living continues to go up. However, Treasury Cabinet Secretary Henry Rotich insists that the tax is still on.
With the introduction of the 16% tax, a litre of super petrol retails at Sh127.80 while diesel is priced at Sh115.08.
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