As they always say, competition is a good thing especially for the end users. This is clearly the case if you look at what Uber has just done. The company has announced that UberX prices in Nairobi have been reduced by 35%. This comes three weeks after Little Cab, which is backed by Safaricom and Craft Silicon, started operations in the city.
Since Little Cab is backed by Safaricom and Craft Silicon, Uber knows that the company is a serious competitor that has the resources to be the go to taxi hailing app in Kenya. This is the main reason why UberX prices in Nairobi have been reduced even though the company will not admit to that.
Here is how the new UberX rates compare to the old ones.
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With the new UberX rates in Nairobi, Uber is slightly cheaper compared to Little Cab. This is not good news for Little Cab as the company has just started operations in the country and the last thing it wants is to be involved in price wars with competitors. This means that Little Cab will be forced to lower its rates or will have a hard time convincing people to use its app. Below is a comparison between Uber and Little Cab.
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All we can do right now is wait and see what Little Cab does.
Also Read: Taxify is the latest Taxi-Hailing App to Start Operations in Kenya
