Uber, Bolt, Little and other online Taxi apps refusal to follow the gazetted rules


Uber, Bolt, Little and other online Taxi apps refusal to follow the gazetted rules
The Issue
We, the concerned Uber and Bolt drivers, demand the immediate gazettement of the Digital Hailing Service Laws (TNC Rules 2022) which were ratified by the Senate Labor Committee chaired then by Senator Sakaja. The TNC Rules 2022 provide that the maximum commission that taxi hailing companies can receive is 15%.
On the 29th November 2021,Uber and Bolt opposed the capping of commission at 15% claiming that it was “discriminatory and disincentivizing to investment in the business.”
“We are asking Uber and Bolt to obey the law. Regulations were supposed to take effect on September 22.” The Organization of Online Taxi Drivers and Digital Taxi Association of Kenya chairman said. “The other problem we have is we don’t determine prices, the companies do. We are still operating with the same price when fuel prices were at Ksh97 ($0.80),” he added.
Uber is currently contesting gazettement of the proposed laws.
The company argues that Kenya is a free market, where ride-hailing companies have the right to negotiate commercial agreements without external influence. It also claims that the regulations were made and gazetted without following due process and public participation.
“The introduction of 18% as the ceiling for allowable commission has the potential to stifle innovation and reduce the petitioner’s economic feasibility of investing in the market,” said documents filed by Coulson Harney LLP, the law firm representing Uber.
This petition calls upon the Ministry of Transport and Infrastructure, the National Transport Safety Authority (NTSA) to ensure that the laws once gazetted are enforced.
We also call upon the Head of East Africa Uber and the C.E.O of Bolt to cap their commission to not more than 15%.
Currently the hailing apps charge a commission of between 25%-30% which not only reduces the take home for drivers but also doesn't reflect the true nature in the fuel price increments and cost of inflation in Kenya.
The Issue
We, the concerned Uber and Bolt drivers, demand the immediate gazettement of the Digital Hailing Service Laws (TNC Rules 2022) which were ratified by the Senate Labor Committee chaired then by Senator Sakaja. The TNC Rules 2022 provide that the maximum commission that taxi hailing companies can receive is 15%.
On the 29th November 2021,Uber and Bolt opposed the capping of commission at 15% claiming that it was “discriminatory and disincentivizing to investment in the business.”
“We are asking Uber and Bolt to obey the law. Regulations were supposed to take effect on September 22.” The Organization of Online Taxi Drivers and Digital Taxi Association of Kenya chairman said. “The other problem we have is we don’t determine prices, the companies do. We are still operating with the same price when fuel prices were at Ksh97 ($0.80),” he added.
Uber is currently contesting gazettement of the proposed laws.
The company argues that Kenya is a free market, where ride-hailing companies have the right to negotiate commercial agreements without external influence. It also claims that the regulations were made and gazetted without following due process and public participation.
“The introduction of 18% as the ceiling for allowable commission has the potential to stifle innovation and reduce the petitioner’s economic feasibility of investing in the market,” said documents filed by Coulson Harney LLP, the law firm representing Uber.
This petition calls upon the Ministry of Transport and Infrastructure, the National Transport Safety Authority (NTSA) to ensure that the laws once gazetted are enforced.
We also call upon the Head of East Africa Uber and the C.E.O of Bolt to cap their commission to not more than 15%.
Currently the hailing apps charge a commission of between 25%-30% which not only reduces the take home for drivers but also doesn't reflect the true nature in the fuel price increments and cost of inflation in Kenya.
Victory
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The Decision Makers
Petition created on 20 September 2022