Uber, Bolt say price increases don’t make business sense

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Demands made by drivers during mediation were “extreme”, say e-hailing firms. Boltapp_za Uber_RSA Uber Bolt e-hailing

E-hailing firms Uber and Bolt say they have already hiked their ride-hailing fees on multiple occasions this year, and have no plans for a further increase in the short-term.of last week’s mediation process between the two digital economy firms, e-hailing operators and drivers – facilitated by Gauteng MEC for transport Jacob Mamabolo – the firms say further fare increases will result in unsustainable business and hamper further growth.

These include low wages, safety issues, rider fare structuring and the urgent need for regulation of the sector. Responding to ITWeb’s questions, Takura Malaba, country manager for Bolt SA, says the company increased its fares by up to 20% earlier this year, with increases implemented on the minimum fare, start rate, per kilometre rate and the trip cancellation rate.

Bolt says part of its mission to consistently identify ways to increase driver earnings includes incentivising passengers, launching new categories, establishing partnerships with other brands, and marketing the Bolt platform to attract passengers. “It is important to note the current economic climate. Where price options are made too high, there could be a risk of fewer or no requests from riders – meaning fewer or no earning opportunities for drivers.”GEPCO had requested that driver commissions be reduced to 10% and for booking fees to be charged as part of the service, not separately.

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