Most people in Nairobi today use an app to order for a ride. It is cheaper and convenient. The use of Taxi apps in Nairobi is a concept that was introduced by Uber and many companies have joined in.
However, competition has been very stiff in this industry and we have seen many companies come and go. This can easily be attributed to the aggressive marketing Uber has done in Kenya. Bolt (formerly known as Taxify) is the strongest competitor to Uber in Kenya. Both of these companies are very similar in functionality and ideology.
The biggest problem with the said companies is the large Commission percentage they take from drivers. This has led to many drivers revolting against them. Last year alone, Taxi drivers in Kenya went on strike at least three times. But even after the strikes, Uber did not make any significant changes to the Commission model.
So, why is Caby Different
After talking to a few drivers, a taxi-hailing company by the name Caby came up with a subscription-based system where they take a flat rate of Ksh 200 shillings every day from the drivers. This means that the drivers take all the amount they make from the trips in the subscription-based system.
Caby also has a commission-based system that the drivers can switch to if they wish to. This gives them liberty and independence to run their business as they choose to. They can switch from subscription to commission any day every day.
Such independence can come in handy especially if you want to pay the subscription but do not have the money upfront. So that day you can choose to use a commission instead. It is entirely up to the driver to run the business as they choose.
What this means for the Taxi drivers in Nairobi
Taxi drivers in Kenya will be able to make more money as a result. Take this scenario: a driver makes trips worth Ksh 4,000 in a day. That means companies that use a commission-based system, like many ride-hailing companies in Nairobi, will take home Ksh 1,000 from them. This is because most of these companies take 25% commission on each trip taken.
Imagine someone taking almost a third of your hard-earned money while you do all the work? You too would be frustrated. Maybe that is the reason why so many customers complain of rude drivers…maybe they are just frustrated with all the money ride-hailing companies are taking from them. Imagine the driver makes Ksh 7,000 shillings that day? Imagine the commission they would need to give to such companies?
But steps in a subscription base system from Caby where the company takes only 200 shillings from the driver. That means if they make Ksh 3,000 they only take Ksh 200 shillings. If they make Ksh 7,000 then Caby will still take Ksh 200 shillings.
What this means for the taxi customer in Nairobi
This is where things get interesting!
Since the amount of money Caby is taking is static and the driver is making more money, the Cab rides in Nairobi can be cheaper without hurting the driver.
Which means Nairobians can afford cheaper taxi rides without making the driver feel hard done. Such a situation would allow more people to be able to afford cab rides in Nairobi and inevitably lead to more customers for the driver.
So overall, we see that the driver earns more money, the customers pay less… meaning the Driver gets more customers.
This is in all definition of the term: a win-win.
