Uber’s operations inject Sh14.1 billion into Kenya’s economy – Report
By Lucy Mumbi |
The report estimated that Uber's flexibility was worth Sh1.6 billion to drivers and delivery partners in 2023.
Ride-hailing app Uber contributed Sh14.1 billion to Kenya’s economy last year, highlighting its significant impact on various sectors.
According to Uber’s first Economic Impact Report launched at the Fairmont Norfolk Hotel in Nairobi, the platform boosted gig workers’ incomes by Sh2.2 billion annually — 37 per cent more than their next best alternative.
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The report, compiled by London-based consultancy Public First, also showed that Uber enhanced the night-time economy by Sh167 million and injected Sh2.7 billion into the tourism sector.
Uber Eats added Sh534 million to the value of restaurants and eateries in 2023.
Uber East Africa Head, Imran Manji, noted that since Uber’s entry into Kenya in 2015 and the subsequent launch of Uber Eats in 2018, the platforms have not only facilitated mobility and delivery services but also created economic opportunities for drivers, delivery partners, and local businesses.
“We have helped drivers and delivery partners improve their livelihoods, support their families, and create new revenue streams for businesses," Manji said.
The report further highlighted that 70 per cent of drivers surveyed expressed a positive outlook on the Uber platform, with 57 per cent choosing it as a path to self-employment and 41 per cent appreciating the flexibility it offers.
The report estimated that this flexibility was worth Sh1.6 billion to drivers and delivery partners in 2023.
Uber’s operations also saved Kenyans an estimated 3.4 million hours annually.
The majority of users cited convenience as their primary reason for using the platform, with 95 per cent relying on Uber for urban travel and over 70 per cent using it for emergencies.
In the food delivery sector, Uber Eats users saved 448,000 hours annually, with nearly 90 per cent discovering new restaurants through the app.
Co-founder and COO of Ando Foods, Vineet N.R., said Uber Eats transformed their operations by scaling delivery beyond physical limitations.
While Uber has made significant contributions, challenges remain.
Manji expressed concerns over the proposed reintroduction of the six per cent Significant Economic Presence tax, replacing the 1.5 per cent Digital Service Tax.
He warned that higher taxes could affect Uber’s ability to reinvest in the Kenyan market, potentially leading to increased costs for customers.
Safety also featured prominently in the report, with 70 per cent of women considering Uber rides the safest option for night-time travel.
The app’s features, such as “RideCheck,” which detects prolonged stops, were credited for enhancing safety and reducing congestion.
Manji emphasised Uber’s commitment to balancing affordability for customers, fair earnings for drivers, and sustainable growth, adding that the company continues to explore partnerships and new products to benefit users and workers.
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