Uber’s app is a major reason it is the preferred ride-hailing service in Ghana is its technology. One will opt out of a competitor’s app just because of the unparallel user-experience they get from Uber’s app. Cost of running the app including support and marketing is the reason Uber won’t reduce the 25% it takes from driver-partners.
Some driver-partners are unhappy about this; however, this is what keeps the business running. Despite competition reducing their service fees, Uber remains resolute about the decision not to. In this article, you will understand why and what Uber is doing to motivate driver-partners.
Lola Kassim, the General Manager for Uber West Africa, sat with selected media members to discuss their business and answer some relevant questions associated with Uber in Ghana.
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Uber started its operations in Accra, Ghana in 2016, and extend the service to Kumasi the following year. It will excite you to know that Uber at this time of writing has over 180, 000 riders and about since 6,000 active driver-partners in Accra and Kumasi.
A lot was said at the media session. However, I will detail the salient areas of our conversation with Ms Kassim.
Why is Uber running promotions for riders?
From time to time, Uber runs promotions for riders. The purpose of these promotions is to increase the number of riders using Uber, which ultimately leads to higher earnings for driver-partners.
Do drivers earn less money when they pick up a rider who has a promotion on their account?
Driver earnings are not affected by rider promotions. Promotions offered to riders are paid for by Uber on behalf of riders.
Why do you take the 25% service fee?
Ms Kassim stated that we have a standard service fee in all cities which is 25%. The cost of running the Uber app comes out of Uber’s service fee from each fare. This service fee has been put in place so the app can be continually improved in order for it to be seamless and efficient for riders and drivers so that we can market to riders and continue to create economic opportunities for the people of Ghana
Why doesn’t Uber lower its 25% service fee?
She went on to say, merely reducing our service fee does not make business sense for Uber or our driver-partners because it does nothing to grow the business. We have seen that reducing the ride costs helps increases the number or Uber customers – which means more business for driver-partners. Of course, for the strategy to work, Uber needs to be able to market to riders. The cost of doing this, and running the business, comes out of Uber’s service fee from each fare. Uber wants to get more people to choose to leave their car at home and let Uber get them to where they need to be. Drivers-partners are vital in achieving this vision. We’re in this business together and, together, we will make it work for all of us.
What is Uber doing to assist driver-partners with their earnings?
In response to the above, she said “We are currently investing in incentives to Boost driver earnings in Accra. We are also helping drivers reduce the amount of service fee owed to Uber by matching payments.”
Is Uber engaging with driver-partners
Ms Kassim made it known that efforts are being made. We are currently engaging with driver-partners with a view to making them further understand critical details of the promotions, and we have also held focus groups with driver-partners in an effort to better engage on their questions and concerns.
It was a superb session with Ms Kassim. In her opinion, the company is doing very well in Ghana; however, they are aware of the rising challenges and are doing everything in their power to streamline things. She stressed the need for feedback and appealed that riders should continuously report complaints through the Uber in-app feedback.
Your feedback is what makes Uber efficient, so, before you jump on social media to post your displeasure, kindly make sure to inform Uber.
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