How To Invest In Uber In Kenya
Uber is a multinational transportation network company that operates through a mobile app platform. Uber launched its services in Kenya in 2015, specifically in Nairobi. In this article, you will learn how to invest in Uber in Kenya. You will also find different things that you need to know before investing in the Uber business in Kenya.
Since Uber was launched in Kenya, it has expanded its operations to other major cities in Kenya, including Mombasa, Nakuru, and Kisumu. Uber’s entry into the Kenyan market brought about a significant shift in the transportation landscape, providing an alternative to traditional taxis and public transportation. There are different types of Uber rides in Kenya which vary on the type and size of vehicle, and also on distance.
Types of Uber Rides In Kenya Include:
UberX
The common uberX service offers reasonable, everyday transport throughout Mombasa and Nairobi, assisting in the movement of citizens in both cities. Whether you’re on your way home from work or out with friends, uberX cars are the go-to option for quick, inexpensive transport across town. The vehicles on the uberX vehicle list are typically comfy sedans that accommodate up to four passengers – plenty of room for coworkers, friends, or family.
UberSELECT (premium vehicles)
UberSELECT is a high-value option that provides a higher-quality experience. In addition to being a comfortable and dependable trip, it is an Uber premium car service: your vehicle will be a newer, more luxurious model, including 7-seater sedans.UberSELECT is the ideal option for arriving in elegance without breaking the bank.
UberCHAPCHAP (economical options)
When you need to make a quick trip and time is of the essence, use UberCHAPCHAP in Nairobi. UberCHAPCHAP is a low-cost solution that provides rapid and easy rides starting at KSh 100! Even though the service area is limited, UberCHAPCHAP is the way to go for those last-minute errands.
UberBODA
You may take a regular, low-cost boda-boda ride in Nairobi with UberBODA. However, there is no haggling or hunting for a ride with UberBODA! You’ll know what you’re paying before you ride if you use the Uber app, and you’ll be able to see your driver’s data and be confident that they have a legal license.
UberPoa
UberPoa is mostly used in Mombasa because tuk tuk rides. You can request an UberPOA transport using the Uber app for a cheap Tuk Tuk trip around Mombasa, now without the haggling and risky maneuvers. It is now available inside Mombasa Island and numerous other places.
How Much Money Do You Need To Invest In Uber Business in Kenya
To invest in the Uber business in Kenya you basically need a car that meets specific requirements. If you already have a car it’s much easier because you’ve already reached the bare minimum requirement. For those without a car and who want to start the business from afresh, you need roughly 1 million Kenya shillings.
So, basically, if you want to invest in the Uber business in Kenya you need enough money to buy a car that meets the required Uber conditions.
Also, there are different rides in Uber, you can start as low as 100, 000 Kenya shillings with UberBoda. So, for UberBoda and UberPoa you need enough money to buy a motorbike or a Tuk Tuk which is a bit cheaper than buying a car. For Tuk Tuk, you need between 100,000 and 250,000 Kenya shillings. Although, UberPoa mostly operates in Mombasa.
What Are The Uber Business Requirements In Kenya
To be able to start an Uber business in Kenya you need the following requirements:
- A PSV (public service vehicle) insurance from a well-known company in Kenya. Since Uber offers taxi services to the public, before starting you need to insure the car that you’re using for the business with PSV insurance from a recognized company.
- Your car needs a valid motor registration certificate.
- Your car needs to be a minivan or a four-door car that is in perfect condition.
- Your car should not be old. It should be the Model year 2012 and above
- You need a business permit.
- For UberBoda your Motorbike should be in perfect condition and it should have PSV insurance also from a recognized company. The same apply for UberPoa (Tuk Tuk).
How To Register and Get Started With Uber In Kenya
After getting what you need to start an Uber business in Kenya, now you need to register and get started.
These are the steps you need to follow to register:
1. Create a profile.
You need to visit the Uber website (uber.com), create your profile, and then fill in all the required information.
2. Upload your documents
- Add your PSV license and Regular (non-PSV) driving license to your profile by uploading them.
- Complete your vehicle inspection
- Submit all your vehicle information and relevant documents on partners.uber.com
Vehicle documents that are required are:
- Motor vehicle registration book
- PSV insurance
- Vehicle inspection report
- Business Permit
- Partner National ID
3. Complete your profile.
Complete your driver screening session and certification process.
What You Need To Become A Uber Driver In Kenya
Here are step-by-step guides on how to become or register as a Uber driver in Kenya:
1. Sign up online.
All you need to sign up as a driver is an email address and a smartphone. So, you will visit the Uber website (uber.com) and click on sign up to drive, then fill in the required information.
2. Upload your documents.
In this section, you need to upload all the required documents.
The required documents are:
- National identity card
- PSV driving license
- Safety screening (Nairobi and Mombasa)
- Complete a Certification session
- Profile photo
3. Get a vehicle.
You need to make sure that your vehicle is in perfect condition for business and that it meets all the Uber business standards in Kenya.
4. Activate your account.
Congratulations on completing all the steps mentioned above! You are now fully prepared to activate your account and start earning money.
How To Download Uber App In Kenya
To download the Uber app in Kenya you can click on this link – Uber App Download, or you visit your app store and type Uber app on the search box and install it from there.
How does Uber work
For Uber to work it needs two participants, the driver and the rider.
Here is how Uber works.
1. A rider opens the app
The rider opens the app and fills in his/her destination details. After that, the app will give the rider different ride options for vehicle size, price, and estimated pickup and dropoff time. Then the rider will choose his/her desired option then confirm the pickup.
2. The passenger is paired with a driver.
A nearby driver notices the rider’s request and chooses to accept it. When the driver’s vehicle is about a minute distant, the rider is automatically notified.
3. The driver picks up the rider
The driver picks up the rider then they both verify each other’s name and the destination. Then the driver starts the ride.
4. The rider is driven to the destination by the driver.
The app allows the motorist to access turn-by-turn directions.
5. The driver and rider provide feedback and ratings.
Drivers and riders can rank each other from 1 to 5 stars at the end of each trip. Riders can also leave compliments and tips for the driver straight in the app.
NOTE: You can invest in Uber business by taking a loan from financial institutions. To get a loan from most of the financial institutions in Kenya you need to be a member for at least 6 months. These financial institutions include banks, SACCOs, and micro finances. Here are the best SACCOs in Kenya that you can get loans and invest in. You can also learn how to invest in SACCOs in Kenya.
Frequently Asked Questions
1. What are the major things to consider when buying a car for Uber business?
When getting a car for Uber business in Kenya you need to get a car that fits the following requirements.
- the model year 2012 and above
- 4-door car
The paperwork for the vehicle is:
- Motor vehicle registration book
- PSV insurance
- Vehicle inspection report
- Business Permit
- Partner National ID
2. What percentage does Uber take?
In Kenya, Uber deducts a service fee of 18%.
3. How does Uber determine the price of a ride?
Uber determines the price of a ride using a combination of factors, such as the distance of the trip, the time of day, the demand for rides in the area, and the type of vehicle requested.
The fare is calculated based on a base fare, a per-minute charge, and a per-mile charge. Surge pricing may also be applied during times of high demand, which can increase the fare significantly.
It’s worth noting that Uber uses an algorithm to determine the price of a ride, so the exact fare may vary depending on the specific factors at play at the time of the ride request.
4. What safety measures does Uber have in place for riders and drivers?
Uber has implemented several safety measures for both riders and drivers. Here are some of the safety features Uber has in place:
– Background checks: Uber conducts background checks on all drivers before they can start driving on the platform. The checks include looking into criminal records, driving history, and other relevant information.
– Driver ratings: After each ride, riders can rate their driver on a scale of 1 to 5. Drivers with low ratings may be removed from the platform.
– GPS tracking: Uber uses GPS tracking to monitor the location of both riders and drivers during a trip. This feature helps ensure that drivers are taking the most efficient route and can also help in case of an emergency.
– In-app emergency button: Both riders and drivers have access to an emergency button within the Uber app. This feature allows users to quickly contact emergency services if needed.
– Two-factor authentication: To prevent unauthorized access to user accounts, Uber uses two-factor authentication. This means that users need to provide two forms of identification (such as a password and a code sent to their phone) to log in.
These are just a few of the safety measures that Uber has in place. By implementing these features and others, Uber aims to provide a safe and reliable transportation option for riders and drivers alike.
