Taxi
The online taxi-hailing industry in Kenya was revolutionized with the arrival of Uber in 2015 and Bolt in 2017. These platforms turned the traditional taxi-hailing model on its head. Gone were the days when drivers had to wait at designated spots, hoping for customers. This was not only time-consuming but also left passengers searching for taxis. Additionally, the high fares charged by traditional taxis made them less appealing. Uber and Bolt, however, introduced a more accessible and cost-effective alternative. With the rise of online taxis, the market saw a significant shift, and traditional taxis began to fade into the background.
If you’re considering joining the online taxi-hailing business, there are several factors to keep in mind. Here’s what you need to know based on my own experience.
Choosing Your Car: Buy or Partner?
The first big decision you’ll face is whether to buy your own car or partner with someone who already owns one. Both options come with their own pros and cons.
Buying Your Car:
If you choose to buy a car, you’ll need to consider the upfront investment required. This could be through cash, bank financing, a chama, or higher purchase—whatever works best for you. Owning a car means you’re responsible for its maintenance, repairs, insurance, and all the other associated costs. However, the upside is clear: You get to keep all the profits, you have the flexibility to set your own schedule, and you’re your own boss. In my opinion, the benefits of owning your car far outweigh the downsides.
Partnering with a Car Owner:
Alternatively, you can partner with someone who already owns a car and work for them. While this option allows you to start with minimal capital, it comes with its own set of challenges. You’ll need to share the profits with your partner, which can cut into your earnings significantly. Additionally, you may have to adhere to strict deadlines and targets. The upside is that you won’t be responsible for major repairs or insurance costs, making it easier to get started without a large financial outlay.
The Convenience of Online Taxi Hailing
One of the most attractive aspects of online hailing apps is the convenience they offer. Once you’re approved to the platform, you can simply turn on the app and start accepting ride requests. There’s no need to search for clients—they come to you. Plus, you have the flexibility to work anywhere within your selected city and set your own schedule, allowing you to juggle side hustles or personal commitments.
On busier days, like weekends, you may even find yourself picking up clients off the app, as demand often exceeds the available vehicles.
Night vs Day: Working Smart
As with any profession, working as an online taxi driver has its challenges. Security is one of the biggest concerns, particularly when working at night. Certain areas are more prone to crime and should be avoided, while others may have little to no demand for rides. For instance, areas like Kariobangi and Dandora are not very safe at night, while places like Runda may not have many clients. On the flip side, working during the day presents challenges such as traffic congestion, hot weather, and dealing with police or city council askaris. In my experience, the difference in earnings between working day or night isn’t significant—it mostly comes down to personal preference.
Know the Hotspots
Understanding the hotspots in your city is key to maximizing your earnings. You don’t want to waste time waiting for clients in areas where demand is low. For instance, at night, you’ll want to be in areas like Roysambu, Umoja, Westlands (near The Mall), Donholm, Utawala, and near major clubs. During the day, target areas with high foot traffic, such as estates during morning hours, or the CBD as people commute. In the evenings, focus on areas near offices where people are heading home.
Developing Your Strategy
Over time, you’ll need to figure out your strategy. Are you the type of driver who waits at one spot for work to come to you, or are you a roaming driver who moves around until a ride request comes through? I’ve tried both methods, and I’ve found that a hybrid approach works best for me. I created a route loop around Nairobi, spending about 30 minutes at each location before moving to the next. My loop included spots like Donholm (Greenspan), Umoja (Hornbill), Buruburu (Quickmart), and more. This approach ensured I always had a client on the way.
You can tailor your own strategy and test it to see what works for you.
Building a Client Base
Once you’ve successfully dropped off a client, don’t let them go. Retaining clients can be highly beneficial, as they may not immediately book another ride but could reach out to you later. Some clients even contract regular rides for their daily commute. Building a loyal customer base can be a game-changer.
Earnings: What to Expect
The earnings in the online taxi business vary widely depending on whether you’re working part-time or full-time, and the number of hours you dedicate to driving. Some drivers work full-time (5-6 days a week, 8-12 hours a day), while others work part-time on weekends or after regular office hours. On average, full-time drivers can earn between 50,000 KSh to 100,000 KSh per month. However, it’s important to note that most drivers tend to earn closer to 60,000 KSh to 80,000 KSh per month.
Challenges You’ll Face
Like any business, the online taxi industry comes with its own set of challenges. These include:
- Driver Strikes: Issues around commission rates, operating costs, and other concerns can lead to strikes.
- Difficult Clients: Some clients may be rude, refuse to pay, or create problems with dirtying your car or setting unclear pick-up locations.
- Low Fares: The app’s fare system doesn’t always account for extra time spent in traffic, which can be frustrating.
- Off-Peak Hours: During slower periods, you may have to wait a long time for a ride request, which can be demoralizing.
- Vehicle Breakdowns: Breakdowns are inevitable in the transport business, and they always seem to happen at the worst possible time or place.
While these challenges are part of the job, they are manageable if you know how to handle them.
The Bigger Picture
The way I see it, the online taxi-hailing industry is a great stepping stone. Use this job to build capital and work toward bigger goals. For example, you could eventually use the money you earn to buy a fleet of cars, or even manage a fleet on behalf of other drivers. The flexibility of this industry makes it a perfect bridge to other career opportunities.
For me, this industry has been kind, and I’m optimistic about moving on to a different field, which is exactly what I’m doing as I write this.
About The Author
