February 28, 2025
The Uber business in Kenya has become a popular and lucrative venture due to the rising demand for convenient and reliable transportation services.
Operating as a partner with Uber allows you to earn income by either driving or owning a fleet of vehicles managed by hired drivers.
With proper planning, effective management, and dedication, you can create a sustainable income stream through this venture.
Four key reasons support starting an Uber business in Kenya, namely:
Kenya’s urban centers like Nairobi, Mombasa, and Kisumu have a growing number of commuters who prefer Uber and other ride-hailing services over traditional taxis and public transport.
Uber allows you to earn money in two ways:
Starting as an Uber driver or vehicle owner requires relatively low initial costs compared to other businesses.
Uber offers user-friendly tools for drivers and vehicle owners, including a mobile app that simplifies bookings, payments, and driver management.
Let’s delve in the steps involved in starting an Uber business in Kenya:
There are two main ways to participate in the Uber business:
Uber has specific vehicle requirements to ensure passenger safety and comfort.
Four key vehicle requirements for an Uber business are:
Popular Uber cars in Kenya include:
Fuel-efficient and affordable to maintain.
Spacious and reliable for Uber trips.
Ideal for Uber Chap Chap (short-distance, low-cost trips).
To operate under Uber, you need to register as a partner. Here’s how:
Becoming an Uber partner entails:
Operating legally is crucial to avoid fines and disruptions.
Key licenses and permits required to start and operate an uber include:
Mandatory for all vehicles carrying passengers for hire.
Issued by NTSA after vehicle inspections.
Insurance
Comprehensive insurance is recommended for Uber vehicles.
Uber charges a percentage of the earnings as commission, which typically ranges between 20–25%.
As such, ensure you plan your expenses and income accordingly.
A trip costing Ksh 500 will have approximately Ksh 125 deducted as commission.
The remaining Ksh 375 goes to the driver/owner.
Maximizing profits requires strategic planning and management.
Ways in which uber drivers can optimize their earning include:
Earnings are higher during rush hours and late nights.
Stay near busy zones like malls, offices, or residential estates.
Positive ratings and reviews increase your chances of getting more trips.
Conduct background checks and establish clear contracts.
Regular servicing ensures the car is roadworthy and reduces breakdowns.
Use Uber’s app to monitor earnings and driver activity.
The ride-hailing market in Kenya is competitive, with platforms like Bolt and Little Cab offering alternatives.
Focus on customer satisfaction and work during high-demand periods.
Fluctuating fuel prices and wear-and-tear expenses can eat into profits.
Use fuel-efficient vehicles and schedule preventive maintenance.
Drivers may face safety risks, especially during late-night trips.
Use Uber’s safety features, such as GPS tracking and emergency assistance.
Uber’s commission can significantly reduce earnings.
Optimize trips by targeting longer rides and high-demand times.
A breakdown of estimated startup costs from offering uber services is as follows:
Ksh 800,000–1,500,000 (new) or Ksh 500,000–900,000 (used).
Ksh 20,000–50,000.
Ksh 30,000–100,000 annually.
Ksh 3,000–10,000.
An overview of projected earnings an uber business is as follows
Ksh 3,000–8,000, depending on hours worked and demand.
Ksh 90,000–240,000.
Ksh 20,000–50,000.
Ksh 5,000–10,000.
20–25% of earnings.
Ksh 40,000–120,000 (varies based on efficiency and vehicle type).
Operating an Uber in Kenya offers a profitable and flexible income stream for both drivers and vehicle owners.
By selecting the right vehicle, complying with regulations, and optimizing your operations, you can build a successful venture in the ride-hailing industry.
While challenges like competition and rising costs exist, strategic planning and efficient management can help you overcome them.
If you’re ready to start, take the first step by registering as an Uber partner and preparing your vehicle.