Ride-hailing company Uber has entered into an agreement with Suzuki Motor Corporation aimed at expanding its Uber Chap Chap service across sub-Saharan Africa (SSA).
The agreement, which was signed on Wednesday, follows the launch of Uber Chap Chap in Kenya earlier this year.
The Uber Chap Chap service exclusively uses the fuel-efficient 800cc Suzuki Alto with a consumption rate of 25 kilometres per litre.
A ride on the Suzuki Alto starts at Sh16 per kilometre, Sh4 per minute with a minimum fare of Sh100.
Under the new MoU, Uber and Suzuki have agreed to consider each other as a preferred partner in order to increase business efficiencies and reduce operational expenses for driver-partners.
This will also allow Uber and Suzuki to jointly develop programmes for after-sales support to ensure drivers of Uber Chap Chap vehicles (Suzuki Alto 800s) are always taken care of in terms of warranties, availability of parts and service plans.
“The MoU is a fantastic first step for not just Kenyans but for the rest of Africa, as it shows the critical role these type of partnerships will play in creating much needed economic opportunities while offering people across Africa a flexible choice to move around the city safely, reliably and affordably,” said Mr Anthony le Roux, Regional General Manager for Uber Middle East and Africa.
Meanwhile, on Tuesday, Uber and Suzuki hosted driver-partners at their offices in Nairobi, in order to engage with drivers about the MoU before it was publicly signed and to hear their thoughts on how the launch of Uber Chap Chap have benefited their lives.
Taxify, Uber’s main competitor in Kenya, in April also launched TaxifyGO, a service that saw the cost of the minimum fare for regular cabs slashed to Sh100. TaxifyGO service is priced at Sh22 a kilometre, Sh3 per minute in addition to a base fare of Sh75.
The service uses vehicles with 1300cc engines that are also known for fuel efficiency.