Uber launches a new lower-priced service called Chap Chap in Nairobi
Uber has launched a new, lower-cost service in Nairobi called Uber Chap Chap. Made possible by using a fleet of fuel-efficient budget sedans, Uber Chap Chap (Swahili slang for “hurry, hurry”) is currently available in several areas of the Kenyan capital, including its central business district.
Uber, which began testing the service at the end of January, may launch it throughout the rest of Nairobi and in the capital cities of Uganda and Tanzania if it proves successful, the company’s East Africa general manager Loic Amado told Reuters.
To make Uber Chap Chap possible, Uber worked out a deal with CMC Motors, a car importer based in Nairobi, to import 300 Suzuki Altos. An unglamorous but inexpensive and fuel-efficient hatchback sedan, the Suzuki Altos were offered to highly-rated Uber drivers with financing by Stanbic, a Kenyan bank, that allows them to own the vehicle in three years.
Since the Suzuki Alto can travel further on less fuel, Uber is able to offer Uber Chap Chap’s lower prices. The minimum cost for a ride on the service is 100 Kenyan shillings (about 99 cents), compared to 150 shillings ($1.48) for UberX.
In Kenya, Uber faces competition from ride-hailing services like Little and Taxify. Uber Chap Chap gives it another way to differentiate, though Uber’s Nairobi drivers have complained that launching lower-priced services undercuts their earnings.
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Source: Tech Crunch