In a sad state of affairs,we might not be seeing those uber chap chap on our roads.Would this be another indication of the hostile business environment we have?
According to critics, the ‘toys’ are not allowed to operate on another digital taxi platform, their services are also limited to a radius of 10 kilometers from and within the Central Business District (CBD).
In a notice published on by the Stanbic Bank, 13 Suzuki Altos, Uber chap chap cars have been put up for auction to recover loans advanced to the car owners.
The cars were to be sold at a subsidized cost of Sh835,000 that attracted 14 per cent interest rate per annum within a period of three years.
This will be a blow to the partnership made early in 2018 between Uber Kenya and local CMC Motors, which was the sole distributor of the models to import the small, low fuel consumption vehicles for the cheaper Uber Chap Chap service.
By September 2018, the bank confirmed to have advanced loans to 350 taxi drivers to operate Uber services.
The vehicles on auction are to be viewed at CMC Motors and sold in “as-is, where-is” basis, that is, in whatever condition.
The digital taxi market has for some time now faced steep competition and characterized by price wars, strikes by drivers and resistance from independent cab drivers.
This will be a big blow to a partnership made early in 2018 between Uber Kenya and local CMC Motors, which was the sole distributor of the models to import the small, low fuel consumption vehicles for the cheaper Uber Chap Chap service.