Taxi operators sue Uber, Bolt in dispute over commissions
Digital taxi operators have taken on dominant industry players Uber and Bolt, seeking the revocation of their licences on allegations of charging high commissions.
Digital taxi operators have taken on dominant industry players Uber and Bolt, seeking the revocation of their licences on allegations of charging high commissions.
Through their Ridehail Transport Association, the operators have sued the two leading players — alongside 12 other licensed companies and the National Transport Safety Authority (NTSA) — at the Transport Licensing Appeals Board Tribunal, blaming them for noncompliance with regulations requiring them to charge a maximum of 18 per cent from drivers, with NTSA accused of failing to enforce the law.
NTSA last September licensed 14 companies to operate taxi-hailing platforms.
The grounds drivers and vehicle owners have raised include the deduction of more than 18 per cent of revenue from drivers by Uber, Bolt, and PTG Travels and possible tax evasion by Bolt and Uber. They also argue that the pricing mechanism has not complied with NTSA regulations.
They claim that transport network companies are also pushing their operating costs and tax obligations to the drivers and vehicle owners, “which we consider to be an unfair business practice.”
“We have reasons to believe that Uber BV and Bolt Operations OU are neither tax compliant, duly registered as data handlers and data processors by the Data Commissioner nor do they have a registered office in Kenya as per the ... NTSA regulations,” an affidavit sworn by the association’s acting Secretary-General Zakaria Johana, states.
The association wants the licences of transport network companies that are not following the rules revoked.
Other companies sued alongside Uber and Bolt are Little, Yego, PTG, Maramoja Transport, Farasi Cabs, Havanet, An Nisa Taxi, H Cab, TMNK Enterprises, Amicabre Travel Services, J-Ride and Move on Telecoms.
