2015
The Uber app launches in Nairobi.
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The Impact of Uber in Kenya
Economic Impact Report 2023
Key Facts
From the bustling streets of Nairobi to the scenic coastlines of Mombasa, Uber connects people and places at the touch of a button. Just as Kenya’s entrepreneurial economy has embraced the digital revolution, Uber has brought technological innovation to mobility and delivery.
For this report, Uber commissioned Public First to help gain an in-depth insight into the company’s impact for consumers, drivers and delivery partners, merchants, as well as local communities. As the platform approaches its 10th anniversary in Kenya, this is an important moment to reflect on Uber’s own journey and the benefits it brings to the country.
Uber’s Economic Impact
Drivers & Delivery Partners
Uber creates new opportunities for Kenyans to get ahead. Uber gives drivers and delivery partners on its platform the opportunity to work flexibly and be their own boss.
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In total, we estimate that drivers earn an additional KSh 2.2 billion a year in higher income through their use of the Uber app, or an average of 37% more than their next best alternative.
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Flexibility has a financial value to drivers and delivery partners. In total, we estimate that this increased flexibility is worth KSh 1.6 billion to drivers and delivery partners.
Local Businesses
Uber’s technology boosts local communities, enabling users, as well as drivers and delivery partners, to support new businesses in their local area.
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In total, we estimate that in 2023, Uber Eats created KSh 534 million in additional value for restaurants in Kenya by enabling them to leverage delivery as an additional revenue stream.
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In total, we estimate that in 2023, the Uber app created KSh 2.7 billion in additional value for the Kenyan tourism industry, supporting millions of tourist journeys.
Consumers
The app-based economy makes Kenyans’ lives easier. The Uber app helps them to travel conveniently, whilst the Uber Eats app ensures they can get food and essential items delivered right to their doors.
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%
of riders say that convenience is an important reason they use the Uber app.
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The Uber Eats app saves consumers over 448,000 hours a year by bringing food and groceries directly to their door – equivalent to listening to Sauti Sol’s entire discography 74,000 times.
Safety
The Uber app offers adults in Kenya a safe way to travel, giving riders the confidence to go out late at night.
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%
of adults told us that without ride-hailing services like the Uber app, it would be difficult to find a safe way to travel at night.
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%
of riders agree that using the Uber app helps reduce reckless driving in an area.
Foreword
Kenya is a dynamic and rapidly growing economy, characterised by rapid urbanisation, a growing middle class, and a culture of entrepreneurship. Set to become the fourth largest economy in Sub-Saharan Africa, Kenya’s economy grew by 5.2% in 2023. Driven by its goal to become a newly industrialising middle-income country, as laid out in its Vision 2030 plan, Kenya has placed digital technologies at the heart of its transformation.
Since Uber launched in Kenya in 2015 and Uber Eats launched later in 2018, not only have we helped facilitate efficient, safe and convenient mobility and delivery for Kenyans, but we have also helped to create thousands of new economic opportunities, empowering drivers and delivery partners to improve their livelihoods and support their families while creating additional value through new revenue streams for local businesses.
Over the past year, I am proud to say that we have been able to contribute an estimated KSh 4.1 billion to Kenya’s economy. We have also empowered drivers and delivery partners to earn an additional KSh 2.2 billion a year in higher income through the use of the Uber app, while Uber Eats has created an estimated KSh 534 million in additional value for restaurants across the country.
Through the Uber Eats platform, we have been able to bring substantial value to restaurants, retailers and merchants by expanding their reach to a wider customer base. Meanwhile, access to data revealing insights such as customer preferences, peak ordering times and popular items has enabled merchants to optimise their offering and tailor their business strategy to meet customer needs. This has helped to boost the local economy while supporting enterprise and small businesses by providing them with an efficient and scalable delivery infrastructure.
Uber has significantly enhanced the safety and accessibility of transportation in Kenya. By providing safer travel options at night, especially for women, Uber is contributing to a more secure environment for all riders. Our emphasis on safety and vehicle standards has helped to promote road safety in the cities we operate in.
Our dedication to catering to the unique needs of Kenyans is exemplified in the introduction and expansion of products such as Uber Boda, which offers affordable and efficient motorcycle mobility, ensuring that, even in areas with limited infrastructure, people have access to reliable transportation. Furthermore, our first sustainable mobility product, Electric Boda, is contributing to a cleaner environment, ensuring that Uber’s growth aligns with Kenya’s objective of creating a healthier and more sustainable future for all.
In terms of empowering earners who operate independently on the platform, Uber is dedicated to proving itself as the best option for quick and flexible earning opportunities. Recognising that earners are fundamental to Uber’s existence, the platform will continue to invest in the areas that matter most to them.
Technology, innovation and investment continue to be at the helm of Kenya’s growth strategy, and Uber remains committed to continuing to positively impact the individuals, communities and economies we serve by introducing innovative features and products that redefine mobility and improve access to the retail sector.
Sincerely,
Imran Manji
Head of East Africa, Uber
Kui Mbugua
General Manager, Uber Eats, Kenya
Introduction
The Transformational Effect of App-Based Rideshare & Delivery Platforms
Kenya’s digital transformation
Kenya is revolutionising its future with a bold digital transformation. Since Kenya’s Vision 2030 was first set out in 2008, technology has been at the forefront of efforts to increase the country’s economic prosperity.1 Kenya is now a technological hub in East Africa, with the digital economy already accounting for 7% of Kenya’s GDP in 2022 and expected to grow to almost 10% by 2025.2
This digital transformation has meant a dramatic shift in the daily lives of Kenyan people. In 2014, an estimated 17% of the population had access to the internet; a figure that has more than doubled to 47% in 2022. According to latest estimates, 47% of the Kenyan population now own a phone, with 4G networks covering 97% of the population.3
The steady proliferation of Kenya’s mobile and internet usage has in turn catalysed the emergence of online platforms, facilitating ecommerce at an unprecedented scale. Businesses of all sizes can increasingly connect to Kenyan customers through the smartphones in their pockets, generating significant value for the economy. Meanwhile, online platforms are reducing barriers to entry to work by enabling new income streams for earners.
Platform-based ridesharing and delivery apps sit at the heart of this opportunity, unlocking job creation, economic value, and entrepreneurial innovation across the Kenyan economy. The sector has already seen rapid growth over the last decade, with Kenya’s young, digitally native, and increasingly urban population ready to embrace the future.
The invention of Uber
For over a decade, Uber has been a key part of the global transportation industry – now operating in over 70 countries and more than 10,000 cities. With a mission to help people go anywhere and get anything, Uber’s services connect the physical and digital worlds through a simple application.
Maximum Convenience:
Users can place an order whenever it suits them, and then track their ride or delivery journey – eliminating uncertainty about waiting times or travel routes.
Economic Opportunity:
Drivers and delivery partners benefit from flexible income, and can easily connect with riders and delivery requests. Meanwhile, local businesses enjoy increased access to prospective customers, either through delivery requests or improved mobility options that drop people at their door.
Simplified Navigation:
In-app GPS simplifies navigation for drivers and delivery partners when travelling to new destinations. This built-in feature ensures that they can find the quickest and most efficient journeys, enhancing overall service efficiency.
Integrated Payment Options:
The app’s integrated payment system reduces worries about keeping track of unexpected costs. Users can enjoy a hassle-free payment experience, while drivers and delivery partners benefit from streamlined transactions.
Enhanced Safety and Experience:
A feedback system for riders, drivers, and delivery partners improves the overall experience and safety. This functionality encourages better service, accountability, and continuous improvement of the platform’s offerings.
Uber’s Impact in Kenya
Since 2015, Uber has brought tech-enabled convenience and opportunity to Kenya. From the roll out of Uber Boda through to the integration of M-Pesa payments, Uber continues to tailor its products and services for Kenya:
Rides
UberX
Original Rideshare Option
UberXL
Bigger Car Option, for up to 6 people
Uber ChapChap
Affordable Option
Uber ChapChap Share
Shared rides
Uber Comfort
Premium Option
Uber Poa
Tuk Tuk Option
Uber Boda
Motorcycle Option
Uber Electric Boda
Electric Motorcycle Option
Uber for Business
Corporate Account Option
Delivery
Uber Eats
Food, Grocery & Retail Delivery
Uber Package
Package and peer-to-peer delivery
Uber Direct
Corporate retail delivery services
Timeline
2016
As the Uber app expands its reach in East Africa, Kenya becomes the regional centre for operations in Tanzania and Uganda.
2018
The Uber Eats app launches in Nairobi, along with Uber Chapchap and Uber Boda.
2020
Uber responds to the pandemic by introducing Uber Connect (now known as Uber Package) in Kenya, as well as expanding the Uber Eats app to Mombasa.
2022
The Uber app launches in Eldoret, Kisumu, Nakuru, and Naivasha.
2022
The Uber Eats app starts delivering additional items like alcohol, medicine, beauty and wellness products, and Electric Boda launches in Kenya.
2024
Uber Comfort launches in Kenya.
In order to fully examine Uber’s impact in Kenya, Public First has performed a number of calculations to capture its contributions. This considers driver, delivery partner and merchant earnings on the Uber platform, as well as the wider indirect and induced multiplier effect created throughout the platform’s wider activities.
We found that the direct and spillover value associated with Uber’s presence is a key part of Kenya’s growing prosperity. Overall, we estimate that Uber contributed KSh 17.3 billion to the Kenyan economy in 2023.
On an individual level, we also found that Uber facilitates new ways for Kenyans to get ahead. It is clear, from new qualitative and quantitative research, that the Uber and Uber Eats apps create additional wealth for tens of thousands of drivers and delivery partners, as well as delivering value to more than a thousand merchants.
Uber’s Impact:
Drivers & Delivery Partners
Uber creates new opportunities for Kenyans to get ahead
Kenya is known for its entrepreneurial spirit.4 This movement is so powerful in Kenya that the government has recently introduced new schemes aiming to grow Kenya’s small and medium business base.5
The Uber app is the perfect tool for a nation of entrepreneurs, giving drivers and delivery partners the ability to work flexibly, earn additional income, and achieve financial freedom. The platform also offers a range of benefits other side hustles don’t – such as state-of-the-art safety features, insurance and fast, reliable pay.
This is all the more important in the context of Kenya’s high youth unemployment rate, which stood at 12% in 2022.6 Driving and delivering through the Uber platform helps to increase labour force participation and boost the country’s overall productivity. Individuals are empowered to earn whilst maintaining a high degree of independence and dignity.
And with an increasingly diverse product range, the Uber app is enabling different styles of earning opportunities on the platform. Drivers can provide fast, affordable trips with Uber Boda or offer a more premium service through Uber Comfort.
Why do drivers choose to earn through the Uber app?
Uber offers a competitive alternative to other income earning options. 70% of drivers and delivery partners felt positive about the Uber Driver app, compared to just 13% who said they felt negative.
We wanted to understand what had originally motivated drivers and delivery partners to start earning through the Uber and Uber Eats apps. We found that:
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%
of drivers and delivery partners chose to drive or deliver with Uber and Uber Eats over other earning opportunities because of the ability to be their own boss.
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%
of drivers and delivery partners chose to drive or deliver with Uber and Uber Eats over other earning opportunities because of the more flexible schedule.
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%
of drivers and delivery partners chose to drive or deliver with Uber and Uber Eats over other earning opportunities because it gives them more authority over their own work.
Thinking back to your initial decision, which of the following were important reasons why you chose to drive or deliver with Uber or Uber Eats as opposed to other earning opportunities?
How does Uber support the Kenyan entrepreneurial spirit?
Kenyans have an unmatched entrepreneurial spirit and are always looking for new opportunities to improve their circumstances. Estimates suggest that two-thirds of Kenyans in full-time employment have some kind of side hustle.7
Uber allows drivers and delivery partners to combine their app-based activity with other roles. When asked what they do for a living, besides driving or delivering, 55% reported having at least one other responsibility.
What other responsibilities do you combine with your app-based work, if any?
Flexibility is therefore especially important to drivers and delivery partners. The majority of partners said that they would rather retain the right to choose their own hours, even if the alternative was an increase in earnings. Having calculated the earnings that drivers and delivery partners would sacrifice to retain control over their schedule, we estimate that this increased flexibility was worth KSh 1.6 billion to drivers and delivery partners in 2023.
It’s also clear that drivers enjoy the autonomy and entrepreneurial opportunities associated with app-based work.
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of drivers and delivery partners agreed that app-based work gave them a feeling of independence.
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of drivers and delivery partners agreed that driving using the Uber app makes them feel like an entrepreneur.
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%
of drivers and delivery partners agreed that app-based work provided them with dignity.
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%
of drivers and delivery partners agreed that app-based work provided them with an opportunity to grow or start a new business.
How does Uber enable more people to earn a living?
The Uber app provides drivers and delivery partners with a critical opportunity to earn more money and improve their financial situation on their own terms.
Many adults in Kenya are currently feeling financial pressures, with 48% saying they feel worse off or no better off now compared to a year ago. However, Future Africa has said that platforms like Uber offer “a lifeline” to the younger generation in the context of persistent unemployment.8
This financial freedom can help with the rising costs of goods and services, as well as facilitate savings for important purchases:
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%
of drivers and delivery partners told us that they have used earnings made from using the Uber app to cover the cost of their bills.
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%
of drivers and delivery partners reported that the rising costs of goods and services were a key reason why they chose to start using the platform.
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%
of drivers and delivery partners told us that their earnings through using the Uber app have made them feel more financially secure.
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Drivers and delivery partners particularly welcomed the speed at which they could start earning through Uber’s platforms.
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of drivers and delivery partners agreed that apps like the Uber app help people in an emergency as they can earn money quickly.
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%
of drivers and delivery partners had earned money in less than one week after signing up to the Uber or Uber Eats app.
Meanwhile, 64% of drivers and delivery partners report that the Uber platform has eased access to their earnings through partnerships with the likes of Safaricom and the launch of Flexpay, which enables drivers to access their earnings more frequently and through their mobile wallets.
In total, in 2023, we estimate that drivers earned an additional KSh 2.2 billion a year in higher income through their use of the Uber app, or an average of 37% more than their next best alternative.
GigSister - Building a community for women earners
Working in ride-hailing and delivery offers huge benefits to women. As the IFC’s Driving Toward Equality report highlights, ride-hailing enables women to earn additional income whilst working around their other commitments.9 On top of this, the platform economy can be a gateway for women into vehicle ownership and entrepreneurship.
However, women can face challenges in this style of work due to societal norms and safety concerns, particularly when working in urban areas.10 As such, it’s important to provide women with the tools and support they need to meet these challenges so they can experience the opportunities that the platform economy provides.11
That’s why Uber partnered with several companies, including Google, to provide a range of support to women who work in the platform economy through their GigSister initiative.
GigSister, created by Women at Uber, is designed to connect, grow, and empower a community of women drivers and couriers on the platform through an array of initiatives. The program, which has already achieved success in parts of Europe and the UK, sees Uber teaming up with like-minded partners, including Google and L’Oreal, to uplift and empower women through mental health support, motivation and self-promotion, as well as self-defence training and more.
As part of the GigSister initiative, Uber has teamed up with Google to host a series of #iamRemarkable training for women earners. The training is designed to equip the earners with leadership tools they can use to position themselves for success in running their businesses.
With the gender gap in ICT in Africa being at 23%, the African Union strategy for Gender Equality and Women’s Empowerment aims to enable women and girls to become more active users and influencers of the technological space. The aim is for women to unlock greater gender enabling e-solutions for funding. This is the motivation behind Uber launching the GigSister initiative: to ensure that they are bridging this gap for women earners on the platform.
Uber is helping to connect, grow and empower women by connecting them with a wider community. This includes equipping women with the tools needed to confidently earn through the platform economy, such as mental health support or self-defence training.
How are drivers and delivery partners engaging with their local community?
The Uber platform also strengthens drivers’ and delivery partners’ sense of community by giving them the chance to explore new areas and meet new people.
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of drivers said they enjoy interacting with passengers.
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of drivers agreed that apps like the Uber app helped them to discover new destinations in their city.
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of drivers agreed that apps like the Uber app helped them to discover new activities in their city.
In order to explore this theme further, we asked drivers to tell us in their own words why they chose to drive using the Uber app. The most common responses mentioned…
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How does Uber support drivers?
Uber has several initiatives to support their drivers. They have partnered with mechanics and part suppliers such as AutoXpress and Kingsway Motors to negotiate preferential deals for drivers and delivery partners. These include:
- Vehicle inspections: Drivers can enjoy free vehicle inspections. This is especially impactful as all drivers (excluding Boda) are required to undergo an inspection of their vehicles annually.
- Spare parts and servicing: Drivers on UberX, UberXL, and Uber ChapChap get special discounts on servicing and the purchase of spare parts as a result of our collaboration with AutoXpress and Kingsway.
Uber’s Impact:
Local Businesses
Uber’s technology boosts local economies
Kenya’s digital revolution stands to turbo-charge the nation’s KSh 40 billion hospitality sector.12 Indeed, the Uber and Uber Eats apps offer a significant spillover impact on the wider economy. By increasing mobility and the accessibility of physical goods, Uber drives additional economic value to other Kenyan businesses such as restaurants, shops, tourist destinations, and motor garages.
The Uber Eats app makes it easy to access Kenya’s diverse cuisines ‒ from international brands to local favourites. Users can discover new hotspots and support neighbourhood retailers, all from the comfort of their own home.
Meanwhile, the Uber app empowers riders to explore their surroundings by offering them a convenient way to reach their destination. This is particularly important later at night, or for international visitors who are less familiar with the local area.
How does the Uber Eats app support restaurants and merchants?
Food delivery platforms boost the ability of restaurants and merchants to serve a greater number of customers in a variety of ways:
Diverse Income:
Restaurants and retailers benefit from additional revenue streams without having to expand their physical footprint. This can sustain businesses during off-peak hours or when their physical capacity reaches its limits.
More Orders:
Apps like Uber Eats provide customers with the convenience of ordering from their favourite restaurants and retailers without leaving their homes. This can lead to increased order frequency and higher sales volumes for merchants.
New Customers:
Merchants can reach more customers via the Uber Eats app. Users scroll through a variety of different providers, discovering new businesses in the process. This is particularly useful for SMEs that may not have the resources for extensive marketing campaigns.
Logistical Support:
The Uber Eats app handles logistics, such as order processing and delivery. This allows staff to focus on food preparation and in-house customer service. This can lead to more efficient operations and better overall customer experience.
Data Insights:
Restaurants and retailers gain access to valuable data on customer preferences, peak ordering times and popular items. Merchants can use these insights to optimise their offers, improve customer service, and tailor their business strategy to better meet customer needs.
By leveraging the reach, convenience, and operational support of food delivery apps, merchants can enhance their revenue potential and grow their businesses more effectively. We estimate that the Uber Eats app created KSh 534 million in additional value for restaurants in Kenya in 2023.
According to our research:
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%
of users of the Uber Eats app agree that food delivery apps make it easier to discover new restaurants.
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%
of users of the Uber Eats app have ordered from a restaurant they have never dined at before via the delivery app.
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%
of users of the Uber Eats app agree that there is a wider choice of restaurants in their local area now than existed before food delivery apps were introduced.
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%
of users of the Uber Eats app said they have discovered restaurants with the Uber Eats app that they have since visited in person.
ANDO Foods
Mr Vineet N.R. is the co-founder and COO of Ando Foods, a company that offers an extensive range of cuisines, including Pakistani, Italian, Thai, and Indian. Since its inception in 2020, ANDO has rapidly expanded, now operating eleven distinct brands across seven kitchens in Nairobi and Cape Town.
From the very beginning, Vineet knew that partnering with Uber Eats would be critical to the success of Ando Foods.
“When we first started, we were taking delivery orders through WhatsApp and calls, and it was challenging to scale effectively. Uber Eats completely transformed our approach.”
Uber Eats has provided ANDO with access to a vast customer base. Vineet is particularly appreciative of the robust support provided by the Uber Eats local team.
“The support we receive from the local team is exceptional. Their guidance has been instrumental in helping us navigate challenges and optimise our operations.”
Moreover, Uber Eats offers valuable data-driven insights that help ANDO better understand customer preferences and behaviour. This has allowed the company to make informed decisions about menu offerings, pricing, and promotions, leading to more targeted and effective strategies.
The seamless integration of Uber Eats’ advanced technology with ANDO’s operations has also been a significant advantage. This has ensured that order processing is efficient and error-free, which is crucial for maintaining high customer satisfaction levels.
The partnership with Uber Eats has also provided ANDO with a scalable platform that supports the company’s growth ambitions. Whether expanding into new markets or launching new brands, Uber Eats has the infrastructure to support ANDO’s rapid scaling efforts.
Roro’s
Ms Nanzia Mbaga runs Roro’s, the healthy, fast casual food restaurants. Since opening in the midst of the Covid-19 Pandemic four years ago, Roro’s has since expanded to four locations across Nairobi.
Nanzia started Roro’s because of her passion for healthy food. She saw a gap in the market for convenient food that was good for you. Amidst the pandemic, as soon as Roro’s opened, she knew the best way to pivot and reach more customers was to tap into the delivery market and partner with Uber Eats.
“You’re able to tap into a market you otherwise wouldn’t have access to! Uber Eats gives us visibility we wouldn’t have otherwise and introduces our restaurants to a whole new client base!”
The platform has helped her reach customers who otherwise would never have heard about her restaurants. In fact, Uber Eats has proved so successful for her business that Nanzia has expanded, creating ghost kitchens alongside her traditional dine-in restaurants that exclusively cook food for delivery, and helping her to grow the business from 5 employees to 23 and counting.
“We had to close our first location for various reasons, but so many of our orders were through delivery, so we thought ‘why don’t we open a location nearby just for delivery?’ It was a huge success. Our orders kept growing and customers who used to dine in with us now ordered it straight to their home.”
Nana Swahili Kitchen
Ms Debra Stacy is the Head of Operations for Nana Swahili Kitchen in Nairobi, Kenya.
Nana Swahili Kitchen began partnering with Uber Eats to help introduce their food to a wider audience. At the time, they were a delivery-only kitchen, and Debra found that Uber Eats helped them to grow the business by reaching more customers. Due to Uber’s wide delivery radius, customers who had never heard of the business were now able to order through the app and discover their delicious food.
“Uber Eats is so much quicker than using in-house riders. By the time we’ve prepared the food, there’s always a delivery person ready to get the order to the client, so it gets to them as fast as possible.”
The app has also helped the restaurant run at maximum efficiency. With its smooth interface and quick delivery times, Debra is able to make sure food reaches customers as quickly as possible. Nana has now expanded its services, offering a dine-in option and bar, but Uber Eats deliveries remain essential to their business model.
“If you’re a startup company, I’d advise partnering with Uber Eats. You’ll reach so many new customers. It’s faster than normal delivery and far more efficient!”
How does the Uber app support the night time economy?
Not only does Kenya’s vibrant night time economy give Kenyans amazing social and cultural opportunities, enriching their lives and helping them stay connected with friends and family, it is also a huge asset to the Kenyan economy. However, given the recent rise in crime Kenya has experienced, people are feeling less safe to go out at night. Robberies in Kenya have risen by over 25% in 2024, and these often take place at night. Furthermore, public transport options can be difficult to access after dark, leaving people with few options to get home safely after a night out. According to our survey, 74% of Kenyans said it is difficult to use public transport at night time, with the alternatives being steep taxi fares or leaving social events early.
Services like the Uber app have allowed many Kenyans to embrace a more vibrant nightlife, staying out longer at local hotspots like Nairobi’s Westlands or Mombasa’s Nyali, which are bustling with bars, clubs, and restaurants. Uber has made these late-night outings more accessible, which has spurred further economic activity.
Overall, we estimate that the Uber platform supported KSh 167 million in additional value for the night time economy in 2023 by providing consumers with safe, convenient travel options.
According to our research:
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%
of adults agreed that having options like the Uber app available made them more confident in staying out late.
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%
of riders said that they used the Uber app in the last year because it was the safest way to get home late at night.
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%
of adults told us that using the Uber app was the only way to get home late at night.
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%
of adults had used the Uber app in the last year to go to a party or a festival.
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%
of adults had used the Uber app in the last year when visiting a restaurant or café.
How does the Uber app support tourism?
Tourism is one of Kenya’s strongest industries, accounting for 10.4% of the country’s GDP and 5.5% of its formal employment.13 Uber’s trusted relationship with international travellers means that it is their go-to transport option when exploring Kenya.
Visitors to Kenya will often use the app as a way of visiting local sites. In total, we estimate that in 2023 the app created KSh 2.7 billion in additional value for the Kenyan tourism industry, supporting millions of tourist journeys.
Uber’s Impact:
Consumers
Uber makes Kenyans’ lives easier
The app-based economy is changing the way Kenyans go about their lives for the better. Innovations like the Uber and Uber Eats apps integrate technology seamlessly into everyday routines, boosting overall quality of life for Kenyan users.
The increased convenience and reliability of Uber compared to other forms of transport mean thousands of Kenyans rely on the Uber app every day. Meanwhile the Uber Eats app allows Kenyans to order the food and other products they need, whenever they need them.
This is all the more relevant as Kenya experiences rapid population growth and rising urban migration in its cities. Technological solutions offer a useful means to navigate increased congestion and relieve pressure on existing transport networks.
How do Kenyans use the Uber app?
Riders use the Uber app to make essential journeys around their region. In fact, one keen rider travelled nearly 550 kilometres in a single trip in 2023.14 While most Kenyans aren’t travelling quite that far, the Uber app is always there when riders need it the most.
In the last year:
0
%
of riders had used the app to get somewhere fast.
0
%
of riders had used the app to get somewhere in an emergency.
0
%
of riders had used the app to support friends and family who struggle with mobility.
0
%
of riders had used the app to travel to or from a doctor or hospital.
Ride hailing apps also help many Kenyans professionally. In 2023, demand for business trips on Uber for Business – a company specific product that helps to track and manage transport expenses – saw a 10.96% year on year increase, with 9am being the most popular time for trips.15 According to our research, in the last year:
of riders had used the app for work-related travel.
of riders who had used the app for work-related travel reported booking their ride through the “Uber for Business” feature.
of riders who had used the app for work-related travel reported their ride being booked by their employer through the Uber app.
of riders had used the app when commuting to or from work.
Kenyans also use the Uber app to access leisure activities in their area. In the last year:
of riders had used the app to get to a party or festival.
of riders had used the app to visit a restaurant or café.
of riders had used the app to get to an airport.
of riders had used the app to go shopping.
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Why do Kenyans choose to use the Uber app?
Getting around Kenya can be a stressful and time consuming experience. With packed streets and a hot climate, driving or using public transport can often be unpleasant for Kenyans.
Uber is making travel safer and more comfortable for many Kenyans and, unlike street hail Boda-bodas and taxis, the Uber app gives riders the power to request a vehicle right to their door, with the choice to pay via the app or with cash.
It is therefore no surprise that we found that “convenience” (95%) and “safety” (95%) were important reasons why riders choose to use the Uber app. These were closely followed by “time saved” (94%) and “reliability” (93%).
Which factors tend to be important in why you choose to use the Uber app?
In order to explore these motivations further, we asked riders to tell us in their own words why they chose to ride using the Uber app. The most commonly used words were convenient, safe and fast.
This convenience has a real economic value for Kenyans. We estimate that the Uber app saves riders a total of 3.4 million hours per year compared to their next best alternative. This is equivalent to watching all episodes of The Real Househelps of Kawangware back to back 27,000 times.
How does Uber help to tackle congestion?
Platforms like the Uber app play a direct role in reducing congestion in Kenya’s cities. Congestion is a big problem in Kenya. With millions of people travelling on the roads everyday, traffic can often be slow and journeys can take hours to complete. This doesn’t just cost Kenyans time, but also money: a recent study found that Nairobi is the world’s fourth most congested city, and that the associated delays cost the Kenyan economy $1 billion per year.16
Services like the Uber app can help reduce congestion by promoting carpooling and ridesharing, which help decrease the number of vehicles on the road. Additionally, the use of efficient algorithms to optimise routes reduces unnecessary driving and idle time. These factors, combined with the flexibility of on-demand rides reducing the need for personal car ownership, contribute to alleviating traffic congestion in urban areas.
According to our research:
of riders agree that having the Uber app as a ride sharing option reduces their need to drive.
of adults in Kenya who don’t own or have access to a car said this was because they can use ride hailing services like Uber when they need a car.
of riders have used the Uber app when they could have driven themselves in the last year.
Uber also helps to unlock access to public transport. Despite the popularity of public transport in Kenya, studies have shown that most jobs cannot be accessed by foot or bus in Nairobi.17 The majority of matatu stops are situated in the centre of the city which creates various “last mile” challenges for the public transport network.
According to our research, 53% of riders had used the Uber app to connect with public transport at some point. When asked when or why they do this:
0
%
of riders said they use the app to connect with another mode of transit because it is quicker than alternative methods.
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%
of riders said they use the app to connect with another mode of transit when the weather is bad.
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%
of riders said they use the app to connect with another mode of transit at night.
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%
of riders said they use the app to connect with another mode of transit because they have no other way of getting there.
How do riders benefit from Uber Boda?
In 2018, Uber launched Uber Boda as a new way to get around. This two-wheeler service offers an even more convenient and affordable option for riders, that lowers congestion further by taking up less space on roads.
Our research found that 74% of adults had heard of Uber Boda and that 55% of Uber app users had used the service. When asked which Uber service was most affordable, Uber Boda was the most common answer.
Kenyan adults reported ordering an Uber Boda for a number of reasons:
- 65% of riders ordered an Uber Boda to get somewhere fast.
- 51% of riders ordered an Uber Boda to avoid traffic.
- 48% of riders ordered an Uber Boda to get somewhere in an emergency.
In 2023, Uber launched an electric bike product known as Electric Boda in Nairobi during Africa Climate Week. The first of its kind for Uber in Africa, this is a key step in the company’s global mission to make its platform emissions free by 2040.
Although the service is still relatively new, we found that 49% of adults in Kenya had already heard of the service and that one quarter of all Uber app users had taken a trip on Uber Electric Boda.
- 57% of Uber Electric Boda users said they use it to get somewhere in an emergency.
- 63% of Uber Electric Boda users said they use it to get somewhere fast.
- 21% of Uber Electric Boda users said they use it to limit their environmental impact.
Attitudes to Sustainability:
Sustainability is important to Kenyans. A survey by the European Investment Bank found that 97% of Kenyans say climate change is already affecting their everyday lives.18 Because of this, many Kenyans are keen to reduce their carbon footprints and travel in sustainable ways.
Our survey found that:
- 62% of adults in Kenya agreed that they didn’t mind paying a little more for a ride from an electric/environmentally friendly vehicle.
- 57% of adults in Kenya said they’d be somewhat/much more likely to request a ride using the Uber app if they knew they would be riding in an electric vehicle.
How do Kenyans use the Uber Eats app?
The Uber Eats app has provided many Kenyans with a new way to interact with their local businesses, offering them a cheap, reliable way of getting products delivered right to their doorstep. This, in turn, contributes to Kenya’s thriving eCommerce economy, which was predicted to be worth KSh 110.6 billion by the end of 2022.19
We found that over a third (36%) of Kenyan adults have used the Uber Eats app to order food or essential items. Indeed, the Uber Eats app has proved incredibly popular, so much so that one Kenyan spent approximately KSh 59,000 on one order alone.20
According to our research, in the last two years:
0
%
of adults reported using delivery apps to order a meal.
0
%
of adults reported using delivery apps to order groceries.
0
%
of adults reported using delivery apps to order other products, such as pet food.
Why do Kenyans choose to use the Uber Eats app?
The convenience of using the Uber Eats app is critical, as it helps busy consumers to reallocate their time elsewhere. Instead of grocery shopping, prepping food or washing dishes, Kenyans can instead spend time doing what they love – and treat themselves to the foods or products that suit their mood.
According to our research, 67% of Uber Eats users in Kenya listed “convenience” as the most important reason why they opted to use a food delivery app. Users also highlighted “quick delivery times” (64%) and “good service” (56%).
We estimate that the app saves consumers over 448,000 hours a year in cooking and cleaning time ‒ equivalent to listening to Sauti Sol’s entire discography 74,000 times.
Which of the following, if any, are important reasons why you order using food delivery apps? Please select all that apply.
How does Uber create additional value for consumers?
One of the most important measures of economic welfare is known as “consumer surplus”. This is a standard measure of the consumer welfare created by a product, service or organisation.
In simple terms, it is the difference between the price the consumer is willing to pay for a service, and the price they actually pay for a service. Services with a high consumer surplus are implicitly playing an important role in people’s lives, because we would willingly pay more than the asking price to keep using it.
For example, a chocolate bar might typically cost KSh 410 – but someone with a sweet tooth might be willing to pay up to KSh 500 when struck by a sugar craving. The consumer surplus in this instance would be KSh 90.
In order to understand this metric for Uber’s services in Kenya, we asked riders and consumers how much they would have to be compensated to lose access to the Uber app for the next month.
In total, in 2023 we estimate that rides with the Uber app are producing a KSh 56 billion in consumer surplus for Kenyan riders, and deliveries with the Uber Eats app are producing a KSh 12.3 billion in consumer surplus for Kenyan consumers.
Uber’s Impact:
Safety
Uber helps Kenyans feel safer when they travel
It is important that individuals feel safe as they go about their daily business. However, this sadly isn’t always the case. According to our research, 42% of adults told us they feel unsafe travelling home alone at night, whereas 60% reported feeling unsafe on public transport in the last year.
This is especially true for women and girls. According to polling by the Flone Institute, 88% of Kenyan commuters had heard of or witnessed women and girls being harassed on public transport, and 62% of them identified the operators of this transport as the major perpetrators.21
How does Uber support safe travel?
One of the most important services the Uber app offers riders in Kenya is the ability to get to their destination safely. According to our survey:
of riders said safety is an important reason why they choose to ride using the Uber app.
of riders who rode with the Uber app in the last year said using the app was the safest way to get home late at night.
of adults agreed it would be difficult to find a safe way to travel at night without ridesharing services like the Uber app.
When we asked what the most important reasons were for riders using the Uber app, safety was consistently mentioned, especially among female riders:
of female riders said safety was an important reason they used the Uber app.
of female riders agreed that the Uber app is often the safest way to get home.
With a multitude of safety features and background checks for drivers, Uber has demonstrated that it takes its safety responsibilities very seriously. Uber has a suite of safety features, such as the “RideCheck” feature, which detects if the ride stops for an extended period and sends a prompt to the driver and rider ensuring they are alright, following up with calls to each of them if they are unresponsive.22
Which of the following safety features available on the Uber app have you heard about and how have they impacted your riding experience?
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How does Uber help to make roads safer?
Improving road safety is a key national priority for Kenya. The National Transport and Safety Authority estimates that 3,000 Kenyans die from road accidents every year. These incidents cause immense pain to friends and family, not to mention the thousands of others who suffer injuries from traffic incidents.
Ride hailing apps provide a safe way for riders to get home after they have been drinking. Many adults now have a convenient alternative to driving themselves home after a night out. Our survey found that nearly one in five (19%) riders had used the app in the last year after consuming alcohol.
Furthermore, 71% of riders believe that having options like the Uber app helps to reduce reckless driving in an area.
Uber’s Safety Features
Technology apps like Uber have improved safety by creating accountability and transparency where previously there was none. This is because technology makes it possible to focus on safety for riders and driver-partners before, during, and after every trip in ways that simply were not possible before smartphones.
Uber has a dedicated team working across Sub-Saharan Africa and around the world to support this commitment to safety, and is always looking for ways to improve.
Safety before a trip:
- Safety Centre: This is Uber’s in-app resource, which includes safety tips for riders, information about Uber’s relationship with law enforcement and information about the driver screening process, insurance protections and Community Guidelines.
- Real-Time ID Check: Uber uses selfies for security by prompting drivers to take photos against their government identification to help verify the right driver is behind the wheel on an ongoing basis.
- Verify My Ride: User allows users to verify a ride with a PIN. This opt-in feature ensures users are getting into the right car with the right driver.
- Driver Profile: Get to know a driver before stepping into their car. Users can see their rating, how many trips they’ve completed, how long they’ve been driving, compliments from previous riders, and more.
The driver onboarding process:
- Every driver is required to provide a police clearance certificate through Criminal Background Checks, Driver Evaluation, Sexual Misconduct Training and Vehicle Inspections from the DCI before joining the platform, with refresher clearance certificates required every year.
- Each driver is required to be cleared by one of two private companies who check different databases to the DCI yearly.
- All vehicles have to go through Vehicle Inspection before a driver takes a first trip to ensure that they are suitable and in line with the Uber community guidelines.
Safety during a trip:
- In-App Emergency Button: With the push of a button in the app, users can connect directly to private emergency services and security responses when needed through a third-party private security supplier.
- Share My Trip: Users can select trusted contacts in the app and set reminders to share trip details with them.
- Ride Check: Uber has been developing technology that harnesses the power of GPS, along with other sensors from the driver’s smartphone, to identify rare events like unexpected stops or possible crashes. In these situations, Uber can initiate a Ride Check by reaching out to both the rider and the driver to offer assistance.
- Safety Check-up: This feature encourages riders to complete their safety profile by turning on and utilising the available features such as Trusted Contacts, PIN verification and RideCheck.
How does Uber keep drivers and delivery partners safe?
Uber’s commitment to safety also extends to their drivers. According to our survey, 87% of drivers and delivery partners felt safe when driving using the Uber app.
Uber allows drivers and riders to communicate through their in-app contact system rather than sharing their phone numbers, and continues to roll-out safety features periodically, such as the recent introduction of encrypted audio recordings of trips.
Which of the following safety features available on the Uber app have you heard about and how have they impacted your driving experience?
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Conclusion
This report demonstrates Uber’s contributions to the Kenyan economy, as well as its broader social benefits that help adults living, working or travelling in Kenya to fulfil their potential. As Uber continues to innovate and offer new products, Kenya is often at the forefront of new launches.
This is just the beginning. The platform economy offers huge potential for Kenya, delivering digitally enabled solutions to some of the country’s most persistent policy challenges. As Kenya continues to develop and urbanise, its digital transformation will only accelerate, creating high paying, good quality work that drives Kenya’s economy forward.
With the right conditions, and a pro-innovation environment, we estimate the Kenyan ride-hailing market as a whole could grow considerably over the next five years. This exponential growth would be remarkable, and signals significant economic potential across the full value chain of Kenyan consumers, workers and businesses.
The Kenyan government has already taken great steps to ensuring they harness this potential. However, more can be done to accelerate the transformation that is within the country’s grasp.
To ensure the platform economy reaches its full potential, Kenya must:
Prioritise digital inclusion.
Further investment is needed in technology education and expanding internet access – particularly in underserved areas and particularly for women. This would enable more Kenyans to participate in the digital economy as drivers, delivery partners, and customers, boosting overall economic growth.
Invest in transport infrastructure.
Improved infrastructure would facilitate smoother traffic flow and enhance the efficiency of ridesharing services. This might include expanding and maintaining roads, enhancing public transport integration, and developing designated rideshare pickup and drop-off points.
Support flexible working.
The key to the platform economy’s success is the ability of drivers and delivery partners to be their own boss. Kenya must ensure this remains possible, and support entrepreneurs to balance flexible income streams.
Maintain a pro-innovation regulatory approach.
Digital economies flourish when there is a consistent and constructive policy landscape. Kenya’s platform economy would benefit from protocols that are predictable, consistent, and that ensure safety, fairness, and transparency while encouraging innovation and competition in the sector.
Develop electric mobility incentives.
In line with the national climate change action plan, the government could further encourage the adoption of environmentally friendly vehicles, such as electric motorcycles and cars, by providing tax incentives, subsidies, and supporting the development of charging infrastructure. This would reduce the carbon footprint of the transportation sector and improve air quality in urban areas.
Methodology
About Public First:
Public First is an independent consultancy that works to help companies and organisations develop new policy proposals, better understand public opinion, and model their economic and social impact. Public First is a member of the Market Research Society.
About this report:
In this report, Uber commissioned Public First to better understand and quantify the impact they were having for riders and eaters, drivers and delivery partners, merchants, and communities in Kenya. All values are given in KSh.
We used a mixture of methods to explore Uber’s impact:
- Public First ran an in-depth nationally-representative online consumer poll of 1,132 adults in Kenya to explore their travel and food ordering habits.
- Public First ran an in-depth online poll of 1,014 drivers and delivery partners in Kenya to explore their experiences and attitudes.
- Public First then created new quantitative models of the economic impact, time saved, consumer surplus and driver value created by the Uber app.
Economic impact of Uber
The economic impact of Uber was calculated as the sum of:
- Date on driver payouts provided by Uber.
- Supply chain (indirect) and additional demand (induced) impacts of driver spending on vehicles.
- Induced impact of net driver income, which is then spent in the wider economy.
This measure is a gross estimate, looking at the total amount of economic activity supported by Uber in Kenya. It does not attempt to measure what would happen in a hypothetical where Uber no longer existed. Our modelling does not include the impact of Uber’s direct investment or employment footprint as a company in Kenya, or any spillover effect this has into the wider tech ecosystem.
The future economic impact was calculated using internal Uber data and was complemented by third party estimates on the growth of the regional ride sharing market.
Time saved by riders
As part of our polling we asked riders about their most recent trip with the Uber app, and how long the next best alternative would have taken.
Using this, and internal Uber data on average trip times and numbers, we estimated the time saved per trip and aggregate time saving from using Uber.
Consumer surplus
Following the methodology of Brynjolfsson, Collis and Eggers (2019), we asked app users a single discrete binary choice question in the form:
“Now imagine you had to choose between the following options. Would you prefer to keep access to [ride hailing apps/third party delivery apps] or go without access to [ride-hailing apps/third party delivery apps] for one month and get paid KShX?”
The price offered was randomised between 50, 110, 215, 430, 860, 2,150, 4,300, 8,600, 21,500.
We then computed a logarithmic regression of the results of this poll to derive a demand curve and the total consumer surplus per user, taking the average as the headline measure. This was then scaled by users to calculate the total consumer surplus.
Additional income
To calculate the additional income we asked workers the following question:
“If the Uber/Uber Eats apps did not exist, how much do you think you would be likely to earn per week with your next best alternative??”
The results from this polling allowed us to calculate the relative alternative earnings. This was then combined with internal Uber data on earnings and number of active drivers to calculate the total additional income earned.
Value of flexibility to workers
As part of the driver and delivery partner survey, we asked the following single discrete binary choice question:
“Imagine you had to choose between one of the following two options for your driving or delivery:
- Fixed schedule but MORE consistent weekly earnings at X% [lower/higher] level than you do now.
- Flexibility to choose your own hours, but earning only the same amount per hour that you do now.
Which would you prefer?”
In our poll, we asked a series of identical questions, within which X was randomised between 1%, 5%, 10%, 20% and 50%.
We then used a linear regression to derive a demand curve and the total driver surplus per user, which was then scaled up to a national level using data provided by Uber on driver numbers and earnings.
Impact on the night time economy
We gathered data from third-party sources on the market sizes of alcoholic beverages, cinema, music events, and restaurants, along with their associated costs, to estimate the total number of outings each year. This was then adjusted using polling data to account for transport options, market share, night time hours and additionality.
Impact on tourist industry
To estimate the number of Uber journeys taken by tourists we used internal data from Uber alongside third party estimates. To measure the impact Uber has on the tourism industry, we average the results from two methods:
- The first approach draws on figures from Park (2020)23 on the effect of Uber on tourism and applies the relevant findings to the Kenyan tourism industry.
- The second approach uses Uber’s internal data alongside Public First’s survey data to estimate the number of Uber trips taken by tourists that would not have happened otherwise and the subsequent spending that occurred as a result.
Impact on restaurants
The model utilises Uber’s internal data on the total payout to restaurants via Uber Eats. We estimate the proportion which is additional using the average of consumer polling undertaken by Public First, Collison’s (2020)24 estimated range of the proportion of dollars spent on food delivery apps that are incremental, and figures from Deloitte’s 2019 report “Delivering Growth”.25
Following standard input-output methodology, we used input-output tables to estimate Type 1 and Type 2 output multipliers for restaurants in Kenya. These multipliers are used to estimate the total impact via restaurants UberEats has on the economy.