Friday, December 6, 2024

Uber’s first Kenya economic impact report: Key highlights for 2023

Uber's first Kenya economic impact report: Key highlights for 2023

Nairobi, Kenya. Uber has unveiled its first Kenya Economic Impact Report, which shows that the Uber app contributed an estimated KSh 14.1 billion in revenue to the country’s economy. Commissioned by Uber and conducted by Public First, the report outlines Uber’s economic impact on local businesses, drivers, delivery people and consumers through its mobility and delivery lines of business in 2023.

“This report breaks down the billions of shillings in economic value that Uber helps create annually in Kenya into its constituent parts: giving Kenyans convenient and safe access to transportation, food, grocery and retail items, helping local restaurants find customers during challenging economic times, and giving drivers and delivery people a flexible and independent earning opportunity,” says Imran Manji, Head of East Africa, Uber. “This impact report will serve as a benchmark for the coming years, as we continue to find ways to support Kenya’s priorities and be a valuable partner for economic and innovative
growth.”

Kui Mbugua, General Manager for Uber Eats Kenya commented: “Through the Uber Eats platform, we have brought value to restaurants, retailers and merchants by expanding their reach to a wider customer base. In addition, access to insights such as customer preferences, peak ordering times and popular items enables 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.”

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Why I left my life in the UK after 30 years to drive Uber in Kenya

Other findings from the report include:
Uber’s impact on drivers and delivery people:

 57% of drivers and delivery people chose to drive or deliver with Uber and Uber Eats over other earning opportunities because of the ability to be their own boss. “I want to be my own boss and grow my future so that my family can have a better
life.” Man, 33, from Nairobi.

 The Uber app provides drivers and delivery partners with a critical opportunity to earn more money and improve their financial situation on flexible and independent 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.

NCBA


#87% of drivers and delivery partners stated that they have used earnings made from using the Uber app to cover the cost of their bills.

o “I earned enough money to take my son to high school through only the Uber app. My son and I have never forgotten that.” Man, 47, from Kiambu 65% 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.

Uber’s impact on 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. In 2023, the Uber app supported KSh
167 million in additional value for Kenya’s nighttime economy by allowing many Kenyans to reach their local bars, clubs, and restaurants late at night.

 The Uber app created an estimated KSh 2.7 billion in additional value for the Kenyan tourism industry, supporting millions of tourist journeys.

Uber’s impact on consumers:

 Riders reported that among the reasons they used the Uber app, the most common reasons were convenience, safety and speed.

 According to the report, 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”(L64%) and “good service” (56%).

o Over 36% of Kenyan adults have used the Uber Eats app to order food or essential items in 2023.

 80% of riders (passengers) had used the app for work-related travel.

 Kenyans also use the Uber app to access leisure activities in their area. In the last year:

o 64% of riders had used the app to get to a party or festival
o 53% used the Uber app to get to an airport.
 When Public First asked respondents what the most important reasons were for riders using the Uber app, safety was consistently mentioned, especially among female riders:
 96% of female riders said safety was an important reason why they used the Uber app while 70% of female riders said the Uber app was the safest way to get home.
o Respondent data: “It’s much safer using Uber because I can conveniently share my location with my family.” Woman, 22, from Nairobi.

“The data from the impact report shows that Uber has a net positive contribution to the Kenyan economy.Our commitment remains to continue to find ways to help Kenyans go anywhere and get anything while creating positive experiences that enable drivers and delivery people to earn sustainably on the platform,” Manji added

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