Uber Expands Africa Portfolio, Launches Logistics Service in Kenya
As part of its ongoing market segmentation and adaptation, Uber has ventured into logistics by launching a parcel service in Kenya dubbed “Uber Connect”. This development forms a major shift in Uber’s business focus which encompasses delivery services in a bid to diversify from its ride-hailing venture. With this, Uber Connect will provide an affordable same day delivery option to deliver packages, primarily transported via motorcycles. This new service will be priced at the same rate as its other motorbike service, “Uber Boda.”The base fare will be KES 55, and the rest of the distance will be billed at the rate of KES 14 per kilometer and KES 1 per minute on the road. Currently, the weight limit for packages has been set at 15kg for each.
While the service is definitely convenient, customers are urged not to ship packages worth more than KES 5,300 as Uber is not insuring the packages. Dispatching items worth more than the stated amount shall be at the customer’s own risk.Uber’s terms and conditions list numerous items which customers are not allowed to send via Uber Connect. These includes people, illegal items,firearms, weapons, ammunition and their parts, alcohol, highly perishable food or beverages, pharmaceutical products, over the counter medications, vitamins or supplements,recreational drugs, drug paraphernalia or tobacco products, money, gift cards, lottery tickets, or transferable securities, dangerous or hazardous items including explosives, poisonous or flammable items,fragile items, sexual aids, obscene or pornographic material, livestock, regulated species or animal parts, blood or fluids, any items for which you do not have permission to send and stolen goods.
This development in Kenya is Uber’s first attempt at parcel delivery in Africa as it kicked off its delivery services in April in other parts of the world, launching delivery services for groceries in various countries through Uber Direct. Uber now joins Little and Bolt in the package delivery space in Kenya. Bolt launched its delivery service in May of this year. Little Cab already had this service, but went on to include ambulance services on its platform. They collectively are in direct competition with other delivery companies like Sendy which has maintained a strong position in the logistics sector for a while.
Uber has also been very busy on the food delivery front, most recently acquiring American food delivery company, Postamates in a US$ 2.65 Billion deal, in a bid to make its own Uber Eats service profitable. Diversifying is very crucial for Uber which reported a US$ 2.9 Billion loss earlier this year, largely due to the coronavirus pandemic’s effect on its core business of ride-hailing.
Kelechi Deca
Kelechi Deca has over two decades of media experience, he has traveled to over 77 countries reporting on multilateral development institutions, international business, trade, travels, culture, and diplomacy. He is also a petrol head with in-depth knowledge of automobiles and the auto industry