Singapore-based ride-hailing firm Yego formally enters Kenyan market
Yego Global, the ride-sharing platform headquartered in Singapore which entered the Kenyan market in December through its subsidiary Yego Mobility Kenya Limited, has been officially launched in the country.
Speaking during the launch, Transport Cabinet Secretary Kipchumba Murkomen assured taxi-hailing operators and passengers that the government is keen on implementing the recently gazetted Digital Hailing Service Regulations (TNC Rules 2022).
Mr Murkomen said drivers and owners of motor vehicles registered with the transport network companies shall not pay commissions exceeding 18 per cent of the total earnings per trip moving forward.
The regulations that had been proposed by the National Transport and Safety Authority (NTSA) would, among other things, prohibit digital hailing service operators from charging a commission of more than 15 per cent.
“I urge all current and aspiring applicants for transport network company licences to regard the stipulated requirements with utmost seriousness and comply with the Regulations without exception, as they are and will continue to be enforced rigorously,” Murkomen said.
The regulations mandate hailing businesses to pay a Sh100,000 yearly operational license charge and register with the Data Commissioner as a data processor or collector.
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Online taxi companies must also sign transport network agreements with licensed drivers and owners of motor vehicles that specify the responsibilities of each party.
The companies will be responsible for supervising the cars and drivers that are part of their individual fleets and making sure that all of the above are in good working order.
“It is mandatory for a licenced transport network company to sign an agreement with the vehicle owner. Under the Regulations, the driver of the vehicle must hold a Public Service Vehicle (PSV) licence and must have subscribed to transport network services,” Murkomen said.
Also speaking during the launch, Yego CEO Karanvir Singh said the company had complied with all the Regulations and was ready to take over the Kenyan market.
“This is a locally-owned company with keen interest in ensuring the interests and welfare of the drivers are well taken care of. Unlike, other companies that upped their rates to 18 per cent mark to maximise on profits, we have capped the commission we receive from drivers to 12 per cent all-inclusive, meaning the driver walks away with 88 per cent of his earnings. These payments are made 60 second after the trip has ended,” he noted.
“In addition, we cater for our drivers’ NHIF costs and have insured them against personal accidents. In addition, 10 per cent of the annual dividend from the drivers goes to Yego Sacco as an effort to secure their future, with their savings enabling them to get access to car financing,” he said.
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Mr Singh further stated that the company had a 24-hour live agent help desk to deal with any emerging issues including the safety and concerns of the drivers and passengers.
It is also mandatory for the network company to follow regulations on subscription, activation, and deactivation of service.
The transport network company license, which is valid for one year, shall only be renewed subject to compliance with set regulations.
The National Transport and Safety Authority (NTSA) is also under an obligation to audit all transport network companies to ensure strict compliance with the law.
This comes days after Nairobi Governor Johnson Sakaja advocated for a boost in the wages of taxi drivers, whom he claimed are being paid too little by taxi hailing services.
Speaking at this year’s Labour Day celebrations at Nairobi’s Uhuru Gardens, Sakaja urged the Competition Authority of Kenya and other taxi industry participants to help the drivers, who, in his opinion, are receiving insufficient compensation for the excellent service they provide.