Kampala, just like other capital and business cities, is fast growing with the evolution of technology – and this is visible with the way that ride-hailing apps have revolutionized people’s movement around.
But have you ever wondered how these apps calculate the cost of your trip? We are here to break down the world of ride-hailing economics and uncover the secrets behind those numbers on your screen.
The basics of ride-hailing pricing
Before we get into the nitty-gritty, it’s important to understand that ride-hailing apps typically use a formula that includes several components. The main factors are the base fare, distance traveled, and time taken. Some apps also include a booking fee.
Quickly, let’s break these down and see how they come together to determine your trip cost. Let’s use an example of a ride hailing app we’ll name appX.
Base fare
Think of this as the “getting started” fee. It’s a fixed amount that’s charged as soon as you start your trip. For example, appX in Kampala has a base fare of 1000 UGX. This helps cover the driver’s initial costs for accepting your ride request.
Per kilometer rate
This is where the rubber meets the road, literally! Apps charge a set amount for each kilometer you travel. In Kampala, appX charges 600 UGX per kilometer. So, if you’re taking a 5km trip, that’s an additional 3000 UGX on top of your base fare.
Per minute rate
Traffic in the capital can be unpredictable, right? That’s why apps also charge for the time you spend in the vehicle. appX in Kampala charges 100 UGX per minute. So, if your 5km trip takes 15 minutes, that’s another 1500 UGX.
Minimum fare
To ensure drivers don’t lose money on very short trips, most apps have a minimum fare. For appX in Kampala, it’s 5000 UGX. If your calculated fare is less than this, you’ll still be charged the minimum.
Putting it all together
Let’s say you’re taking that 5km trip that takes 15 minutes using appX. Here’s how it might look:
- Base fare: 1000 UGX
- Distance (5km x 600 UGX): 3000 UGX
- Time (15 minutes x 100 UGX): 1500 UGX
- Total: 5500 UGX
In this case, since the total is above the minimum fare, this is what you’d pay.
Factors that can affect your ride-hailing fare
Your fare isn’t always set in stone. There are several factors that can influence the final price you pay. Dynamic pricing is one such factor. Ever noticed prices go up during rush hour or when it’s raining? That’s dynamic pricing in action. When demand is high and drivers are scarce, prices can increase to encourage more drivers to hit the road.
The type of ride you choose also plays a role in determining your fare. Different vehicle types come with different price tags. For example, a motorcycle taxi (boda-boda) through SafeBoda will generally be cheaper than a car through Uber or Bolt.
Don’t forget to keep an eye out for promotions and discounts. Apps often run specials to attract new users or reward loyal customers. These can significantly reduce your fare if you’re lucky enough to catch them.
Popular ride-hailing apps in Uganda
Now that you know how to calculate your fare, let’s look at the top ride-hailing apps operating in Uganda.
SafeBoda is a popular choice, offering motorcycle taxis, car services, and even package delivery. Uber provides both car (UberX) and motorcycle (UberBODA) options. Bolt, formerly known as Taxify, offers similar services to Uber with both car and boda-boda options. Little is a newer entrant offering a range of vehicle options and additional services like airtime purchase.
Each of these apps has its own unique features and pricing structures, so it’s worth comparing them for your specific route.
Read About: Safeboda adds electric boda option to its menu
Tips for saving on your rides
If you’re looking to save some money on your rides, there are several strategies you can employ.
First, it pays to compare apps. Prices can vary between apps, so shopping around can lead to significant savings. Traveling during off-peak hours is another great way to save. By avoiding surge pricing during high-demand periods, you can often get better rates.
Consider sharing rides when possible. Some apps offer carpooling options which can significantly reduce your fare. Finally, keep an eye out for promo codes. Following the apps on social media or signing up for their newsletters can help you catch promotional offers that can slash your fare.
