Uber exit calls for regulation of global brands to protect users

Ten years ago, Kampala was all the rage. Uber, the global taxi hailing app, launched in Kampala with fanfare.

The razzmatazz that comes with a global brand that promises to change the world. All our transport problems, at least in Kampala, would be sorted. It was cool to order an Uber or arrive at a fancy party in one. If you had not installed the app, you were being left behind.

There was no need to buy a car. Uber would sort that at the fraction of the cost. If you had a car, it was so cool to use it as a Uber on your way to or from work. And if you didn’t like your boss, you could quit your job and become your own boss as a Uber driver.

It wouldn’t get any fancier. Some people cashed out their savings, bought a few corollas, got their cousins who had previously graduated from university and made them Uber drivers. Side hustle had never been so simple.

Special hire drivers cried. Calls placed to their previous customers went unanswered. The suitor had a new lover. You were exploitative. Uber transported someone to wherever they wanted at the cost of a chapati!

Some young people decided to create Uber for all sorts of things. Looking for somebody to wash your clothes over the weekend, an “uber” was created for that. Need a truck to transport something?

There was an “uber” for it. Need a boda? Well, another “uber” was created before Uber itself introduced boda bodas. Innovation hubs were full of ideas with young people dressed in hoodies spending all their time trying to create the next Uber.

To be fair, it wasn’t just in Uganda. Every new innovation has somebody trying to replicate it for another industry. With apps like Uber and AirBnB and their early global success, other platforms for gig work or sharing were created everywhere.

UpWork, Fiverr, DoorDash… the list is endless. We were told the sharing economy was the new thing. That we didn’t need to own stuff. We could easily share. The problem though with international brands like Uber is that they can wake up and make a decision that affects many people.

Like they did last week when they announced that they will no longer be available in Uganda. And, within a few minutes, they were gone. They didn’t even have the courtesy to inform the drivers signed up on their app.

I believe some were even parked at malls waiting for clients only to realize that the application had gone mute. I believe many restarted their phones several times. Developing economies like Uganda should not just allow these brands to come in, do and go as they wish.

They cannot just be making abrupt decisions from Silicon valley. Why couldn’t Uber give time before exiting the country? They could have given a 90-day notice so that their drivers and customers have enough time to prepare.

To operate here, the government should force them to follow some rules and regulations. Usually when they start offering service in smaller economies like ours, there is something they want which isn’t direct revenue.

It is global presence that enables them to have an explosive initial public offering on the New York stock exchange or attract some funding. Once they achieve those goals, their mission is over and can do whatever they want especially where there is no regulation.

In markets where they are regulated, they can’t just wake up and announce that they have closed. Also, the actions of brands like Uber mean that there is a need to identify our challenges and find applicable solutions.

For many years, I wonder whether Uber drivers made any money. The rates were so low prompting many of them to try to negotiate out of the app. What had made Uber appealing to drivers was the near guarantee of a return trip.

Unlike a special-hire (cab), the driver would be able to find a customer after dropping off somebody. That increasingly became difficult yet the rates remained low. When fuel prices went up, Uber didn’t respond appropriately.

Apparently, increments had to follow some policy created based on the American or western European economy. Bad roads and traffic jams were never factored in. Ugandans largely drive old cars which means that they consume a lot of fuel and are susceptible to breakdowns.

If the roads are potholed, maintenance and repair become costly. An unregulated global brand wouldn’t care much about that while setting rates, especially when they don’t own the asset that guarantees their return (25 per cent of each trip in the case of Uber). Regulation of global brands is critical in protecting the interests of users.

djjuuko@gmail.com

The writer is a communication and visibility consultant.

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