Feres, a major ride-hailing service in Ethiopia, has raised its base fare from 100 birr to 130 birr, implementing a 30 birr price increase effective this week. This adjustment comes months after Ride, another leading ride-hailing platform, increased its base fare to 130 birr, making Feres one of the last major platforms to adopt the new pricing model.
Reason for the Fare Increase
According to Feres drivers, the fare hike is primarily driven by rising fuel prices, vehicle maintenance costs, and foreign exchange rate fluctuations. Many drivers have been requesting a fare adjustment for months, citing financial difficulties due to increased operational expenses.
Industry reports indicate that Feres initially maintained its 100 birr fare even after Ride adjusted its pricing, which resulted in some drivers moving to platforms that had already raised fares. Drivers claim that without the adjustment, their earnings were insufficient to cover increasing fuel prices, spare parts costs, and platform commissions.
Impact on Drivers and Riders
The fare adjustment applies to all rides booked through the Feres platform. Some drivers have welcomed the change, stating that it helps offset rising expenses, while others note that the delay in adjusting fares caused many drivers to shift to competing services.
For passengers, the fare increase means that ride costs across multiple platforms are now standardized, with both Feres and Ride charging 130 birr as a base fare. While some riders acknowledge the rising costs of transportation services, others have raised concerns about affordability, particularly for those who rely on ride-hailing services for daily commuting.
Industry Trends
The Ethiopian ride-hailing market has seen multiple fare adjustments over the past year as companies respond to economic conditions, inflation, and foreign currency shortages. The latest fare increase by Feres aligns its pricing with competitors and reflects broader market trends affecting the transportation sector.
With ongoing economic fluctuations, further adjustments in ride-hailing fares could be subject to fuel price changes, regulatory decisions, and platform strategies.
