Uber Expands Into African Logistics with the Launch of ‘Uber Connect’ in Kenya

Uber Expands Revenue Streams with ‘Uber Connect’ Launch in Kenya

The COVID-19 pandemic dealt a significant blow to Uber, causing a sharp decline in revenue and leading to the layoff of over 4,000 employees in just two months. To mitigate these losses, the ride-hailing giant has been diversifying its business model, exploring new revenue streams beyond its traditional ride-sharing services.  

Uber’s Strategy Amid the Pandemic

In an effort to stay afloat, Uber has been making strategic moves, including:  

🚗 Expanding delivery services in Kenya through UberBoda, the company’s motorcycle-hailing service  

💳 Launching Uber Cash in Sub-Saharan Africa in partnership with Flutterwave, a leading B2B payment gateway  

🍽 Bolstering its food delivery segment, acquiring Postmates in a $2.65 billion deal  

Uber Connect: A New Logistics Solution for Kenya

Uber’s latest venture, Uber Connect, has now been launched in Kenya, offering an affordable same-day package delivery service. This feature allows users to send parcels seamlessly via the Uber app, leveraging the company’s existing network of drivers and riders.  

For deliveries in Kenya, Uber Connect will utilize UberBoda (Uber’s motorcycle service) with the following pricing structure:  

✅ Base fare – $0.51 (Kshs 55)  

✅ Per-minute charge – Kshs 1  

✅ Per-kilometer charge – Kshs 4  

✅ Minimum fare – Kshs 60  

A Cost-Effective, No-Contact Delivery Solution

In a blog post announcing the launch, Uber stated:  

"With our new Uber Connect feature, users in select cities can log into the Uber app and send packages to family and friends. It’s a cost-effective same-day, no-contact delivery solution that keeps people feeling close, even when we’re apart." 

As e-commerce and on-demand delivery continue to grow in Africa, Uber’s expansion into logistics signals a strategic shift that could reshape urban deliveries in the region. 🚀