(Nairobi) – Uber Eats has significantly boosted Kenya’s restaurant industry, contributing over KSh 534 million (approximately USD 3.6 million) in extra revenue in 2023, underscoring the growing demand for food delivery services as more customers opt to dine at home or at their workplaces.
This additional revenue comes from the food sales made through the Uber Eats app, providing a vital income stream for restaurants while offering convenience to consumers and creating jobs for delivery drivers. This marks a notable rebound for Kenya’s hospitality sector, which has been recovering from the effects of the Covid-19 pandemic, a period that saw the industry’s earnings plummet to historic lows.
The data, gathered by research firm Public First, highlights that Uber’s operations in Kenya contributed an estimated KSh 14.1 billion (USD 94 million) to the local economy in 2023. This contribution includes earnings from both the ride-hailing and Uber Eats services. Kui Mbugua, the general manager of Uber Eats Kenya, noted that the platform not only helps food vendors sell outside traditional business hours but also provides valuable business insights. These insights, such as customer preferences, peak ordering times, and popular menu items, assist businesses in improving their operations, reducing waste, and boosting revenues.
Mbugua emphasized that access to these insights enables food vendors to tailor their offerings to better meet customer needs, thereby enhancing their business strategies. She added that this digital infrastructure is particularly beneficial for small businesses, offering them an efficient and scalable delivery service that supports local enterprise and stimulates the economy.
In addition to its impact on the restaurant sector, Uber’s presence in Kenya has also positively affected the broader tourism industry. The report from Public First shows that Uber helped increase the tourism sector’s value by an extra KSh 2.7 billion (USD 18 million) due to its facilitation of tourist travel within the country. Furthermore, bars and nightclubs have gained an additional KSh 167 million (USD 1.1 million) from Uber’s services, with nightlife patrons relying on the app to move around during late hours.
The study also revealed that ride-hailing services like Uber have helped improve safety for many Kenyans. About 77% of respondents said they felt more confident staying out late due to the availability of reliable transportation options, and 76% of respondents indicated that Uber is their primary means of traveling during late hours.
Moreover, the app has contributed to a significant time-saving benefit for Kenyan users. According to the findings, Uber saved Kenyans a total of 3.4 million hours last year through its ride-hailing service. In addition, Uber Eats helped save 448,000 hours by streamlining the food delivery process for consumers.