What the Rise of Ride-Hailing Apps Means for Kenyan Used Car Buyers

Marketing Peach

— 5 min read
What the Rise of Ride-Hailing Apps Means for Kenyan Used Car Buyers

In the last decade, Kenya's streets have been buzzing with ride-hailing apps. Uber, Bolt, Little Cab…the options keep growing. 

From the days of flagging down a matatu or hailing a tuk-tuk (I know, some of us still do), we've jumped straight into a world where an app on your phone finds your ride. 

While this tech revolution thrills passengers, it also spins the wheel for Kenyan used car buyers in quite a few interesting ways.

How? You ask. Let's break it down.

The Ride-Hailing Landscape in Kenya

First, the facts. Africa's ride-hailing market is expected to hit USD 3.16 billion by 2030, with Kenya leading the charge.

Since Uber landed in Nairobi in 2015, the ride-hailing scene has exploded. Bolt followed, then Little Cab, and now even boda apps like SafeBoda are in the mix.

According to a 2020 GIZ survey, over 60% of Nairobians had used a ride-hailing app. That number’s only grown. 

The streets of Nairobi, Mombasa, Kisumu, and other towns have now been transformed. Where people would park their cars with a sign on top saying “TAXI”, ride-hailing apps now rule. Uber operates in Nairobi, Mombasa, Kisumu, Eldoret, and Nakuru, while Bolt and Little expand their footprints daily. For example, Little Cab alone has over 200,000 drivers, and the market keeps expanding. 

Now, what does this mean for used car ownership in Kenya?

1. Ride-Hailing Is Shifting Market Demand

 Kenya's used car market is expected to hit USD 1.39 billion by 2030, and it is growing steadily, with shifting demands.

The Fuel Efficiency Revolution

Walk into any car yard today and ask what's moving fast. The answer? Hybrids and fuel-sippers.

Hybrid vehicles like the Toyota Prius offer 22–25 km/l compared to 12 km/l for traditional sedans. For Nairobi commuters and ride-hailing drivers, that's over Ksh 10,000 saved monthly. Do the math, that's Ksh 120,000 per year just on fuel.

The models everyone's chasing:

Hybrid Heavyweights:

Efficient Non-Hybrids:

Why the shift? Simple economics. When your ride-hailing competitor is making Ksh 10,000 more per month because they drive a hybrid, you feel it.

The Sedan Renaissance

SUVs used to be the dream. Now? That dream is fading. In 2025, Kenya is experiencing a notable shift toward hybrid vehicles as petrol prices soar. Buyers want cars that are comfortable enough for passengers but cheap enough to run daily. Sedans win that battle.

Buyers now favour practical sedans with 1200cc to 1800cc engines that balance power with economy. They are comfortable enough for family trips and cheap enough for daily commercial runs. Flashy, thirsty engines are out; practical, money-saving rides are in.

Smarter Financing Calculations 

Buyers now understand that a fuel-efficient car helps pay for itself. The Ksh 10,000 or more saved on fuel each month can directly service a logbook loan, making a seemingly expensive hybrid suddenly affordable.

2. Market Consequences: Pricing, Imports, and Resale Value

This shift in demand has had a direct impact on the market.

  • Price Increases: High-demand models like the hybrid mentioned above now command premium prices. Any reliable sedan under 1500cc is holding its value firmly.
  • Price Drops: Large, fuel-guzzling SUVs, older models without modern features, and high-maintenance European brands are seeing their prices fall.
  • The Import Effect: Dealers are adjusting their stock, importing more hybrids and compact sedans to meet demand. This keeps efficient car prices elevated while less popular models gather dust.

For sellers, this means a well-maintained, fuel-efficient car can still fetch a good price, even with high mileage from ride-hailing. The key is providing proper maintenance records to prove its upkeep.

3. Buyer Behaviour Has Changed Completely

Not everyone buying a car wants to be a ride-hailing driver. But many do. And that’s changing how people think about car ownership.

The Dual-Purpose Dilemma

Here's what dealers are hearing: "I want a car for my family, but it should also work for Uber, just in case."

That "just in case" is changing everything. Buyers now evaluate their used cars based on the following:

  • Practicality is king, roomy but not too big, good on fuel, and easy to park.
  • Buyers want vehicles with strong resale value, knowing they might flip their cars later.
  • Comfort features and reliable air conditioning help drivers keep passengers happy and high-rated on app platforms.

This shift means some buyers stretch their budgets a little to get cars that juggle both roles well.

Is Driving for Ride-Hailing Worth It?

While the potential for an extra income stream is tempting, buying a car solely for gig work requires a clear-eyed look at the realities.

The Upside:

  • Active and flexible income stream.
  • Consistent demand, with platforms like Little boasting over 2 million users.

The Reality Check:

  • High commission rates (around 18-25%) eat into earnings.
  • Rising fuel costs and regulatory instability can disrupt income.
  • Fierce competition among drivers.

Furthermore, commercial use accelerates wear and tear. A ride-hailing car can clock 200-300 km daily, requiring more frequent servicing and depreciating faster. Banks recognise this risk, often demanding larger deposits or charging higher interest rates for commercial vehicle financing, on top of mandatory advance taxes.

The smartest strategy is to buy for your life, not just for a gig. Choose a car that solves your primary transport needs. If it can double as a side hustle, that's a bonus, not the main plan.

4. What About Policy and Regulation?

Kenya's ride-hailing sector isn't the Wild West anymore. Regulations are coming, and they affect car buyers.

Tax Implications:

5. The Smart Buyer's Strategy for 2025

To win in this new market, your approach should be simple and strategic.

  1. Prioritize Fuel Efficiency Above All: Whether for personal or commercial use, fuel is your biggest ongoing cost. A hybrid can save you over Ksh 120,000 annually.
  2. Think Long-Term Maintenance: Choose brands with affordable, readily available parts. Toyota, Honda, and Mazda dominate for a reason.
  3. Verify Everything: In a high-demand market, vehicle history reports are non-negotiable to avoid scams.
  4. Don't Overextend on Financing: Base your budget on your primary income, not projected gig earnings.
  5. Buy for Flexibility: The best car is comfortable for your family, efficient for daily commutes, and practical enough for an occasional side hustle.

The game has changed. The winners are no longer those with the biggest or fastest cars, but those who choose the most efficient, reliable, and financially sensible vehicles.

Ready to Make the Right Choice?

The ride-hailing revolution has shown us what really matters: efficiency, reliability, and smart economics. At Peach Cars, we've curated an inventory that reflects this new reality.

Every car is:

  • Fully inspected and certified
  • Comes with insurance support
  • Backed by proper documentation
  • Priced fairly based on real market value

Whether you're buying your first car or upgrading to something more efficient, we've got you sorted.

Browse our inventory online or call us on 0709 726 900. Let's find your perfect ride, the Peach way.

Want more insights on Kenya's used car market? Check out our guides on choosing fuel-efficient cars, understanding financing options, and avoiding common buying mistakes.

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