Mobile Phones Usage and Productivity

Taxis are an important component of the public transport system in Nairobi, Kenya. The ability of the taxis to be more productive was for a long time hindered by poor communication. This situation has changed with the widespread availability and use of mobile phones by both the public and taxi operators. This study examines the contribution of mobile phones to enhancing the productivity of taxi operators in Nairobi. Interviews conducted with taxi operators in Nairobi and with selected key informants provided insights into the role of the mobile phone in enhancing productivity. The findings revealed two ways in which the mobile phones enhanced productivity of taxi operators. First is the coordination of demand for the taxi service. Operators no longer wait for customers mainly at ranks but are now in constant contact with customers through the use of mobile phones. Second is that mobile phones have provided a flexible financial service. The operators use the money transfer service of mobile phones to receive payments and also to send money to family members, relatives and friends.