Ride-hailing firm Little has announced a new car category that is set to offer much cheaper rides to its regular customers. Dubbed Little Economy, the service will involve new small compact cabs that charge as little as KES 25 per kilometre.

“There are times when you don’t want to believe what you see. For instance, your favourite team losing a match, low battery in your phone, no Wi-Fi signal in the house, a new email from work on a weekend. And Sometimes, it’s just too good to believe-like no traffic at peak hours, your favourite song on the radio and Little Economy, where you can get a cab at just Kes25/km,” said Little in its announcing statement.

“That’s right! Little Economy, our latest service that provides you well maintained compact cars at the most affordable fares of just Kes25/km. It seems ‘too good to be true’, but it is true.”

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The new service can be seen as an effort to make up the recent price adjustments the firm had to make in response to the rise in fuel costs.

The charges for regular taxi rides were increased by KES 3 per kilometre in a bid to continue compensating the drivers’ fuel expenses. However, Little‘s CEO Kamal Budhabhatti promised to adjust the prices accordingly in case the fuel prices went back to normal.

This new development was also followed by Bolt’s launch of its food delivery service in the country. So far, Bolt has over-boarded up to 200 restaurants on the service that is new to the Kenyan market but not internationally.