Drivers on e-ride hailing apps under the aegis of ‘Amalgamated Union of App-Based Transport Workers of Nigeria’ (AUATWON) have demanded a fare increase of 200% from ride-hailing companies which include Uber, Bolt, and Rida, amongst others following the increase in fuel price.
The Union expressed their concerns over the increase in fuel price which impacts earnings and affects the profitability of drivers. The call for a 200% increase is to cushion the effect of the removal of fuel subsidy, which they noted that trip fares should be set at a minimum of N2,000.
Speaking at a meeting held on Thursday by the AUATWON, the union leader Damola Adeniran said,
“Due to the lack of control over transportation prices offered to passengers, unlike independent cab drivers, branded taxi drivers, and bus drivers, the fuel price in different states across Nigeria have significantly impacted app-based transport workers.
“Moreover, there has been an alarming 200 percent increase in the prices of vulcanizers, motor spare parts, and labor costs. Consequently, the profitability of AUATWON members have been severely diminished by more than 300 percent, while the ride- hailing companies continue to charge between 20-25 percent commission leaving the hardworking workers in pain.”
The association said;
“All app companies should immediately set their commission at a flat rate of 10 percent or reduce their commission by 50 percent without any hidden charges, considering the uniform commission charges that have rendered their business unprofitable.
In addition to the price increase, the union demanded a reduction in the commission charged by app companies and asked for a 5% subsidy to cushion the effect of the fare increase on riders.
The union, therefore, insists that no app company should deactivate any of the drivers as a result of fuel subsidy removal or for carrying out their lawful business unless they fail to act on the union’s demands.
Investors King understands that the lingering fuel scarcity rocking the nation is taking a huge toll on the ride-hailing industry with many drivers unable to meet up with daily targets and scheduled loans for repayment. Owing to the non-availability of fuel, many drivers have resorted to buying from black marketers at very exorbitant prices.
On the other hand, thousands of working-class Nigerians who rely heavily on ride-hailing companies for their daily commuting are reportedly abandoning them for alternative transport modes, following the increase in the fare price.