E-hailing drivers in Nigeria are calling for a review of fare structures and commission rates charged by ride-hailing platforms, citing rising operating costs and growing concerns over the sustainability of the sector.
Speaking on the development, e-hailing driver and industry stakeholder Ijeomah Daniel Uche said drivers are bearing the bulk of the operational costs, including fuel, vehicle maintenance and insurance, while fares on platforms such as Bolt, Uber and inDrive have remained relatively low.
According to Uche, the technology companies provide the platforms, but drivers provide and maintain the vehicles and are responsible for delivering the actual transportation service.
He argued that the current pricing structure has, in some cases, resulted in drivers attempting to renegotiate fares with passengers after accepting trips, a situation that can lead to disputes and raise safety concerns.
Uche also criticised the commission charged by some ride-hailing platforms, describing the rates as high and insufficiently transparent. He said commissions can vary, leaving drivers with significantly reduced earnings after completing trips.
He urged the companies to review both their fare structures and commission models, arguing that better earnings could discourage drivers from negotiating trips outside the platforms.
Airport Transportation and Security
Uche said the controversy surrounding e-hailing operations at Nigerian airports is not solely about fares, but also involves security and passenger profiling.
He explained that one of the concerns raised by the Federal Airports Authority of Nigeria, FAAN, was the ability to properly identify and trace passengers and drivers using app-based transportation services.
According to him, an airport-specific application could address some of these concerns by ensuring that users are properly profiled, thereby improving accountability and security for both passengers and drivers.
However, he called for the platform to be opened to a wider pool of e-hailing drivers, saying passengers should have the freedom to choose their preferred transportation service while drivers should also be able to accept trips they consider commercially viable.
The restrictions on e-hailing operations within airport premises have also created challenges for passengers, according to Uche. He said passengers using conventional ride-hailing platforms may have to leave the airport premises before meeting their drivers, potentially creating additional inconvenience and security concerns.
Rising Costs and Driver Welfare
Uche further warned that low fares are placing increasing pressure on drivers at a time when the cost of running a vehicle has risen significantly.
He noted that expenses such as fuel, insurance, vehicle repairs and maintenance have increased, while competition among ride-hailing companies continues to influence fares.
He argued that drivers who need to meet daily income targets may be compelled to spend longer hours on the road, increasing the risk of fatigue and potentially compromising road safety.
“A happy driver makes a happy rider,” Uche said, stressing that better remuneration could improve the quality of service provided to passengers.
He appealed to passengers to understand that any adjustment in fares should not automatically be viewed as an attempt to exploit commuters, noting that drivers also face the same economic pressures affecting households and businesses across the country.
Call for Tripartite Dialogue
Uche called for a structured dialogue involving government regulators, ride-hailing companies and drivers to address the challenges confronting the industry.
He said drivers should have a seat at the table during policy discussions because they are directly responsible for providing and maintaining the vehicles used for e-hailing services.
He also urged greater transparency in commission structures and a review of the mechanisms used to determine fares.
According to him, effective regulation should strike a balance between keeping transportation affordable for passengers, ensuring drivers can cover their operating costs and allowing ride-hailing companies to maintain sustainable businesses.
He stressed that the future of Nigeria’s e-hailing sector would depend on cooperation among stakeholders and regulations that protect the interests of all parties, particularly passengers and drivers.
