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Home Business News

Lagos turns to Uber, Bolt, others, clamps down on them over permits

Fakoyejo Olalekan by Fakoyejo Olalekan
February 8, 2020
in Business News, Company News
Lagos state imposes 24-hour curfew, as hoodlums hijack #EndSARS protest, Social clubs, recreational centres to reopen August 14, Lagos International Trade Fair to get permanent site soon, Sanwo-Olu vows , Lagos State discloses road expansion plans in an effort to combat traffic, Lagos State cracking down on Uber, Bolt, Ocar a week after Okada, Keke Napep ban , LASG increases health workers’ allowances, commissions local production of face masks

Babajide Sanwo-Olu

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These are not good times for ride-hailing companies and their patrons in Lagos, as Governor Babajide Sanwo-Olu led administration has started beaming lights on the operations of the car-hailing firms like Uber, Bolt, and Ocar among others.

This has caused an uproar on social media, with some Nigerians criticising the government and calling for a protest.

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Few weeks after Lagos State Government banned commercial motorcycles and tricycles from plying six local government areas and nine local council development areas, it appears the government’s  next move is to clamp on the operations of Uber, Bolt and Ocar.

Why is the government coming after them? It was disclosed that the car-hailing services have failed to obtain Hackney permits, which will change their vehicle registration to commercial from private.

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A source in the Lagos Vehicle Inspection Services said commercial vehicle drivers, Uber, Bolt, and other car-sharing platforms are expected to be certified by the Lagos Drivers’ Institute before operation commences in the State.

He disclosed that Uber hadn’t paid an operator license fee to the state government. “You need to have what we call operator license, which Uber and others were supposed to pay to the government.”

[READ MORE: Lagos State reveals plans to address negative aftermaths of okada ban)

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This has led to the impounding of some Uber driver’s car. The driver had to pay N60,000 to retrieve his vehicle.

However, in a conversation with one of the VIS officials, he told Nairametrics that drivers on car-hailing platforms do not necessarily need Hackney permits except some that operate outside the operation model of the car-hailing services, by picking passengers like commercial buses.

He added that when they are caught, the Police will have to request for Hackney permit, which the VIS official said costs about N3, 000 and above, depending on the engine capacity of the vehicle.

The problem with the government’s crackdown: This has resulted in high cost of living in Lagos. The ban has caused inflation in transport fare, with Uber and Bolt increasing their rate as demand surges. Also, commercial buses (yellow buses) have hiked their prices, and this will affect the cost of goods and services in Lagos.

This is coming at a time when the increase in VAT (5% to 7.5%) is expected to impact the cost of living in Nigeria. The ban will double the projection for Lagosians who are already living in a costly state compared to other Nigerian states.

Social media reactions: On twitter, several Nigerians responded to the new development. One twitter user, @Morris_Monye said, “‘Okada’, ‘Keke’, ‘Gokada’, ‘Opay’, now Uber have their operations either banned or heavily restricted. Somehow, rickety, smelly ‘danfo’ is exempted and part of the Greater Lagos. Who can explain this in simple terms? I do not understand.”

"Okada", "Keke", "Gokada", "Opay", now Uber have their operations either banned or heavily restricted.

Somehow, rickety, smelly "danfo" is exempted and part of the Greater Lagos.

Who can explain this in simple terms. I do not understand.

— the Morris Monye factor (@Morris_Monye) February 7, 2020

Another user, @topgee992 tweeted, “Now that the Lagos state government is coming for uber/taxify, what happens to that lady they bought car for to start-up? What’s really going on?”

Now that the Lagos state government is coming for uber/taxify, what happens to that lady they bought car for to start-up?

What's really going on?

— Temitope Agboola™ (@topgee992) February 7, 2020

[READ ALSO: Bike-hailing ban insensitive, Gokada, MaxNG slam Lagos government)

A Twitter user, @principe_viii, wrote that, “First, the lagos government came after Okada and Keke, now they are going after Uber & Taxify. They really are out to make lagosians suffer for no reason.”

First, the lagos government came after Okada and Keke, now they are going after Uber & Taxify. They really are out to make lagosians suffer for no reason.

— Ichie Bullion (@principe_viii) February 7, 2020

@bolu_oj tweeted, “I am sad to hear that Lagos is going after Uber and Bolt. This will not end well.”

I am sad to hear that Lagos is going after Uber and Bolt.

This will not end well.

— Bolu Oj (@bolu_oj) February 7, 2020

@theofficialFEMI tweeted that, “Now that Lagos State Govt is coming for Uber and Taxify, I hope some of you still defending this madness are ready sha.”

Now that Lagos State Govt is coming for Uber and Taxify, I hope some of you still defending this madness are ready sha.

— BJORN Ironside (@theofficialFEMI) February 7, 2020

Meanwhile, Head of communications in West Africa, Uber, Efosa Aiyevbomwan, has assured stakeholders that it would continue to ensure its operations align with best practices.

In a statement, he said, “Uber continues to work closely with all relevant stakeholders in Lagos to ensure that our operations align with best practices locally and internationally, whilst also ensuring that drivers continue to earn a living and riders are able to move from point A to B, comfortably and conveniently, at the touch of a button.”

Related

Tags: BoltGovernor Babajide Sanwo-oluLagos Drivers’ InstituteLagos Vehicle Inspection ServicesOcarUber Nigeria

Comments 8

  1. Anonymous says:
    February 9, 2020 at 3:22 pm

    U can see how unhealthy and unconsiderate governance, is here.while thousands were idle,still u can’t design a app to lift ur people from hunger.now u av d guts to want to check wat u cant build.d danfos and old cabs r d ones of standard abi.keep dragging back dis nation with ur crooked tacts. Make us happy abeg ratger than exacerbate d status quo…

    Reply
  2. 9jaRealist says:
    February 9, 2020 at 4:43 pm

    Nigeria has become such a lawless nation (even the government itself hardly follows due process or respects court orders) that Nigerians apparently think it is wrong for the government to require that folks who ferry innocent citizens around the city should be regulated. SMH

    Reply
  3. Anonymous says:
    February 10, 2020 at 3:00 am

    This lagos government is mad ,instead of him to solve the power problems in his state just wasting time on stupid foolish things that wouldn’t help him.

    Reply
  4. Frankie says:
    February 10, 2020 at 3:41 am

    Its simple. NURTW are not happy about various competitors. So Governor strikes a deal.if you help me win elections, we going to scrap all forms of competition. Elections are done and dusted,this bans&restrictions are now the benefits. Smh

    Reply
  5. DAT-ISHAN-BOY @45.com says:
    February 10, 2020 at 6:52 am

    Hmmmm! Sanwo…sanwo… Sanwo…okay oh!you are biting the fingers that fed you…you forget too soon oh!dont allow AMBODE to laugh at you oh!your combatant mode of attack on the peace of lagosians will make unpopular with them and know what means…ask ambo!you can’t put lagosians in sufferings while you ride home and sleep in peace…please biko Mr governor.. Understand what the people wants and why you are a governor today no be day na you better pass the rest…dont disappoint us oh!you can’t bound everything positive in the state and leave vices like the agberos and their like in peace…please live uber and taxify alone…tell them what to do they will obey instead of powering those government thugs in uniform called VIO…please allow us enjoy Lagos or else 2023 is just a stonethrow from here.a word of the elders.

    Reply
  6. Raskunlery says:
    February 10, 2020 at 8:32 am

    This is surely government of the rich ,he doesn’t know that there are lower class in Lagos like fashola regime, government that does not think about how poor masses live … You people should fair God and know that you are just privilege its not by your power..
    You ban okada riders , keke riders , now uber , taxify and opay … Good but the question is which job have you created for this people..even what alternative have you made for the commuters .. Your government is not a problem solver instead you are creating problem.. You will surely account for all your action to God when time comes…

    Continue all your evil act in the name of government…

    Reply
    • Sirmicorich says:
      March 3, 2020 at 1:23 pm

      I’ll rather say, he’s a governor without the understanding of right governance, he’s not intelligent with this move, not in a country like nigeria, and never in a state like Lagos. It’s obvious we are in a big mess

      Reply
  7. Anonymous says:
    February 10, 2020 at 8:53 pm

    Carry on jare,
    Sabi ambode was not good,
    This will continue to be the punishment for every one that rejects a governor for the poor,
    Ride on
    Sanwo fun olowo

    Reply

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