Ride-hailing platform, Uber, on Friday notified its drivers of a 13% fare increment to help them cushion the effect of the recent fuel price increment in Nigeria.
Some of the drivers have, however, said the percentage of increase was minimal compared with the percentage of the increment in the price of fuel.
In addition, they said a reduction of the commission being charged by the platform is key to alleviating their struggle in the business.
The two ride-hailing platforms in Nigeria, Uber and Bolt typically charge a commission rate of around 20-25% from drivers. The drivers had protested over this in the past describing it as too high.
Price increment
Uber in a message to the drivers on Friday said the 13% price increment was to boost the drivers’ earnings in the face of the recent fuel price hike.
“We understand that your operational costs may have increased due to the current macroeconomic situation and want to help ensure your earnings are protected. With this in mind, we have reflected a 13% increase in the UberX product.
“We are confident that this change will have a positive impact on your earnings opportunity, and we aim to continue working on initiatives that help make Uber the app of choice for you while maintaining an affordable service for riders,” the company stated in the email to the drivers seen by Nairametrics.
Drivers react
However, some of the drivers in their reactions to the gesture said the 13% increment was not enough considering that fuel prices had gone up by over 40%.
While advising his colleagues not to rejoice over the increment, one of the drivers, Rotimi Oladele, said:
“If a trip was previously NI000, the 13% increment means this same trip will now be NI,130. Does this suffice for the increment in fuel price? This is mental and modern-day slavery and stupidity for those rejoicing.”
For Izuchukwu Okafor, while the 13% increment is fair, the platform would need to reduce its commission on rides if it indeed wants the drivers to earn more.
“The 13% is fair, but it will be fairer if they can reduce their commission. That is the only way for the drivers to earn more.
“Increasing the fare alone means enriching the company more because their commission will also increase too. No need to rejoice, this more for their own good than for the drivers,” he said.
Another driver on the platform, Paul Ojeme said the increase in fares without a decrease in commission charged by the platform has changed nothing for the drivers. According to him, it only means that the more they earn, the more commission they pay.
Backstory
On Tuesday, Nigeria National Petroleum Corporation (NNPC) Limited reviewed the price of Premium Motor Spirit (PMS) from N617 per litre to N855 and N897 naira depending on location.
- Even with the price increment, many filling stations across the country still do not have fuel to sell. The few filling stations that have fuel have immediately increased their prices.
- The weeks-long queues are still visible despite the price increase as car owners and transporters continue to struggle to get the product at high prices.
- In Lagos, the country’s commercial nerve centre, many people have been complaining about an increase in transportation fares even as buses are scarce on the roads.
