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Home Exclusives

E-hailing rides in Lagos see steady demand despite increased fuel price, rising fares 

Caleb Obiowo by Caleb Obiowo
October 11, 2024
in Exclusives, Features, Sectors, Spotlight, Transportation
Fuel price hike: Uber drivers ask for more as platform increases fares by 13% 
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From strumming his guitar on stage to navigating the bustling streets of Lagos, Prince Chidera Adiele, known musically as “Eminiic,” mastered a unique rhythm in the city—one that shifted between his life as a live musician and the fast-paced world of e-hailing.

Since 2020, he balanced these roles, driving on platforms like Bolt, Uber, and more recently, InDrive.

Each morning, Eminiic rises before dawn, hitting the road by 6 a.m. or earlier, steering toward the bustling Island part of Lagos, where the demand is highest.

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“Starting your day early helps,” he shared, knowing that Lagos traffic could make or break a day’s earnings. 

But for him, it was not just about getting rides—it was about leaving a lasting impression. Clean car, fresh air fresheners, and a friendly chat when the rider initiated—these small touches earned him loyal customers and even led to offline gigs, providing a much-needed boost to his income.

“InDrive is relatively cheaper than other ride-hailing platforms like Bolt and Uber, and it thrives because the price stays the same,” he noted, highlighting the strategic switch he made to maximize profits. 

In Lagos’ e-hailing market, where drivers faced rising fuel costs and stiff competition, experiences like Eminiic’s revealed how those behind the wheel adapted to an ever-changing landscape.

Nairametrics dived deeper into these stories, offering insights into the challenges, strategies, and evolving demand that defined the city’s e-hailing sector.

The evolution of e-hailing services in Lagos 

The e-hailing sector has established a strong presence in Lagos over the past decade, beginning with Uber’s launch in 2014. Bolt, initially known as Taxify, entered the market in 2016, bringing more competition to the industry.

  • Today, Lagos hosts a range of e-hailing options, including services like LagRide and InDrive.
  • To use these services, both drivers and riders must download the respective apps on their smartphones or other smart devices, enabling them to access or offer rides directly through the platform. Each app has its own approach to pricing, setting fares that can vary significantly for riders.
  • Similarly, the commission rates that drivers are required to pay differ between platforms, affecting their profitability. The criteria for drivers to join these platforms also vary, with distinct requirements for vehicle specifications and driver background checks.

Navigating the demand: What Lagos E-Hail drivers are saying 

Nairametrics spoke to several drivers of e-hailing services in Lagos to understand how they navigated the complexities of the industry.

Eminiic shared that timing and strategy were crucial.

“The early hours are key—you can catch more trips before the city’s traffic hits,” he explained. 

Eminiic, who lives on the mainland part of Lagos, revealed that the Island part of the city—including Lagos Island, Lekki, Victoria Island, Ikoyi, Banana Island, Ikate, and Ajah—had higher demand for rides. He often made his way there to take advantage of the steady flow of passengers.

Switching to InDrive, he appreciated the lower 9.9% commission compared to Bolt’s over 20%, giving him better control over his earnings. He believed that InDrive’s affordability opened up a window of opportunities, making it accessible for almost anyone to use the platform.

Eminiic noted that the demand for e-hailing services in Lagos was not significantly affected by the fuel price increases following the subsidy removal in 2023 and subsequent hikes in 2024. He, however, observed that while there was an initial dip in patronage, riders quickly returned.

“People returned to using these ride-hailing platforms because of the perks they provide,” he said, pointing to the convenience and flexibility that e-hailing offered, which remained appealing despite higher costs. 

In Lagos’ competitive market, Eminiic stressed the importance of staying online on ride-hailing apps to secure rides quickly.

“You need to be ready to accept offers as soon as they come in,” he explained, highlighting how being constantly available was key to maintaining a steady flow of trips. 

He also observed that Wednesdays were usually the slowest days.

“Ever since the COVID-19 pandemic, many companies have adopted work-from-home policies, which means fewer people are commuting on those days,” he explained, noting that this shift led to noticeably lower demand mid-week. 

Even on these slower days, adaptability remained essential.

“Not every day is fast, but knowing where to go and when can change everything,” he stated. 

Earnings and expenses: How Lagos e-hail drivers made it work 

Nairametrics delved into the financial realities of Lagos’ e-hailing business, exploring how drivers managed earnings and expenses.

Eminiic, who began driving in 2020 on Bolt and Uber, switched to InDrive in 2023, attracted by its lower 9.99% commission. He noted that demand remained steady, even after the fuel subsidy removal in 2023 and subsequent price hikes in 2024.

For drivers, balancing earnings meant covering costs like fuel, feeding, and platform commissions. Eminiic typically works 12-hour shifts, completing an average of 8-10 rides per day.

On a good day, he disclosed that he could earn about N45,000, but fuel could take up to N10,000, while daily meals, commissions, and other expenses further reduced his take-home pay.

Despite these costs, Eminiic said that he has been able to save for rainy days, and the remainder has been enough to sustain his living expenses.

Additional income came from offline gigs, where satisfied passengers hired him directly, and occasional tips, though less frequent due to economic pressures.

“Good service sometimes leads to a little extra,” he added. 

Managing these aspects requires strategic thinking and adaptability.

In Lagos’ competitive market, ride-hailing drivers had to carefully balance costs and opportunities to maintain a steady income.

Riders’ adaptation: Coping with rising costs in Lagos’ e-hailing market 

As Lagos’ e-hailing landscape evolved, passengers adjusted their habits to cope with the changing dynamics. George Uwem, a regular user, shared how economic shifts shaped his use of these services.

Relying on e-hailing platforms almost daily for business and personal travel, he had to adjust due to rising fuel costs.

“I’ve started shortening my trips and combining them with rides on the BRT or yellow (danfo) buses,” he explained. 

What used to be a trip costing under N10,000 from Berger to Ajah now often exceeds N15,000.

“Earlier this year, it was around N10,000. By October 2024, the same trip cost me over N15,000,” he added. 

Despite the higher fares, Uwem revealed that he appreciates the increased options now available.

“It’s less affordable, but at least there are more choices,” he said. He frequently switches between platforms like Bolt, Uber, and InDrive to find better deals, opting for InDrive when prices on other apps are too high. 

Uwem also noted that he prefers to use e-hailing services when time is a priority or when heading to upscale events.

“I choose them when I need to get somewhere quickly or when I’m attending events with a higher profile,” he shared, emphasizing the value of convenience that e-hailing services brought. 

For him, pricing remained the most significant factor when selecting a platform.

“It all comes down to the cost,” he remarked. 

Uwem’s experience reflected a broader trend among Lagos residents—balancing the need for affordability with the convenience that e-hailing services provide in a bustling city.

Outlook: Navigating the future of Lagos’ e-hailing market 

The e-hailing market in Lagos has remained steady despite rising fuel costs and fare increases. Drivers believe that sustaining this demand requires more support from platforms, especially in managing the increased costs of vehicle repairs and maintenance.

They suggest that bonuses or incentives for upkeep could help retain drivers, ensuring consistent service for passengers.

Meanwhile, riders are adjusting their habits to cope with higher fares, often switching between platforms like Bolt, Uber, and InDrive to find the best rates.

As competition intensifies, how these platforms address both drivers’ needs and riders’ demand for affordability could shape the future dynamics of Lagos’ e-hailing landscape.


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Tags: BoltE-hailing rides in Lagosincreased fuel priceInDriveLAGriderising fares
Caleb Obiowo

Caleb Obiowo

Caleb Obiowo is a graduate of Urban and Regional Planning from the University of Uyo. At Nairametrics, he covers transport and logistics in Nigeria, along with real estate, construction, and aviation. He focuses on delivering clear, easy-to-understand stories and often digs deeper into industry issues through conversations with key players.

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