The Lagos ride-hailing sector is under renewed scrutiny following claims by the Amalgamated Union of App-Based Transporters of Nigeria (AUATON) that Bolt has implemented a 50% fare cut, significantly impacting drivers’ earnings.
AUATON’s Lagos State Public Relations Officer, Steven Iwindoye, warned that a mass protest could follow if the alleged adjustment is not reversed.
However, in exclusive interviews with Nairametrics, Bolt drivers Christian and Evans Nwokoro refuted the claim, stating they had not transported any passenger who received a 50% discount.
They explained that Bolt’s discounts are part of a targeted loyalty program rather than a uniform fare reduction.
With rising fuel prices and increasing operational costs, fare adjustments remain a critical issue for Nigerian ride-hailing drivers.
This latest dispute highlights ongoing concerns about pricing transparency, fair compensation, and the delicate balance between customer incentives and driver earnings.
While fare disputes are common in the ride-hailing industry, Christian and Evans maintain that the reality on the road differs from the union’s claims.
They argue that Bolt’s pricing model, though not without its challenges, does not impose a blanket fare slash, but instead offers structured incentives that vary based on customer history
Drivers’ perspectives on the 50% fare cut issue
Mr. Christian, a Bolt driver with over five years of experience in Lagos, explained that Bolt’s fare discounts are primarily targeted at long-time customers.
“Bolt’s fare discounts are mainly for loyal customers. For example, I once completed a trip worth N5,000, but the passenger only paid N4,000 due to a loyalty discount. In another instance, a passenger who was supposed to pay N4,000 ended up paying just N100,” he said.
- However, he clarified that Bolt factors these discounts into its 25% commission calculation, ensuring that drivers do not directly lose out on their base fare.
- Christian also noted that Bolt has introduced performance-based incentives for long-time drivers. He explained that the fuel subsidy bonus he receives depends on meeting specific trip targets.
- For instance, completing eight trips in a day earns him a bonus of between N10,000 and N15,000, while a weekly bonus is available for drivers who complete at least 52 rides per week. According to him, only drivers who have been on the platform for an extended period benefit from these incentives.
Evans Nwokoro, a six-year Bolt driver, refuted AUATON’s claim of a 50% fare cut. He acknowledged that while Bolt offers discounts to customers, the reductions vary widely.
- He cited instances where a passenger received a N3,500 discount on a N21,000 ride and another case where a N12,000 trip was discounted by just N500. According to him, discounts depend on the passenger’s history with Bolt rather than a fixed percentage.
- He also shared his experience as a passenger, noting that he consistently receives a 20% discount on rides despite using the app fewer than three times a year.
Regarding his experience with driver incentives, Nwokoro explained that Bolt offers different performance-based bonuses.
What the app-based drivers’ union and Bolt are saying
The ongoing dispute between app-based transporters and Bolt has reignited tensions within Lagos’ ride-hailing sector. The Amalgamated Union of App-Based Transporters of Nigeria (AUATON) accused the ride-hailing company of implementing a 50% fare reduction, arguing that such a move would severely impact drivers’ earnings.
- AUATON’s Lagos State Public Relations Officer, Steven Iwindoye, warned that a mass protest could follow if the alleged fare cuts were not reversed.
“This drastic reduction in earnings has severe negative impacts on all AUATON members, who are already struggling to sustain themselves,” he stated, emphasizing the financial strain on drivers amid rising costs.
- However, Bolt refuted the claim in response to Nairametrics’ inquiry, clarifying that no blanket fare reduction had been implemented.
“Please bear in mind that there was no reduction in the trip fare,” Bolt stated.
- The company explained that trip fares are calculated based on factors such as the start rate, minute rate, distance rate, vehicle category, and additional fees like airport charges. Surge pricing and mid-trip destination changes can also affect the final fare, reinforcing the flexibility of its pricing structure.
- Despite this clarification, AUATON insists that passenger discounts continue to undermine driver earnings.
“The constant price slashes and unfair treatment by ride-hailing companies like Bolt have pushed drivers to a breaking point,” Iwindoye reiterated.
The union argues that Bolt’s pricing model prioritizes profits over driver welfare, claiming that the so-called loyalty discounts do not benefit all drivers equally.
- In an official response to Nairametrics, AUATON’s National President, Ayoade Ibrahim, acknowledged concerns over fare reductions but clarified that no state chapter could unilaterally call for a strike. He emphasized that the union follows established protocols and constructive engagement with stakeholders.
- To address these challenges, AUATON outlined its response strategy, which includes ongoing negotiations with Bolt, industry-wide advocacy for fairer pricing policies, and potential protests.
The union also plans to notify the Nigeria Labour Congress (NLC) and the Ministry of Labour about its next course of action.
Outlook
While the Bolt drivers who spoke to Nairametrics maintain that there has been no 50% fare cut across the board, they still face significant challenges.
- Nwokoro highlighted that before the fuel subsidy removal, Bolt’s commission per trip was 25% of the fare. Despite the subsidy removal in 2023 and the subsequent rise in fuel prices, the company has continued to maintain the 25% commission.
- He argued that this makes it increasingly difficult for drivers to maintain their vehicles.
“The usual enhancements to make the car look better have now turned into a thing of the past for many app-based drivers,” he noted, emphasizing the financial strain on drivers who must now cut costs on vehicle maintenance and aesthetics.
Additionally, an app-based driver who chose to remain anonymous revealed that, sometimes, if the passengers are willing, they opt for offline deals to retain 100% of the revenue.
