Starting today, Uber and Bolt drivers in Lagos have gone on strike as part of a protest organized by the Professional E-hailing Drivers and Partners Association (PEDPA). These two companies have dominated Nigeria’s ride-hailing sector since entering the market in 2014 and 2016, respectively, and have long competed over pricing strategies to attract customers. However, drivers have raised concerns that these price cuts are coming at their expense.
Currently, drivers for Uber and Bolt in Nigeria are demanding a review of pricing, arguing that fares no longer reflect the costs they incur. Additionally, they want the commission charged on rides reduced from 25% to 10%. PEDPA has reportedly sent letters to both companies outlining their concerns but has received no response. To emphasize their demands, drivers are beginning a one-week warning strike, hoping to bring both companies to the negotiating table.
Idris Shonuga, the National President of PEDPA, explains that the drivers bear the costs of fueling their vehicles and managing related risks, while Uber and Bolt primarily facilitate the connection between drivers and riders and charge a commission.
Shonuga contends that it has become nearly impossible for e-hailing drivers to earn a living with Bolt or Uber. Despite rising inflation, the cost of the service has remained unchanged.
According to Shonuga, drivers must work a minimum of 10 hours daily on Lagos roads to earn ₦15,000 ($36) in revenue. He estimates that ₦4,950 ($12) goes towards fuel, and Uber or Bolt charges ₦3,750 ($9.10) in fees. This leaves drivers with around ₦6,300 ($15.29) for 10-15 hours of work, equating to about ₦630 ($1.53) per hour.
The situation worsens for drivers who acquire their vehicles through hire-purchase agreements, requiring weekly payments of ₦20,000 – ₦30,000 ($48.55 – $72.82).
Drivers argue that these conditions are untenable and demand a say in pricing decisions. They also seek a reduction in commission rates to 10%.
Another key demand from PEDPA is the reinstatement of drivers who have been blocked from the platforms. Shonuga criticizes the practice of blocking drivers based on reports, arguing that while misconduct should be addressed, the approach should be more balanced.
As the strike begins, it appears to be affecting the availability of rides, with increased demand and longer wait times. PEDPA continues to urge drivers to stay off the roads in support of the strike.
