Nigerian Drivers Are Abandoning Uber And Bolt In Favour Of Local E-hailing Companies
Nigerian drivers are abandoning Uber and Bolt in favour of local e-hailing companies
Drivers of ride-hailing services have signed a new partnership agreement with two indigenous competitors to Bolt and Uber that they claim will provide them with better working conditions.
Comrade Idris Shonuga, the National President of the Professional E-Hailing Drivers and Private Owners Association (PEDPA), confirmed to TechNext that the association had signed a deal with Active Rides and My Cab, two indigenous ride-hailing companies.
According to Shonuga, the new deal will see drivers completely abandon Uber and Bolt. They will make their vehicles and driving capabilities available exclusively to Active Rides and My Cab.
For the last three months, riders affiliated with various associations have urged Uber and Bolt to increase the fare for rides booked through their respective apps. According to drivers, the current e-hailing prices do not accurately reflect the country's economic reality.
On April 19, riders began a week-long strike, during which trip fares doubled due to driver shortages. According to TechNext projections, both Uber and Bolt lost an estimated N100 million in revenue.
Increased fares and lower commissions will benefit drivers, but more riders are needed
“In Lagos State alone, we have 15,000 e-hailing riders,” Shonuga told this reporter during a phone interview. When members who work for Bolt and Uber in Oyo, Abuja, and other states are included, the total rises to 27,000.
Bolt employs approximately 13,000 drivers in Lagos, while Uber employs approximately 9,000. With 15,000 of Lagos State's e-hailing drivers already members of Shonuga's PEDPA, the association's collaboration with Uber and Bolt could become formidable if a majority of drivers completely boycott Uber and Bolt.
However, boycotting alone is insufficient. There needs to be a significant increase in the number of Nigerians who book rides through Active Rides and MyKab.
As of June 9, Active Rides had less than 600 downloads on the PlayStore, while MyKab Driver had more than 5,000. MyKab's version for riders has received fewer than 2,000 downloads. Combined, the two apps have approximately 6,000 registered drivers and approximately 3,000 riders.
Although the number of Nigerian drivers who have downloaded Uber and Bolt cannot be determined based on publicly available Playstore data, there are approximately 20,000 registered Bolt drivers in the country, compared to approximately 10,000 registered Uber drivers.
According to the terms of the new partnership, both indigenous companies will charge a lower commission than their Bolt and Uber competitors. Instead of 20% commission, drivers will now receive 15% of the fare. 5% of the 15% will be set aside in a cooperative driver's wallet that can be accessed in the event of an emergency.
Despite the lower commission, if neither app's user base grows significantly, drivers may earn even less than they do on Uber or Bolt. The other issue is that foreign companies' prices are lower than they should be. As a result, passengers will be hesitant to board the local platform, which requires a surcharge.
While higher fares on Active Rides and MyKab will benefit riders, they may drive additional customers to Uber and Bolt if their trip prices are lower.
