Uber and Bolt drivers in Lagos begin strike action to protest - systemic slavery
Uber and Bolt drivers in Lagos begin strike action to protest "systemic slavery."
Uber and Bolt drivers in Lagos began a strike action yesterday under the auspices of the Professional E-hailing Drivers and Partners Association (PEDPA). The two companies are the market leaders in Nigeria's ride-hailing industry and have been in direct competition for years, having entered the market in 2014 and 2016, respectively.
They've competed through pricing, with each operator offering promotions and lowering fares in an attempt to win new customers. Nonetheless, there have been claims over the years that the pricing wars benefited drivers.
A Call for Review of Price Structure
Now, Uber and Bolt drivers in Nigeria call for a review of the pricing structure, claiming that the prices are no longer reflective of the costs they incur. Also, they want both companies to reduce the commission charged on rides from 25% to 10%.
PEDPA has written letters to Uber and Bolt expressing its concerns but has not received a response. To hammer home their demands, the drivers will begin a one-week warning strike yesterday, hoping that both companies will budge.
Idris Shonuga, the National President of PEDPA, a newly formed association affiliated with the Nigerian Trade Union Congress (TUC), said, "what they (Uber and Bolt) do is deploy an app that facilitates connections between riders and charge a commission." We bear the cost of fuel and all associated risk associated with managing and operating our vehicles.”
“Unfortunately, they refuse to give us a say; they continue to fix prices absurdly low, while we sell below cost.”
Shonuga argues that it has become nearly impossible for e-hailing drivers to earn a living driving for Bolt or Uber because, while inflation has increased prices, the cost of the service has remained constant.
“You are witnessing a number of accidents on Lagos roads as a result of drivers overworking themselves for very little pay; this is systemic exploitation of Nigerian youth, many of whom drive as a result of unemployment.”
According to Shonuga's analogy, Uber and Bolt drivers must spend a minimum of ten hours per day on Lagos roads to earn #15,000 ($36) in revenue. Additionally, Shonuga estimates that #4,950 ($12) will be spent on fuel for their cars, with Uber or Bolt charging #3,750 ($9.10) in fees.
After 10-15 hours of work, drivers may earn approximately #6,300 ($15.29), or at the low end, #630 ($1.53) per hour worked.
However, the situation worsens when you consider that many of the drivers on these platforms obtain their vehicles through hire-purchase agreements that require them to pay between #20,000 and #30,000 ($48.55 to $72.82) per week.
According to the drivers, these conditions are unfavorable, and they want ride-hailing companies to give them a voice in pricing decisions. Additionally, they want these companies to reduce their commission on rides to 10%.
Bolt Response
In response to the claim of PEDPA, Femi Akin-Laguda, the company's Country Manager of Bolt, stated, "we are constantly evaluating our operations to ensure we continue to offer the highest earnings for drivers on the platform while also remaining the most preferred platform for passengers."
As a result, our commitment to treating drivers on the platform with respect and maintaining an open-door policy for feedback remains unchanged. Additionally, we have a variety of communication and support channels open 24/7 for drivers on the platform to contact us at any time, on any day, and for any issue affecting their operations.”
Uber Response
Also, an Uber spokesperson said, "We are aware of a protest today by a small group of e-hailing drivers, which will result in slightly longer wait times for riders." We value our driver-partners as valuable stakeholders with a voice and a choice, and we want them to know that we are always open to feedback."
"However, it's critical to remember that driver-partners use the Uber app in a variety of ways, and it would be difficult for an individual or group to represent every driver on the app holistically.
Apart from fees, another significant demand of PEDPA is the unblocking of drivers who both platforms have blocked.
“You are expected to provide 5-star service on every trip, and even if you have over 1000 trips with 5-star, you will be blocked from the platform if you are reported for anything.”
Shonuga believes that while you should punish bad actors, businesses should take a more nuanced approach to these issues.
When I chose to hail a cab on Bolt while writing this report, I noticed increased demand, with the closest cab being ten minutes away. It may imply that the strike is still in effect in part, and Shonuga notes that PEDPA is still advising drivers to avoid the roads.
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