At the mercy of Apps’ operators…

•E-hailing drivers decry poor returns amid operational challenges

The increasing fuel prices in Nigeria are profoundly affecting e-hailing drivers, who are burdened by substantial commission fees from the apps. In this report, VINCENT KURAUN examines the challenges faced by drivers, many of whom are reporting unsustainable earnings and choosing to park their vehicles while calling for fair compensation that accurately reflects the current economic conditions.

NIGERIA is currently facing a challenging economic landscape, exacerbated by the ongoing conflict involving Israel, the United States, and Iran, which has led to soaring fuel prices. Amid this turmoil, the ride-hailing industry is undergoing a dramatic transformation.

But while e-hailing giants like Uber, Bolt, and Indrive are thriving, reaping substantial profits from their high commission fees, drivers on the platforms of these organisations and other small-time commercial drivers are grappling with the harsh realities of rising operational costs.

With fuel prices skyrocketing, a driver who once spent 25,000 naira on fuel now finds that the same expenditure has surged to over 35,000 naira for the same mileage. This inflation of operational costs forces drivers to work longer hours, often at the expense of their health and well-being.

In contrast, e-hailing companies continue to profit from their high commission rates, which can range from 20 per cent to 25 per cent. While these companies justify their fees with claims of providing a reliable platform and customer support, drivers argue that their share of the fare is dwindling as operational costs rise while the prices remain constant.

The situation is exacerbated by Nigeria’s economic climate, where inflation impacts not just fuel prices but the overall cost of living. Many drivers are now calling for reforms, demanding better fare structures that reflect their realities.

Gbayero Starry, a Bolt driver, poignantly articulated this struggle: “Imagine spending 25,000 naira on fuel for just 20 liters, while earning 34,000 naira. After paying Bolt 7,000 naira as their commission, I’m left wondering about my profit. Can someone help me calculate that?” His plea encapsulates the frustrations of many drivers in the industry, highlighting the urgent need for change.

 A recent investigation by Sunday Tribune reveals that many e-hailing drivers have opted to park their vehicles at home, unable to continue working for the benefit of the apps while struggling to cover fuel costs without adequate returns.

A e-hailing driver, who prefers not to be named, shared his personal experience with  Sunday Tribune. “I had a ride from Baruwa in Ipaja to Lekki Phase One this Monday which took about an hour and a half. The fare on the Bolt app was 20,200 naira. From this single trip, I paid Bolt 4,830 naira, leaving me with 15,370 naira. How do you expect me to feel after paying such a large commission? How am I supposed to manage the high cost of fuel and vehicle maintenance when the app takes such a significant percentage just for connecting me to the rider?” He asked.

“When I returned home, I reflected on this and decided to park my car pending when things will improve. I made this decision because I own the car, but what about those who do not? How can you expect such drivers to survive when you take such high commissions and refuse to adjust your prices to reflect the current realities?”

READ ALSO: Reps to probe Bolt, Uber, other ride-hailing firms over payment of taxes

In a similar context, another driver, Michael Innocent, expressed his decision to refrain from working with the apps in the future, emphasizing the value he places on his vehicle. He stated, “I have parked my car at home since it holds great significance for me. I would prefer to seek alternative employment rather than use my car for charity work.”

Additionally, an anonymous driver informed Sunday Tribune that he has found an alternative method of sustaining himself in the business, as the apps remain unwilling to adjust their pricing. He has chosen to operate offline, despite this being against company policies, stating he would rather face suspension from the apps than continue working under exploitative conditions.

According to him, “All my rides on Bolt are now offline until they review their prices upward or reduce their commission. If as a driver you are still allowing Bolt to earn from you with the current fuel price, then you need deliverance.” He stated. As for their nonsense drivers score and them blocking drivers, that one should not be an issue, any rider that declines my offline proposal I cancel immediately and wait for those that understand.”

The situation in Abuja mirrors that of other locations, with drivers opting out of the business. According to Muhammad Ukashetu Haruna and Lay Gean, the circumstances are dire. “The situation is terrible; you only work for commission and fuel,” stated Muhammad, while Lay mentioned, “I have parked my car since Friday…in God we trust…we will survive without e-hailing.”

Regrettably, Mohammed Kabir Yahaya emphasised the urgent need for an upward review of fare prices if drivers are to remain in the business. He stated, “If by next week, or possibly by the end of this week, Bolt and Uber do not review their prices, over 70 percent of us drivers will drop our cars. We are essentially working for the app and filling stations.”

He also mentioned, “I bought fuel at NIPCO this morning for N1,104, but by this evening, the price had increased to N1,285. An additional N180 per liter has been added within 12 hours. This is outrageous and will adversely affect transport and cripple the economy.”

Other e-hailing drivers have also shared their concerns, stating that the business is no longer profitable. Chike Okoye questioned, “How can we survive as drivers in this business?” He added, “We are purchasing fuel at N1,210 and paying Bolt a 25 per cent commission. This is not sustainable.”

“Although we are paying Indrive a 12 per cent commission, the prices on the app are too low, and there are no waiting or delay charges for passengers, as there are with Uber and Bolt,” he expressed. He lamented that eating while working as a driver might prevent him from recovering the money spent on fuel.

“If you try to buy snacks and soft drinks to satisfy your hunger, your fuel money will fall short. So, after all the stress of the day, you end up going home with nothing,” he stated.

Offering advice to drivers on the way forward, Chris Ogochukwu proposed a straightforward solution: “There are only two options: park your car at home or hit the road and renegotiate every ride to your best price, especially in the evenings when people are stranded and looking to return home after work.”

Expressing his desperation and frustration with the e-hailing apps, a driver who wishes to remain anonymous stated, “I’m not going online again until the minimum fare for trips exceeds N2,500. I refuse to work solely for fuel and commission. I would rather beg than work for any e-hailing platform at this time. These apps are ruthless because no one holds them accountable. They act with complete disregard for the drivers.”

He explained that he does not drive out of passion but to make ends meet. “I’m not among those drivers who drive because they love it; I drive to earn money and support myself.”

He illustrated the financial strain: “Imagine spending N20,000 on fuel to earn N30,000. After deducting fuel costs and commissions of N20,000 and N7,000, respectively, you’re left with only N3,000. Can N3,000 even feed you, let alone support your family or cover repairs for your car? Even if you have the biggest problems in the world, don’t let yourself appear as if you have one.

“I know it is difficult to drop that key, but that is the best decision right now if we all want to succeed with these e-hailing platforms.” He called for a three-day shutdown to compel the apps to take action. “A three-day shutdown will be beneficial for us, and your problems won’t overwhelm you during these three days without driving for fuel and commission.”

Advising his fellow drivers, Eweje Ayobami emphasized the importance of data to e-hailing apps, stating, “E-hailing relies on data, and until drivers stop accepting rides lower than N2,500, the apps won’t upgrade their system. Personally, I don’t accept any ride lower than N3,000, even before this recent increase in fuel prices. Why would someone order a ride for N2,000 and expect you to accept? Even a Maruwa (tricycle) driver wouldn’t take N2,000 from you, let alone a car with a working air conditioner.”

Another anonymous driver expressed sympathy for Uber and Bolt, stating, “I feel pity for Uber and Bolt during these difficult times because if they want to increase prices, their commission is already high. This could explain why their prices are even lower compared to Indrive.”

“It is now evident that many drivers are on the Indrive platform because, if you are patient enough to negotiate well, you might be able to earn N300 per kilometer, which is still reasonable compared to Bolt and Uber at this critical time.”

Another anonymous driver highlighted the importance of drivers in the e-hailing business, blaming them for allowing the apps to mistreat them. He stated, “You guys lack self-respect. Fuel prices have risen, and all you need to do is log off from these app platforms. Stop using Bolt, Uber, and Indrive, and find something else to do. Drivers are the most crucial aspect of this business; without drivers, these companies can’t function, yet they still treat you like trash.”

He added, “By now, the companies should have adjusted the minimum fare to N500 per kilometer, but drivers are still accepting lower rates, so the companies have no incentive to change. Some claim they are using CNG cars, while others have no valid reason at all.”

Advising drivers to prioritize their well-being and that of their vehicles, Lot Ezekiel said, “When the situation is like this, you have to prioritize the well-being of your vehicle and ensure you are not stressing it for nothing.

“Every business is feeling the heat at the moment. Fasting is happening, and the cost of fuel is rising. Look beyond the current situation and wait for the sunny days that are coming very soon. I have only been working offline during this period, and I believe this is what the seasoned drivers have been doing.

“Things will improve soon, but make sure you are not damaging your cars during this time. Some drivers have parked their cars and applied for private driving jobs until things get better; others have found alternative jobs just to get through this period, knowing it will soon pass. So, in anything you do during this time, save your car from unnecessary stress and yourself too.”