E-hailing drivers in Nigeria, represented by the Amalgamated Union of App-based Transporters of Nigeria (AUATON), are calling on ride-hailing giants Uber and Bolt to significantly reduce the commission they charge on each ride. The union argues that the current 25% commission is unsustainable for drivers, especially given rising fuel prices, vehicle maintenance costs, and general living expenses.
The Revenue Breakdown
AUATON’s financial secretary, Comrade Danbaba, revealed that Uber and Bolt generate a staggering ₦36 billion annually from drivers in Lagos alone. According to the union’s analysis, approximately 20,000 drivers operate in Lagos, with about 10,000 active daily. These drivers earn an average daily revenue of ₦40,000, leading to a collective daily income of ₦400 million. With a 25% commission on every ride, Uber and Bolt pocket ₦100 million daily from Lagos drivers, which adds up to ₦3 billion per month and ₦36 billion per year.
Despite these earnings, the union claims that the E-hailing drivers, who power this industry, are not receiving fair compensation for their efforts.
Demands for Commission Reductions
AUATON is urging both companies to lower their commission to 5% or 10%. The union believes that reducing the commission to 10% would still yield substantial profits for Uber and Bolt, while allowing E-hailing drivers to earn a more livable income. At 10%, the companies would still earn ₦40 million daily, translating to an annual revenue of ₦14.4 billion. A further reduction to 5% would still generate ₦7.2 billion annually for the companies in Lagos.
According to AUATON, the 25% commission is placing undue strain on E-hailing drivers, especially in light of increasing fuel prices, car maintenance costs, and the economic pressures of everyday life. Many drivers find it difficult to sustain themselves, maintain their vehicles, or care for their families under these conditions. As a result, some have resorted to taking trips off the apps, which poses safety risks and could lead to legal troubles.
The union’s secretary expressed frustration, stating, “Drivers have invested heavily in this business. The least of our cars costs ₦5 million, yet we struggle to maintain them or provide for our families. This cannot continue.”
Calls for Action and Potential Strikes
AUATON has made it clear that if their demands are not met, drivers are prepared to take drastic measures, including industrial actions that could lead to a temporary shutdown of both Uber and Bolt services. The union emphasizes that a lower commission rate would not only improve drivers’ lives but also foster a more sustainable industry for all parties involved.
In an era where e-hailing services play a crucial role in urban transportation, the demands of Nigerian drivers spotlight a growing need for fairer compensation structures, ensuring that those who keep the industry moving are adequately rewarded for their efforts.
