The entry of e-hailing taxi platforms into the Nigerian market in 2014 was celebrated as a big boost to moving Nigerians from Point A to Point B. In addition to the impact that it was expected to have on the nation's economyThe recent increase in the operational licence fees for ride-hailing services in the country has led to between 40 and 50 per cent hike in commission charged by operators.
Presently, about 19 platforms are offering ride-hailing services in the country. Apart from Uber and Bolt, others include Jekalo, InDriver, Oga Taxi, Carxie, Pamdrive Services Limited, RideMe, Alpha1 Rides, Asocab, Easy Taxi, Lagos Ride, Mycabman, Pair, Rida, RideOn, SafeBoda, Shuttlers, Enviable Transport with GIGM, offering inter-state and inter-country services.
Since the launch of EHTPs in the country, there has been a growing need to put in place regulations to guide the operations of the service to eliminate monopoly, security concerns, consumer protection, and , tax/revenue generation. For instance, the operational licence for platforms with more than 10,000 drivers was pegged at N20 million, while that payable for companies with less than 10,000 drivers was N10 million.
Two drivers in the state, Ifiemi Andrew and David Olaniyan, complained that it amounts to double taxation as the companies they work for are already collecting taxes from them, which they believe should be maintained. One of those affected by the fare hike is Damilola Onamade, a fashion designer who is in the Isolo part of Lagos. Onamade, who said that she spends over N15,000 to deliver goods to her customers in Lagos Island, stressed: “I don’t even know what’s going on. This economy is not smiling at anyone. The few times that I’ve gone out, I can say that fares have gone way up.
According to him, the business is so profitable for the platform owners, and the N20 million operational license might not affect them because it is an amount that they can make within hours in a day. “Drivers’ gross earnings are between N35,000 and N40,000 daily, and their net earnings should be around N5,000 and N7,000. But drivers are mainly going home now with N5000 because expenses have eaten deep into their gross profit. In some cases, some go home with nothing because of emergency repairs on their cars.
“Recently, we had a workshop in Abuja where the Ministry of Transport, the Ministry of Employment and Productivity, and platform owners were present. We are looking at how we can have a national regulation, that will provide support, and enhanced welfare services for our drivers, particularly health insurance, pensions, and everything that makes their job easy, as well as, enable the union to collect check-ups due directly. The App companies are aligning themselves with this development.
According to him, the increment was a result of harsh business operations, and to meet up with operational costs after the company’s headquarters stopped financing operations in Nigeria for two years. The entry of e-hailing taxi platforms into the Nigerian market in 2014 was celebrated as a big boost to moving Nigerians from Point A to Point B. In addition to the impact that it was expected to have on the nation's economyHuman Rights Writers Association of Nigeria has expressed concern over what it described as sensational and biased reporting surrounding the ongoing court case involving Alliance Hospital and its Medical Director, Dr Christopher Otabor.