E-Hailing Drivers Reject Fare Reduction and Threaten Strike

On August 22, 2024, e-hailing drivers in Nigeria, represented by the Amalgamated Union of App-Based Transporters of Nigeria (AUATON), voiced strong opposition to the recent fare reduction initiative announced by various ride-hailing companies and the Presidential Committee on the National Gas Initiative (P-CNGi). The union, which advocates for over 120,000 drivers in Lagos and approximately 300,000 nationwide, highlighted its exclusion from discussions that led to this significant decision.

In an official statement released by Jaiyesimi Azeez, the state chairman of AUATON, the union emphasized that fare adjustments should be collaboratively discussed with the drivers who actively engage with customers and are the backbone of this industry. Azeez’s statement points out the lack of representation for drivers in the conversations held by app companies, notably Uber and Bolt, alongside the P-CNGi, which took place in Abuja.

The union asserted, “It has come to our knowledge that representatives from certain app companies and the Presidential Committee on the National Gas Initiative met in Abuja regarding fare reduction arrangements. This raises significant concerns among AUATON members. We want to categorically state that AUATON and its members were not involved in this discussion and do not endorse the decisions made during that meeting.”

The drivers articulated that they own the vehicles and directly interact with riders, making them essential stakeholders in any fare-related decisions. The union firmly believes that any fare reduction should reflect the operational realities and livelihood implications for its members, stating, “AUATON therefore would not support any unilateral fare reductions whose impact on the operation of our vehicles and the livelihood of our members has not been carefully considered.”

Moreover, AUATON urged the government to supply complete conversion kits and cover the associated installation costs to enable a feasible and reasonable fare adjustment. Azeez expressed that once these kits are provided, the union would be prepared to implement fare reductions that would positively affect the lives of Nigerian citizens.

The union has also called for direct dialogue with government representatives to address the interests of drivers more effectively. Azeez criticized the app companies for failing to adequately advocate for driver interests, asserting that AUATON is uniquely positioned to represent the voice of drivers who operate continuously in the sector.

Azeez further emphasized the need for collaborative discussions, stating, “We assume that before now, the Federal Government through the P-CNGi had been holding discussions regarding CNG Kit interventions and the desired fare reduction with transport app owners. This will not achieve the desired result as the union can speak for itself and present its case to the P-CNGi directly, understanding the crucial nature of this endeavor.”

In addition to calling for fair commission rates and fare adjustments, the union is seeking a five percent commission rate, complimentary CNG kits for vehicle retrofits, and a role in determining price reduction mechanisms. Azeez warned that if their demands are not met, the union would resort to a nationwide boycott and protests to express their grievances.

AUATON also requested that stakeholders support their efforts for a more equitable industry, insisting on the allocation of LagRide vehicles to their members, which aligns with the Lagos State government’s initiative to empower youth within the e-hailing sector.

The union’s stance reflects the growing tensions within the ride-hailing industry in Nigeria, as drivers grapple with fluctuating fare structures and the economic pressures stemming from fuel subsidy removals. As the situation unfolds, AUATON remains steadfast in advocating for its members’ rights and interests, aiming for a fair resolution that benefits all parties involved.

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