In response to inDrive’s assertion that its fare bidding system empowers drivers with greater autonomy, the Amalgamated Union of App-based Transporters of Nigeria (AUATON) has strongly contested this claim, labeling the system as exploitative and detrimental to drivers’ welfare.
This position was articulated in a statement addressed to Technext by Comrade Steven Iwindoye, the Public Relations Officer of AUATON’s Lagos chapter.
During an Independence Day message titled Mobility, fairness and the true meaning of freedom on Independence Day, inDrive’s Country Representative, Timothy Oladimeji, emphasized that the company views Independence Day not merely as a political or historical milestone but as a celebration of economic freedom-where drivers can set their earnings and passengers determine their fares.
Oladimeji highlighted that, unlike many other ride-hailing services, inDrive’s platform enables passengers and drivers to negotiate and agree on the fare before the journey commences.
“Passengers propose their fare, and drivers retain the liberty to accept, reject, or counteroffer. This transparent negotiation fosters a balanced interaction, replacing unilateral pricing with mutual agreement. Such flexibility ensures clarity before the ride and nurtures a fairer dynamic between riders and drivers,” Oladimeji explained.
Contrarily, AUATON argued that genuine independence transcends political liberty; it encompasses economic fairness, just compensation, and respect for workers’ dignity. They contend that inDrive’s bidding mechanism fails on all these fronts, offering drivers neither fair pay nor respect.
“The bidding system permits passengers to push fares down to unsustainable levels. Trips valued at ₦5,000 are frequently reduced to ₦1,500 or ₦2,000, causing drivers to incur losses on fuel and earn no profit. This approach is detrimental to the livelihood of drivers and must be replaced by a standardized minimum fare that guarantees a living wage,” the union’s statement asserted.
AUATON Highlights Dire Conditions for Drivers
The union further shed light on the severe challenges confronting e-hailing drivers, emphasizing that true economic independence remains elusive. A major grievance is the exorbitant commission rates imposed by ride-hailing platforms, which can reach up to 35% per trip.
“Platforms like Uber, Bolt, and inDrive deduct between 25% and 35% commission on every ride. Meanwhile, drivers bear all operational expenses-fuel, tires, repairs, insurance, taxes-while these companies funnel billions abroad,” the union lamented.
Since the removal of fuel subsidies, drivers reportedly spend between ₦25,000 and ₦40,000 daily on fuel alone. This financial strain is compounded by soaring maintenance costs, which have doubled, while fare prices remain stagnant.
Additionally, the union criticized the unilateral discounts and promotions offered to passengers by these companies, which further erode drivers’ earnings without affecting the platforms’ commission rates.
Safety concerns also remain paramount. AUATON pointed out that inadequate rider verification exposes drivers to risks such as robbery, assault, and kidnapping. Despite these dangers, drivers receive no formal health or accident insurance coverage from the companies.
Moreover, the union condemned the arbitrary deactivation of drivers, often executed without due process or the chance for drivers to appeal, exacerbating their financial instability. These practices have led to widespread impoverishment among drivers, even as the companies repatriate profits overseas.
AUATON has put forward several demands aimed at improving conditions for drivers.
“We call for commission rates to be capped between 10% and 15%, as anything beyond this constitutes exploitation. Discounts and promotions that reduce driver earnings must be eliminated. Companies should provide health insurance, accident coverage, and enhanced security for drivers. Unjust deactivations must cease, with a labor dispute resolution mechanism established. Furthermore, profits generated in Nigeria should be taxed and reinvested locally to benefit drivers,” the union declared.
Specifically, AUATON urged inDrive to abolish its “exploitative” bidding system in favor of fixed minimum fares that adequately cover fuel and maintenance expenses.
The union also called on Moove and Uber to reconsider their recent hike in daily remittance fees-from over ₦18,000 to a more manageable amount-and to halt intimidation tactics involving security agencies. They further requested that repayment plans be adjusted to reflect inflation and rising fuel costs.
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