Drivers affiliated with Moove’s vehicle financing program and operating on the Uber platform have halted their services in protest against a sudden 100% hike in their weekly repayment amounts for Suzuki S-Presso cars.
The drivers attribute their strike to the abrupt and steep increase in weekly payments demanded by Moove, coupled with what they describe as a lack of transparency in the payment structure. They are urging the company to rescind this significant increment.
Several drivers confirmed to Technext that the protest is set to commence in Maryland, Lagos. They revealed that Moove raised the weekly remittance from ₦56,400 to ₦112,200, a doubling that many find unreasonable and unsustainable.
“We are standing against this unfair doubling of the weekly remittance. The repayment period remains unchanged, yet some of us never received brand-new vehicles,” one Moove driver shared.
Recall that these drivers acquired their vehicles through a financing scheme requiring weekly loan repayments. They are particularly concerned that out of the new ₦112,200 weekly payment, only ₦39,766 (about 33%) is allocated to loan repayment.
A detailed breakdown reviewed by Technext shows that besides the ₦39,766 loan repayment, drivers are charged ₦9,966 weekly for maintenance, ₦16,343 for repairs, ₦2,885 for insurance, ₦505 for health insurance, and a hefty ₦42,735 as handling fees. This disproportionate handling fee has left many drivers questioning its justification, especially since it exceeds the loan repayment amount.
Additionally, the drivers are demanding that Uber caps its commission at no more than 20% of their earnings.
The drivers emphasized that their demonstration will remain peaceful, warning that anyone engaging in violence will be detained and handed over to law enforcement.
They have also vowed to suspend their services on the UberGo platform until Moove reverses the payment hike.
Moove Responding to Economic Pressures
A year ago, reports surfaced that Moove intended to raise weekly remittances for Uber Go drivers, causing widespread concern among the drivers.
Under the original hire-purchase agreement, drivers were to repay their vehicles over four years, with weekly payments set at ₦56,400, exclusive of Uber’s 25% commission on fares.
Moove reportedly held group meetings with drivers to communicate the proposed changes. One driver who attended such a meeting told Technext that the company cited rising operational costs as the reason behind the planned increase.
“I was present at the meeting where management detailed their escalating expenses. They argued that the increase was justified, though the exact new amount hadn’t been finalized then,” the driver explained.
Related: Uber drivers express concern as Moove considers raising weekly remittance for Suzuki S-Presso vehicles
Insiders suggest that Moove is reassessing its business model amid Nigeria’s challenging economic climate.
The terms under which many drivers initially acquired their vehicles have shifted dramatically, with the company facing potential losses if the current repayment structure remains unchanged.
According to a source close to the matter, inflation has eroded the originally agreed interest rates, making the current repayment terms unsustainable and prompting the increase.
“The repayment limits were based on initial interest rates, but inflation has diminished their value. Moove is concerned about incurring losses and sees accelerating the repayment period as the only viable solution,” the source revealed to Technext.
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