Uber has recently made adjustments to its base fares in response to the removal of fuel subsidy. In an official communication obtained by TechCabal, the ride-hailing company announced that it has increased the minimum fare for Uber X from ₦850 to ₦1200. Additionally, customers will now be charged N25 per minute. Uber believes that these changes will positively impact drivers’ earnings while maintaining an affordable service for riders.
Source: Naijmobile
Tope Akinwumi, Uber’s Country Manager for Nigeria, explained in an email to TechCabal that the fare adjustments were made after a thorough review of the fuel subsidy removal and to reflect the current economic conditions. Akinwumi also mentioned that Uber had previously reduced the service fee from 25% to 20% in February 2022 to enhance drivers’ earning opportunities. The recent fare increases aim to help drivers cover the rising fuel costs, although they do not fully offset the entire expense.
Read Also: Strike: Drivers Unimpressed with Bolt’s Incentives
AUATWON’s Confirmation on Uber Fares Increment
Confirming the fare increment, an official from the Amalgamated Union of App-Based Transport Workers of Nigeria (AUATWON), Comrade Idris Shonuga, stated that the new prices did not meet the drivers’ demands, and consultations were ongoing.
One Uber driver interviewed by TechCabal acknowledged the fare adjustments, expressing that while they were not entirely satisfactory, they were sufficient to encourage drivers to continue working. The driver emphasized the importance of vehicle maintenance and fuel conservation in light of the changes.
Conclusion
This move by Uber represents a significant compromise since base fares have been a contentious issue between drivers and ride-hailing companies. In response to the removal of fuel subsidies and the subsequent increase in fuel prices, drivers had recently demanded a 200% increase in base fares.
The AUATWON organized a midweek protest, urging ride-hailing companies like Uber and Bolt to reduce their commissions. In the same week, Bolt offered drivers a daily bonus of N6,000 and other incentives, but the drivers who spoke to TechCabal expressed dissatisfaction with the bonus due to its various conditions.
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