In the wake of the recent fuel hike across the country, some e-hailing drivers in Lagos have lamented the reluctance of app companies to increase their fares to reflect the reality of the situation.
According to the drivers, they haven’t received any email or message from the e-hailing companies and all the increases in fares, as reported by some media houses, are nothing but surges initiated by the app companies.
A surge is neither permanent nor official. They are rather fluctuations in price which are put in place by the app companies, usually to control demand and supply. And one driver, Vincent, said the hikes in price experienced are a result of surges, not permanent increases.
“Dem never add shishi. They only released surge to compensate drivers and the surge is not everywhere,” Vincent told me.
Another driver, Ajibola, confirmed that the ride-hailing companies are yet to increase prices to reflect the present situation of things officially. According to him, the companies always communicate these decisions to drivers via mail, but until now, no driver has received any mail.
Removal of fuel subsidy and matters arising
On May 29, President Bola Ahmed Tinubu announced during his inauguration speech that the fuel subsidy was gone. This immediately sent the country’s petroleum sector into panic, and within hours, filling stations increased the pump price of PMS by more than 100%, in some places even more than 200%.
In Lagos, where fuel sold for N180/litre to N200/litre, prices quickly soared to between N500 to N550 per litre. Indeed, the drivers who spoke to me complained bitterly at the exorbitant price they suddenly had to pay to fill their tanks.
“This is exactly the issue. Corolla top up cost me 16k yesterday. Just top up. My full tank didn’t use to cost more than N8,000 in the past,” Vincent said.
“How do I cope with this kind of business? Because I bought fuel for 37,000 just to fill my car yesterday when it is not empty so how much do we carry passengers?” another driver, Ebuka told me.
“I bought fuel N10,000 this morning yet my fuel light is still on. Honestly, I’m confused about what to do for a living now. This is the only job I have but I can’t be doing it on a loss,” Moboluwaduro said.
See also: “Uber and Bolt are trying to hijack and impose a yellow union over the e-hailing industry” -Drivers’
e-hailing drivers threaten to down tools due to fuel hike
Given the overbearing price of fuel, which is a major requirement and price determinant for transporters, and given that e-hailing companies are yet to officially adjust prices to reflect the fuel hike, e-hailing drivers in Lagos are threatening to down tools until the app companies do the needful.
According to some, if the needful isn’t done soon enough, they still won’t venture into any app, unless they find passengers willing to pay extra.
“I can’t buy fuel of N488 and be picking ridiculous trips. Do you do business to make profit or loss? I am not driving on any app until the prices are reviewed and if doesn’t pay me. I am saying bye-bye to E-hailing,” Vincent said.
Another driver spelt out his calculations to show how mathematically impossible it is to work under the present circumstances.
25 litres of fuel used to be N4600 and we always make up to N25,000 with it. Commission on 25k work is around 6250 depending on the app used. Now dat 25 litres is now N12,200 and if we still have to battle wit old fare and same commission, N12,200 for fuel will still give you N6,250 for commission. So how do u buy fuel the following day to work talk less of profit? We have to reason it well b4 jumping to the street to work,” he said.
Indeed some drivers have been refusing rides. A driver, Mike, told me he has been getting requests this morning, but riders are not cooperating.
“They don’t even want to hear about increment. It’s very annoying. How do I work under these circumstances?” he lamented.
Asked how much increment would make sense to them, Ajibola put the mathematics on paper:
“If Y is the cost of a trip, then Y x 2.75 = 2.75Y (proposed cost of trips). That’s 2.75 being the increment of the cost of petrol.”
Asked if he meant a 275% increase, he said yes.
Other drivers said they didn’t expect the app companies to hike the price enough to match the current realities. If that happens, they will be forced to abandon e-hailing. Many drivers might be forced to carry offline trips, which might be to the detriment of the companies.
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