‘High prices will discourage passengers’- Bolt Country Manager tells e-hailing drivers

As Uber and Bolt drivers under the aegis of the Amalgamated Union of App-based Transport Workers of Nigeria (AUATWON) embarked on a strike to protest the app companies’ refusal to increase their fares, Country Manager of Bolt, Yahaya Mohammed has suggested that his company might be unwilling to hike its fares more than it already has.

This is according to a mail sent to Technext by a Bolt representative in response to our earlier publication of how the company offered mouthwatering bonuses and huge surge in a bid to discourage drivers from joining the industrial action.

Bolt had previously announced a new price regimen for its drivers following the hike in fuel prices that greeted President Bola Ahmed Tinubu’s removal of fuel subsidy. Going by rates made available to drivers, Technext reported that Bolt had instituted a fare increase of about 15%.

The fare for the regular Bolt trip rose from N3,300 to N3,780. In the same vein, a trip on Bolt Corporate rose from N3,460 to N4,020 while the fare for Bolt Lite rose from N2,660 to N2,980. Taken together, they represented an increase of about 15%. But this was a far cry from the 200% which the drivers demanded, forcing them to boycott the apps in protest on Wednesday.

While respecting the rights of the drivers to protest and engage in peaceful demonstrations, the Bolt Country Manager, however, suggested there won’t be a further increase in prices because that would discourage passengers from ordering rides.

We adjusted the fares taking into account the issue of demand and supply. Excessively high prices will discourage passengers from ordering rides, thus negatively impacting drivers’ earnings. Therefore, our revised fares aim to strike a balance between better compensation for drivers and manageable prices for passengers.

Yahaya Mohammed, Bolt Nigeria Country Manager

To protect its business and ensure that enough drivers were on the road despite the ongoing strike and protest, the company had offered a generous N6,000 bonus to drivers who came out to work. Drivers must however complete between 9-11 trips, work at least 7 hours and accept up to 90% of orders among others.

According to its drivers, the company also put in place one of the highest price surges ever on its app, a whopping 5.0, in a bid to entice drivers to abandon their protest and hit the road. The Country Manager, however, explains that those measures weren’t put in place due to the current circumstances as the company has always granted bonuses to its drivers.

We offer recurring bonuses to our drivers, completely independent of the current circumstances. On the other hand, surge pricing is determined by market factors such as supply and demand.

Bolt’s rationale for not increasing fares

In all its communications, Bolt has adopted a posture of refusal to increase its prices. Understandably, the company has a business to run and must constantly strike a balance between its drivers and its passengers, two of its most vital publics. The company has always maintained that the welfare of its drivers remains its utmost priority. In this particular matter, the Country Manager said “The welfare of our drivers is at the forefront of Bolt’s decision.”

Unfortunately, the drivers do not feel that way and that is saying a lot. In a mail to the drivers, Bolt tried to explain to them the rational behind its refusal to increase its fare any more than it already has. The company argued that the perception that fuel cost is equal to drivers total cost is wrong as it is only a portion of driver’s total cost.

It said other items that play a big role in determining driver costs include car rental cost, vehicle maintenance/servicing cost, data/call cost, etc. As such, since the cost of these other determinants didn’t increase, it is unjustified that that drivers are demanding a 200% increase.

“An increase in fuel cost does not necessitate an equivalent increase in total fares as the fuel cost is only one part of driver costs. Fares need to strike a balance such that passengers remain willing and able to request rides and drivers are able to remain profitable on each trip. We have made adjustments to our pricing to ensure they maintain drivers’ daily earnings after taking total cost into account,” the company told its drivers.

These explanations, though reasonable, however do not reflect the harsh realities the drivers say have been their lot since the price of fuel rose nearly three times. For many of them, they simply can’t cope unless a commensurate increase in fares collected was instituted. To be fair, prices of independent transporters like danfo and public buses have doubled in many places.

Breaking it down, a driver told Technext that:

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,”

Given such harsh circumstances, it remains to be seen how long the striking drivers could hold out for especially if Bolt maintains its stand. Yet, it behooves on the ride-hailing company to sit down with driver representatives and reach a middle ground. But alas, Bolt has resolutely refused to accept the existence of driver representatives in form of a union.