Insecurity: Uber, Indrive missing as Bolt, Nairaxi get exclusive license to operate in Abuja

Popular ride-hailing platforms, Uber and Indrive may lose the right to operate in Abuja, Nigeria’s capital city. This is due to their failure to secure operating licences from the Federal Capital Territory Administration (FCTA) through its Transport Secretary.

In a statement made on Monday, the FCTA revealed that only two ride-hailing companies have been approved to operate exclusively in the city. The companies are Estonian ride-hailing giant, Bolt, and Nairaxi, an indigenous mobility startup that won the innovator’s competition organized by the Nigerian Communications Commission (NCC) held February 2023. Nairaxi wants to drive intelligent mass transportation systems and ride-hailing technologies.

Uber, one of the biggest ride-hailing companies in the world was conspicuously missing. So also was Indrive, the fastest-growing taxi-hailing company in Nigeria. And with the FCTA threatening to clamp down on taxi-hailing companies that continue operating in the capital without licenses, the companies run the risk of being banned according to the statement.

Reacting to the development, an Uber Spokesperson told Technext that the company had already submitted the necessary requirements to the FCTA and they are looking forward to obtaining their license.

“We have submitted the necessary requirements to the FCTA and look forward to continuing to provide a reliable mobility option for riders and earnings opportunity for drivers in Abuja,” the spokesperson said.

Indrive gave a more robust response as its Business Development Representative in Nigeria, Timothy Oladimeji said the company has initiated the procedure of securing its license back in 2023 and has even obtained a pre-approval letter back in December.

“We are currently in the process of securing our license, having initiated the procedure in 2023 in accordance with FCTA requirements. We are actively engaging with the FCTA and have obtained a pre-approval letter on December 18, 2023. Our team is working diligently to ensure timely receipt of the license, enabling us to continue serving our customers. It’s important to note that the delay is unrelated to any concerns about inDrive posing a security risk. We fully respect the FCTA’s efforts to regulate services operating without proper authorization,” Oladimeji told Technext.

Potential clampdown on Uber, Indrive and others

On Monday, the FCT Administration, through its Transportation Secretariat,  granted licenses to Nairaxi and Bolt to operate exclusively as ride-hailing apps in the territory under its Public Transport Management Scheme. The purpose was to address the rising insecurity in the capital, especially those attributed to the notorious one-chance kidnappers.

According to the Transport Secretariat, the move aims to tackle insecurity challenges through verifiable data tracking and other significant benefits in the nation’s capital.

“The licensing of NAIRAXI and Bolt will improve and regulate e-ride-hailing operations while elevating service excellence in the FCT,” the secretariat said.

While only Bolt and Nairaxi have so far been licensed, the FCTA expects other operators, including Bolt and InDriver to commence their license application process or risk being banned for good. It also said it will soon commence enforcement operations on non-compliant operators.

“The FCTA will initiate immediate enforcement operations to clamp down on unlicensed operators in Abuja. The Public Transport Management Scheme also warns of a potential ban on operators without the FCTA Public Transport Management License.”

We also reached out to InDrive for a response and will update the article if we get one.

See also: Safeboda set to launch SafeCar taxi-hailing and a food delivery service in Kenya