A chieftain of the Nigerian drivers’ union, Comrade Steven Iwindoye has described as false and misleading, the advertisements by ride-hailing companies like Bolt and Uber which overstated the monthly earnings of drivers.
Comrade Iwindoye, the Public Relations Officer of the Lagos Chapter of the Amalgamated Union of App-based Transporters of Nigeria (AUATON), said this during a chat with Technext.
Ride-hailing companies have been known to advertise driver earnings in a bid to corral unsuspecting drivers to join their apps. In one such advert by Bolt seen by this reporter, the app company claimed that drivers on its platform earn up to 793,000 naira per month. However, Comrade Iwindoye believes this is a false advertisement as the claims are highly exaggerated.
“The claim of drivers earning up to ₦700,000 per month is highly exaggerated and misleading. While top-performing drivers might approach this figure, it’s not the average earnings for most drivers,” the Lagos PRO told this reporter.
He also pointed out that while Bolt is notorious for this kind of over-bloated numbers in their ads, other ride-hailing companies have also been accused of misleading marketing. However, he stressed that Uber and InDrive might be more subtle in their advertising approaches while Lagos Ride does not even advertise.
₦200,000 to ₦400,000 gross earnings on Bolt and Uber
Drivers operating on e-hailing platforms will never achieve uniformity in what they earn. This is because several factors go into deciding what a driver earns. First is that different drivers set different earning targets for themselves. Another factor is their availability to work. Furthermore, the platform, or platforms, and locations they decide to work in are also a deciding factor.
But no matter what it is, it is quite improbable that nearly 800,000 naira is the benchmark or average earnings for app drivers. This is especially so given the gig nature of the industry and the prevalent economic situation in the country which has made e-hailing services a luxury. And Comrade Steven Iwindoye affirms as much.
“Gross earnings vary depending on location, demand, and driver efficiency. However, here are rough estimates. Gross earnings are between 200,000 to 400,000 naira per month at an average of 10 to 20 trips a day. Take-home pay after expenses like fuel, maintenance, data, etc. is between 100,000 to 200,000 naira per month,” Comrade Steven said.
With his postulation, the Lagos e-hailing union chief said the advertisements by app companies are deceptive and aimed at attracting new drivers. With increasing rates of driver apathy, he said companies like Bolt are using these enticing ads to replenish their driver base.
He however said that app drivers under the union are no longer naïve and would no longer fall for those ads.
“Driver earnings vary greatly depending on city, time of day, and season. Companies often inflate earnings estimates to attract drivers, hoping to maintain a large driver base. (Prospective) drivers should research and understand the terms, commissions, and expenses involved,” he said.
Comrade Iwindoye also condemned the 25 per cent commission by Bolt and Uber, describing it as a humongous and unfair reward for the kind of aggregating service they offer.
Speaking on the Celebrity Sporty Podcast in Lagos, the PRO maintained that the drivers who are the backbone of the industry are getting the short end of the stick.
“We are the owners of the business. We are the ones going through a lot of difficulties on the road. The cars belong to us. We are the ones maintaining and taking care of the car. We are the ones fueling the cars. What are they doing for us? They only connect and link us to riders and they are still taking humongous commissions which leave us with nothing to go home in the evenings. Many of our members sleep on the road because they cannot go home. When you work from morning till evening, nothing is left with you, how do you want to go back home to go and meet your family?” he concluded.
See also: Drivers’ union demands LagRide vehicles, 5% commission from Uber and Bolt