Uber and Bolt drivers have expressed mixed reactions following the unveiling of the price of a ride-hailing-fit electric car by Nigerian electric vehicle (EV) manufacturing company, SAGLEV. At a symposium held in Lagos, the EV company revealed that the price of its recommended Sedan is twenty-eight (28) million naira.
But that revelation has not gone down well with drivers operating on e-hailing apps and they are making it very clear. One driver, Shalam, pointed out that drivers are still struggling to afford basic vehicles like Toyota which costs about 7 million naira.
Hence, he wonders how are expected to afford a car that costs 21 million naira or more:
“It is not meant for the common man. That is the meaning. Because we are here struggling to buy a Corolla of 7 million, some of us here are even still looking for a car for delivery or hire purchase, yet they are advertising a car of 28 million,” he said.
Another driver simply exclaimed: “28 million? Na jeep then wan give us?”
SAGLEV has long identified e-hailing drivers as the target market for its electric cars. This is because sedans are not generally the preferred cars for the rich and expensive sedans are not the preferred vehicles for an average earner who wants to get by. Thus, mobility entrepreneurs whose vehicles are their sources of livelihood appear to be a target market of choice.
Alas, the drivers are not very comfortable with the notion of forking out 28 million naira for any car, be it electric or otherwise. Note that the company said it will make available a financial plan which will make for instalmental repayment. But even with that, the drivers see it as an investment they cannot afford to make.
“Electric car is not for the weak. Me I am weak. For now, any driver who wants to collect a car for 28 million naira car, the person will end up crying,” another driver, Morgan, said.
Another driver went on to calculate the mathematics behind a 28 million naira car and its possible repayment plan for the ride-hailing business. According to his calculations, repayment will take 14 years and a half.
“Let’s go back to the drawing board with some calculations. 40,000 Naira weekly x 4 = 160,000 monthly. 160,000 x 12 = 1,920,000 yearly. 28,000,000 (car cost) divided by 1.920,000 (yearly earning) = 14 years 5 months. Let me come and be going,” he finished.
A source at SAGLEV however, blamed the exorbitant cost of the vehicle on the naira/dollar exchange rate. Noting that the cars are 2022 model cars, the source told this reporter that the company sold those cars for around 13 million naira when they first came in 2 years ago.
SAGLEV’s electric car and Nigeria’s e-hailing space
SAGLEV is an electric vehicle company focused on accelerating the conversion of Fossil Fuel Vehicles to Zero-Emission Vehicles in emerging markets by partnering with rideshare and fleet operators. Incorporated in Delaware, USA, the company was co-founded by Sam Faleye who acts as its chairman and CEO.
The company was established to distribute, assemble and manufacture (SKD/CKD/CB) vehicles across emerging markets. Its mission is to provide affordable financing options for electric vehicles to compete with low-cost second-hand ones.
While the company does not appear to be competing well enough at the moment, it is important to note that there are drivers who do not think the 28 million naira cost is too much to invest in a business.
Ajibola, for one, believes that times are evolving globally and Nigerian e-hailing drivers ought to evolve as well.
“It is meant for businessmen. It is an EV…time to evolve comrades. Refuelling is a constant recurrent expenditure in the business and people are innovating on ways to ensure this business is still paying us in the long run. The time for us to evolve is now. With an EV, you may likely be making more than 40,000 naira weekly, likely up to 120,000,” he said.
While this might be true, it is important to point out that the e-hailing business for which this vehicle would be acquired is somewhat not as profitable as it used to be. A drastically declining purchasing power and a consequent decline in ride orders mean drivers are competing for scarce resources.
See also: “It is perfect”- Meet the Lagos e-hailing driver using a N10m electric car for Uber and Bolt
To make it worse, app companies are continuously reducing fares and giving out promos all in their bid to retain their customers, the riders. These factors have combined to ensure that drivers can hardly get by.
“Is it with the ridiculous price drivers have been complaining about that’s how we want to make 120,000 naira or more? If I buy a 28 million naira car now, is it the InDrive app and Bolt with their ridiculous prices I will be running up and down for?” a driver questioned.
But the SAGLEV CEO, Sam Faleye believes drivers have to consider making the switch by themselves, for good reasons.
“By direct partnership and allowing some drivers to use our vehicles in Ghana and Nigeria, we have shown clearly that, for example, a Suzuki Espresso or Alto would cost about 10,000 naira for power daily for less than 200 kilometres for an Uber driver. Electric power will only be no more than 2,500 naira at today’s electric tariff rate or less. For the LagRide driver, they are paying 17,000 to 20,000 naira a day. Compared to 2,500 to maybe 3,000 a day, the argument is settled. So therefore there is no reason why this should not work and we have primarily tested this,” the CEO had previously told Technext.
There is no doubt that the future of mobility is electric and that eventually, ride-hailing, even in Nigeria, will be powered by electric cars.
But, that future does not seem to be close for the majority of Uber and Bolt drivers. The future is too expensive for them. Thus, the EV maker might have to tweak its pricing model if it must appeal to this group.
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