Bolt says it hasn’t increased commission to 24% in Nigeria

Contrary to information making the rounds, e-Hailing company, Bolt Nigeria, has denied increasing its commission to 24 per cent. This was disclosed to Technext by a spokesperson of the company.

According to a message purportedly sent to its drivers to that effect, the company would be extracting a 24 per cent commission for each ride, including VAT. The increase, according to the communication, will enable it to enhance its other offerings and invest in services that would benefit both the company and drivers.

“Effective Tuesday, 14 July, the driver commission fee will adjust to 24%, including VAT. We recognise that commission fees directly impact your earnings, and this decision was not made lightly. The adjustment aims to support the enhancement of our services, expand our user base, and invest in areas that benefit both drivers and passengers, such as safety features, rider incentives and driver incentives. Additionally, the rider booking fee will also increase to 5%,” the message purportedly reads.

However, Bolt Nigeria has denied sending out the communication, insisting it has nothing to do with Bolt Nigeria.

“Nothing like that in Nigeria. I just confirmed, our commission is still 20 per cent,” a spokesperson told Technext.

Similarly, a cursory search revealed that the message emanated from South Africa, where a driver, Donald Mokwena, shared the message. Donald is a driver based in Johannesburg, where drivers are already lamenting that the increase tentatively means the commission is 29 per cent.

Bolt’s denial imperative as drivers protest low earnings

This development is coming at a time when drivers are lamenting their constantly dropping earnings. The commission fee is the one factor they have generally agreed is constantly affecting their earnings. Indeed, during a Workers’ Day protest against the excesses of the e-hailing companies, drivers under the Amalgamated Union of App-based Transporters of Nigeria (AUATON), threatened to dump the big e-hailing companies like Bolt, Uber and inDrive if their demand of a 5 per cent commission is not met.

“If App companies fail to comply, we shall massively move to new indigenous App companies who are ready and willing to comply with drivers’ demands. Currently, we have 3 on ground while the drivers community is building one for herself. Enough of this slavery and exploitation by these app sharks,” the PRO of the union, Steven Iwindoye, said at the time.

More recently, the Lagos State House of Assembly ordered Uber, Bolt, inDrive and other ride-hailing companies to ensure transparency in all driver payments and commissions. This was part of the outcome of a public hearing sanctioned by the House following a petition by the Lagos State Council of the Amalgamated Union of App-based Transporters of Nigeria (AUATON).

See also: Lagos Assembly knocks Uber, Bolt, others over driver commission, deactivation

The assembly ordered the e-hailing companies to provide evidence of commission and other payments for drivers as proof that no financial impropriety was taking place. Thus, it would have been absurd and would have sent a terrible message if a hike in its commission appeared to be Bolt’s response to all that was demanded of them.

The fight for reduced commission has been an ongoing battle between drivers and the app companies. The drivers, on one hand, believe that the companies do not offer enough to deserve the 20 to 25 per cent commission they currently extract from their fares. Describing it as a humongous and unfair reward for the kind of aggregating service they offer, the Lagos PRO of AUATON 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 had said.

If Bolt had indeed increased the commission, it would have been a devastating blow to the drivers who believe that reducing the commission will ensure their economic stability.