AUATON petitions Attorney-General on FG’s mandatory health insurance for drivers

Ejike Kanife
Drivers vow to dump Uber, Bolt, inDrive for indigenous apps if 5% commission not met
AUATON drivers protest

Uber and Bolt drivers in Lagos state, under the umbrella of the Amalgamated Union of App-based Transporters of Nigeria (AUATON), have petitioned the state’s Attorney-General, Lawal Pedro (SAN), to urgently enforce a federal government directive mandating ride-hailing, food delivery and logistics apps to provide health insurance for independent employees operating on their apps.

In the petition seen by Technext, the union lamented that despite various deductions, commissions, and service charges imposed on drivers by Uber, Bolt, and inDrive, drivers are still denied meaningful welfare protection, including health insurance coverage for drivers who risk their lives daily on Lagos roads.

This situation, the petition says, directly contradicts the spirit and objectives of the Federal  Government directive aimed at strengthening social protection for workers in Nigeria’s growing digital economy.

“We therefore respectfully urge the Lagos State Ministry of Justice to investigate the operations of these companies and ensure full compliance with the NHIA Act 2022,  labour protection standards, and all applicable laws regulating digital transport platforms in Lagos State,” the petition reads.

Bolt, Uber, inDrive: Ranking Nigeria's e-hailing platforms for availability, pricing and safety
inDrive, Uber and Bolt logos merged into one

The drivers are also proposing that at least 2 per cent of commissions charged by app companies be set aside in a jointly managed escrow account to be used for welfare packages like the ILERA EKO health insurance scheme, pension for drivers and others.

Drivers demand regulation of Uber, Bolt, and inDrive

The drivers also demanded the Ministry of Justice to introduce regulatory interventions on the operations of ride-hailing companies Uber, Bolt and inDrive. According to the petition, the union highlighted the worsening conditions in the app-based transportation sector as well as the continuous exploitation of drivers by ride-hailing companies.

The union also lamented that despite several previous engagements with state legislature and other institutions, no real action has been taken to address the plight of the drivers.”Despite several meetings and interventions by government institutions, no  concrete regulatory enforcement or sustainable resolution has been achieved,  while the welfare and safety conditions of drivers continue to deteriorate.

Speaking about security as one of the areas where regulations will come in handy, the drivers pointed out that several of their colleagues have been killed, attacked, or had their vehicles stolen by criminals while discharging their legal duties. They also cited incidents involving passengers, particularly a case where a female rider was attacked and robbed by a driver.

“The safety of both drivers and passengers remains a major concern so our demands on security include mandatory NIN linkage for all drivers and riders and compulsory facial verification systems across all ride-hailing platforms,” the AUATON petition reads.

Alledged Lagos robery and stabbing: inDrive says victim did not book ride on app
inDrive driver allegedly robbed and stabbed this lady

The union also noted that high commission rates imposed by app companies have made it extremely difficult for drivers to earn a sustainable income despite extremely long  working hours. Uber and Bolt deduct between 27 and 38 per cent as commission (including taxes and booking fees, a fee the drivers say is too high given the high operational costs.

These costs include the high cost of fuel and spare parts, data and airtime, feeding, levies to non-state actors like agberos, vehicle remittance for the over 90 per cent of drivers who don’t own their vehicles and others. In the end, if an average driver makes 60,000 naira in a day, he’s left with only 2,300 naira after these deductions.

“The harsh reality is that the average e-hailing driver in Lagos survives on less than N3,000 daily despite working extremely long hours under harsh economic conditions. This explains why many drivers work for over 15 hours daily just to survive, leading  to fatigue-related road accidents that affect both drivers and passengers,” the petition reads.

They are therefore demanding that the commission should not exceed 5 per cent or the adoption of a fair daily subscription model ranging between N500 and N1,000.

May 1: 5,000 Lagos drivers to shutdown inDrive, Bolt, Uber in protest
AUATON

The drivers also demanded a standardised and transparent fare system as well as their inclusion in the fare-setting process. They also demanded the recognition of the union as well as the removal of unrealistic bonus targets that have contributed significantly to fatigue, accidents, and avoidable loss of lives.

“The app-based transportation sector remains a major contributor to employment and economic activities within Lagos State. However, without urgent legal and regulatory enforcement, the sector risks becoming increasingly exploitative, unsafe, and unsustainable,” the petition says.

The union also noted that drivers will continue peaceful protests until meaningful reforms are implemented within the e-hailing sector.

See also: Children’s Day: Bolt donates portion of earnings to vulnerable children


Technext Newsletter

Get the best of Africa’s daily tech to your inbox – first thing every morning.
Join the community now!

Register for Technext Coinference 2023, the Largest blockchain and DeFi Gathering in Africa.

Technext Newsletter

Get the best of Africa’s daily tech to your inbox – first thing every morning.
Join the community now!