Uber Nigeria exit: Moove refuses to reduce drivers remittance, threatens deactivation

Moove Nigeria has warned drivers on its platform that their contractual obligations remain active and they won’t receive any reprieve on remittances. The company disclosed this to the drivers in an email seen by Technext.

Read also: Moove drivers demand daily remittance reduction from ₦18,700 to ₦12,000

This comes days after Technext reported that drivers were seeking a reduction in their daily remittances from ₦18,700 to ₦12,000. But the vehicle-financing company has responded, indicating that nothing has changed and drivers must honour their contracts in line with the terms of their agreements with it.

“​Your contract remains binding, and failure to meet your remittance obligations may result in contract termination and further enforcement action. Contract termination does not cancel any outstanding debt or financial obligations,” the company warned.

The company also warned that any balance remaining after termination will remain due and will be pursued through the applicable recovery process.

​It also restated the contractual provision that ownership of the vehicle will be transferred to the drivers upon fulfilment of the terms of their agreement and all required financial obligations.

“The exit of Uber does not automatically suspend or reduce your contractual obligations. The credit facility provided to you remains subject to the agreed repayment terms,” Moove said.

Uber exit and Moove drivers’ requests

Technext reported that drivers operating on the Moove platform requested a review of their contractual terms, especially a reduction of their daily remittance from ₦18,700 to ₦12,000. These drivers signed four-year repayment contracts after accepting Suzuki Xpresso hatchback vehicles from the company.

The drivers said the request became necessary because many now maintain their vehicles out of pocket, while higher fuel costs and fewer ride opportunities after Uber’s exit have made their earnings less predictable.

“The current remittance is becoming increasingly difficult to sustain under the present business conditions. We believe that a reduction in remittance will help drivers remain operational and continue meeting their obligations to Moove,” the drivers said.

Uber exited the Nigerian market on September 2, citing a focus on its core business. This led to blowback, including confusion among Moove drivers about which apps they would be allowed to operate on. The company soon told the drivers that they could operate across other apps. However, the change came with other challenges, including the drivers’ remittance obligations and existing contractual terms.

According to the drivers, Uber’s exit has significantly affected the availability of riders and the income generated by many drivers, particularly those who depend on ride-hailing operations as their primary source of livelihood.

It is for this reason that they are requesting a review of the existing contractual arrangements. One of their requests is for vehicles to be released to drivers who have completed their four-year contracts, even if they have not fully met the applicable key performance indicators (KPIs).