The Amalgamated Union of App-based Transporters of Nigeria (AUATON) has rejected allegations that it signed a 30-year ₦5 billion deal with a local ride-hailing app, SimpliRide, to make it the preferred app for Nigerian drivers. The union disclosed this in a statement signed by its National Media and Publicity Chairman, Comrade Jossy Adaraniwon.
Read also: AUATON shuns Bolt and inDrive, backs local e-hailing apps to help tackle industry challenges
The union described the accusations as a coordinated campaign of misinformation, fabrications, and malicious falsehoods being peddled by two disgruntled members.
“We categorically deny the fabricated claim that the future of the e-hailing industry has been “sold” or “mortgaged” to SimpliRide for 30 years at a price of 5 billion Naira. This is a deliberate distortion of a standard protection clause,” the AUATON statement reads.
According to the union, the peddlers of this fallacy only distorted the Termination Clause in the Joint Venture Agreement signed with the local e-hailing platform. Per the clause, the said agreement shall remain in full force and effect for a minimum period of three hundred and sixty months (360 months). The clause further states that if either party terminates the agreement before the expiration without a court declaration, such a party will pay a penalty of N5 billion.
“Should either Party attempt to terminate this Agreement unilaterally or without cause deemed valid by a court of competent jurisdiction, the terminating Party shall be liable to pay a penalty of 5 billion Naira to the non-terminating Party. This penalty is intended as a deterrent to early termination and to uphold the mutual commitment to the Agreement’s terms,” the purported clause states.
The union further clarified that the N5 billion is not a sale price but a strict penalty designed to protect the union and drivers by preventing the ride-hailing company from abruptly backing out or dissolving driver welfare structures it has agreed to.
“It guarantees long-term stability and safeguards—rather than mortgages—the future of our drivers,” the union said.
AUATON denies membership of SimpliRide Board of Directors
AUATON also denied allegations that three of its Central Working Committee (CWC) members are sitting on the Board of Directors of SimpliRide, noting that as a completely independent trade union, it is not entitled to a Director’s seat at the company’s parent company, Epevs Studio Nigeria Limited, another independent registered company.
On the contrary, the three seats in question are at the e-hailing company’s Corporate Advisory Board, which grants drivers a direct voice in all policy decisions.
“The Corporate Advisory Board consists of a 10-member framework. For active strategic operations, it comprises seven (7) members: four (4) representatives from Epevs Studio Nigeria Limited and three (3) representatives appointed directly by AUATON,” the union said.
It clarified that this structure ensures that drivers, through their chosen union representatives, maintain collective decision-making power over the platform’s policies, direction, and pricing metrics.
The union further challenged the peddlers of such rumours to provide concrete evidence of their wild claims to the public, stating that they are acting out of personal grievances because their attempts to exploit union resources were blocked.
The union noted that SimpliRide was introduced to revolutionise the industry and prioritise driver welfare. For complete transparency, the Joint Venture Agreement is openly accessible directly within the ride-hailing app and is available upon request to any financial member of the union.
“We urge all app-based drivers across Nigeria to completely disregard this anti-welfare campaign. This sabotage is a desperate attempt to discourage you from embracing an ecosystem that frees you from the current exploitative multinational apps,” AUATON said.
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