Lagos drivers seek remittance relief from Moove, LagRide ahead of October 12 shutdown

Ahead of its proposed October 12 shutdown of the Bolt and inDrive apps, the Amalgamated Union of App-based Transporters of Nigeria (AUATON) is seeking remittance relief from Moove, LagRide and other vehicle financing organisations across Lagos for the duration of the industrial action.

Read also: Following Uber Nigeria’s exit, Moove permits drivers to operate on Bolt and inDrive

According to the union’s notifications to Moove, Ibile Holdings (LagRide), Finatrust Microfinance Bank and other financing entities titled: Formal Notifications of Proposed Industrial Action and Request for Temporary Remittance Relief for e-hailing Drivers, the request became necessary because, during the period, e-hailing drivers working on their platforms will not be earning enough revenue to meet their obligations.

​”In view of the proposed industrial action, AUATON respectfully requests Moove Nigeria/LagRide to grant affected drivers temporary relief from daily remittance obligations and related operational targets for the duration of their participation in the action. During the industrial action, drivers will not be generating their normal revenue from which daily remittance obligations ordinarily arise. We therefore appeal to Moove Nigeria/LagRide to refrain from imposing penalties, sanctions or adverse measures solely on the basis of a driver’s participation in the industrial action, as drivers are not expected to operate during this period,” the AUATON request to both companies reads.

​The union further noted that its task force will be present across all Local Government Areas in Lagos State to monitor compliance with the industrial action. Thus, any driver found operating in violation of the shutdown directives may face appropriate consequences under the union’s internal measures.

​It further encourages financing companies and affected drivers to maintain open communication and address any financing, repayment or operational concerns through constructive engagement during the period of the industrial action.

Why this matters to Moove, LagRide and other fleet owners

​AUATON, an NLC-affiliated union, has scheduled an indefinite shutdown of the Bolt and inDrive apps beginning on October 12. The mega protest is intended not only to draw massive attention to the plight of e-hailing drivers and other app workers, but it is also aimed at bringing the two major apps in the country, Bolt and inDrive, to the table.

The union noted that rising operational costs, vehicle financing obligations, fuel expenses, maintenance costs, insurance, data subscriptions, government levies and other daily expenses have placed enormous financial pressure on drivers. However, the app companies have refused to adjust their existing fare and commission structures to reflect these realities, creating serious concerns about the sustainability of the profession.

The union believes that addressing the concerns presently affecting app-based transporters will contribute to a healthier and more sustainable transportation ecosystem for all stakeholders, including fleet and vehicle-financing partners.

It noted that meaningful improvements in driver earnings, welfare and operating conditions will contribute to improved driver retention and reduced turnover, better driver commitment and engagement and more sustainable vehicle utilisation. Other benefits to fleet management companies include reduced operational disputes between drivers and fleet partners and improved vehicle maintenance arising from better driver earning capacity.

Others are greater repayment sustainability and operational stability, reduced vehicle downtime, and a stronger and more sustainable app-based transportation industry.

“Our objective is not to disrupt businesses unnecessarily, but to advocate for conditions that support the long-term sustainability of drivers, fleet partners and the transportation ecosystem as a whole. We respectfully request the understanding and cooperation of Moove Nigeria/LagRide regarding this notification and the temporary relief being sought on behalf of affected drivers,” the union said.

Recall that Moove Nigeria gave its drivers freedom to operate on Bolt and inDrive following the Nigerian exit of its exclusive partner, Uber. The company had also warned drivers on its platform that their contractual obligations remain active and they won’t receive any reprieve on remittances. The company disclosed this days after Technext reported that drivers were seeking a reduction in their daily remittances from ₦18,700 to ₦12,000.

“​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.

It remains to be seen whether this appeal from the union would yield a more positive response from the vehicle financing company.

Read also: Lagos drivers to shut down Bolt and inDrive in October, demand 10% commission, fare restructure