Uber confirms ‘discretionary’ goodwill payouts to ‘active’ Nigerian drivers

Uber has confirmed making discretionary goodwill payouts to drivers on its platform in Nigeria. The e-hailing company, which shut down operations in the country on September 2, confirmed this to Technext after inquiries into the matter.

The company pointed out that because drivers are independent contractors, they are not eligible for severance pay. Regarding how many drivers received the payments and how they were selected, the company said they were made to active drivers.

“We are deeply grateful to the drivers in Nigeria who have been part of the Uber journey. As independent contractors, drivers are not eligible for severance; however, as a gesture of gratitude, we have issued discretionary goodwill payouts to active drivers,” Uber said in response to a Technext query.

The development comes just a week after the ride-hailing giant exited the Nigerian market. According to the company, the decision to exit Nigeria is part of evolving business priorities and investment focus across the continent.

Read also: South African union slams Uber over abrupt Nigeria exit, disregard for African markets

Drivers’ union disagrees over Uber’s compensation

When announcing its exit, Uber also said it has been in touch with active drivers to extend a token of its appreciation as they transition. Whether it has fulfilled this obligation remains a subject of debate.

According to the Founding General Secretary of the Amalgamated Union of App-based Transporters of Nigeria (AUATON), Comrade Ibrahim Ayoade, active drivers were paid ₦50,000 each after proper settlement.

However, a disclaimer by Comrade David Nosa Aigbomian, who claims to be the union’s president, states that there is no official evidence or documentation to confirm the payment of ₦40,000.00 compensation to drivers in Nigeria, as claimed by the Secretary.

​“The Union has investigated the alleged payment and discovered that, based on the information available to it, only a fraction of the thousands of drivers who use the Uber platform appear to have received payments, with few identified cases between ₦1,544 and ₦20,000 depending [on] your last wallet balance with them,” the denial reads.

​The disclaimer also stated that the company has not presented AUATON with any verifiable official documentation confirming the alleged ₦40,000.00 payment, the total number of drivers who have been compensated, the criteria used for such payments, or the total amount disbursed to drivers in Nigeria.

In the meantime, Uber believes it has fulfilled its obligation to active drivers on its platform. It appears to have gone for rewarding loyal drivers, as against selecting randomly, noting that it didn’t exactly owe drivers what it paid.