“We helped drivers survive January”- inDrive responds to ridiculously low fares accusation

Ride-hailing company, inDrive has rejected accusations that it was offering low fares on its platform, insisting, on the contrary, that its bargaining model helped drivers survive the dry month of January.

The company’s Country Representative, Timothy Oladimeji, disclosed this in response to a Technext query into the matter.

Lagos e-hailing drivers accused the taxi-hailing app under the aegis of the Amalgamated Union of App-based Transporters of Nigeria (AUATON) of using a bidding system that empowers riders to bid fares that are unhealthy, exploitative and unfair to the drivers.

The drivers then called for a minimum benchmark that would guide the pricing system.

Responding, Timothy said the platform has a minimum benchmark that is fair to the drivers. He explained that the company’s bargaining system discourages exploitation by putting guard rails on how low passengers can bargain and how high drivers can bargain as well. This, he said has provided balance and helped drivers survive the “dry” month of January.

“There is a fair minimum benchmark. Our bargaining system discourages exploitation by putting guard rails on how low passengers can bargain and how high drivers can bargain as well. Our social listening and research with drivers show that inDrive has been the balance point for both riders and passengers helping them survive the dry month of January,” Oladimeji said.

He also noted that with the balance provided by the platform, drivers were able to make well-informed choices of rides and passengers were able to get fair bargains.

Drivers’ protestation against inDrive and other apps

Drivers operating under the Nigerian app transporters’ union, AUATON, have launched a campaign against taxi-hailing apps, accusing them of imposing low fares in a bid to gain market share and competitive advantage over rivals.

In a statement signed by the PRO of the Lagos chapter, Steven Iwindoye, the union described the trend of low fares as an unhealthy, unethical, and exploitative practice deliberately designed to impoverish drivers.

“It has severe negative effects on our collective well-being, and as e-hailing practitioners already struggling to make ends meet, we firmly reject such unfair pricing strategies. These cars are owned, managed, and fueled by drivers. App companies have no right to arbitrarily reduce fares to unreasonable levels without first consulting us,” the statement read.

Read also: 50% slash: Bolt bows to drivers’ pressure, increases fares following backlash

The drivers lamented the harsh economic realities -fuel prices, spare parts, vehicle maintenance, rent, food, weekly remittances to partners, school fees, and even tyre replacements.

As such, they justify expecting an upward fare review. However, rather than adjusting fares to reflect these economic realities, app companies, particularly Indrive, Rida, and Uber, have chosen to be insensitive to drivers’ struggles by drastically undervaluing their services.

“For instance, when a trip that should rightfully cost ₦5,000 is reduced to ₦2,000 at the rider’s discretion, it is an insult to our profession and must not be tolerated. There should be a fair minimum fare benchmark for riders to negotiate within, rather than the current situation where fares are slashed to exploitative levels. The continuous price slashes and unfair treatment of drivers by ride-hailing companies like Indrive, Rida, and Uber have pushed drivers to a breaking point,” the union said.

In response, inDrive believes the issue lies with achieving marketplace balance between drivers and riders, a feat that could be challenging considering the December demand boom and the sudden decline that came in January.

Thus, its bargaining model ensures that demand and supply interact naturally without interference from algorithms.

“Achieving marketplace balance can be challenging, especially with seasonal fluctuations. Our bargaining model ensures that demand and supply interact naturally, without algorithmic interference. In December, demand significantly outpaced supply, leading passengers to pay above-average fares based on driver negotiations. However, as economic activity rebounds, the balance improves,” inDrive’s Nigeria lead said.

He also assured that there is already an uptick in demand compared to January. This increase in demand is attributable to the oncoming Valentine’s Day and other key dates in the future that will help drive further demand and by extension, prices.