BUSINESS NIGERIA

Nigeria Wallstreet Journal

E-Hailing Drivers Demand National Framework to Regulate Industry Practices

E-hailing drivers under the Amalgamated Union of App-Based Transporters of Nigeria (AUATON) have called for a federal government regulatory framework to address what they describe as exploitative practices by app-based transportation companies.

The drivers, who include operators for platforms like Uber, Bolt, and Indrive, allege that app companies dominate the industry, setting fares and taking a disproportionate share of revenues, while repatriating profits to their home countries.

Speaking on behalf of the Lagos chapter of the union, Chairman Azeez Jaiyesimi highlighted the drivers’ plight. “Only the government can help us out of these unfair deals with the app companies, which are mostly foreign-owned. After cheating us, they repatriate the funds back to their different countries,” Jaiyesimi lamented.

Drivers Demand Fair Play

The drivers, who provide over 90 per cent of the resources required for the business, claim that app companies wield undue control over pricing and revenue distribution. Jaiyesimi expressed frustration at failed attempts to negotiate with the companies directly.

“We have attempted to discuss with them severally, but they didn’t yield positive results. What we need is for the government at the centre to step in with win-win regulations that will guide the activities of e-hailing drivers and the app companies,” he said.

Echoing this sentiment, Kolawole Aina, South-West Vice-President of AUATON, stressed the need for a federal framework to unify regulations across states. “About 15 or 17 states have regulatory frameworks at their own discretion, and it has never favoured drivers of e-hailing rides,” Aina noted.

A Call for Comprehensive Regulation

The union envisions a national policy that would involve all stakeholders, including drivers, app companies, passengers, and the government. Such a framework, they argue, would address issues like fair revenue sharing, standardised taxation, and improved working conditions for drivers.

“It is only the drivers that think about how the states and the app companies are going to make money, and at the end of it, the drivers and riders bear all the burden,” Aina added.

AUATON’s demand for a national regulatory framework was the focal point of a 2024 conference organised by the union. Aina believes that a unified approach would reduce the multiple taxation burden on drivers while ensuring equitable benefits for all parties.

As e-hailing services continue to grow in popularity, the union’s call for government intervention highlights the challenges faced by the drivers who form the backbone of this burgeoning industry.

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