E-hailing drivers on Wednesday began a strike action with the intention to get sector operators to reach a dialogue with them over challenges confronting their operations.

According to the drivers, the over a week dispute, among others, is needed to understand what constitute fair charges in response to the recent hike in the pump price of premium motor spirit (PMS).

For a fact, the strike commenced to protest against what they described as ‘low fare increase’ by the ride-hailing transport companies, Bolt, Uber and others.

The drivers under the aegis of Amalgamated Union of App-Based Transport Workers of Nigeria (AUATWN) picketed the Victoria Island office of Uber and Bolt in Lekki.

According to the AUATWN, the strike is observed across the nation, including Abuja, Kano, Port Harcourt, Ondo, Oyo and other places within the country.

Speaking with The Guardian, Chairman, Media and Publicity Committee, AUATWN, Jossy Olawale, said there has been full compliance across the nation, saying though reports have it that passengers still have access to some drivers. He said this was so because it was the begining of the five-day strike.

He said: “I think the government has seen some of the activities and impact on the street, they will be able to intervene as quickly as possible. We also hope that the app companies will be able to do something.”

Also speaking, General Secretary, AUATWN, Ayoade Ibrahim, said the strike is ongoing all over Nigeria.

Ibrahim said: “The difference this time around is that we wrote a letter to our entire logistics firms and the people that gave our members cars to be lenient with them so that they can let them observe the strike and that they should not collect money from them.

“Secondly, our strike action is observed across the country but now that the Federal Government has approved the union for us, we are able to talk in one voice, meaning we are very intact.”

Speaking on whether they have got a response from the app companies, he disclosed that no response yet, but hope this time around they will get back to us.

According to him, the operators must grant the 200 per cent increase the union is asking for, while also recognizing the association for collective bargaining.

He said: “They must be able to carry us along. If you watch it now, they have changed their price two to three times, which is to say they don’t really understand what is going on. So, we need to sit together and realign the business strategy. We also asked them to profile the riders but they refused. Just to carry out the Know Your Customer (KYC) just like other industries are doing but they refused.”

Already, the union had reviewed transport fare upward by 200 per cent. It also set N2000 as the minimum cost for a trip following the removal of fuel subsidy by the Federal Government.

They also demanded that all app companies should immediately set their commission at 10 per cent flat rate.

The union argued that with over 200 per cent increase in the price of motor spare parts and labour cost among others, members’ profitability has been completely reduced by over 300 per cent. He said despite all these, the hailing companies continue to charge between 20 to 25 per cent commission on every ride thereby leaving the workers in pain.

In response to this plea, Bolt recently reviewed its pricing scheme but failed to reduce its commission for drivers.

In a statement sent to drivers, Bolt said: “In fulfillment of our continued commitment to creating the best platform for drivers and after duly considering recent changes to operational costs due to the withdrawal of fuel subsidy, we updated our pricing effective Friday, June 2nd, 2023.

“In the wake of the price change we have received tons of feedback around our pricing methodology making it necessary for us to make a few clarifications.

“In addition to our improved prices and bonuses, we are working tirelessly to ensure that your earnings are preserved by rolling out new features that will significantly improve your driving experience. The current price changes are not sacrosanct, as we will continue to review and update our pricing in line with market forces and realities.

“All these affirm our commitment to remain the most profitable and partner-friendly platform,” the statement read in part.

Besides, the E-hailing industry in Africa has experienced significant growth in recent years.

With the rise of platforms such as Bolt and Uber, among others the industry has disrupted traditional taxi services and created new job opportunities for thousands of people across the continent. However, with growth come challenges!

The challenges range from regulatory to competition and safety.

Findings have shown that the industry is often unregulated in many African countries. This creates challenges for companies operating in the space, as they may be subject to arbitrary regulations or face difficulty in obtaining necessary licenses.

For instance, last year in South Africa, drivers went on strike for regulatory issues and high commission being deducted from them.

The E-hailing industry in Africa presents significant opportunities for growth and innovation.

However, companies operating in this space must navigate regulatory challenges, competition, and safety concerns to succeed in this rapidly evolving market.