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Pickmeup woos Nigerian car-hailing drivers with high compensation model

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While the relationship between foreign ride hailing companies and drivers in Nigeria is deteriorating, an indigenous company, Pickmeup has introduced a competitive service fee that might eventually flip the ride-hailing sector on its head.

According to the startup, while the disagreement in the operating model of these foreign companies have created a gap and worsened their business relationship with the drivers, Pickmeup, is gradually expanding its reach in the country by luring drivers with higher compensation rate, which could put a strain on the foreign companies compensation models that have often been criticised by car-hailing drivers.

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The firm said the worse situation was that the foreign companies abandoned Nigerian drivers, and tied financial aid to Coronavirus infection during the thick of the pandemic in Q1 2020, while operating the highest service fee in the ride-hailing industry, which made the earnings of drivers low.

The Founder, Pickmeup, Michael Okaredje said the indigenous startup has penetrated the car-hailing industry in Nigeria through the South, and is currently aiming for the Western market.

On how it fares compared to competitors, Michael said “We offer competitive pricing, with the lowest service fee of 15% for drivers compared to other foreign ride hailing companies whose charges are between 20% and 25%. We also offer drivers the flexibility to pay themselves plus free training and vehicle inspections.”

Michael emphasised on the poor relationship between the foreign ride hailing companies and Nigerian drivers, and how it favours the indigenous start up, adding: “The relationship between drivers and our two major competitors is very poor, with constant disagreements and protests. So, we are proud to look after our drivers, as they are the backbone of this business; this is something that sets us apart.

“For riders, they get to enjoy greater fare transparency and a live chat support system to resolve their queries in real-time. They can also favourite their drivers, which are then prioritised for future ride requests. This enables them to have a level of control over their experience as well as incentivise drivers to offer a competitive service.”

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Michael OkaredjePickmeup
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