***AUATON urges FG, states to introduce welfare scheme, review platform commissions, pricing policies

The Amalgamated Union of App-Based Transporters of Nigeria (AUATON) has called on the Federal Government and the 36 state governments to introduce targeted economic relief measures for e-hailing drivers, citing rising fuel prices, vehicle maintenance costs and what it described as unfair pricing practices by digital transport platforms.

The union said app-based transport operators were facing increasing financial pressure despite their contribution to urban mobility, employment and the transportation of millions of Nigerians.

The Lagos State Chairman of AUATON, Comrade Jaiyesimi Azeez Olalabi, popularly known as Makavelli, made the call in an open letter addressed to President Bola Tinubu and state governors.

The appeal followed the Federal Government’s reported approval of a monthly transport allowance of N70,000 for public servants for six months, beginning in November 2026.

While acknowledging the intervention, AUATON questioned the exclusion of e-hailing drivers and other app-based transport operators from similar economic support, arguing that they were equally exposed to the rising cost of living and transportation.

According to the union, drivers bear the costs of fuel, vehicle financing, repairs, insurance, tyres, spare parts and depreciation, while also meeting household expenses.

It argued that the financial burden on drivers was compounded by their limited influence over the commercial arrangements governing their access to passengers and earnings.

The union noted that although drivers provide or finance the vehicles used for operations, digital platforms exercise considerable control over trip allocation, fare calculations, commissions and access to customers.

It called for a regulatory framework that would balance the commercial interests of technology companies with the investments and welfare of the drivers responsible for delivering the physical transportation service.

AUATON maintained that the growth of digital mobility should not come at the expense of operators, insisting that platform companies must adopt more transparent and sustainable business practices.

A major concern raised by the union was the pricing model operated by inDrive, particularly its passenger-led fare negotiation system, which it said could expose drivers to fares below the actual cost of providing transportation services.

According to the association, drivers are frequently confronted with the choice of accepting low-paying trips or rejecting them and losing potential income.

It argued that fares should adequately reflect operating expenses, including fuel, vehicle maintenance, insurance, loan repayments and eventual vehicle replacement.

The union urged inDrive to review its pricing structure and engage with AUATON and other recognised driver representatives to develop a more sustainable arrangement.

It also called on the Federal Competition and Consumer Protection Commission (FCCPC) and relevant state authorities to investigate pricing practices across the e-hailing industry.

Among the measures proposed are transparent fare-setting guidelines, disclosure of platform commissions and other deductions, safeguards against unsustainable underpricing, and the establishment of effective dispute-resolution mechanisms.

The association also wants drivers to have a say in decisions concerning fares, commissions and other contractual arrangements that directly affect their earnings.

On government intervention, AUATON proposed the establishment of an E-Hailing Driver Economic Relief Fund to support eligible operators facing rising operational costs.

It also advocated fuel-related support, affordable vehicle financing, lease-to-own arrangements and social protection programmes covering health insurance, accident compensation and pension contributions.

The union said such interventions would help improve the financial sustainability of the sector while supporting drivers who depend on their vehicles as their primary source of livelihood.

It further called on state governments, particularly those with significant e-hailing operations, to introduce welfare programmes and convene meetings involving transport regulators, platform operators, driver representatives and relevant government agencies.

According to AUATON, a coordinated national policy is necessary to prevent disparities in the treatment and protection of app-based transport workers across different states.

The association also wants the government to establish clearer regulations covering platform commissions, driver deactivation, access to earnings, data management and contractual relationships between operators and digital platforms.

It argued that although many drivers are treated as independent operators, their economic dependence on digital platforms requires stronger safeguards and clearer regulatory oversight.

The union said its proposals were not demands for charity but measures aimed at creating a more productive, accountable and sustainable e-hailing industry.

AUATON also indicated that continued government inaction could have political implications, warning that its members might reconsider their support for the All Progressives Congress (APC) and its candidates at future elections.

Olalabi said the association would continue to pursue its demands through dialogue, petitions, collective bargaining and peaceful mobilisation, but stressed that engagement with government must produce measurable outcomes.

The union consequently called for an urgent meeting between the Federal Government, relevant regulatory agencies and recognised e-hailing driver representatives to discuss immediate relief measures and long-term reforms.

It also requested that the government establish a clear implementation timeline for agreed interventions, with regular consultations and accountability mechanisms.

The development highlights broader questions about the sustainability of Nigeria’s app-based transport business model, particularly the distribution of operating costs, commercial risks and earnings between digital platforms and drivers.

As e-hailing continues to play a growing role in urban transportation, the demands for transparent pricing, affordable vehicle ownership and social protection are likely to remain important issues in discussions about the industry’s regulation and long-term growth.