The Edo State Transport Authority (ESTA) is stepping on the gas to regulate the ride-hailing industry within its borders. Announced at a driver safety summit hosted by Bolt four months ago, the state plans to implement a two-pronged approach: API integration with ride-hailing companies and the issuance of visual identifiers for drivers.
ESTA’s API integration plan aims to create a more organized ride-hailing landscape. By establishing a connection between the government’s system and ride-hailing platforms like Bolt and Uber, the authorities hope to:
- Enhance Safety: Access to data could potentially help identify and address safety concerns within the ecosystem.
- Promote Orderliness: Regulation can help streamline operations and ensure adherence to established guidelines.
- Eradicate Misconceptions: Clear regulations can differentiate ride-hailing services from traditional car hire, potentially reducing confusion.
- Reduce Harassment: Official recognition through API integration might shield drivers from unnecessary interventions by local task forces.
Following Lagos’ Lead, with a Twist
This move by Edo State echoes a similar initiative undertaken by Lagos State in 2020. However, Edo appears to be taking a more collaborative approach. While Lagos mandated data sharing through API integration, Edo is offering visual identifiers to drivers in exchange for cooperation. These IDs are expected to exempt drivers from daily ticketing and facilitate smoother interactions with authorities.
The situation in Lagos, where Uber clashed with the government over data-sharing enforcement, raises questions about how other ride-hailing companies will respond in Edo. While Bolt actively participated in the safety summit, Uber’s stance on Edo’s API integration remains unclear.
The details of Edo’s ride-hailing regulations, including the specific data points accessed through API integration, are yet to be revealed. The official announcement is pending the gazettement of the regulations.
Overall, Edo State’s approach signifies a growing trend of government involvement in regulating the ride-hailing industry in Nigeria. The success of this strategy will depend on achieving a balance between safety, order, and fostering a business-friendly environment for ride-hailing companies and drivers.
