Ride-hailing platform inDrive has quietly launched in-app advertising in Nigeria, marking a strategic shift to broaden its revenue base beyond ride-hailing and delivery services. The feature went live in November 2025 and is powered by Bookings.com, placing ads within the app interface—particularly during post-booking wait times and while passengers are en route.
This move reflects a growing trend among mobility startups seeking high-margin, scalable revenue sources as ride commissions alone prove insufficient for long-term profitability. Advertising leverages inDrive’s large user base and frequent engagement, creating a monetization model that complements its core services.
The rollout aligns with broader patterns in Nigeria’s gig economy, where platforms are experimenting with alternative monetization strategies. Competitors such as Chowdeck and Glovo have also introduced in-app advertising over the past two years to capitalize on their active audiences.
The introduction of ads comes amid mounting concerns over driver income in Nigeria. Transport unions recently flagged double VAT deductions on fares following 2026 tax changes, with drivers reporting overall deductions rising from 9.99% to approximately 12.5% per ride. This adds to existing tensions between inDrive and its driver community.
In late 2025, the company launched a promotional policy in South Africa allowing drivers to retain 99% of fares in select cities, capping platform commissions at just 1%. While marketed as driver support, the initiative is widely viewed as a response to competitive pressure and unrest rather than a permanent shift in business strategy. Nigeria has also witnessed driver strikes and protests in previous years over low fares and safety concerns tied to ride-hailing operations.
inDrive’s peer-to-peer pricing model, which enables riders and drivers to negotiate fares directly, has helped the platform gain traction in price-sensitive markets like Nigeria, where it ranks among the most downloaded ride-hailing apps globally. However, as inDrive pursues a super-app strategy—integrating grocery delivery, advertising, and other services—it faces the challenge of balancing new revenue ambitions with driver satisfaction in an increasingly competitive mobility landscape.
