InDrive, a ride-hailing service operating across nine African countries, is set to introduce a new bank transfer feature in Nigeria, enhancing the payment options available to its users. This innovative feature, known as “Light Cashless,” allows drivers to display their preferred bank account details directly within the app, enabling passengers to easily copy and paste this information for payment without the need for integration or an in-app payment mechanism.
This initiative positions inDrive as the first ride-hailing platform in Nigeria to adopt such a straightforward approach to payments, reinforcing the growing acceptance of bank transfers as a preferred method for settling trip fares. An inDrive spokesperson clarified the nature of this feature, stating, “There is no payment gateway integration. It is simply a copy-and-paste mechanism that allows drivers to have their preferred accounts on their profile.” This clarification aims to dispel any misconceptions that inDrive might be venturing into payment processing.
The introduction of the “Light Cashless” feature contrasts with inDrive’s broader strategy, which includes the launch of inDrive Money, a loan product for drivers that was introduced in Colombia just four months ago. This new feature comes in response to a recent study by PYMNTS, which found that 41% of rideshare customers prefer bank transfers for their transactions.
While this feature indicates a potential shift for ride-hailing apps toward expanding into e-payment services, it also aligns with inDrive’s ongoing efforts to enhance its real-time tracking and verification systems. In November 2024, inDrive expressed its commitment to curbing offline rides and improving verification processes to ensure passenger safety. However, some drivers have raised concerns about the implications of this new payment method. Jolaiya Moses, the national treasurer for the Amalgamated Union of App-based Transporters of Nigeria (AUATON), remarked, “It is the same as a card trip. The feature only benefits inDrive,” highlighting the perception that the policy changes favor the company over the drivers.
The new feature
Another driver echoed these sentiments, stating that the relationship between ride-hailing companies and drivers has deteriorated due to a breach of trust, which could affect the willingness of drivers to adopt the new feature. “The app (inDrive) does not make themselves available for most of our issues and concerns; they are practically invisible to us,” said the driver, who is also an executive member of AUATON.
The ride-hailing sector in Nigeria is currently grappling with multiple challenges. Rising fuel and maintenance costs have led drivers to demand fare increases, while macroeconomic pressures have compelled passengers to seek more affordable alternatives. This situation has created a delicate balancing act for companies like Bolt, Uber, and inDrive, as they strive to manage rider churn and driver dissatisfaction. Negotiations will likely be necessary to prevent further driver strikes similar to those witnessed in 2023.
In recent weeks, members of AUATON have clashed with major ride-hailing apps, including Bolt, Uber, and inDrive, over high commission rates and promotional offers that significantly reduce drivers’ earnings. Just last Monday, drivers threatened to protest against Bolt for implementing a 50% price cut to boost demand on its platform.
Despite these challenges, inDrive remains committed to exploring innovative solutions. The company spokesperson indicated that the new bank transfer feature can be activated following the latest app update, reflecting inDrive’s ongoing efforts to adapt to the evolving needs of its drivers and passengers in the competitive ride-hailing market.
