Uber Nigeria has officially its prices in consideration of the fuel hike in the country. According to the ride-hailing company, the price increase was done to help drivers with the rising operating costs in the country. The price of fuel tripled after President Bola Tinubu said he’ll fulfill a pledge to scrap fuel subsidies that cost the government $10 billion last year.
Some days ago, the Nigerian National Petroleum Co. (NNPC) raised the cost from 184 Naira per litre to to N488 per litre in Lagos, Nigeria’s commercial hub.
In a statement made available to Innovation Village, Tope Akinwumi, Uber Country Manager, Nigeria said;
“Drivers are at the heart of everything we do, and we continue to work on initiatives and engage with drivers to help make Uber the app of choice for drivers while maintaining an affordable service for riders.
Following an in-depth review of the current fuel subsidy removal, Uber updated fares on the 3rd and 9th June on the app to reflect existing economic conditions. We believe these changes have helped better support drivers in increasing their earning opportunities. Furthermore, we lowered the service fee in February 2022 from 25% to 20% to help enable better earning opportunities for drivers.
We want the best for drivers who operate on the Uber platform and frequently engage with them directly through roundtables, surveys, phone, and in-app channels to better understand and receive feedback on the realities they face in their businesses.”
The company said that the June 2023 fare increases are designed to help drivers cover the recent increase in fuel costs, not the entire cost of fuel. The company also added that the service fee ensures the running of the Uber App, which comes out of Uber’s service fee from each fare and it also helps us maintain and make continuous investments to enhance our technology designed to meet the needs of riders and drivers.
The Amalgamated Union of App-Based Transport Workers of Nigeria (AUATWON) suspended its planned indefinite strike to allow for dialogue with the government. On June 7, the disgruntled drivers had shutdown operations in protest of low fares and the commission rates set by Uber and Bolt.