Travel News
Passengers kick as e-hailing fare rises - PUNCH
Bolt’s fare increase has been met with opposition from Nigerian drivers, who argue that the decision is impacting their earnings as they grapple with low patronage. Passengers are also complaining that e-hailing has become unaffordable for many of them, writes PRINCESS ETUK
Bolt offers an e-hailing service that gives users a convenient alternative to traditional taxis. It uses mobile apps to connect passengers with drivers, featuring real-time tracking, fare estimation, and cashless payment options.
This e-hailing platform links individual drivers with potential users. Capitalising on the country’s underdeveloped public transport system, large population, and rapid urbanization. E-hailing mobility services have experienced exponential growth, expanding from just two operators in 2014 to about 26 operators by 2022 in major cities across Nigeria.
E-hailing mobility platforms have seen a steady rise in Nigeria since their introduction. Uber, the first to launch in 2014, operates in Lagos, Abuja, and Benin City as a service. In 2015, platforms such as Jekalo (Lagos), Afrocab (Lagos and Abuja), and Gomyway (Lagos) followed, all adopting the service entity model.
Holy Cab and Palmdrive entered the Lagos market in 2016, operating under the same business model. GIG Mobility, launched in 2016, expanded its operations beyond Lagos to include Abuja, Port Harcourt, and other cities, functioning as both a taxi and app operator.
Oga Taxi, also launched in 2016, operates in Lagos as a service entity. Bolt (formerly Taxify) started operations in 2017, covering multiple locations, including Lagos, Ogun, Ibadan, Benin City, and Owerri, attesting to the acceptance of e-hailing services by Nigerians.
On August 3, the Nigerian National Petroleum Corporation Limited announced pump prices of Premium Motor Spirit, commonly known as petrol, pump price review to N855 per litre, reaching about N1,000 per litre in some filling stations across the country.
The NNPC, spokesperson, Olufemi Soneye, had earlier declared that the state-owned energy firm was facing financial strain.
NNPC is the sole importer of PMS into Nigeria, shouldering subsidies on the commodity running into several trillions of naira.
Immediately after the announcement of the recent hike in petrol prices, Bolt declared that starting from August 30, 2024, there would be an increase in fares for its car category in Abuja.
Due to the almost 50 per cent rise in petrol prices, Bolt is also considering a fare increase in Lagos.
The updated pricing in Abuja includes adjustments across several components. According to management, the minimum fare for Bolt rides has been raised from N1,300 to N1,495, and the start fee has been increased from N737 to N884.
The company also revised its cost per kilometre from N124 to N152, and the charge per minute has been increased from N21 to N25.
Bolt’s management highlighted that those price adjustments were part of a broader strategy aimed at improving drivers’ overall earning potential.
“This is aimed at ensuring that drivers can cater to their operational expenses while remaining affordable for riders,” the company stated.
The firm reiterated its dedication to remaining the most competitive ride-hailing platform for drivers in Nigeria and ensuring that drivers receive adequate compensation for their time and effort.
This development followed repeated requests by Bolt drivers for the company to revisit the prices on the ride-hailing app due to the increased cost of living.
In an interview with The PUNCH, a Bolt driver, Daniel Simon, expressed concerns about the company’s recent fare increase, arguing that while passengers would pay more, drivers were facing higher charges that could negate any potential earnings.
Simon criticised Bolt’s management for focusing primarily on passenger interests while overlooking driver needs.
“One thing I have noticed about its management is that it is more focused on the passenger and less on the driver, except for now that they want to increase the prices of their rides.
“Even as they are increasing it, they are also increasing their charges. More or less, you will make the money from the passenger, but you will still give it back to Bolt indirectly,” he stated.
Simon elaborated on the financial strain that drivers face, saying, “After buying fuel or settling one or two things, you will have to pay Bolt. You then have nothing to go home with. It is still not ideal even if they are increasing the prices that passengers pay because it will still affect the driver. After all, you are going to still charge 25 per cent.
“That is why sometimes you see that drivers are busy on the app. But in the real sense, drivers are not busy, there are no drivers. Everybody is trying to find other means to earn.”
A Bolt driver, Maurice Michael, also told The PUNCH, “As a driver, I get where Bolt is coming from with the fare increases. It wants to ensure we earn a fair wage.
“But honestly, it is tough because while the increase is meant to help us, it is also making things harder for passengers.”
Michael acknowledged the need for fair compensation but highlighted the repercussions of the fare hikes.
“I see both sides of the issue. On one hand, we need to make enough to cover our expenses and support our families. On the other hand, when fares go up too much, passengers start to cut back or find other options, which can hurt our earnings in the long run.”
For some drivers, the increased fares were seen as a positive step.
According to Alex Ojukwu, a Bolt driver, the recently revised fares may seem high, but the rising cost of fuel has made things challenging for drivers.
“To be honest, it is fair. I say this because the cost of fuel keeps rising. It seems drivers are working for fuel,” he lamented.
He emphasised that the fare adjustment was a crucial measure to ensure that drivers could sustain their operations amidst soaring fuel prices.
“It is a good thing that Bolt reviewed the prices. It is better than the option of drivers parking their vehicles at home and quitting Bolt,” he mentioned.
A Bolt user, Miriam Musa, shared her discontent, saying, “I can’t believe Bolt fares have gone up again in FCT. It is like they don’t even think about how hard it is for passengers.” For many, like Musa, the higher prices are more than just an inconvenience; they represent a growing financial burden that complicates everyday life.
Fare increases are attributed to Bolt’s efforts to help drivers earn more in the face of rising living expenses. While the e-hailing firm tries to provide fair compensation for drivers, passengers argued that they were bearing the brunt of those adjustments.
“I know drivers need to earn more—everyone’s struggling with the cost of living—but it is putting a strain on us too,” Musa added.
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The fare increases have made it challenging for many commuters to manage their budgets. “Every time I open the app, I see these higher prices and just feel defeated,” Musa said. “It is already tough trying to budget everything, and now even getting around is becoming a burden.”
While passengers acknowledged the need for drivers to earn a fair wage, they called for a balanced approach that should not impact users.
“I just wish there was a way to make it fair for both drivers and passengers without making us pay so much more,” Musa noted.
Another Bolt user in Abuja, Chucks Mark, voiced his concerns, saying, “As a passenger living in Abuja, I am frustrated with Bolt’s decision to increase fares supposedly to help drivers earn more. While I understand that drivers need to make a fair income, these fare hikes are making it increasingly difficult for us passengers to afford everyday trips.
“With the rising cost of living, including high fuel prices and inflation, it feels like everything is becoming unaffordable, including transportation.
“It is not just about luxury rides anymore. For many of us, Bolt is one of the few convenient options for getting to work, running errands, or handling emergencies. Now, with these fare increases, what used to be a reasonable option is quickly becoming out of reach.”
Passengers are calling on Bolt to consider alternative methods to improve driver earnings without transferring the burden directly to customers.
“Instead of simply raising fares, Bolt should find a more balanced approach that supports drivers without overburdening passengers.
“Maybe it could explore other ways to improve driver earnings, such as reducing their commission rates or offering bonuses during peak hours. But pushing the cost directly onto passengers is not fair, especially when many of us are already struggling to keep up with everyday expenses,” Mark suggested.
The fare adjustments, according to the company, aim to address the financial pressures affecting the ride-hailing industry.
Bolt’s Communication Manager, Femi Adeyemo, told The PUNCH about the rationale behind the fare hike.
“The reason is just to help drivers make the business profitable,” Adeyemo said. “Looking at the current economic realities, fuel has increased and pump prices are about N1,000 in some filling stations.”
He stated that maintaining the previous fare structure would make it difficult for drivers to sustain their operations.
“So, if we keep the same prices, they will struggle to make profits. So, we need to increase the price a bit. If we were taking point A to point B before for N2,000, it can now be N2,500 so that the drivers can now get extra money to cover current expenses,” he explained.
Despite the fare increases, Adeyemo emphasised that Bolt had not altered its commission rates. “We did not change the amount of commission to be taken by Bolt,” he clarified.
The fare review has sparked mixed reactions. Drivers welcome the adjustment to cover rising costs, while passengers are concerned about increased expenses.
