Tech

As petrol price spikes, Uber conducts internal review, drivers resort to offline price bargaining

Share on
0
Some drivers who decide to take requests despite the scarcity and high pump price now negotiate offline
Some drivers who decide to take requests despite the scarcity and high pump price now negotiate offline
  • Uber says it is considering measures to minimise the impacts of the recent pump price increase on drivers
  • Fare increase likely to happen soon
  • Drivers now negotiate prices offline before accepting a request 

Ride-hailing company Uber is reviewing recent developments in Nigeria, especially the recent increment in the pump price of petrol to over N890. The recent increase has upended many things in the country and further worsened the cost-of-living crisis that Nigerians have grappled with in the past year.

According to Tope Akinwumi, Uber's Nigerian country manager, the company is considering measures to minimise the impacts of the recent pump price increase on drivers. Insiders say an increase in ride fares is imminent, and other ride-hailing platforms will likely follow suit. 

“We are currently conducting a comprehensive review of the recent increase in fuel prices and considering various initiatives to minimize its impact on driver earnings, Akinwumi said via Techcabal. “Our aim is that Uber remains the app of choice for drivers while ensuring an affordable service for riders.”

While the review is ongoing, drivers expect the outcome to be an announcement that the base fares have been adjusted to reflect economic realities. For the drivers, the problem is not just the high price of petrol but also its unavailability. Fuel stations across the country are shut down due to the unavailability of the products. 

This scarcity means there will be few drivers on the road to attend to high demand, especially in a massively populated city like Lagos. 

Drivers negotiate prices offline

Techcabal quoted some drivers as saying they spend several hours in the queue to buy petrol and have little time to attend to requests. 

“I have been in the queue all day and I still don’t have fuel by 2 p.m., that automatically means that I can not work today,” TechCabal quoted a driver as saying on Tuesday. 

Another driver said, “There is not a filling station on the island that sells fuel,” adding that he had been looking for fuel for hours but was hesitant to pay the over ₦1,000 per liter black market price. 

Some of the drivers who decide to take requests despite the scarcity and high pump price now reportedly negotiate offline.

“I cannot be buying fuel at almost N1,000 per litre and still be accepting requests of N2,000 or N3,000. Even with the negotiation, it’s either I get requests from N5,000 upward or I park my car,” one driver quoted by Nairametrics said

“For every long trip above N10k, I call the rider and give them my own price. I add at least N5k, if the rider does not agree, then I cancel. But if it’s a surge request, I will collect the exact fare on the app. That’s the only way we can continue in this business since the platforms are not ready to implement an increment on the app,” another driver said. 

Sanwo-Olu extends remote work policy for Lagos employees to ease fuel subsidy

Meanwhile, TheRadar earlier reported that the Lagos State Government has extended its work-from-home policy for its workers for the next three months.

Governor Babajide Sanwo-Olu approved the extension in a circular signed by the state Head of Service, Bode Agoro, on September 4.

In February, Babajide Sanwo-Olu, governor of Lagos, directed that the workers would work remotely on some days. He announced that workers on grade levels 01 to 14 should work from home for two days a week, while those on grade levels 15 to 17 should work from home for one day.

Share on
avatar
Justice NwaforEditor

Justice Nwafor is an award-winning freelance journalist, editor and content writer. His work has been published by several outlets, including HumAngle, Earth Journalism Network, Reuters, SciDevNet and the BBC. In August 2023, his work was recognized as the best in the Business and Environment category at the Sanlam Awards for Excellence in Financial Journalism in South Africa. He is a 2024 finalist for the True Story Award and a panelist at the True Story Festival, both in Bern, Switzerland. Justice is a consummate journalist with experience in reporting environment, global health, business and crypto/web3. Justice focuses on covering the dynamic world of crypto and web3 for TheRadar.

Comments ()

Share your thoughts on this post

Loading...

Similar Posts

Never get outdated, subscribe now.

By subscribing, you will get daily, insightful updates of what you need to know in the news, as regarding politics, lifestyle, entertainment and cryptocurrency. You can always cancel it whenever you wish.

Social:

Subscribe now.

Category