Connect with us


Uber, Bolt Drivers Face Uncertain Future As Lagos Begins New Regulations



Respite for drivers on e-hailing services will end later in August when Lagos State Government’s new regulations for ride-hailing services take effect.

Under the new regulations, which were earlier scheduled to take effect in March, third-party operators like Uber and Bolt that have over 1000 drivers on their platforms will pay ₦25 million licencing fee and ₦10 million annual renewal fee.

Those that have less than 1000 drivers will pay a licensing fee of ₦10 million and an annual renewal fee of ₦5 million if they have less than 1000 drivers.

Operators who directly own their cars and employ their drivers will pay only the license fee of ₦5 million if such operators have below 50 drivers. Those who have over 50 drivers will pay ₦10 million for the operating license.

E-hailing operators are also to pay 10 per cent “service tax” on “each transaction paid by the passengers” and are mandated to renew their licenses three months before the expiration of the current licence.

The president of the National Union of Professional App-Based Workers Ayoade Ibrahim told The Guardian on Monday that the new regulations put a heavy burden on the drivers and expose them to the whims of ride-hailing companies.

The spokesperson for Lagos State Ministry of Transport Bolanle Ogunlola confirmed that the new regulations will start on August 20. She said the enforcement of the guidelines will not start until after a stakeholder meeting is held.

Multiple taxes and other vexed issues
Ibrahim insisted members of the union are not against the government properly regulating the industry in the state as they have agreed to pay taxes on their income to the government.

A similar arrangement, he said, is in place for the unregulated yellow cab drivers.

But the problem is more than the payment of taxes. The interpretation of the provision of who pays the 10 per cent commission on each trip to the Lagos State Government is also contentious.

Section 4.1 (v) of the new guidelines says: “All operators of e-Hailing Taxi Services must pay the State Government 10% Service tax on each transaction paid by the passengers to the operators.”

Although according to Ibrahim, state officials said the service tax will be deducted from the commission collected by ride-hailing companies, the section does not specify if the tax will be made on the total amount paid by the passengers or the commission paid deducted from such payment by the ride-hailing companies.

The union feared drivers will still, directly or indirectly, pay the service tax even if the deduction is made on commissions payable to the ride-hailing companies.

“If they start collecting the 10 per cent and Uber increases its commission from 25 per cent to 35 per cent can [the] government stop them,” Ibrahim asked.

“[The government] must listen to driver-partners. We are talking of price mechanism, security, and policies that will leverage competition.”

Drivers abandoned by big operators?
Ibrahim accused Bolt and Uber of shunning, at least, five meetings the drivers’ union had with the state government, the latest of which held last Thursday.

None of the operators, he said, have registered with the government, putting the operations of the drivers at risk. He said Uber and Bolt have told the government that they only provide the technology to connect drivers to riders.

“[Government officials] told us on Thursday that we should tell Uber to come and register with the government,” Ibrahim said.

“I told them I am not in a position to go and tell Uber to come and pay ₦25 million to the government.”

But Ogunlola disputed claims that Uber and Bolt have shunned the meetings. She said representatives of the two companies have met with the state officials.

When The Guardian reached out to the spokesperson for Uber in West Africa, Efosa Aiyevbomwan, he said he cannot comment on the issue and directed our reporter to his colleague Lorraine Onduru. An email sent to Onduru was not immediately replied.

The regional manager (West Africa) of Bolt, Uche Okafor, was also not reachable on phone and an email sent to him was not replied.

In an email sent to The Guardian in February, the Uber spokesperson referred to the Nigerian drivers on the company’s platform as “independent”.

Uber has long maintained that position to avoid paying taxes, charges and other possible payments to drivers. That stance was dealt a blow in March in France after the French Court of Cassation ruled that Uber BV was an employer of a former driver who sued the ride-hailing giant.

The driver sued after his account was deactivated, “depriving him of the possibility to get new reservations.”

A similar order was given against Uber in June by the California Public Utilities Commission. “For now, TNC drivers are presumed to be employees, and the commission must ensure that TNCs comply with those requirements that are applicable to the employees of an entity subject to the Commission’s jurisdiction,” the commission wrote in its order that also affected Lyft and other Transportation Network Companies (TNC).

Uber drivers are also classified as employees of the company in the United Kingdom. The company is challenging that in the UK’s highest court while Bolt is facing litigation that may classify its drivers as employees.

VIO threats and coming showdown
Ibrahim also told The Guardian that the government threatened to force the drivers off the roads using officers of the notorious Vehicle Inspection Services, also known as VIO, until the operators on whose platforms they operate pay the fees.

Ibrahim said the threats were unfair to him and his colleagues.

Four other drivers who spoke to The Guardian on the matter said the government’s threat of clamping down on them for the “sins” of the ride-hailing companies is unjust.

The drivers said they will resist any attempt to clamp down on their operations.

Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *


FG announces zamfara a restricted air space



FG announces Zamfara a restricted air space, orders huge military deployment.

The Nigerian government has forced a restricted air space in Zamfara as a feature of endeavors to handle the security challenges in the state.

As indicated by The Cable, the National Security Adviser (NSA), Babagana Monguno uncovered on Tuesday, March 2, that President Muhammadu Buhari has restricted mining exercises in Zamfara to stop the rising instability.

He said the president had requested the service of protection to convey a huge military and insight resources for reestablish routineness in the state. The Nation detailed that they requested the military to recover all regions heavily influenced by desperados, radicals.

Monguno said:

“We can no longer avoid to lose lives while operating within the legalities. We are not going to blackmailed . The government has the responsibility to assert its will.

“Citizens can reside wherever they want to reside . Anybody who is a criminal should be brought to book.”

The security adviser stated that the president also warned against ethnic profiling.Zamfara state has recorded a few assaults by bandits.The new incident included the grabbing of many young ladies from the Government Girls Secondary School in Jangebe, Talatu-Mafara nearby government zone of the state.

Continue Reading


Igboho promises a protest if his accounts are not released



Self-acclaimed political dissident, Mr. Sunday Adeyemo, otherwise called Sunday Igboho, on Tuesday, blamed the Federal Government for freezing his financial assets, following his assault on the fulani herdsmen in Oyo State.

Igboho, who addressed Vanguard, affirmed that all his financial asset have been frozen by the Federal Government since certain individuals were gathering donations.

Nonetheless, Igboho said he had no hands in the said donations, cautioning that his records should be released to dodge protest by young people across the South-West area.

His words: “They have frozen my bank accounts because I am fighting a just course.

I know Yoruba people are behind me.“I will not relent. I must achieve my aims by putting an end to criminalities in Yorubaland.

“If they refuse to release my accounts, there will be serious protests across the South-West.

“Yes, the Yoruba are living in fear. They are afraid that the killer-herdsmen might attack them.

Continue Reading


IGP adamu retires



Adamu enrolled in the Police Force on February 2, 1986.

The IGP who will turn 60 on September 17, was appointed IGP in January 2019. He has gone through two years in office.

Three Deputy Inspectors-General of Police (DIGs) and 10 Assistant Inspectors-General of Police (AIGs) are additionally due for retirement with him today.

It is accepted that there is a mission to broaden Adamu’s residency.

However, some have contended against such expansion, since it would negate the arrangements of the Police Act 2020 that fixes the retirement of cops at 60 years old or 35 years of administration.

Section 18(8) of the new Act states: “Every police officer shall, on recruitment or appointment, serve in the Nigeria Police Force for 35 years or until the age of 60 years, whichever is earlier.”

The Act provides for a tenure of four years for the Inspector General of Police.

Section 7, subsection 2 of the Act provides that: “The person to be appointed as Inspector General of Police shall be a senior police officer not below the rank of Assistant Inspector General of Police with the requisite academic qualification of not less than a first degree or its equivalent, in addition to professional or management experience.”

Continue Reading