Uber Nigeria officially announces fare hike

Uber Nigeria has officially raised its fares in response to the country's gasoline price increase. The pricing hike was implemented to assist drivers with increased operational costs in the country, according to the ride-hailing operator. Fuel prices tripled after President Bola Tinubu pledged to eliminate fuel subsidies, which cost the government $10 billion per year.

The Nigerian National Petroleum Co. (NNPC) hiked the price of petrol in Lagos, Nigeria's economic capital, from 184 Naira to N488 per litre a few days ago.

In a statement received by BrandArena, 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 extensive study of the current fuel subsidy withdrawal, Uber changed fares on the app on June 3rd and 9th to reflect current economic conditions. We believe that these modifications have made it easier for drivers to increase their earning potential. Furthermore, we reduced the service price from 25% to 20% in February 2022 to help drivers earn more money.

"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.”

According to the ride-hailing company, the June 2023 fare hikes are intended to help drivers absorb the current increase in fuel costs, rather than the total cost of fuel. The business further stated that the service fee ensures the operation of the Uber App, which is funded by Uber's service fee from each fare, and it also assists us in maintaining and making constant investments to improve our technology tailored to fulfil the demands of riders and drivers.

The Amalgamated Union of App-Based Transport Workers of Nigeria (AUATWON) has called off its planned indefinite strike in order to hold talks with the government. Disgruntled drivers shut down operations on June 7 in protest of low fares and commission rates imposed by Uber and Bolt.