Uber Nigeria has announced a temporary fare increase from June 3rd to June 6th to support its drivers who are struggling with inflation and the recent fuel price hike. The company aims to provide better earning opportunities for drivers while keeping the service affordable for riders.
The fare adjustment is designed to help drivers cover rising operating costs, although it does not cover the entire cost of fuel. Uber is constantly monitoring local dynamics to see what changes can be implemented and when. The company also claims that drivers on its platform earn more than those on other ride-hailing platforms in Nigeria.
Tope Akinwumi, Country Manager for Uber in Nigeria, emphasized that drivers are at the heart of everything the company does. Uber continues to work on initiatives and engage with drivers to make Uber the app of choice for drivers while maintaining an affordable service for riders. Akinwumi also noted that Uber updated fares on the app to reflect existing economic conditions and lowered the service fee in February 2022 from 25% to 20% to enable better-earning opportunities for drivers.
Uber frequently engages with drivers 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 offers services such as UberX, Uber Comfort, Uber Greenlight Hubs, and Uber Cash, and faces competition from other players such as Bolt, InDrive, and Gokada.
Last year, Uber had several fare increases to help drivers with the spike in operating costs. Following the hike in fuel price at N500/L and inflation of 22.41%, the new fares reflect the current macroeconomic reality in Nigeria.
By: Eghosa-Osawe Jr.
