Motorists turn to regional platforms in bid to revolutionize car-sharing industry

Lagos ride-hailing drivers, frustrated with low earnings and rising costs on platforms like Uber, Bolt, and inDrive, are exploring the creation of local apps to regain control over fares, commissions, and working conditions, as reported by JUSTICE OKAMGBA.

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The concept of building their own local platforms to rival global giants like Uber, Bolt, and inDrive was first floated in 2024 but gained momentum after a coordinated strike last week, driven by frustration over low take-home pay, rising operating costs, and rigid fare structures.

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E-hailing operators have consistently defended their earning models, stating that drivers earn what is genuinely due to them, in contrast to drivers' perceptions of unfair treatment.

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At present, it is unclear whether the drivers have developed any homegrown app, as the process of building a ride-hailing app like Bolt or Uber typically costs between $30,000 and $250,000 for a full-featured version, depending on complexity, team location, and features, according to industry estimates.

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Uber driver Emmanuel Obiora emphasized the need for a local app, saying, "I have said it countless times: the only solution is that we have our own app, one that will work in favour of drivers, not to the detriment of drivers."

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The conversation about developing local ride-hailing apps gained momentum after a three-day coordinated strike from 16 to 18 March, organized by the Amalgamated Union of App-Based Transporters of Nigeria.

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The strike saw thousands of drivers simultaneously log off Uber, Bolt, inDrive, and Lagride, disrupting ride availability across Lagos and neighbouring Ogun State, with union officials describing participation as widespread and highlighting growing frustration among drivers.

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Union officials stated, "For years, drivers have operated under extremely difficult conditions, with rising fuel costs, vehicle maintenance expenses, and operational costs increasing, while fares remain unsustainable."

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The strike, which ran from 16 to 18 March, had a significant impact on ride availability across parts of Lagos and neighbouring Ogun State, as drivers simultaneously logged off the Uber, Bolt, inDrive, and Lagride platforms.

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Some drivers who joined the protest attempted to pressure non-participating colleagues by booking rides and cancelling them upon arrival or calling to question why they had not joined the strike, with drivers explaining on their WhatsApp platform that this was done to promote unity among drivers.

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According to the Amalgamated Union of App-Based Transporters of Nigeria, an average e-hailing driver in Lagos may generate about N60,000 in gross daily earnings, but deductions and operating costs significantly erode that figure, leaving drivers with less than N3,000 in daily take-home income.

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Union leaders argue that this situation forces drivers to work excessively long hours, often up to 15 hours on the road, simply to survive, raising safety concerns for both drivers and passengers, as fatigue-related accidents become more likely under such conditions.

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Beyond earnings, drivers have also raised concerns about account deactivations, safety risks, and policy changes introduced without adequate consultation, with the union maintaining that repeated meetings with platform representatives have produced little progress.

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Bolt has pointed to ongoing investments to improve safety on its platform, including a €100m safety investment announced in November 2024 during a global safety campaign launch in Lagos, which contributed to a 42 per cent reduction in offline trips in Nigeria by July 2025.

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Letters submitted to the Lagos State House of Assembly and Governor Babajide Sanwo-Olu called for legislative intervention to regulate commissions, introduce transparent fare-setting mechanisms, and strengthen safety protections within the industry, with the union arguing that drivers bear the financial risks associated with vehicle ownership, fuel costs, and daily operations.

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Ride-hailing companies, however, present a different perspective, emphasizing the need to balance driver earnings with rider affordability and market demand, with Bolt defending its earnings structure during a February media briefing in Lagos.

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Bolt stated that drivers retain more than 75 per cent of the total fare for a typical N5,000 trip, while the remaining portion covers platform commissions, taxes, and operational investments, funding safety infrastructure, insurance coverage, customer support, technology development, and demand generation.

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Bolt's Head of Regulatory and Policy for Africa, Weyinmi Aghadiuno, argued that sustainable ride-hailing is not about commissions in isolation, but about balancing driver earnings with rider affordability and service reliability to keep the marketplace functioning.

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Last week, Uber said drivers remain central to its operations and insisted that engagement channels remain open, with the company adding that its economic impact assessment indicates drivers collectively earn N6.1bn annually through access to the platform.

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Uber stated that digital marketplaces must work for both drivers and riders to remain viable, with the company continuously monitoring local conditions to ensure marketplace sustainability, but the union disputed Uber's public claims of dialogue, saying no formal communication had been received through its official channels.

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A more transformative conversation is emerging among drivers themselves: the possibility of building indigenous ride-hailing platforms, with union leaders saying locally developed apps could allow drivers to participate in decision-making around fares and commissions.

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The push towards local alternatives reflects broader tensions within the global gig economy, particularly in developing markets where inflation and currency volatility can quickly undermine earnings models designed elsewhere, with Nigeria's rising fuel prices and cost-of-living pressures intensifying scrutiny of algorithm-driven pricing systems.