App-based ride-hailing drivers say they will proceed on an indefinite strike after their companies approved only a 40% fare hike in response to the removal of petrol subsidy in Nigeria.
The taxi operators, under the banner, Amalgamated Union of App-Based Transport Workers of Nigeria – a union that includes operators of Bolt, Uber and other companies – said the companies failed to resolve the impasse despite a seven-working-day ultimatum issued on June 9.
The removal of fuel subsidy has pushed the price of petrol up by nearly 200%. A litre of petrol now sells for N537 as against the old rate of N185. The drivers want the rates they charge commuters to rise by 200%.
They also want the companies to reduce the commission drivers pay by 50%. Those demands have not been met, according to a statement by Jossy Olawale, chairman, media and publicity of the union.
The deadline for talks elapses Tuesday.
– Hoping against strike
“The ultimatum issued was to suspend the strike and pave way for dialogue between the union and the app companies,” the statement said.
“However, the union feels so disappointed that none of these app companies listened to the genuine complains of app-based members or implemented even half of what the union members are demanding.
“Also, the companies are expecting drivers to fill the balance or subsidise the gaps with accumulated losses for the riders and their commission,” he said.
The group said it has written letters to the federal ministry of labour, Nigeria Bar Association, Nigeria Labour Congress and other groups to help resolve their problems.
“We have chosen this option as law-abiding citizens in the interest of numerous customers who largely depend on our services,” it said.
“We are hoping that the process will take place in the coming week and hopefully, will be productive for all and sundry.”
The dispute is an example of how the federal government’s removal of petrol subsidy affects businesses and makes it difficult to operators of small businesses to make profit.
“We are the most affected informal sector, whose operational costs depend solely on premium motor spirit (petrol),” the statement said.
Bolt did not immediately respond to our request for comment.
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