InDrive introduces bank transfer feature in Nigeria

• Published On: 05 February 2025 at 19:05

Ride-hailing services In Nigeria, InDrive has launched a bank transfer feature that allows passengers to pay drivers directly without the use of an integrated in-app payment system.

The feature, known as "Light Cashless," allows drivers to display their preferred bank account information within the app, which passengers can copy and paste to pay.

With this rollout, InDrive becomes Nigeria's first ride-hailing platform to take this approach, cementing bank transfers as the dominant payment method in the country's transportation sector. "There is no payment gateway integration," an InDrive spokesperson explained in a written statement. "It is only a copy-and-paste mechanism that allows drivers to have their preferred accounts on their profile."

This development follows a recent PYMNTS study, which found that 41% of rideshare customers prefer bank transfers. While this may indicate a shift toward e-payment services in the ride-hailing industry, InDrive insists that its primary focus remains on improving real-time tracking and verification systems.

To improve passenger safety, the company previously stated that it would limit offline rides and tighten verification processes.

Despite its novel approach, the new feature has elicited mixed responses from drivers. Some argue that it primarily benefits InDrive while providing little benefit to users. "It's the same as a card trip. Jolaiya Moses, national treasurer of the Amalgamated Union of App-based Transporters of Nigeria, stated that the feature only benefits InDrive.

Another driver, who is also an AUATON executive, criticized the company for not engaging with drivers. "The app (InDrive) does not respond to most of our issues and concerns. They are practically invisible to us,” the driver said.

The rollout comes at a time when Nigeria’s ride-hailing sector is grappling with multiple challenges. Rising fuel and vehicle maintenance costs have led drivers to demand higher fares, while economic pressures have pushed passengers to seek cheaper alternatives.

Companies like Bolt, Uber, and InDrive are caught in a delicate balancing act, managing driver dissatisfaction while trying to prevent customer churn.

Tensions between drivers and ride-hailing companies have escalated in recent weeks. AUATON members have clashed with platforms like Bolt, Uber, and InDrive over high commission fees and promotional discounts that reduce drivers’ earnings. On Monday, drivers threatened protests against Bolt after the company introduced a 50% price slash last Friday in an attempt to boost demand.