Uber considers fare hike as fuel price, scarcity, worsen
Nigerian ride-hailing companies are considering increasing fares due to rising fuel prices, which have reached ₦897 per litre after months of shortages.
These platforms face the challenge of balancing driver earnings and passenger affordability.
"We are currently conducting a comprehensive review of the recent increase in fuel prices and are considering various initiatives to mitigate the impact on driver earnings. In an interview with TechCabal, Tope Akinwumi, Uber's Nigerian country manager, stated that the company's goal is to keep Uber as the preferred app for drivers while also providing an affordable service to riders.
As drivers expect fare increases from companies like Uber and Bolt, which use algorithm-based pricing models, some are turning to Indrive, a platform that allows drivers and passengers to negotiate fares directly. Despite multiple requests, Bolt declined to comment on the situation.
Ride-hailing customers in Lagos, Nigeria's economic hub, are already seeing frequent fare increases as a result of a shortage of drivers on the road. These platforms typically use surge pricing to adjust fares in response to driver supply and ride demand.
Many drivers have chosen to stay off the roads while they wait for ride-hailing companies to respond to the fuel price increase. "If I buy fuel for ₦1,200 or ₦1,500, I'll probably park my car at home for a few days and see what Bolt and Uber decide," says one gig driver to TechCabal.
The current fuel shortage has exacerbated the situation, with long lines at filling stations throughout Lagos further limiting the number of available drivers. "I've been in queue all day and still haven't gotten fuel by 2 p.m.," a driver wrote on Tuesday, adding that the situation makes it impossible to work.
Some drivers reported being in fuel lines as early as 4 a.m., but were unable to fill up because many stations had not yet opened. One anonymous driver reported searching for fuel for hours and being hesitant to pay the high black market price of over ₦1,000 per litre.
Ride-hailing companies must now strike a delicate balance between the demands of drivers—who want lower commissions and higher fares—and the expectations of passengers, who are dealing with record inflation and have plenty of options.
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