Bolt is Testing a New Model in Lagos to Reward Top Drivers by Reducing Their Commission Fees

Bolt is testing a new model in Lagos to reward top drivers by reducing their commission fees. The ride-hailing business announced that it is testing a dynamic commission system that will favor the platform’s high-performing drivers. This is in response to demanding lower commissions, with a view to also enhancing driver earnings and ability for passengers to get rides.

Osi Oguah, Country Manager of Bolt Nigeria, explained that the new model is meant to pursue two main objectives: boost driver earnings and improve their overall experience, while balancing it with the ease of getting rides for the passengers. He stated that under the dynamic commission system, drivers are motivated to take up more trips especially in busy areas. This gives drivers more ride requests and makes them earn more.

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The dynamic model utilizes real-time commission adjustment to encourage better performing drivers based on demand for rides. While certain drivers have indicated commission cuts down to 7.5%, Oguah stressed that these rates applied within a set of boundaries. The intent is not to punish drivers but to maximize their potential to earn by rewarding good performance with low commission fees.

This whole approach basically speaks to an old problem many Lagos-based drivers have frowned upon. These drivers protested high commission fees by ride-hailing companies such as Bolt and Uber. They threatened to abandon these platforms for local ones unless they significantly lower their commission rates with some factions asking for as low as 5%. This predicament intensified during the sharply rising fuel market prices in 2023, since these would further inflate the operational costs.

In the past, Bolt had already shown a willingness to change commissions. Exactly one past year, Bolt instituted a commission kickback bonus for drivers who completed at least five trips a day and maintained certain acceptance and completion rates of commission refunding 15% of fees after the sixth trip. This system would reward consistently high performing drivers and increase the amount of trips on the platform.

Dynamic commission models differ because the ones currently being tested in Lagos adjust commissions dynamically on the basis of real-time data as opposed to a fixed reduction being applied. The idea behind it is to create a system that is fair and flexible, where drivers with proven performance can benefit directly while allowing passengers to always secure a ride.

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These changes have also been recognized by Bolt to cause some anxiety among the drivers, hence the very clear monitoring of driver feedback during the trial. These interventions are not necessarily going to be the same if pressures from drivers indicate dismiss-disregard-it does not support long-term driver welfare. Oguah stressed that the aim is to ensure that despite the economic meltdown in the country, drivers will have an opportunity for flexible and constant earning. 

This effort by Bolt is part of a larger umbrella that addresses the livelihood of drivers while adapting to local market needs. Other activities by Bolt in Lagos include the introduction of electric tricycles on a lease-to-own plan so that drivers can cut down on fuel and vehicle costs. These activities show how Bolt is working toward a friendlier environment for drivers that simultaneously enhances a better customer experience through greater ride availability.

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