Uber Increases Driver Earnings by 10% Following a Boycott of the Uber App by Drivers

Uber, a popular ride-hailing e-service, has increased its driver’s earnings by 10%. The increment comes after its drivers attempt to boycott the hailing services.

The drivers’ action is due to the friction between Lagos State and Uber over the data-sharing agreement.

The increment is to appease the drivers discouraged by the issues between Uber and the Lagos State Ministry of Transportation. The Ministry instructed ride-hailing services in Lagos to share their data through API integration.

The integration allows the state to secure and monitor the hailing services in Lagos. However, Uber, citing privacy concerns, agreed to share only daily data dumps. The action from the hailing service resulted in the impoundment of the company’s vehicles.

Uber Increases Drivers’ Fares by 10% Per Minute

The disagreement between Lagos State and Uber has caused its drivers to attempt to boycott the company. Uber, in response, increased drivers’ earnings by 10% per minute.

The message of increment was sent to the drivers, saying, “From April 2nd, 2024, we will reflect increased fares on the UberX product to give you the best possible earning opportunity. Weekday and weekend fare: Per-kilometer fare: 10% increase. Per minute fare: 10% increase.”

However, the message didn’t stop the boycott or disgruntled drivers. The boycott was organized by the Amalgamated Union of App-based Transporters of Nigeria (AUATON).

The drivers expressed their grievances and wondered why their vehicles were impounded. They emphasized that they were only contractors to Uber and not employees. Additionally, some of the drivers wondered what the increase in their earnings would do in this situation.

According to Startup Lagos, a driver, Sunday, expressed his frustration, saying, “If Uber has a dispute with the government, we drivers shouldn’t be the ones to suffer. I don’t work for Uber; I just use their app. It’s baffling that my vehicle has been impounded, my tires deflated, and no one can explain why this is happening to me.”

Drivers Demand Uber Settle Rift With Lagos State

With the events unfolding, drivers are becoming apprehensive about using the app. They demand the ride-hailing platform settle the rift it has with the Lagos State Ministry of Transportation.

Additionally, the spokesperson of AUATON in a statement discouraged drivers from using the Uber app. The statement read, “As a responsible union, our goal is to shield our members from the oppression of this app company and the Lagos government. In addition, we suggest a temporary halt in the use of the Uber app.”

Possible Way Forward

Uber could end the dispute by agreeing to the Lagos State Ministry of Transportation’s demands. This agreement would lead to fewer impoundments of affiliated cars.

Also, settling will encourage other hailing services to follow suit, hence, maintaining peace. Continuous friction between the two organizations may have negative effects on Uber’s operation in Lagos.

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