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Ejike Kanife
Guest
As the drive toward achieving improved welfare for drivers continues, the Nigerian app workers union, the Amalgamated Union of App-based Transporters of Nigeria (AUATON) has accused ride-hailing companies, Uber and Bolt of caring less about drivers despite raking in significant revenue off their hard work.
The union disclosed this in a communique by its Financial Secretary, Comrade Danbaba. in a chat with journalists.
According to him, both ride-hailing companies rake in an astounding 36 billion naira in revenue in a year through the 25% commission charged on each ride. Yet, it claims that the ride-hailing companies have not provided commensurate values to the drivers.
Analysing how they arrived at the 36 billion annual revenue estimate, the union’s financial secretary, Comrade Dan Baba noted that over 20,000 drivers currently operate in Lagos. He estimated that at least half of these (10,000) are active daily.
“Each driver makes an average daily revenue of at least ₦40,00. Therefore 10,000 drivers will rake in ₦400 million every single day. With commissions of 25 per cent, it means the companies rake in ₦100 million each day, which is 25 per cent of N400 million”, he explained.
To determine what the companies earn per month, he multiplied the daily ₦100 million by 30 days to get a total of ₦3 billion. Then, he multiplied that amount by 12 months which comes to get ₦36 billion.
The drivers’ union believe that this is a conservative estimate since more than 10,000 drivers work per day.
“This shows that Uber and Bolt make at least over thirty-six billion naira annually. Yet drivers who are the powerhouse of the industry that generate such huge funds are not treated properly,” the union FinSec added.
AUATON
Consequently, the union is demanding that both companies-Uber and Bolt- reduce their commission on each ride to a 5% or 10%.
According to them, this will guarantee more than fare revenue for the companies as well as livable incomes for drivers. Analysing the implication of a 10 per cent commission, the union pointed out that 10 per cent of the estimated 400 million daily revenue of 10,000 drivers is 40 million naira.
The 40 million will equal a monthly revenue of 1.2 billion naira and annual revenue of 14.4 billion naira in Lagos alone. By extension, a 5% commission will amount to 7.2 billion annually. Thus, the union believes that the ride-hailing companies can survive and profit from 5 per cent or 10 per cent commission.
“Why do they choose to inflict pain on drivers with a whopping 25% commission? We demand an immediate stop to the humongous commission as drivers can no longer earn reasonaby and sustainably. With the current hike in fuel pump price, cost of car spare parts, school fees, and the rest, coupled with the ridiculous fare charge by app companies, we the drivers are already running a huge loss in our business. The 25 per cent commission is killing drivers and the entire e-hailing industry,” the union secretary said.
The union also accused Uber and Bolt executives of living extravagantly. Thy claim that some of the executives bought houses in the choicest locations while driving luxurious cars. For them, this is at the detriment of drivers whose sweat and blood fund the lifestyle.
“Drivers have invested heavily in the e-hailing community as the least of our cars cost 5 million naira. Despite that, we can hardly take care of our cars and our family talks less of ourselves. This is the height of it and we say enough is enough”, the secretary said.
“With just a 5% commission charged by all app companies, they will still make good profit while drivers can take care of their families, cars and themselves. 25 per cent commission is not a healthy practice as it has force many drivers to engaging in offline trips that have put them in harms way or landed them in trouble. This huge commission has to stop,” he concluded.
The drivers threatened that if Uber and Bolt fail to meet their demand, they will shut down both apps with industrial actions while seeking alternative apps.
See also: inDrive offers Lagos drivers N50,000 monthly for on-car branding to boost earnings
The post “Uber and Bolt make over N36 billion annual revenue from Lagos while we are treated as slaves” – drivers union, AUATON says first appeared on Technext.
The union disclosed this in a communique by its Financial Secretary, Comrade Danbaba. in a chat with journalists.
According to him, both ride-hailing companies rake in an astounding 36 billion naira in revenue in a year through the 25% commission charged on each ride. Yet, it claims that the ride-hailing companies have not provided commensurate values to the drivers.
Analysing how they arrived at the 36 billion annual revenue estimate, the union’s financial secretary, Comrade Dan Baba noted that over 20,000 drivers currently operate in Lagos. He estimated that at least half of these (10,000) are active daily.
“Each driver makes an average daily revenue of at least ₦40,00. Therefore 10,000 drivers will rake in ₦400 million every single day. With commissions of 25 per cent, it means the companies rake in ₦100 million each day, which is 25 per cent of N400 million”, he explained.
To determine what the companies earn per month, he multiplied the daily ₦100 million by 30 days to get a total of ₦3 billion. Then, he multiplied that amount by 12 months which comes to get ₦36 billion.
The drivers’ union believe that this is a conservative estimate since more than 10,000 drivers work per day.
“This shows that Uber and Bolt make at least over thirty-six billion naira annually. Yet drivers who are the powerhouse of the industry that generate such huge funds are not treated properly,” the union FinSec added.
AUATON
AUATON demands a 5% or 10% commission from Uber and Bolt
Consequently, the union is demanding that both companies-Uber and Bolt- reduce their commission on each ride to a 5% or 10%.
According to them, this will guarantee more than fare revenue for the companies as well as livable incomes for drivers. Analysing the implication of a 10 per cent commission, the union pointed out that 10 per cent of the estimated 400 million daily revenue of 10,000 drivers is 40 million naira.
The 40 million will equal a monthly revenue of 1.2 billion naira and annual revenue of 14.4 billion naira in Lagos alone. By extension, a 5% commission will amount to 7.2 billion annually. Thus, the union believes that the ride-hailing companies can survive and profit from 5 per cent or 10 per cent commission.
“Why do they choose to inflict pain on drivers with a whopping 25% commission? We demand an immediate stop to the humongous commission as drivers can no longer earn reasonaby and sustainably. With the current hike in fuel pump price, cost of car spare parts, school fees, and the rest, coupled with the ridiculous fare charge by app companies, we the drivers are already running a huge loss in our business. The 25 per cent commission is killing drivers and the entire e-hailing industry,” the union secretary said.
The union also accused Uber and Bolt executives of living extravagantly. Thy claim that some of the executives bought houses in the choicest locations while driving luxurious cars. For them, this is at the detriment of drivers whose sweat and blood fund the lifestyle.
“Drivers have invested heavily in the e-hailing community as the least of our cars cost 5 million naira. Despite that, we can hardly take care of our cars and our family talks less of ourselves. This is the height of it and we say enough is enough”, the secretary said.
“With just a 5% commission charged by all app companies, they will still make good profit while drivers can take care of their families, cars and themselves. 25 per cent commission is not a healthy practice as it has force many drivers to engaging in offline trips that have put them in harms way or landed them in trouble. This huge commission has to stop,” he concluded.
The drivers threatened that if Uber and Bolt fail to meet their demand, they will shut down both apps with industrial actions while seeking alternative apps.
See also: inDrive offers Lagos drivers N50,000 monthly for on-car branding to boost earnings
The post “Uber and Bolt make over N36 billion annual revenue from Lagos while we are treated as slaves” – drivers union, AUATON says first appeared on Technext.