Following the new guidelines for ride-hailing companies in Lagos State, one of the major players, Uber, has described the move as conflicting.
It emerged a few days ago that Governor Babajide Sanwo-Olu has approved a new framework for ride-hailing operators which will take effect on August 20.
In the new regulations, the companies are required to pay the state government a 10% service tax on each ride.
They are also mandated to pay a provisional license fee of N10 million for every 1000 cars in their unit and N25 million for every unit above 1000 cars.
The guideline stipulates that “annual renewal of the license would cost N5,000,000.00 for every unit of 1000 cars and N10,000,000.00 for units with over a thousand cars in operations”.
Reacting to the guidelines, an Uber official who did not want to be named, said even though it is within the purview of the government to regulate the industry, regulations like this are counterproductive.
He stressed that government policies are supposed to support 21st-century innovative technology ideas and not to stifle it.
“We have always been willing to engage with governments on regulations to ensure our operations align with best practices locally and internationally, as we believe regulations need to support innovative technology ideas that fit 21st-century businesses”, the official told Nairametrics.
“The current proposed regulations are inconsistent and unclear. We are working to better understand how they will impact the future of our business and network of driver-partners. We will give an update in due course”, he added.
Under section 3.11 of the guidelines, the vehicles approved for use on e-hailing platforms must be new or within 3 years of manufacturing.
If the regulations come into effect in two weeks as stipulated, it means the e-hailing companies may have to raise the price of fare for their passengers to accommodate the new charges.
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