The Amalgamated Union of App-Based Transporters of Nigeria (AUATON) has condemned the sudden and unilateral exit of Uber from the Nigerian market, describing the move as unprofessional and a betrayal of the workforce.
The union stated that the ride-hailing giant departed without adequate consultation or a structured transition plan for the thousands of drivers who relied on the platform for their primary livelihood.
In a statement detailing the fallout, AUATON warned other dominant players in the sector, specifically Bolt and inDrive, that their current operational models are exploitative and unsustainable.
The union argues that the existing framework allows platforms to reap significant profits while drivers bear the entirety of the operational risks, including vehicle maintenance, fuel costs, and security challenges.
According to the union, the lack of a formal employment contract leaves drivers in a precarious position, where they are labelled as partners but treated as low-cost labour without basic social protections.
This friction follows a period of increasing tension in the Nigerian transport sector, where drivers have frequently protested over high commission rates and the arbitrary blocking of accounts by platform administrators.
Ride-Hailing Commissions and Driver Welfare
The core of the union’s grievance lies in the commission structures employed by these digital platforms. Most ride-hailing services in Nigeria operate on a percentage-based fee, often taking between 20% and 25% of every trip fare.
AUATON asserts that these rates have become untenable given the sharp increase in the cost of Premium Motor Spirit (PMS) and general inflation, which has eroded the take-home pay of drivers.
The union points out that while Uber has exited, the remaining platforms have not adjusted their models to account for the economic realities facing transporters in major cities like Lagos and Abuja.
Drivers are often required to provide their own vehicles, which are frequently acquired through high-interest loans. The union claims that the gap between the platform’s commission and the driver’s operating cost is now so narrow that many are operating at a loss.
The BusinessDay report on the matter highlights that AUATON view Uber’s exit as a symptom of a wider instability in the gig economy model when faced with challenging regulatory or economic environments.
The union is now calling for a comprehensive review of the legal status of app-based drivers in Nigeria. They are pushing for a shift from the partner model to a more structured employment framework that includes minimum wage guarantees and health insurance.
Industry analysts note that the Nigerian ride-hailing market has remained volatile due to a lack of specific regulatory oversight from the Federal Ministry of Transportation regarding the rights of digital platform workers.
AUATON has indicated that it will not hesitate to mobilise drivers for industrial action if Bolt and inDrive continue to ignore the demands for fairer commission structures and better dispute-resolution mechanisms.
The union is also seeking to engage with state governments to create local guidelines that protect drivers from the sudden withdrawal of services by foreign tech firms, ensuring that such exits are managed through a legal framework that protects local stakeholders.
The current standoff marks a critical juncture for the gig economy in West Africa, as the balance of power shifts between the tech platforms and the organised labour force they depend on.
The next step for AUATON involves a planned series of engagements with the Ministry of Labour and Employment to formally document the grievances of app-based transporters and propose a new regulatory code of conduct for ride-hailing companies operating in Nigeria.
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