Drivers for inDrive in Botswana are experiencing high financial pressure due to fuel prices and increased competition following the entry of Bolt into the market in March.
Many drivers report that the current fare structure is inadequate to cover their expenses, with over ten operators reporting unstable income.
They stress that an increase in fares is needed for the sustainability of the ride-hailing model, affirming the issues faced by gig drivers across Africa.
With fuel costs on the rise, drivers assert that the low base fares offered by inDrive are no longer viable. They shared instances of fare reductions, with one driver noting that a trip from the airport to Gaborone’s CBD, which used to cost P100 ($7.50), is now priced at only P50 ($3.70) on the app.
Many drivers feel compelled to accept fares that are below their preferred levels, often negotiating minimal increases yet still feeling the impact of the low rates.
The situation has been worsened by inDrive’s recent implementation of a 10% commission fee on driver earnings, a departure from the no-commission model that had initially attracted many operators to the platform since its launch in Botswana in 2019.
Drivers had anticipated that the introduction of this fee would be balanced by fare increases for passengers, but no adjustments have been made, leaving them to absorb the additional financial burden without any apparent support from the platform.
While inDrive defends its new commission structure as necessary for operational sustainability and further investment in Botswana, it claims not to have received formal complaints from drivers regarding the change.
Nevertheless, operators believe their financial difficulties are evident. An inDrive representative stated, “We have made it clear to drivers that monetisation is essential for business sustainability.”
A distinctive feature of inDrive’s business model is the ability for riders and drivers to negotiate fares. While this provides some flexibility, drivers report that it frequently leads to lower earnings, especially when riders initiate negotiations with low offers.
Many drivers find that riders are often unwilling to negotiate beyond the app’s suggested fare, forcing them to choose between accepting lower-paying rides or potentially losing business.
Efforts to request additional payments beyond the quoted fare have sometimes resulted in negative ratings from riders.
Despite these challenges, inDrive recently announced plans to expand its services to Francistown, Botswana’s second-largest city, aiming to enhance its presence in the market. This expansion is expected to increase competition with Bolt, which has gained popularity since its launch.
The rivalry between these two platforms is likely to exert further pressure on fare structures as they compete for market share, a situation that may benefit riders while leaving drivers with even tighter margins.
The issues faced by inDrive drivers in Botswana affect other countries too, challenges encountered by ride-hailing operators across the continent, where high operational costs and platform fees continue to strain gig workers.
In light of these circumstances, drivers are urging inDrive to reconsider its fare policies to facilitate a fairer environment, recognizing their important role in the success of the service.
