Conducted in collaboration with inDrive, the world’s second-most-downloaded ride-hailing app, the study draws on survey data from riders and drivers across seven emerging markets: Colombia, Egypt, Mexico, Morocco, Nepal, Pakistan, and Peru.

The findings suggest that while ride-hailing platforms have significantly improved mobility over the past two decades through algorithmic matching and dynamic pricing, existing pricing systems struggle to fully capture the diversity of rider and driver preferences.

While algorithmic pricing is typically designed to optimise for average market conditions, it doesn’t serve well the wide variations in incomes, trip distances, and travel circumstances across emerging markets.

As a result, a single algorithmic price can fail to reflect the true value of a trip for either party, leaving mutually beneficial rides unrealised and some areas underserved by mobility solutions.

In-app fare negotiation helps to bridge this gap, representing a new stage in the evolution of ride-hailing, the study finds. Rather than replacing algorithmic pricing, negotiation complements it.

Price discovery typically begins with an algorithmic estimate but allows riders and drivers to adjust fares to reflect individual circumstances, introducing decentralised decision-making in contexts where centralised pricing is both less precise and less inclusive.

The research shows that fare negotiation is widely adopted where available. Across the surveyed markets, an average of around 75% of trips on inDrive involved negotiated fares, rising to approximately 80% in parts of Latin America and the Middle East.

This strong uptake translated into higher completed trip volumes: in Latin America, nearly two-thirds (64%) of both riders and drivers reported completing more trips as a result of being able to negotiate fares.

Similar patterns were observed in Egypt, Morocco, and Pakistan, where a majority of respondents said negotiation increased the number of trips they were able to complete.

Market data also suggests that this pricing model supported rapid market penetration. Across several surveyed markets, including Peru, Egypt, Colombia and Pakistan, inDrive reached key user milestones over comparatively short post-entry periods, pointing to strong user uptake of the fare negotiation model in mature ride-hailing environments.

Beyond scale, pricing flexibility was also shown to expand access to mobility for riders while improving utilisation and perceived fairness for drivers.

In Latin America, 55% of riders said rides negotiated on inDrive were more affordable than those on other platforms, while 66% of drivers agreed that negotiation helps them earn a fair income and avoid underpaid trips.

Around half of respondents across all surveyed markets also said fare negotiation helped them secure trips in harder-to-reach locations.

Commenting on the research, Anubhav Mohanty, director at Oxford Economics, said:

“These findings highlight the limits of algorithmic pricing in highly variable markets. Where incomes, geography, and trip conditions differ widely, allowing riders and drivers to negotiate prices can improve how markets clear, unlocking additional rides and improving overall efficiency.”

Andries Smit, chief growth businesses officer at inDrive, added:

“Fare negotiation brings human agency and individual choice back into the pricing process. By allowing riders and drivers to agree on prices that reflect real-world conditions, we see more trips completed, fairer outcomes for drivers, and better access to mobility for riders, especially in markets where standard pricing models don’t always work. These underlying dynamics also matter because direct agreement on fares reduces reliance on blanket subsidies or short-term discounts to reach price-sensitive users, creating a more sustainable marketplace. Over time, this can support lower platform fees and more affordable rides, while ensuring prices remain grounded in the realities of local supply and demand.”

Overall, the Oxford Economics study points to a broader shift in the evolution of ride-hailing, from pure automation toward human–algorithm collaboration. While algorithms remain essential for scale and efficiency, introducing price flexibility improves outcomes at the margins.

In heterogeneous markets, this approach can improve both efficiency and accessibility, expanding total ridership.

inDrive, a global mobility and urban services platform, operates in 1,065 cities across 48 countries worldwide, and is currently transitioning into a super app with the introduction of additional locally-relevant urban services that go beyond ride-hailing.

inDrive has completed more than 7 billion transactions and surpassed 390 million app downloads worldwide, rendering it the world’s second-most-downloaded ride-hailing app.

According to a new report by Oxford Economics for the International Air Transport Association (IATA), international visitors arriving by air contributed $454 million to Nigeria’s GDP in 2023, underlining aviation’s crucial role in supporting the country’s travel and hospitality industries.

The report shows that air transport is the backbone of Nigeria’s inbound tourism, generating 66,600 jobs across hotels, restaurants, tour operators, and related services. From business meetings in Lagos to cultural festivals in Calabar, air connectivity fuels both leisure and business travel, bringing in much-needed foreign exchange.

More Than Just Travel

Tourism supported by aviation is more than sightseeing; it is a growth engine for communities across the country. Small businesses, artisans, and service providers all benefit when international tourists arrive.

“Every flight landing in Nigeria is not just carrying passengers, it is carrying opportunities for thousands of Nigerians,” the report noted.

Nigeria’s Untapped Tourism Potential

Despite its rich cultural heritage, natural wonders, and vibrant cities, Nigeria remains an underexplored destination compared to other African countries. Stakeholders believe aviation holds the key to changing that.

Expanding routes, improving airport infrastructure, and promoting visa-friendly policies could attract millions more tourists annually.

The report further suggests that enhanced aviation connectivity could significantly scale up Nigeria’s tourism earnings, positioning the country as a leading destination in Africa.

Looking Ahead

Industry leaders argue that if Nigeria fully taps into aviation-supported tourism, the sector could become a cornerstone of economic diversification. “Tourism is Nigeria’s hidden oil well,” one stakeholder commented. “With stronger aviation links, we can unlock sustainable jobs, revenue, and cultural exchange.”

As air travel demand continues to rise across Africa, Nigeria stands at a crossroads: it can either remain a stopover market or transform into a true tourist magnet powered by aviation.