Uber, the leading ride-hailing platform, said it implemented fare increases to assist drivers in Nigeria with the mounting operating expenses.
The adjustments were made following a thorough review of the current fuel subsidy removal and are aimed at ensuring sustainable earning opportunities for drivers while maintaining an affordable service for riders.
Tope Akinwumi, Country Manager for Uber in Nigeria, in an email to TechEconomy, Thursday, emphasized the company’s commitment to supporting drivers and making Uber the preferred platform for them.
Akinwumi stated, “Drivers are at the heart of everything we do, and we continue to work on initiatives and engage with drivers to help make Uber the app of choice for drivers while maintaining an affordable service for riders.”
In order to better reflect the existing economic conditions, Uber updated fares on its app on June 3rd and June 9th, 2023.
These changes are intended to assist drivers in increasing their earning opportunities. It is worth noting that in February 2022, Uber reduced its service fee from 25% to 20% to enable drivers to earn more.
Akinwumi further explained, “We want the best for drivers who operate on the Uber platform and frequently engage with them directly through roundtables, surveys, phone, and in-app channels to better understand and receive feedback on the realities they face in their businesses.”
As a global company operating locally, Uber closely monitors local dynamics and implements changes accordingly. The fare increases in June 2023 are specifically aimed at helping drivers cover the recent surge in fuel costs, rather than the entire cost of fuel.
The service fee collected by Uber contributes to the smooth functioning of the Uber app and supports ongoing investments in technology to enhance the overall experience for both riders and drivers.
Akinwumi emphasized, “Uber takes into consideration the economic climate in rolling out any price reviews.
We believe this fare increase will have a positive impact on driver earnings while maintaining an affordable service for riders. It is essential to strike a balance to ensure that price options remain attractive to riders, thereby creating more earning opportunities for drivers.”
Uber acknowledges the challenges drivers face due to the increasing cost of living and remains committed to providing them with essential safety features and support.
Drivers on the platform continue to benefit from safety tools such as the In-App Emergency button, 24/7 in-app support, and Ride Check.
Uber recognizes that fare adjustments are a regular part of any business and are influenced by factors such as seasonality and the macroeconomic environment.
The company remains dedicated to monitoring local dynamics and implementing changes that benefit both drivers and riders