Commercial minibus drivers in Lagos, popularly known as danfo drivers, now make more money per trip than their Uber-driving counterparts, according to e-hailing driver Ijeomah Daniel Uche. The reason, he argued, is that the premium service offered by e-hailing apps has become cheaper than conventional public transportation, even though drivers still shoulder the costs tied to fuel, maintenance, insurance and platform commissions.

“Our service has increasingly become cheaper than conventional public transportation, despite the significantly higher cost, comfort, convenience, safety and operational responsibilities associated with providing it,” said Ijeomah, who also serves as the Financial Secretary of the Amalgamated Union of App-based Transporters of Nigeria (AUATON).

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Explaining how he arrived at that conclusion, Ijeomah said he took a minibus, known locally as a korope, from Ogba to Oshodi, where the fare was ₦1,200 per passenger. As a seven-seater bus, the total fare collected for the trip came to ₦8,400. After deducting the ₦1,000 motor park charge, the driver was left with ₦7,400.

He then juxtaposed that with the cost of an e-hailing ride covering the same Ogba-to-Oshodi route, and he described what he discovered as “shocking.”

“On Bolt, the fare displayed was approximately ₦5,500. After an assumed 25% commission of ₦1,375, the driver would be left with approximately ₦4,125. On inDrive, the displayed fare was approximately ₦4,400. After the stated 12% commission of ₦528, the driver would be left with approximately ₦3,872,” he said.

By his calculation, the difference ranges from nearly 80% on Bolt to 91% on inDrive.

Putting the figures into perspective, Ijeomah noted that a low-maintenance minibus without air conditioning and other comforts, in which passengers are exposed to dust, heat and other inconveniences, is generating more income per trip, while e-hailing drivers, who pick up passengers from their locations and offer them comfort and convenience, earn a little above half of what a danfo driver makes.

He also pointed out that the e-hailing operator still has to provide fuel, maintain the vehicle, service the engine, replace tyres, pay for insurance, handle repairs, provide data, manage vehicle depreciation, and take care of personal and family responsibilities.

“What was once introduced as a modern, technology-driven and premium transportation service is gradually becoming one of the cheapest forms of transportation in Nigeria, while the drivers providing that service are carrying the overwhelming burden of fuel, vehicle maintenance, insurance, data, depreciation, government levies, repairs and other operating expenses,” he said.

E-hailing drivers have the power to change the narrative

Ijeomah faulted the app companies for the practice of continuously reducing fares in order to satisfy market demand while leaving drivers to absorb the rising cost of operations. This, he said, must stop, as drivers deserve earnings commensurate with the service they provide, the risks they take and the enormous cost of operating their vehicles.

He said drivers have the power to change the narrative by collectively refusing to accept trips with such low fares. To achieve that, however, they must do away with the desperate need to generate an income, which he identified as the reason drivers accept fares that are economically impossible to sustain.

“When a driver continuously accepts ridiculous fares simply because he wants to remain online and keep moving, he may appear to be making money at the end of the day, but in reality, he may simply be converting the value of his vehicle and his labour into cash. A driver who cannot adequately maintain his vehicle today will eventually be unable to work tomorrow,” he said.

He said drivers must also begin to understand that the true cost of every trip is not merely the amount displayed on the apps. When fares continually fall below the real cost of operation, something eventually has to give, as the loss will be felt by the driver and his family, and the quality and sustainability of the entire e-hailing industry will suffer.

He also expressed empathy for passengers, who are likewise struggling with the rising cost of living. However, just as passengers deserve affordable transportation, drivers equally deserve fair and sustainable earnings, and the responsibility for balancing affordability with sustainability should not be placed entirely on the shoulders of drivers alone.

“Technology companies operating in the transportation sector must recognise that there is no sustainable e-hailing industry without sustainable drivers. Thus, there must be a transportation ecosystem where the passenger gets value, the platform remains profitable, and the driver earns a fair and sustainable income, noting that all three can coexist,” Ijeomah said.

Source: TechNext24