The Amalgamated Union of App-based Transport Workers of Nigeria (AUATON) has called for urgent intervention by the Lagos State Government in what it describes as exploitative practices by e-hailing app companies.
The Vice President, South-West Zone, AUATON, Mr Kolawole Aina, told the News Agency of Nigeria (NAN) that commissions charged by e-hailing companies and their fare structures were placing a significant burden on drivers.
NAN reports that the Amalgamated Union of App-Based Transporters of Nigeria (AUATON) is an organised registered trade union under the Federal Republic of Nigeria’s Ministry of Labour, Employment and Productivity.
Its coverage includes e-hailing or online transport drivers, app-based bike and bicycle food delivery and courier delivery workers(dispatch), app-based bike passenger workers, and app-based bus passenger workers in the online sub-sector of the transportation industry across Nigeria.
Its mandate is to defend the overall interest and welfare of its members, as well as to promote members’ economic well-being, safety, and security.
Some of the e-hailing companies include Uber, Bolt, Indrive and Rida.
Aina said that, while the cost of living and operational expenses including fuel, spare parts, and vehicle maintenance had risen significantly, e-hailing companies had reduced service fares.
He said that in some cases, the e-hailing companies increased their commission rates.
The union official, specifically, noted that one of the app-based company recently changed its commission model from a fixed 25 per cent to a dynamic system ranging from 20 per cent to 30 per cent per ride.
‘’The criteria for these variable commissions are not transparent to drivers.
“There is no transparency anymore and this negates the mandate given to them by the Lagos State Governor, on the need for transparency in their dealings with drivers,’’ he said.
Aina said that drivers often do not know the full fare charged to the rider until a trip is completed.
He said that this was a practice which may lead to driver’s requesting this information from riders directly, a situation, he described, as a potential source of conflict.
The AUATON vice-president recalled a recent incident where a driver slumped on the Ikoyi Link Bridge due to fatigue from the pressure of overworking to meet financial demands.
He stressed that low fares and high commissions were pushing drivers into precarious situations.
Aina also dismissed the recent claims about high e-hailing driver earnings as a false narrative used to attract new drivers.
He said that these claims are to enhance the e-hailing companies recruitment drives.
“They are a ‘bait’ to lure people into driving under their platforms,” Aina said.
The union expressed concern that new recruits, after struggling with the economic realities of the business, are often blocked or become frustrated.
He said this had led to a continuous cycle of recruitment and attrition.
‘’The union is urging the Lagos State Government to look into the matter to prevent further hardship and exploitation of its members,’’ the union vice-president reiterated.
