Nigeria’s ride-hailing industry is facing increasing pressure from rising fuel costs and economic uncertainty. To cope, some drivers have resorted to conducting rides offline, bypassing platform regulations and charging passengers directly.
This trend has raised concerns among ride-hailing companies like InDrive, Bolt, and Uber.
For InDrive, a ride-hailing company operating in nine African countries, offline transactions can compromise passenger safety by bypassing the platform’s real-time tracking and verification systems.
Given this, the company has introduced new policies and features to combat this trend.
“We strongly discourage and penalise drivers that take offline trips and have put measures in place to prevent this,” an InDrive spokesperson said in a statement.
While real-time tracking can enhance safety, it may also impact the user experience, especially in areas with poor internet connectivity. A good example is InDrive’s in-call feature which could complicate communication between drivers and passengers when both parties require proper internet connection.
InDrive’s strict stance against offline transactions may be challenging for drivers, particularly those who experience cancellations. Offline transactions can occur in two ways: either entirely outside the app or through a cancelled ride where the passenger and driver agree to complete the trip offline. Verifying if these trips are genuine can be complex, often requiring a three-day review period, one driver said.
Offline rides could lead to losses for the ride-hailing company but cancelled rides by passengers can be extremely frustrating for the driver.
“When passengers cancel rides, it can lead to wasted time and resources for drivers, who often bear the financial burden,” Ibrahim Ayoade, general secretary of Amalgamated Union of App-based Transporters of Nigeria (AUATON) said.
Introducing a cancellation fee for passengers who cancel rides and compensating drivers for wasted time can be a viable solution for InDrive, Ayoade added. Uber and Bolt have long introduced cancellation fees to compensate drivers for wasted time.
Nonetheless, InDrive is very keen to “strongly discourage and penalise drivers that take offline trips,” the spokesperson said. The ride-hailing company believes it has created a fair environment for drivers to bargain on key indicators that reflect the true economic situation before they set out for any trip.
With the price of fuel nearing ₦1,100 ($0.64) per litre, the future of the ride-hailing business is very uncertain. Soaring fuel and maintenance costs have forced many drivers off the road, gulping a major percentage of their earnings. Ride-hailing drivers will continue to advocate for lowered commissions and more autonomy, especially in sub-Saharan Africa overtaken by worsening macroeconomic conditions.
The battle of survival is sure to abound for drivers who will worry about the safety conditions of converting to Compressed Natural Gas (CNG), or staying off the roads entirely as electric cars remain out of reach.
