Ride-hailing drivers seek 5% commission in petition against Uber, Bolt, InDrive and Lagride

Ride-hailing drivers in Lagos have asked members of the state House of Assembly to cap commissions at the rate of 5% to enable drivers to earn a sustainable income. This is a steep reduction from the current rates that can be as high as 25%. The union argues that this measure is critical for drivers amid soaring inflation, the removal of fuel subsidies, and a volatile naira that has decimated their earnings.

The drivers’ demands extend beyond commission caps. They are also seeking a 3% levy on all trips to be allocated to a comprehensive welfare package. This would include health insurance without restrictive eligibility criteria, vehicle insurance to protect their primary business asset, and on-trip insurance that covers them from the moment they are active on the app.

In a Tuesday hearing that brought together the union and representatives from Uber, Bolt, InDrive, and the local competitor Lagride, the Lagos State House of Assembly Committee on Judiciary, Human Rights, and Public Petitions issued a series of stern directives. The legislative body has mandated a full audit of all driver payments, deductions, and commission structures.

The ride-hailing firms are also required to provide immediate justification for the widespread and often opaque deactivation of drivers from their platforms and to submit their complete working terms and agreements for review. The assembly has signalled its intent to establish a new legislative framework to govern the sector, focusing on driver welfare, safety, and fair compensation.

This escalating conflict highlights the growing friction within Nigeria’s gig economy, a sector once hailed as a beacon of innovation and job creation. However, the severe economic headwinds have exposed the vulnerability of its workforce, leading to increased calls for regulatory intervention.

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The outcome of this standoff, with the legislative session adjourned to a later date, could set a significant precedent for the regulation of app-based transportation services across the continent. Should the Lagos government accede to the drivers’ demands, it could pressure the ride-hailing companies to overhaul their business models, potentially impacting their profitability and operational strategies in one of their most lucrative markets. The companies have yet to issue a formal public response to the assembly’s directives.