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Lagos E-Hailing Drivers Begin Indefinite Strike Over Fares, Commissions and Welfare

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E-hailing drivers in Lagos State have begun an indefinite strike over disputed fare structures, platform commissions, deductions, rising operating costs and welfare concerns, raising the prospect of disruption to app-based transport services across Nigeria’s commercial capital.

The industrial action commenced on Monday, October 12, following a directive by the Lagos State Council of the Amalgamated Union of App-Based Transporters of Nigeria (AUATON), which called on drivers operating on platforms including Bolt and inDrive to withdraw their services until their grievances are addressed.

In a notice announcing the action, the union said the strike would continue indefinitely or until satisfactory progress was made towards resolving the issues affecting drivers’ earnings, working conditions and operational sustainability.

AUATON, which is affiliated with the Nigeria Labour Congress, said drivers had repeatedly raised concerns about platform policies, welfare provisions, safety, security and the financial pressures associated with providing ride-hailing services.

According to the union, the cost of running vehicles has increased significantly, with expenses including petrol, repairs, tyres, insurance, mobile data, vehicle financing and maintenance reducing the amount drivers take home after completing trips.

The union is demanding a review of fare structures and platform commissions, greater transparency in deductions, improved welfare provisions and stronger protections against arbitrary account deactivation.

Among its key demands is a proposed cap of 10 per cent on platform commissions, alongside fares that better reflect drivers’ operating costs, time spent in traffic and other expenses associated with providing transportation services. 

The drivers argue that the current arrangements make it difficult for many operators to earn sustainable incomes while meeting vehicle financing obligations and other daily expenses.

Beyond earnings, AUATON is seeking improved safety measures, better support for drivers involved in accidents, welfare protections and clearer explanations of how fares, commissions and other deductions are calculated.

The union has also appealed to fleet owners and managers to provide temporary relief from daily remittance obligations and operational targets during the strike, noting that drivers who suspend operations will not generate their usual income.

It warned that penalties imposed solely because drivers participated in the industrial action could worsen the financial difficulties confronting its members.

AUATON said it would deploy a task force across local government areas in Lagos to monitor compliance with the strike directive, while urging drivers, fleet operators and other stakeholders to maintain communication and pursue a peaceful resolution.

The action has prompted a response from Bolt, which acknowledged the concerns raised by drivers regarding earnings, operating costs, platform charges, transparency and welfare.

The company called for dialogue and proposed a roundtable discussion with AUATON and driver representatives to explore possible solutions. Reports available on Monday indicated that inDrive had not publicly responded to the strike in the same manner. 

The strike comes weeks after Uber ended its operations in Nigeria, adding another development to the country’s evolving app-based transport sector. However, the current action is directed at drivers’ participation in services on the affected platforms, rather than an announced shutdown of the applications themselves. 

The extent of the disruption will depend on how many drivers participate and how quickly the union and platform operators can reach an agreement. Commuters may face longer waiting times or fewer available vehicles if a substantial number of drivers remain offline.

AUATON maintained that its objective was not to disrupt businesses unnecessarily but to secure better earnings, fairer operating conditions and improved welfare for drivers.

The union called on the Lagos State Government, relevant federal authorities and labour institutions to support efforts to resolve the dispute, warning that the long-term sustainability of app-based transportation depends on addressing the concerns of the drivers who provide the vehicles and services.

As negotiations remain possible, the immediate challenge for the parties is to find an arrangement that addresses drivers’ operating costs and welfare concerns while maintaining reliable and accessible transport services for passengers.

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Written by Shola Akinyele

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