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Home News

Uber Nigeria Confirms Increase In Fares

The fare adjustment is designed to help drivers cover rising operating costs and is part of their ongoing efforts to support their driver community.

byGLAMTUSH
June 22, 2023
in News, Nigeria News
Reading Time: 2 mins read
Uber Nigeria
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Uber Nigeria has confirmed an increase in fares.

 

Glamtush reports that Uber Nigeria has announced an increase in fares between June 3rd and June 6th, aimed at assisting drivers who are grappling with the challenges posed by inflation and the recent fuel price hike.

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This online newspaper understands that the company’s decision reflects its commitment to providing better earning opportunities for drivers while maintaining an affordable service for riders.

According to Uber, the fare adjustment is designed to help drivers cover rising operating costs and is part of their ongoing efforts to support their driver community.

In a statement attributed to Tope Akinwumi, Country Manager for Uber in Nigeria, he said:

  • “Drivers are at the heart of everything we do, and we continue to work on initiatives and engage with drivers to help make Uber the app of choice for drivers while maintaining an affordable service for riders.
  • “Following an in-depth review of the current fuel subsidy removal, Uber updated fares on the 3rd and 9th June on the app to reflect existing economic conditions.
  • “We believe these changes have helped better support drivers in increasing their earning opportunities. Furthermore, we lowered the service fee in February 2022 from 25% to 20% to help enable better-earning opportunities for drivers.
  • “We want the best for drivers who operate on the Uber platform and frequently engage with them directly through roundtables, surveys, phone, and in-app channels to better understand and receive feedback on the realities they face in their businesses.”

Why did Uber increase fares?

According to Uber, the June 2023 fare increases are designed to help drivers cover the recent increase in fuel costs, not the entire cost of fuel.

The company also said that it is constantly monitoring local dynamics to see what changes can be implemented and when.

Uber also said that its service fee ensures the running of the Uber App and helps it maintain and make continuous investments to enhance its technology designed to meet the needs of riders and drivers.

The company claimed that drivers on its platform earn more than other ride-hailing platforms in Nigeria.

 

Glamtush reports that Uber is one of the leading ride-hailing platforms in Nigeria, offering services such as UberX, Uber Comfort, Uber Greenlight Hubs, and Uber Cash. The company has faced competition from other players such as Bolt, InDrive, and Gokada.

 

Recall that in 2022, the ride-hailing company had several fare increases to help drivers with the spike in operating costs. Following the hike in fuel price at N500/L, inflation of 22.41%, the news fares is a reflection of the current macroeconomic reality in Nigeria.

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