Our Drivers Are Freelancers Not Employees, Bolt Insists. Read Full Gist Here
Just like they say in Nigeria, “Wahala No Dey Finish”. There is always something to debate or argue over. Last week it was the NIBSS vs. Fintechs. This week it is the App-based transportation ecosystem.
So, Bolt, the ride-hailing superstar, and the Amalgamated Union of App-based Transporters of Nigeria (AUATON) are in a bit of a tussle. They’ve been going back and forth over the job status of their drivers. If you are asking why, well, Bolt joined a new union in August 2023, and things got a bit complicated. Let’s dive into why Bolt is so adamant that its drivers are more like freelancers than employees.
Bolt’s Side of the Story:
Meet Weyinmi Aghadiuno, Bolt’s Senior Public Policy Manager. According to Weyinmi, the drivers aren’t exactly your typical 9-to-5 employees. Nope, they’re more like independent contractors, doing their own thing. Bolt insists it wasn’t trying to rain on AUATON’s parade but just wanted to clear up how they see their drivers. The question now is, why this job status dilemma anyway? I’ll get to the power play soon, but let’s check out why the change of Union name.
Union Makeover:
AUATON used to be AUATWON, but in August 2023, they did a makeover and changed their name. Now, they cover all gig workers in the transportation biz, not just the drivers. A bit of an expansion, you could say.
Now to the Power Play:
In the usual work setup, unions have this cool power called collective bargaining. It’s like a negotiation superpower. But here’s the twist – Bolt says AUATON doesn’t have this power because they’re not a typical worker’s union. According to Bolt, their drivers are doing their own thing, and Bolt isn’t exactly the boss boss.
That Brings Us to the Two Sides of the Coin:
Bolt and its drivers see this like two friends with different opinions. Bolt wants to keep the ride prices in check so passengers don’t bail because of high fares. The drivers, represented by AUATON, went on strike wanting more money – a 200% increase in base fare and a 50% cut in commissions.
Editor’s Choice
All these happened in June, 2023. If you were unaware of the issue, let me run a quick recap.
“Bolt’s Country Manager, Yahaya Mohammed, said too-high prices might scare off passengers and hurt drivers’ earnings. This was in response to a nationwide strike on June 7, 2023, by ride-hailing drivers, including those from Bolt, who were asking for a 200% fare increase. The strike, organized by the Amalgamated Union of App-based Transport Workers of Nigeria (AUATWON), came after the petrol subsidy was removed, leading to a fuel price hike. In reaction, Bolt increased fares on June 2, 2023. During the strike, some Bolt drivers got bonuses up to ₦6,000, which raised questions about potential attempts to break the union. While drivers wanted higher fares to cope with increased fuel costs, balancing affordable prices for passengers and fair compensation for drivers remained a challenge for ride-hailing platforms.”
So, Back to Fueling the Dilemma:
Bolt’s saying, “Hold on, let’s not jack up the prices because that might scare off passengers.” Makes sense, right? They’re trying to balance things out between drivers and riders, especially with fuel prices playing tricks on everyone.
Now We Left With The Question:
As this drama unfolds, we’re left wondering how AUATON and the drivers will respond to Bolt’s stance. Can they find a middle ground that keeps everyone happy? Only time will tell.
So there you have it – the lowdown on why Bolt is sticking to the “independent contractor”for its drivers. Let’s see where this rollercoaster ride takes us!
Oh! Before you book that next Bolt Ride, Check This Out >>> How Startups Can Make Huge Sales This Festive Period Despite High Prices Of Commodities