2 days ago, StartupsVibes published a story about the melodrama happening between Nigeria’s top-notch transport-app and its union of drivers. If you missed it, the conversation states Our Drivers Are Freelancers Not Employees, Bolt Insists. Read Full Gist Here
The whole melodrama started back in June of this year. Take a glimpse from the whole drama.
“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.”
It seems the removal of the fuel subsidy has done more harm than good in the country.
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In a strategic move to alleviate the impact of soaring fuel prices on its drivers, Bolt Nigeria has introduced a fuel subsidy bonus campaign in Lagos and Abuja. The ride-hailing platform aims to assist drivers in mitigating the challenges posed by the removal of the fuel subsidy, announced by Nigeria’s President, Bola Ahmed Tinubu.
The campaign, scheduled to run through the remaining days of the year, offers Bolt drivers in Lagos and Abuja the opportunity to earn a subsidy bonus of up to ₦10,000 ($12.64) by completing 50 trips within a week. This initiative follows Bolt Nigeria’s recent clarification that its drivers operate as independent contractors, not employees.
Yahaya Mohammed, Bolt Nigeria’s Country Manager, emphasized the importance of supporting drivers amidst economic uncertainties, stating,
“Drivers are at the core of our business, and we want to see them succeed and grow their earnings. The increasing fuel prices in the country is one of the motivations behind the campaign to support our driver-partners. We understand the current economic situation, and as always, we are committed to [helping] our driver-partners earn more.”
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The fuel subsidy bonus campaign is part of Bolt’s ongoing commitment to enhancing driver earnings. Over 6,000 drivers are expected to benefit from the initiative, with the potential to claim up to ₦40,000 each at the end of the year. This move follows the company’s earlier “Drive for a Prize Challenge” launched in September, where drivers had the opportunity to win various prizes, including mobile phones and home appliances.
Despite these efforts by Bolt Nigeria, questions remain about whether such initiatives will be sufficient to address the concerns of drivers who previously staged a warning strike in June 2023. During the strike, ride-hailing drivers, including those affiliated with Bolt, advocated for a 200% increase in the base fare and a 50% reduction in company-charged commissions. In response to the strike, Bolt increased its minimum fare prices across nine cities, including Lagos and Abuja.
As drivers evaluate the impact of these support campaigns, the question lingers as to whether they will be enough to prevent potential future strikes or dissatisfaction among the ride-hailing workforce. Bolt Nigeria continues to navigate the evolving landscape of the gig economy, seeking a delicate balance between meeting driver demands and maintaining the sustainability of its business model.
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Its gets interesting with this update, cause Lagos and Abuja are hotbeds for ride hailing service operators and we can expect drivers to be working overtime with the holidays mandating more travel time and drivers will hopefully cash-out. That is if they don't take time off during the holidays.
This conversation gets more interesting with this update, cause Lagos and Abuja are hotbeds for ride hailing service operators and we can expect drivers to be working overtime with the holidays mandating more travel time and drivers will hopefully cash-out. That is if they don't take time off during the holidays. So fasten your seatbelts, this is going to be a long ride.