UBER DISSOCIATES FROM DRIVE-TO-OWN FEE HIKE.(PHOTO).

 Uber dissociates from drive-to-own fee hike

Uber has distanced itself from a 100% increase in daily remittance fees under its Drive-to-Own scheme, saying the decision rests with Moove, a third-party fleet partner operating on its platform.

The rise, from N9,400 to N18,700, has sparked opposition from the Amalgamated Union of App-Based Transporters of Nigeria, Lagos State Chapter. At a press briefing on Monday, the union described the increase as exploitative and said it placed drivers under severe financial strain.

“Uber and Moove cannot continue to pursue profitability at the expense of human dignity, public safety, and workers’ rights,” Comrade Steven Iwindoye, the union’s public-relations officer, said. The union also criticised the move for being imposed without consultation, without corresponding fare adjustments, and without reductions in Uber’s commission.

An Uber spokesperson told The PUNCH in an email that the company is actively exploring opportunities to help ensure drivers continue to access earning opportunities while maintaining service for passengers.

“The decision to increase rental prices rests solely with Moove, an independent third-party fleet partner operating on the Uber platform. Drivers are at the heart of what we do, and we recognise the impact this change may have on them,” he said.

Moove did not respond to requests for comment.

The partnership between Uber and Moove for the drive-to-ownership deal in Nigeria, first announced in July 2020, was designed to lower barriers to car ownership for potential and current Uber drivers in sub-Saharan Africa, including Nigeria, by providing long-term access to vehicles.

Moove is a mobility fintech company that provides financing solutions for drivers, especially in the ride-hailing sector. In the context of Nigeria, Moove partners with companies like Uber to enable drivers to access vehicles through Drive-to-Own schemes. Essentially, Moove finances the car purchase or lease for drivers, who then pay a daily or weekly remittance until they own the vehicle.

The dispute highlights the tensions inherent in gig-economy platforms, where drivers bear costs set by intermediaries rather than the platform itself.

Drivers also accused Uber/Moove of deducting fees for a health maintenance organisation without enrolling drivers in any health scheme. “Drivers are being charged for healthcare they cannot access. This is both a breach of trust and a failure in corporate responsibility,” Iwindoye said.

Further, AUATON alleged manipulation of repayment records under the DTO scheme, which prolongs repayment periods and traps drivers in debt. Drivers are required to work a minimum of 72 hours weekly and complete 82 trips per week, a condition the union described as unsustainable and unsafe, increasing the risk of accidents due to fatigue.

The union also criticised the higher commission rate charged to DTO drivers, who pay 33.33 per cent, compared with 25 per cent for regular Uber drivers. “This discriminatory practice further reduces the limited income available to DTO drivers and constitutes economic exploitation,” Comrade Iwindoye added.

AUATON demanded the immediate reversal of the daily remittance to N9,400, proper enrolment of all drivers paying for HMO services, and assurance that such deductions translate into actual health coverage. The union also called for a transparent audit and correction of manipulated repayment records to restore trust, a reduction in mandatory weekly hours and trip targets to align with global occupational safety standards, and harmonisation of commission rates so DTO drivers are not unfairly charged more than regular Uber drivers.

The union gave Uber/Moove 72 hours to open formal dialogue with its representatives, warning that an indefinite industrial action would follow five working days after the press statement if no progress is made.

Comrade Iwindoye said, “This is not just a labour issue; it is a social justice issue. We remain open to dialogue, but we will not hesitate to defend our members through lawful industrial action if necessary.”

AUATON called on the Federal Ministry of Labour and Employment, the Lagos State Government, the Nigeria Labour Congress, and the general public to intervene and hold Uber/Moove accountable. They emphasised that while the union supports innovation and the role of app-based transport platforms in Nigeria’s economy, technology should not be used as a “cover for exploitation”.

“Together, we can ensure that app-based transportation in Nigeria thrives, not on the backs of exploited workers, but on a foundation of justice, fairness, and mutual respect,” Iwindoye stated.