Uber Announces Increase In Fare Following Subsidy Removal

Transport company, Uber has officially announced that it has increased fares following subsidy removal to ensure that drivers can cover their fuel costs and deal with inflation.

Tope Akinwumi, Country Manager for Uber in Nigeria, said on Thursday that this increase in fare will help the driver community, considering the fuel prices have skyrocketed after subsidy removal announcement by the new president, Bola Ahmed Tinubu.

"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," Akinwumi said, Punch reported.

He added, "Following an in-depth review of the current fuel subsidy removal, Uber updated fares on the 3rd and 9th of June on the app to reflect existing economic conditions. We believe these changes have helped better support drivers in increasing their earning opportunities."

Furthermore, the company has mentioned that it lowered the service fee in February last year from 25% to 20% to help enable better-earning opportunities for drivers. Service fee helps to run the Uber App while maintaining its cost and enhancing technology over the period of time, for riders as well as drivers.

Akinwumi also shared that the company "wants 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."

The country manager further explained that the company is constantly monitoring local dynamics to learn when to implement what changes. He also claimed that Uber drivers get to earn more on their platform, compared to other ride-hailing companies in Nigeria like Bolt, Lyft, and Gokada.

Former President Buhari announced his plan to remove subsidies in 2022 as part of fiscal and petroleum sector reforms but abandoned it because of fears of protests during the presidential election held on Feb. 25.

However, Buhari stepped down from his position and Tinubu was sworn in as the 16th President of Nigeria on May 29. Shortly after the inauguration ceremony, subsidy removal was announced.

Following the subsidy removal, petrol prices increased from N195 per litre to N600 per litre in several parts of Nigeria.