Contrary to recent reports that suggest Lagos state does not have existing e-hailing regulations, stakeholders have debunked the call for more regulations. According to them, the state has existing provisions but they do not favour all operators, especially the cab drivers.
According to reports, the South-West zonal chairman of the Amalgamated Union of App-based Transporters of Nigeria (AUATON), Kolawole Aina, had urged the state government to adopt the union’s collective agreement seeking the regulation of ride-hailing business in the state.
On the contrary, Lagos became the first state in Nigeria to formulate e-hailing regulations, far back in 2020. The founding Secretary-General of the Amalgamated Union of App-based Transporters of Nigeria, Comrade Ayoade Ibrahim who was at the front of agitations leading up to the institution of the regulation, confirmed this to Technext.
He, however, pointed out that the regulation did not carry any direct benefit for drivers.
“There have been regulations in Lagos State since 2020, as you mentioned. I was actively involved in the process, even leading the meeting with the Lagos government. However, due to the lack of a unified drivers’ union, we missed out on many opportunities allocated to drivers by the government. Additionally, the divided nature of drivers and the rules imposed by app companies hindered our progress. Moreover, since there was no registered union at the time, most of the regulations favoured the Internally Generated Revenue (IGR) of Lagos State, leaving drivers without benefits from the regulations,” Ayoade said.
Clarifying the AUATON’s position, the spokesperson of the Lagos state chapter of the union, Comrade Stephen Iwindoye, while admitting there is an existing regulation in place, said the regulations do not address the real problems of the drivers.
He explained that the South-West regional chairman was calling for drivers’ welfare to be considered in the regulation.
“Time has proven that the regulations did not address the real problem the drivers are facing on the job daily. The issue of security is not addressed completely, and the issue of algorithms, and decisions from the app company is not addressed. Activation and deactivation of Drivers at will by app companies, high commission and low trip fare rates and the issue of misclassification of drivers as independent contractors as against an employee are the real issues that need to be addressed,” he said.
The Lagos e-hailing regulations might be due for review
The Lagos e-hailing regulations might be due for review
Following a series of clampdowns on e-hailing drivers by the Lagos State Ministry of Transportation. in 2020, the state government announced that it was going to put in place regulations to guide e-hailing operations.
Following a series of engagements with stakeholders, a document was eventually released.
Titled GUIDELINES FOR ON-LINE HAILING BUSINESS OPERATION OF TAXI IN LAGOS STATE, the document addressed issues ranging from licensing of e-hailing companies like Uber and Bolt to registration of drivers, the standard of vehicles to be used for the business, certifications and qualifications required of drivers and several others.
But, as it turned out, not much was stipulated for the benefit of drivers.
For instance, there was nothing on pricing mechanism and commission to be extracted by the companies. Indeed, the only aspects directed at drivers were somewhat burdensome. For example, vehicles older than three years cannot be used for e-hailing.
This means drivers will bear the financial burden of changing vehicles every three years. Also, they are mandated to take them for checkups at least once a year, at their own expense.
“It’s laughable that the Lagos State Government thinks we can implement the new regulations, especially the requirement for new vehicles,” the founding general secretary of AUATON, Comrade Ayoade said. “Our economy can’t support it, and it’s unrealistic given the state of our roads, low demand, and the poor pricing mechanism imposed by the app companies. It’s clear that the government hasn’t considered the practical implications of their regulations on our businesses”, he added.
To compound the situation, the state government appears to be doing a poor job of implementing the provisions of its regulatory provisions. “Enforcement of regulations seems to be effective only when it favours the Lagos State Government“, Comrade Ayoade said.
This is indicated in how its agents harassed drivers to force Uber to grant access to its database. Eventually, it turned out that one of the main purposes of that exercise was to obtain accurate data that would enable it to charge its Road Maintenance Fee.
“Earlier in the year, they arrested Uber and Indrive drivers for non-compliance with API regulations, which is a key part of the regulation. While it seems like a positive development, the reality is that the government is focused on generating revenue from drivers, rather than protecting their interests. We’re essentially being exploited, and our welfare has been neglected,”
Going forward, the stakeholders are calling for a review of the 2020 e-hailing regulation to reflect current realities. The focus of such a review would be how the state’s regulation will benefit all parties.
For the drivers, this has to include a review of the 25% commission charged by the cab-hailing companies. It also has to include an agreed pricing mechanism, a provision for drivers’ health insurance and a comprehensive security mechanism.
