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Nigeria’s fast-growing ride-hailing industry – dominated by platforms such as Uber, Bolt and inDrive – is facing mounting strain as soaring fuel prices, inflation, and operational costs trigger widespread driver unrest and growing dissatisfaction among commuters.
The crisis deepened at the weekend as the Amalgamated Union of App-Based Transporters of Nigeria (AUATON) declared a three-day strike across Lagos and Ogun states, protesting what it described as poor working conditions and unsustainable fares offered by ride-hailing platforms.
The coordinated action saw many drivers log off apps, disrupting services in key urban centres and leaving commuters stranded.
At the heart of the disruption is Nigeria’s escalating cost of fuel, worsened by global oil price volatility and recent geopolitical tensions.
The ongoing tensions between the United States and Iran have driven crude oil prices upward in recent weeks, with petrol prices in Nigeria reportedly rising by nearly 50 per cent within a short period.
For drivers, the consequences have been severe. Many say their earnings have been eroded by the rising cost of petrol, vehicle maintenance, inflation, and platform commissions that can climb as high as 25–30 per cent per trip.
AUATON has now presented a 10-point list of demands to ride-hailing companies and government authorities. Central to these demands is an immediate fare review that reflects the realities of current fuel prices, maintenance costs, and inflationary pressures.
The union is also calling for a reduction in commission charges, the introduction of a regulated minimum base fare to prevent extremely low-paying trips, and improvements in rider verification systems.
Other demands include the deployment of functional emergency panic buttons, faster response mechanisms to security threats, and comprehensive accident, health, and life insurance coverage for drivers while they are active on ride-hailing platforms.
Industry observers note that these grievances are not new. A similar standoff occurred in 2023 following the removal of fuel subsidy in Nigeria, which triggered a sharp rise in petrol prices. Although ride-hailing companies adjusted fares at the time, drivers argued that the increases were insufficient and did not reflect the full impact of operating costs.
That period also saw the emergence of a controversial practice, where drivers, after accepting trips on apps, negotiated fares offline with passengers to bypass platform commissions – an approach that appears to be resurfacing amid the current crisis.
While drivers grapple with economic pressures, passengers are increasingly facing the consequences through erratic service, higher fares, and what many describe as declining professionalism among drivers.
“I use Bolt almost every day to get to work,” said Adebayo Olumide, a Lagos-based banker. “But these days, the experience is frustrating. Drivers cancel trips at will, especially if they feel the fare is too low. Sometimes you wait 20 minutes, only for the ride to be cancelled without explanation. It never used to be like this. It feels like the system is breaking down.”
Another commuter, Bruno Okafor, who frequently uses Uber for business trips, expressed concern over the changing conduct of drivers.
“There’s a noticeable shift in attitude,” he said. “Many drivers now spend the entire trip complaining – about fuel costs, about commissions, about how the job is no longer profitable. I sympathise with them, but as a customer, it makes the journey uncomfortable. Some even ask you to cancel the ride and pay them directly in cash. That raises safety concerns and removes the transparency the apps are supposed to provide.”
For Vivian Ortega, a university student who relies on inDrive for its price negotiation feature, the unpredictability has become a daily challenge. “You agree on a price through the app, but when the driver arrives, they may start arguing that the fare is too low because of fuel,” she said. “A few have insisted I cancel and pay them offline instead. It puts you in a difficult position because you either agree or risk being stranded. It’s stressful and unreliable.”
Nigeria remains one of Africa’s largest ride-hailing markets, with Lagos – home to over 20 million people – serving as its primary hub.
The sector has expanded rapidly over the past decade, providing flexible employment for thousands and offering commuters an alternative to traditional transport systems.
However, analysts warn that the current crisis exposes deep structural issues in the pricing model of ride-hailing platforms, particularly in volatile economic environments.
Some drivers have already exited the platforms entirely, while others continue to operate under increasing strain.
