In the drive for improved driver welfare, AUATON, the Nigerian app workers union, has urged Uber and Bolt to reduce driver commissions. The union claims that high commission rates leave drivers with minimal returns, particularly in light of rising fuel prices and vehicle maintenance costs, while generating substantial revenue for these companies.
AUATON’s Financial Secretary, Comrade Danbaba, estimates that Uber and Bolt collect around 36 billion naira annually through commissions charged on rides. With approximately 10,000 active drivers in Lagos generating 400 million naira daily, a 25% commission allows these companies to earn about 100 million naira per day. The union argues that if Uber and Bolt were to reduce driver commissions to 5-10%, it would ensure more livable earnings for drivers without impacting company profitability significantly.
Lowering the commission to 10% would still yield 1.2 billion naira monthly for the companies, according to AUATON’s calculations. The union believes that maintaining the current rate encourages drivers to take offline trips, compromising their safety to avoid excessive charges.
AUATON also accuses Uber and Bolt of profiting disproportionately while drivers face financial strain. The union insists that if the companies fail to reduce driver commissions, they will consider industrial actions and potentially move to alternative platforms.