It is no news that Uber, the popular service that connects passengers and drivers is now in full operation in Nigeria (Uber Nigeria. Lagos for a start, Uber Lagos launched its UberBLACK, a high end transportation service that makes use of Mercedes Benz, Toyota SUVs to move riders from one location to another in a more comfy and luxurious atmosphere….
Techcity crew joined the #UberBlogTour and did a demo taking the Uber ride (video coming soon) and we have to say that the experience was awesome. So we would like our readers to experience this service too as we will be giving out N3,500 worth of Uber credit on all our social media platforms.
While you watch this space and our socialplatforms, below are a few questions and answers we feel readers will like to know about Uber service.
In short, how does Uber work?
Uber, a smartphone application that connects drivers to passengers in the area, was founded to solve the need for being able to get a reliable ride, wherever and whenever. All customers need to do is download the app to their smartphone. Upon request, a GPS-based dispatch built into the software simply sends the nearest driver to the requesting rider, as pinpointed on a Google map – for any neighbourhood. Specific to Lagos, we have UberBLACK which covers the high-end transportation segment using Mercedes / Toyota SUV, modern sedan vehicles and equivalent. We are all about giving riders choice when moving from A to B and we are leading the way in the future of mobility and how we think about transport in our cities.
Where and when did it start? In how many countries does it operate?
Uber started in San Francisco in 2009 and now operates in over 200 cities over 42 countries.
Why is Uber so successful?
Riders are constantly amazed at that they can get such a stylish ride at their doorstep in a matter of minutes – simply with the tap of a button. Our partner operators love working with us too because it helps build their business, making drivers more efficient and reliable.
Other cities are introducing lower priced products, in addition to UberBlack. Why don’t you do this here?
We’re proud of the Uber platform and the value it delivers consumers, the opportunity for riders, and the impact on cities. We are always working to optimize pricing in a way that means more residents and visitors can rely on the platform and drivers are doing more trips per hour and making more income. Whether it is lowering fares or introducing an entirely different product, we work based on what we think fits that particular city. The safety, quality and reliability will always be the same across the board.
Do you compete with taxis?
UberBLACK does not compete directly with taxi. Our pricing is different. We are giving customers another choice in how they get around, and growing the city’s transportation ecosystem. In that way we are creating a high-end segment of the market that enjoys the luxury and convenience of requesting a private car on demand. The amazing consumer response shows how valuable they’re finding this service. Because we partner with existing private car operators, we aren’t taking away any business away from private car hires but instead helping them grow theirs.
Are Uber taxi’s all privately owned and are all luxury models?
To clarify, Uber doesn’t own or operate vehicles, it has partners who operate on the Uber system. These partners are existing transporation providers who already have the required documentation to work as drivers. UberBlack is a high-end segment so all cars tend to be Lexus or equivalent.
Who is your target market here and how does your service in Nigeria compare to other countries?
Our target market is not specific as the app is beneficial to anyone looking for safe, reliable and comfortable transportation. In each city that Uber exists, there is a small team ensuring the quality and safety of the driver, car and of course, rider. You should feel the same quality.
What about the fact that the majority of people are not comfortable storing their credit cards online?
We believe that seamless, electronic payments make moving around Lagos easier for Uber customers. Uber riders have embraced this since our testing began here. We think that the fact we are cashless is extremely valuable and we see a general trend moving towards digital payments. Riders don’t have to worry about carrying cash, and can use the same Uber app and payment options in any of the 200+ cities around the world that we operate in. We are always exploring additional payment options, but also believe that we are at the leading edge of technology.
OPERATIONS AND PARTNER DRIVERS:
Do you have a Nigerian owner of your operations in Nigeria?
We are an international technology company that partners with local limousine companies, allowing for a safer, more reliable and more efficient mode of transportation for Lagos residents and visitors. Essentially, these companies are our local partners, of which we have many.
How many cars are part of your network?
What Uber is all about is matching supply and demand – the app is about connecting drivers and riders. As a technology company we bring added value by ensuring people get a ride when they need it. We don’t share the number of cars operating on our system, but Uber was founded to solve the need for being able to get a reliable ride, wherever and whenever. Sometimes, neighbourhoods have been difficult to get to or had no option for easy, reliable transportation. Now, with a GPS-based dispatch, it simply sends the nearest driver to the requesting rider – for any neighbourhood. Also, our recent lowering of prices also make the service accessible to more people who normally had been priced-out of a private car service.
How do you select your drivers and how many do you have?
Our partner drivers are all licensed exisiting transportation providers, licensed by the local transport authority. We are unable to disclose number of drivers but what I can tell you is that each driver is personally screened and trained by our team. In addition to this – When you order an Uber you get sent – via the app – a picture of the driver and his registration details so you know exactly who is driving you. When you are in the car you can send – via text message – a link to an online map where a friend or loved-one can track your entire journey via GPS. A driver is rated by the rider after every Uber trip. This means we are constantly monitoring and improving the quality of service to create an experience like never before.
How do you guarantee safety?
Safety is our number one priority. We are doing hundreds of millions of trips and Uber is by far the safest way to get around the city. We are always working hard to improve our safety processes and ensure that we are connecting riders with the safest ride on the road. We have a zero tolerance approach to instances where rider safety is compromised and we immediately terminate partnerships with these drivers. Drivers are aware of this zero tolerance approach and accordingly the system encourages professional and safe conduct by drivers.
REGULATORY/LICENSING:
What is your licensing like?
As a technology company, we don’t employ or license drivers but only work with the existing licensed supply to provide them with the efficiency and reliability of the Uber app, helping customers get safe rides when they need it. The technological innovation that is embedded in the Uber experience is about bringing a better service, better safety for passengers and complete and unrivalled price transparency using the current licensed supply in the market.
How closely do you work with the transport authority?
We are fully compliant with rules and regulations set forward by the Ministry of Transport and only work with drivers licensed by them.
How do you check if your drivers are fully licensed?
We have a robust system in place that asks drivers to provide us with all necessary documentation as proof. Drivers are then personally screened by the Uber team here in Lagos.
INTERNATIONAL NEWS:
How do the demonstrations by taxi owners overseas impact on the new and existing Uber services?
We are changing the way people think about getting around, and our type of disruption is bound to cause resistance by transport structures that have been in place for many years. Our priority in Lagos is to bring more choice to riders and great business to our partners.
Hasn’t Uber been banned in some markets?
- Uber is not illegal nor has it been banned in any market in Europe, Middle East or Africa in which it operates in
- The regulatory framework in many countries was designed in an era before smartphones existed, before apps and even before the internet
- Uber is so new and innovative many regulators are playing catch-up with such products
- What is behind regulation is public safety which is where Uber goes above and beyond. Uber is the gold-standard when it comes to safety features
- There are many different Uber products including licensed private-hire vehicles such as in Nigeria. Both are highly innovative and technologically advanced products that are helping to build the smart cities of the future
Are you going to launch only one product in Nigeria or you have plans to launch others? If not, are you going to wait for a change in the law to launch other of your products?
Uber is an ambitious company and we believe in choice and we want the people of Lagos to have more choice
- Choice is a beautiful thing; it means more competition which means that everyone has to up their game
- For the time being we are launching UberBLACK in Lagos which is at the higher end of the luxury scale; its one of the several different products that we provide
- However, we know already that there is high demand for our services in Lagos thus you’ll have to watch this space for future news about what we do in Lagos
How many people are you going to hire and what will be Uber’s investment in Nigeria?
Uber has a team working in Nigeria; we employ local people wherever we are and are working on doing that in Lagos
- We’re a growing company so always on the lookout for great people who want to help expand Uber
- We have empowered hundreds of thousands of drivers around the world and we are really proud to be doing that now in Lagos
- Drivers lover Uber because of the flexibility of the service; they can work whenever they want and are not obliged to work in shifts. This means that they can log-on and off when they choose to do so giving them amazing flexibility in their lives
Do you already have drivers signed up?
Yes, the service is up and running as we speak
- We’ve just launched in Lagos so we expect a lot of demand! This means that drivers will be in high demand so there might be unexpected delays whilst we get the service up and running
- We are already getting loads of interest from drivers in Lagos who have heard about Uber and want to work with us
- As time goes on and the business grows we hope to get lots more drivers working with us
Which entities / authorities have you already met? And what issues have you discussed with them? What was the outcome of these discussions? Were they successful?
We can’t comment on private discussions with regulators or law makers but what we can say is that we know that Lagos is a forward-thinking progressive country and its citizens want smart solutions for the smartphone era
- Currently in Lagos Uber is offering a licenced product; we are working with private-hire vehicle providers
- Uber is about building the cities of the future where technological innovation is the cornerstone of how people get around cities
- The cities of tomorrow are being built today and Uber is an integral part of that vision
Why are you only launching in Lagos?
Uber is an ambitious company. We’re in over 200 cities in 42 countries already
- We know that Lagos loves Uber and have been overwhelmed with the interest in our services
- Who knows what the future may bring but we want Uber to be everywhere – including in Nigeria- so you’ll have to ‘watch this space’ so I can’t comment on our future plans
What security warranties do you give to passengers?
Uber is the ‘gold standard’ when it comes to consumer safety and this is all because of technological innovation inside the app.
- Firstly: Once you’ve ordered an Uber you get on the app the details of the driver including his picture, name and registration. This means you are 100% sure you are getting into the right car.
- Secondly: at the end of the trip you instantly receive an email with an overview of your journey including a map with a red line showing the exact and complete journey the driver took.
- Thirdly: any rider can send – via a text message – a link which allows a friend, relative or loved one to track in real time the exact journey the car is taking via GPS.
Are drivers exclusive to Uber?
Uber prides itself on being offering a flexible working arrangement to all of its drivers which is why no driver works ‘for’ Uber
- Drivers simply log-on via a smartphone – which we provide – in their cars and with a couple of taps on the driver app are automatically connected with riders
- They can work for as little or as much as they like; they are completely free to decide
What are Uber’s goals for its business in Nigeria? (turnover, number of drivers and passengers)
Uber does not employ drivers, but instead provides the technology and app that enable independent drivers to find riders in their vicinity.
- We don’t provide specific details of how many drivers use the Uber platform but we expect supply and demand to grow quickly in Lagos
- But the real issue is about getting a car when people need it and this is where the technology is so important: our aim is to get the ‘estimated time of arrival’ to as little time as possible.
- Its not about numbers of cars; its about ensuring cars are available when people want them wherever and whenever they are.
In Brussels Uber’s activity has been suspended by authorities, with the potential fine for passengers lying at €10K. How confident are you that this will not happen in Nigeria?
- Uber is not illegal nor has it been banned in any market in Europe in which it operates in
- We are here to talk about Lagos and I’m sure you can understand that we can’t comment on legal processes in other countries
- But what I can say is that the regulatory framework in many countries was designed in an era before smartphones existed, before apps and even before the internet
- Uber is so new and innovative many regulators are playing catch-up with such products
- There are many different Uber products including licensed private-hire vehicles such as in Lagos, but we also have a ridesharing product which is available in Brussels.
- Both are highly innovative and technologically advanced products that are helping to build the smart cities of the future
Why have you only launched UberBLACK in Nigeria? Is it for fear of the taxi drivers’ response? Or because you admit that the other services in Nigeria are illegal?
- The decision to launch UberBLACK and not other services yet is based on a variety of factors
- But its important to understand that Uber products are not illegal: we have not been banned in any of the markets we operate in
- This is about giving the people of Lagos another choice in how they get around their great city
- We love choice, it’s a beautiful thing. More choice means more competition which means that everyone has to up their game and the winner is the consumer
How will you select drivers and based on what criteria?
- We work with only the highest quality professionals
- We have certain minimum standards for the type of car and the service provided by the driver
- At the end of every trip the rider gets to rate the driver; this means that we can ensure the highest standards for all the trips taken via the Uber app
Has Uber already gained a licence to operate in Nigeria?
- Uber is fully legal in all of the entities in which it operates including in Nigeria
PRICE
What are your rates and how do they compare with the normal taxi or limousine tariffs
Current rates vs. New Promotional Pricing
Current Rates:
Base Fare: N1000
Per KM: N250
Per Minute: N10
Minimum Fare: N1000
New Promotional Pricing – 1 month period
Base Fare: N500
Per KM: N125
Per Minute: N10
Minimum Fare: N500
We are giving Lagos residents and visitors an alternative choice in transport, and our goal is to deliver on safety, reliability and convenience and the overall quality of service.
Will you lower fares like in other markets?
Right now we are introducing promotional pricing in the lead up to Nigeria celebrating its independence. We are always exploring ways we can make our technology more accessible. Some markets lower fares, while other markets introduce a lower priced segment depending on the existing supply. We are looking at what works best for Lagos.